Reference
Terms & trusted resources.
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Plain-English definitions. Open only the terms you need.
31 terms explained
Acceptance
The buyer’s acknowledgment that the delivered work meets the contract’s acceptance requirements. Completing the work and obtaining acceptance are related, but not always the same step.
Read the related guideAddendum
A change or addition to a bid package, often used by state and local buyers. Check its effect on scope, dates, forms, and any required acknowledgment.
Read the related guideAmendment
An official change to a solicitation. Recheck the affected requirements and any acknowledgment instructions.
Read the related guideCapability statement
A short business introduction describing specific services, relevant proof and contact details. It is not a complete bid.
Read the related guideCLIN · Contract line item number
An identifier for a particular item of work, product, or service in a contract. Use the award’s line items and units when preparing required pricing or invoices.
Read the related guideCompliance matrix
A working list connecting each requirement to its source, supporting evidence, owner and response location. Also called a requirements matrix.
Read the related guideContracting officer
The government official with authority, within delegated limits, to enter into and administer contracts. Follow the contract’s process for decisions and changes requiring that authority.
Read the related guideCOR · Contracting officer’s representative
A person designated to assist with specified contract duties, such as monitoring performance. That role does not itself authorize changes to contract price, scope, or terms.
Read the related guideEvaluation factors
The criteria the buyer says it will use to assess responses. Build your response around the actual criteria.
Read the related guideFirm-fixed-price
A contract arrangement with a price that generally does not change solely because the contractor’s actual costs change. Read any applicable adjustment or changes provisions.
Read the related guideFlow-down
A prime-contract requirement included in a subcontract when applicable. Check the actual clause, work and subcontract tier to determine what must be passed down.
Read the related guideIFB · Invitation for bids
In federal procurement, a solicitation used for sealed bidding. Follow the bid and submission instructions; do not treat it as a negotiated RFP.
Read the related guideLimitations on subcontracting
Rules limiting payments to certain subcontractors on covered federal small-business awards. The calculation depends on the contract category and the subcontractor’s qualifying status.
Read the related guideMargin
The difference between price and the costs counted in your calculation, divided by the price. A $5,000 price minus $4,000 cost gives a 20% margin before any omitted costs.
Read the related guideMarkup
An amount added to cost, expressed as a share of cost. Adding $1,000 to $4,000 cost is a 25% markup, which produces a $5,000 price and a 20% margin.
Read the related guideNAICS
North American Industry Classification System. Industry codes used in federal contracting, including to identify applicable small-business size standards. A code is not a certification.
Read the related guidePast performance
Evidence about how prior work was performed. The solicitation determines which projects and types of experience are relevant.
Read the related guidePlace of performance
Where the contracted work will happen. It may be different from the address of the office handling the purchase.
Read the related guidePrime contractor
The business contracting directly with the government and responsible for the contracted work, including management of its subcontractors.
Read the related guideProper invoice
An invoice that includes the information and supporting documentation required by the contract and applicable payment rules. Sending a bill alone does not settle acceptance or payment timing.
Read the related guidePSC · Product or service code
A federal classification describing products or services being bought. It is another search clue, alongside work descriptions and NAICS, rather than proof that a job fits.
Read the related guideRFI · Request for information
A request used to gather information, often for planning or market research. Under FAR 15.201, a response is not an offer that can form a binding contract.
Read the related guideRFP · Request for proposals
A solicitation asking for a proposal. Read its evaluation criteria and response instructions; the requested detail varies.
Read the related guideRFQ · Request for quotations
A request for a quotation. Follow the stated process and terms. Under federal simplified acquisition rules, a quotation is not itself an offer.
Read the related guideSAM.gov
The federal site for entity registration and other award-related information, including contract notices. A user account, a UEI and an active entity registration are different things.
Read the related guideSet-aside
A procurement reserved for a defined category of eligible businesses. Check the specific size, certification and other requirements rather than assuming you qualify.
Read the related guideSimilarly situated entity
A qualifying first-tier subcontractor with the same relevant small-business program status as the prime and small under its subcontract’s NAICS code. See the guide for how lower-tier work is counted.
Read the related guideSources Sought
A notice commonly used to learn which businesses can perform potential work. Respond to its capability questions; it is not the same as an open solicitation for an award.
Read the related guideSOW / PWS
Statement of work / performance work statement. These describe required work or performance outcomes. Read the actual document for deliverables, standards and acceptance requirements.
Read the related guideSubcontractor
A business performing work for a prime or another contractor, rather than contracting directly with the government for that work.
Read the related guideUEI · Unique Entity ID
An identifier assigned through SAM.gov. Obtaining a UEI alone does not complete an active entity registration for direct federal awards.
