Glossary

Acquisition

The acquiring of supplies or services by the federal government with appropriated funds through purchase or lease.

ANC – Alaska Native Corporation (ANC) and Indian Tribes

1 of 13 corporations organized under the laws of the state of Alaska in accordance with the Alaska Native Claims Settlement Act. Considered a minority and economically disadvantaged concern regardless of size.

Affiliates

Business concerns, organizations, or individuals that control each other or that are controlled by a third party. Control may include shared management or ownership; common use of facilities, equipment, and employees; or family interest.

Best and Final Offer

For negotiated procurements, a contractor’s final offer following the conclusion of discussions.

Certificate of Competency

A certificate issued by the Small Business Administration (SBA) stating that the holder is “responsible” (in terms of capability, competency, capacity, credit, integrity, perseverance, and tenacity) for the purpose of receiving and performing a specific government contract.

Certified 8(a) Firm

A firm owned and operated by socially and economically disadvantaged individuals and eligible to receive federal contracts under the Small Business Administration’s 8(a) Business Development Program.

Contract

A mutually binding legal relationship obligating the seller to furnish supplies or services (including construction) and the buyer to pay for them.

Contracting

Purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes the description of supplies and services required, the selection and solicitation of sources, the preparation and award of contracts, and all phases of contract administration. It does not include grants or cooperative agreements.

Contracting Officer

A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings.

Contractor Team Arrangement

An arrangement in which (a) two or more companies form a partnership or joint venture to act as potential prime contractor; or (b) an agreement by a potential prime contractor with one or more other companies to have them act as its subcontractors under a specified government contract or acquisition program.

Defense Acquisition Regulatory Council (DARC)

A group composed of representatives from each Military department, the Defense Logistics Agency, and the National Aeronautics and Space Administration and that is in charge of the Federal Acquisition Regulation (FAR) on a joint basis with the Civilian Agency Acquisition Council (CAAC).

DCMA – Defense Contracting Management Agency

DCMA is an independent combat support agency within the Department of Defense (DoD) responsible for ensuring Federal acquisition programs, supplies, and services are delivered on time, within cost and meet performance requirements.

Defense Contractor

Any person who enters into a contract with the United States for the production of material or for the performance of services for the national defense.

DFARS – Defense Federal Acquisition Regulations

  • DFAR Clause 252.219-7003 – Small, Small Disadvantaged and Woman-Owned Small Business Subcontracting Plan
  • DFAR Clause 252.226-7000 – Notice of Historically Black College or University and Minority Institution Set-Aside
  • DFARS Clause 252.226-7001 – Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native Hawaiian Small Business Concerns

DoD – Department of Defense

  • FAR Federal Acquisition Regulation – was established to codify uniform policies for acquisition of supplies and services by executive agencies. It is issued and maintained jointly under the statutory authorities granted to the Secretary of Defense, Administrator of General Services and the Administrator, National Aeronautics and Space Administration. Statutory authorities to issue and revise the FAR have been delegated to the Procurement Executives in DOD, GSA and NASA.
  • FAR Clause 52.219-8 FAR Clause 52.219-8 – Utilization of Small Business Concerns (Clause 52.219-8)
  • FAR Clause 19.102 FAR Clause – 19.102 – Size standards
  • FAR Clause 52.219-9 FAR 52.219-9 – Small Business Subcontracting Plan (Clause 52.219-9)

DoD OSBP – Department of Defense Office of Small Business Programs

They advise the Secretary of Defense on all matters related to small business and are committed to maximizing the contributions of small business in DoD acquisitions. They provide leadership and governance to the Military Departments and Defense Agencies to meet the needs of the nations’s warfighters, creating opportunities for small businesses while ensuring each tax dollar is spent responsibly.

Electronic Data Interchange

Transmission of information between computers using highly standardized electronic versions of common business documents.

Emerging Small Business

A small business concern whose size is no greater than 50 percent of the numerical size standard applicable to the Standard Industrial Classification code assigned to a contracting opportunity.

Equity

An accounting term used to describe the net investment of owners or stockholders in a business. Under the accounting equation, equity also represents the result of assets less liabilities.

Fair and Reasonable Price

A price that is fair to both parties, considering the agreed-upon conditions, promised quality, and timeliness of contract performance. “Fair and reasonable” price is subject to statutory and regulatory limitations.

Federal Acquisition Regulation (FAR)

The body of regulations which is the primary source of authority governing the government procurement process. The FAR, which is published as Chapter 1 of Title 48 of the Code of Federal Regulations, is prepared, issued, and maintained under the joint auspices of the Secretary of Defense, the Administrator of General Services Administration, and the Administrator of the National Aeronautics and Space Administration. Actual responsibility for maintenance and revision of the FAR is vested jointly in the Defense Acquisition Regulatory Council (DARC) and the Civilian Agency Acquisition Council (CAAC).

Full and Open Competition

With respect to a contract action, “full and open” competition means that all responsible sources are permitted to compete.

GFY – Government Fiscal Year

GFY starts October 1st and ends September 30th.

HUBZone – Historically Underutilized Business Zone Small Business

Historically Underutilized Business Zone (HUBZone) Small Business – small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administration. These small business concerns are located in economically distressed areas.

IIP – Indian Incentive Program

The Department of Defense (DoD) Indian Incentive Program (IIP) strives to provide opportunities to Indian organizations and Indian-owned economic enterprises, by providing for the payment of 5 percent of the amount subcontracted to an Indian organization or Indian-owned economic enterprise at any sub-tier, when authorized under the terms of the contract. (FAR clause 52.226-1).

