Federal Contracting Glossary — 48 Terms Defined
Plain-language definitions of the terms a Service-Disabled Veteran-Owned Small Business encounters across certification, set-asides, size standards, procurement, contract vehicles, and compliance — each grounded in the regulation it comes from.
Last updated Update cadence: Quarterly, plus on regulatory changes
Compiled from: 13 CFR (Parts 121, 125, 128) and 38 CFR Part 74 · Federal Acquisition Regulation (Title 48 CFR) · SBA VetCert and VA Veterans First program guidance
Change log (1)
- LaunchedPublished the glossary covering 48 federal contracting terms with DefinedTerm structured data, primary-source citations, and cross-links into the NAICS, PSC, agency, vehicle, and FAQ pages.
Certification & Eligibility
Control RequirementThe rule that a service-disabled veteran must control both long-term decisions and day-to-day management of the firm.
SBA Veteran Small Business CertificationVetCertThe SBA program that certifies VOSBs and SDVOSBs governmentwide, consolidated from the former VA CVE verification on January 1, 2023.
Self-CertificationA firm's own representation of socioeconomic status; no longer permitted for SDVOSB/VOSB set-aside awards after the VetCert transition.
Service-Connected DisabilityA disability incurred or aggravated during active military service and officially rated by the VA or DoD.
Service-Disabled Veteran-Owned Small BusinessSDVOSBA small business at least 51% owned and controlled by one or more service-disabled veterans, eligible for federal set-aside and sole-source awards.
Unconditional OwnershipOwnership not subject to conditions precedent, executory agreements, or arrangements that limit the veteran owner's rights.
Veteran-Owned Small BusinessVOSBA small business at least 51% owned and controlled by one or more veterans, with priority at the VA under the Veterans First program.
Set-Asides & Socioeconomic Programs
Joint VentureA formal arrangement between firms to pursue a specific contract, allowed to qualify as small under set-aside rules.
Limitations on SubcontractingThe rule capping how much of a set-aside contract a prime may pass to non-similarly-situated subcontractors.
Rule of TwoThe requirement to set aside an acquisition when two or more capable small businesses are expected to bid at fair prices.
SBA Mentor-Protégé ProgramAn SBA program letting an experienced mentor assist a small protégé and form an affiliation-exempt joint venture.
Set-AsideA contract or portion of a contract reserved for competition only among firms in a specified small business category.
Similarly Situated EntityA subcontractor that holds the same small business or socioeconomic status as the prime on a set-aside.
Sole-Source AwardA non-competitive award to a single firm, permitted for SDVOSBs below dollar thresholds when only one source is reasonably available.
Veterans First Contracting ProgramThe VA's statutory priority that requires considering verified SDVOSBs and VOSBs ahead of other categories.
Size Standards & Affiliation
AffiliationSBA rules treating commonly controlled firms as one business for size purposes, aggregating their receipts and employees.
Average Annual ReceiptsA firm's total income averaged over five fiscal years, used to test revenue-based size standards.
NAICS CodeNAICSThe six-digit North American Industry Classification System code that classifies a contract's industry and its size standard.
Ostensible Subcontractor RuleAn affiliation rule that treats a prime and its subcontractor as joint venturers when the sub performs the primary work.
Product or Service CodePSCA four-character code describing what the government is buying — the product, service, or R&D — distinct from the industry NAICS code.
Size StandardThe SBA-set maximum revenue or employee count, keyed to a NAICS code, below which a firm is 'small.'
Procurement Process
Best-Value TradeoffA source-selection approach that may pay a price premium for superior non-price advantages.
DebriefingAn agency's explanation to an offeror of how its proposal was evaluated after award or exclusion.
Lowest Price Technically AcceptableLPTAA source-selection method awarding to the cheapest offer that meets all stated technical requirements.
Past PerformanceAn evaluation factor measuring how well an offeror performed on prior, relevant contracts.
Presolicitation NoticeAn advance notice that a solicitation is forthcoming, giving industry time to prepare and team.
Request for InformationRFIA market-research notice asking industry for capability and pricing information; not a solicitation for offers.
Request for ProposalRFPA negotiated-procurement solicitation inviting proposals evaluated on price and non-price factors for best value.
Sources Sought NoticeA market-research notice asking which firms can perform a requirement, often used to justify a set-aside decision.
Contract Types & Vehicles
Blanket Purchase AgreementBPAA simplified arrangement for recurring purchases, often established against a GSA Schedule.
Cost-Reimbursement ContractA contract reimbursing allowable costs plus a fee, requiring an adequate accounting system.
Fair OpportunityThe requirement to give every holder of a multiple-award contract a fair chance to compete for each order.
Firm-Fixed-Price ContractFFPA contract paying a set price regardless of the contractor's actual costs, placing cost risk on the contractor.
Governmentwide Acquisition ContractGWACA multiple-award IDIQ for IT that any federal agency can order from, several reserved for small/SDVOSB firms.
Indefinite-Delivery/Indefinite-Quantity ContractIDIQA contract providing for an indefinite quantity of supplies or services over a fixed period via task or delivery orders.
Multiple Award ScheduleMASGSA's governmentwide catalog of commercial products and services agencies can buy at pre-negotiated terms.
Task OrderAn order for services placed against an established IDIQ or schedule contract.
Time-and-Materials ContractT&MA contract paying fixed hourly labor rates plus materials at cost, used when the scope can't be firmly estimated.
Compliance & Protests
Bid ProtestA formal challenge to a solicitation's terms or an award decision, filed with the agency, GAO, or COFC.
Contractor Performance Assessment Reporting SystemCPARSThe governmentwide system where agencies record contractor performance evaluations used in future awards.
Defense Contract Audit AgencyDCAAThe DoD agency that audits contractor accounting systems and costs, especially on cost-reimbursement contracts.
SDVOSB Status ProtestA challenge to whether an awardee meets the SDVOSB ownership and control requirements.
Size ProtestA challenge alleging an awardee exceeds the size standard for a small business set-aside.
Agencies & Systems
Federal Acquisition RegulationFARThe primary regulation governing how executive agencies acquire goods and services.
Small Business Contracting GoalsStatutory governmentwide targets for the share of prime dollars awarded to small business categories, including 3% to SDVOSBs.
System for Award ManagementSAM.govThe official U.S. government system for entity registration, contract opportunities, and award data.
U.S. Small Business AdministrationSBAThe federal agency that sets size standards, runs socioeconomic certification programs, and advocates for small business.
Unique Entity IDUEIThe 12-character SAM.gov identifier that replaced the DUNS number for federal entities.
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