Read the related guideGo to the source
A short list, with a job for each resource. Federal resources do not replace a state or local buyer’s instructions.
- SAM.gov · entity registration
Register for federal awards, check entity status, or find the official registration checklist.
- SAM.gov · opportunities & awards
Open the official notice, attachments and amendments. Use award records for research, not as open bids.
- SBA · finding federal contracts
Learn about buyer research, small business offices and routes to market.
- SBA · prime & subcontracting
Find prime-contractor directories and links to posted subcontracting opportunities.
- SBA · certifications
Check the current eligibility and application requirements for a specific certification program.
- GSA · responding to a solicitation
Review the relationship between requirements, evaluation and submission instructions.
- GSA · find hands-on help
Find small business specialists and APEX Accelerators, which offer no-cost contracting assistance.
- USAspending · award research
Look for agencies and contractors buying work like yours. Historical spending is not an open opportunity.
- Census Bureau · NAICS
Read industry-code definitions before choosing codes for the work your company actually performs.
- SBA · getting started & size standards
Check the applicable size standard and affiliation guidance. A matching industry code is not proof of eligibility.
- 13 CFR 121.103(h)(3) · ostensible subcontractors
Check how reliance on a subcontractor can affect eligibility for a small-business award.
- SAM help · search contract opportunities
Check the available notice, location, date, and industry filters when building a search.
- SAM.gov · contract award research
Research earlier contract actions and buyers. Award-data searches require sign-in; records do not establish an open subcontract.
- California FI$Cal · Cal eProcure resources
Find California state bid information through Cal eProcure and the California State Contracts Register.
- SBA SUBNet · posted subcontract opportunities
Find posted subcontract opportunities and ask each listing’s contact about its current requirements.
- GSA · opportunities and prime contractors
Research potential prime contractors and relevant routes to supplier opportunities.
Detailed rules & registration checklist
For a closer look at federal notice types, evaluation and registration. Agency-specific rules or deviations may apply.
- FAR 15.201 · questions & early exchanges
Federal guidance on market research, RFIs and communicating before proposals are received.
- FAR 15.305 · proposal evaluation
Federal negotiated-procurement guidance on evaluation factors and relevant past performance.
- SAM.gov · registration checklist (PDF)
Prepare your registration information and choose the purpose that covers federal procurement.
- FAR 13.004 · quotations
Understand how a quotation differs from an offer under federal simplified acquisition rules.
- FAR 14.101 · sealed bidding
Read the federal basics behind an invitation for bids (IFB).
- FAR 15.203 · requests for proposals
Read what a federal request for proposals communicates to prospective offerors.
- FAR 9.104-1 · contractor responsibility
Check the prime’s required financial resources, delivery capacity, experience and operational controls.
- FAR 52.219-14 · limitations on subcontracting
Read payment limits, similarly situated entity rules and the compliance period for covered federal awards.
- FAR 19.505 · when subcontracting limits apply
Check which set-asides and program awards carry subcontracting limits or nonmanufacturer requirements.
- FAR 52.219-33 · nonmanufacturer rule
Review reseller qualifications, manufacturer sourcing requirements and applicable SBA waivers.
- FAR 52.215-22 · subcontracting disclosures
Understand required subcontract-cost and added-value disclosures when this provision applies.
- FAR 52.215-23 · excessive pass-through charges
Read how the government treats charges for negligible added value when this clause applies.
- FAR 19.102 · the procurement’s industry code
Understand why the principal purpose of a purchase determines its assigned NAICS code.
- FAR 10.002 · market research
See how federal buyers learn about commercial capabilities and potential suppliers before buying.
- FAR 16.202-1 · firm-fixed-price contracts
Understand the contractor’s cost risk when the contract fixes the price for the agreed work.
- FAR 32.904 · payment due dates
Check payment timing against the applicable contract terms and acceptance requirements.
- FAR 32.905 · payment documentation
Review proper-invoice and performance documentation requirements for federal payment.
- FAR 43.102 · authority to modify a contract
Understand the contracting officer’s role when the government requests changes to the work.
- FAR 52.212-4 · commercial contract terms
Review inspection, acceptance, invoicing and changes when this clause applies to the contract.
- FAR 52.204-7 · registration timing
Check the SAM registration requirement in the solicitation, including when active registration is required.
- FAR 52.244-2 · consent to subcontracts
Check when written consent is required and why consent does not relieve the prime of responsibility.
State & local procurement
Start at the buyer’s official government or public-institution website and follow its procurement link to the designated portal. Cities, schools and other buyers may use different systems within the same state.
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Find contracting help through GSAContent and links reviewed September 9, 2026. Definitions are simplified; the actual solicitation and applicable rules control.