Intermediary Organization

Organizations that play a fundamental role in encouraging, promoting, and facilitating business-to-business linkages and mentor-protégé partnerships. These can include both nonprofit and for-profit organizations: chambers of commerce; trade associations; local, civic, and community groups; state and local governments; academic institutions; and private corporations.

Joint Venture

In the SBA Mentor-Protégé Program, an agreement between a certified 8(a) firm and a mentor firm to perform a specific federal contract.

Large Business

A business which in not classified as a small business by the Small Business Administration

Mentor

A business, usually large, or other organization that has created a specialized program to advance strategic relationships with small businesses.

Minority Owned Business

A small business that is at least 51 percent unconditionally owned by one or more individuals who are both socially and economically disadvantaged, or a publicly owned business that has at least 51 percent of its stock unconditionally owned by one or more historically underutilized (socially and economically disadvantaged) individuals and has its management and daily business controlled by one or more such individuals. A minority owned business is also a small business that is at least 51 percent unconditionally owned by an economically disadvantaged Indian Tribe or Native Hawaiian Organization, or a publicly owned business that has at least 51 percent of its stock unconditionally owned by one of these entities, that has its management and daily business controlled by members of an historically underutilized (economically disadvantaged) Indian Tribe or Native Hawaiian Organization, and that meets the Small Business Administration regulations.

NAICS - North American Industry Classification System

Beginning in 1997, the Standard Industrial Classification (SIC) was replaced by the North American Industry Classification System (NAICS). This six digit code is a major revision that not only provides for newer industries, but also reorganizes the categories on a production/process-oriented basis. This new, uniform, industry-wide classification system has been designed as the index for statistical reporting of all economic activities of the U.S., Canada, and Mexico.

Negotiation

Contracting through the use of either competitive or other-than-competitive proposals and discussions. Any contract awarded without using sealed bidding procedures is a negotiated contract.

OSDBU – Office of Small and Disadvantaged Business Utilization

The mission of the OSDBU is to advise the Secretary of Defense on all matters related to small business, represent the Secretary of Defense on major small business matters addressed at the OSD level, develop DoD-wide small business policy and provide oversight to ensure compliance by all military departments and defense agencies, provide Military Departments, Defense Agencies, and Procurement Technical Assistance Centers (PTACs) with training and tools to foster an environment that encourages small business participation in defense acquisition.

Partnering

A mutually beneficial business-to-business relationship based on trust and commitment and that enhances the capabilities of both parties.

Prime Contract

A contract awarded directly by the Federal government.

PRO-Net – Procurement Marketing and Access Network

PRO-Net is the Small Business Administration’s database of Small Business concerns. You can search by NAICS, keywords, and numerous other data elements.

Protégé

A firm in a developmental stage that aspires to increasing its capabilities through a mutually beneficial business-to-business relationship.

Public Law 95-507Provides the maximum extent practical opportunity for small and small disadvantaged businesses to compete

Public Law 100-656Provides liquidated damages against prime contractors for not making goals and/or not making a good faith effort towards goals

Public Law 103-355Provides for Women-Owned Small Business Goals

Public Law 105-535Provides for HUBZone Goals

Public Law 106-50Provides for Veteran Owned Small Business Goals (amended in 2001 to include Service Disabled Veteran Owned Small Business Goals)

RFPRequest for Proposal

A document outlining a government agency’s requirements and the criteria for the evaluation of offers.

SBA – Small Business Adminstration

US Small Business Administration mission is to maintain and strengthen the nation’s economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.

SBLO – Small Business Liaison Officer

SBC – Small Business Concern

Small Business Concern as defined pursuant to Section 3 of the Small Business Act and relevant regulations (typically under 500 employees or number of employees or average annual receipts do not exceed the size standard in 13 CFR Part 121). See the FAR Clause 19.102 Size standards.

SCORE

Counselors to America’s Small Business is a 12,400-member volunteer association sponsored by the SBA. SCORE matches volunteer business-management counselors with present prospective small business owners in need of expert advice.

SDB - Small Disadvantaged Business Concern

SDBs are at least 51% owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly-owned business that has at least 51% of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and whose management and daily business is controlled by one or more such individuals. SDBs are self certified.

SDVOSB – Service Disabled Veteran Owned Small Business

A small business that is:

  1. Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and
  2. The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.

SD Program – Supplier Diversity Program

Small Business

A business smaller than a given size as measured by its employment, business receipts, or business assets.

Small Business Development Centers (SBDC)

SBDCs offer a broad spectrum of business information and guidance as well as assistance in preparing loan applications.

Small Business Innovative Research (SBIR) Contract

A type of contract designed to foster technological innovation by small businesses with 500 or fewer employees. The SBIR contract program provides for a three-phased approach to research and development projects: technological feasibility and concept development; the primary research effort; and the conversion of the technology to a commercial application.

Small Disadvantaged Business Concern

A small business concern that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly owned business that has at least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and whose management and daily business is controlled by one or more such individuals.

Standard Industrial Classification (SIC) Code

A code representing a category within the Standard Industrial Classification System administered by the Statistical Policy Division of the U.S. Office of Management and Budget. The system was established to classify all industries in the US economy. A two-digit code designates each major industry group, which is coupled with a second two-digit code representing subcategories.

Subcontract

A contract between a prime contractor and a subcontractor to furnish supplies or services for the performance of a prime contract or subcontract.

WOSB Women-Owned Small Business

A small business that is:

  1. That is at least 51 percent owned by one or more women, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and
  2. Whose management and daily business operations are controlled by one or more women.

VOSB Veteran Owned Small Business – small business concern:

  1. Not less than 51 percent of which is owned by one or more veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more veterans;
  2. The management and daily business operations of which are controlled by one or more veterans.