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Reference

Terms & trusted resources.

You don’t need to memorize the language. Use this page when a term or the next step is unclear.

What does that mean?

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.

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Addendum

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.

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Amendment

An official change to a solicitation. Recheck the affected requirements and any acknowledgment instructions.

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Capability statement

A short business introduction describing specific services, relevant proof and contact details. It is not a complete bid.

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CLIN · 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.

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Compliance matrix

A working list connecting each requirement to its source, supporting evidence, owner and response location. Also called a requirements matrix.

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Contracting 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.

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COR · 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.

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Evaluation factors

The criteria the buyer says it will use to assess responses. Build your response around the actual criteria.

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Firm-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.

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Flow-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.

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IFB · 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.

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Limitations 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.

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Margin

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.

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Markup

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.

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NAICS

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.

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Past performance

Evidence about how prior work was performed. The solicitation determines which projects and types of experience are relevant.

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Place of performance

Where the contracted work will happen. It may be different from the address of the office handling the purchase.

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Prime contractor

The business contracting directly with the government and responsible for the contracted work, including management of its subcontractors.

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Proper 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.

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PSC · 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.

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RFI · 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.

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RFP · Request for proposals

A solicitation asking for a proposal. Read its evaluation criteria and response instructions; the requested detail varies.

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RFQ · 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.

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SAM.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.

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Set-aside

A procurement reserved for a defined category of eligible businesses. Check the specific size, certification and other requirements rather than assuming you qualify.

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Similarly 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.

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Sources 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.

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SOW / PWS

Statement of work / performance work statement. These describe required work or performance outcomes. Read the actual document for deliverables, standards and acceptance requirements.

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Subcontractor

A business performing work for a prime or another contractor, rather than contracting directly with the government for that work.

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UEI · Unique Entity ID

An identifier assigned through SAM.gov. Obtaining a UEI alone does not complete an active entity registration for direct federal awards.

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Go to the source

A short list, with a job for each resource. Federal resources do not replace a state or local buyer’s instructions.

Detailed rules & registration checklist

For a closer look at federal notice types, evaluation and registration. Agency-specific rules or deviations may apply.

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.

See Bid Rigor’s current source coverage

Prefer to talk it through?

APEX Accelerators offer no-cost contracting assistance. Bring a specific notice, your company description and the questions you cannot resolve.

Find contracting help through GSA

Content and links reviewed September 9, 2026. Definitions are simplified; the actual solicitation and applicable rules control.