Glossary

Government contracting and IT outsourcing terms, explained.

34 terms from UEI and CAGE to limitations on subcontracting — in plain English.

34 terms

8(a) Business Development Program8(a)

An SBA program for small businesses owned by socially and economically disadvantaged individuals, which may receive set-aside and sole-source awards.

Blanket Purchase AgreementBPA

A simplified way to fill anticipated repetitive needs by establishing charge accounts with qualified sources.

CAGE code

Commercial and Government Entity code — a five-character identifier assigned to registered entities and used for facility and contracting purposes. Vella’s CAGE code is 78A11.

Contractor Performance Assessment Reporting SystemCPARS

The federal system in which agencies record evaluations of contractor performance, used as past performance information.

Cybersecurity Maturity Model CertificationCMMC

A Department of Defense program verifying that contractors implement required cybersecurity practices for federal contract information and controlled unclassified information.

Federal Acquisition RegulationFAR

The primary set of rules governing federal procurement. Agencies add their own supplements, such as the DFARS for the Department of Defense.

FedRAMP

The Federal Risk and Authorization Management Program — a standardized approach to security authorization of cloud services used by federal agencies.

HUBZone

Historically Underutilized Business Zone — an SBA program for small businesses located in, and employing people from, designated areas.

Indefinite Delivery, Indefinite QuantityIDIQ

A contract type for an indefinite quantity of supplies or services within set limits, ordered through individual task or delivery orders.

ISO 18295-1

The international standard for customer contact centers, covering accessibility, training, complaint handling and performance indicators.

ISO/IEC 27001

The international standard for information security management systems. Certificates are issued to a specific organization and scope.

Limitations on subcontracting

A rule (13 CFR 125.6, FAR 52.219-14) limiting how much of a set-aside contract a small-business prime may pay to subcontractors that are not similarly situated — 50% for services.

Managed service providerMSP

A company that operates IT infrastructure or end-user support for a client under an ongoing agreement with service levels.

NAICS code

North American Industry Classification System code — a six-digit code describing a type of work. Solicitations are assigned one NAICS code, which also determines the small-business size standard.

NIST SP 800-171

A NIST publication specifying security requirements for protecting controlled unclassified information in nonfederal systems.

Past performance

A contractor’s record on previous contracts, evaluated in source selection. Experience of subcontractors or teaming partners may be considered when they will perform similar work.

Prime contractor

The company holding the contract with the government and responsible for performance, including work performed by its subcontractors.

Request for InformationRFI

A market research tool agencies use to learn about capabilities before a procurement. Also see sources sought.

Request for ProposalRFP

A solicitation asking for technical and price proposals, evaluated against stated criteria.

Request for QuoteRFQ

A solicitation asking for price quotes, common in simplified acquisitions and orders under existing contracts.

SAM.gov

The System for Award Management — the US government’s official registry of entities that do business with the federal government. An active registration is required for most federal awards.

Section 508

Section 508 of the Rehabilitation Act requires federal agencies’ information and communication technology to be accessible to people with disabilities. The standards incorporate WCAG 2.0 Level AA.

Service level agreementSLA

Measurable performance targets, such as response times or answer rates, agreed in a contract.

Service-Disabled Veteran-Owned Small BusinessSDVOSB

A small business at least 51% owned and controlled by one or more service-disabled veterans. Certification is handled by the SBA’s veteran small business certification program.

Set-aside

A procurement reserved for small businesses or for a specific socio-economic program, such as 8(a), HUBZone, SDVOSB or WOSB.

Similarly situated entity

A subcontractor with the same small-business program status as the prime that is small under the NAICS code assigned to the subcontract. Work it performs counts toward the prime’s share.

Size standard

The SBA threshold — usually average annual receipts or number of employees — under which a business counts as small for a given NAICS code.

Sources sought

A notice asking companies to describe their capabilities, often used to decide whether a requirement can be set aside for small businesses.

Statement of WorkSOW

The part of a solicitation or contract that describes the work to be performed. Related formats are the performance work statement (PWS) and statement of objectives (SOO).

Subcontractor

A company performing part of a contract for the prime contractor under a subcontract.

Teaming agreement

A contract between companies that plan to pursue an opportunity together, typically defining scope, work share, exclusivity and what happens after award.

Unique Entity IDUEI

A 12-character identifier assigned by SAM.gov to every registered entity. It replaced the DUNS number in April 2022. Vella’s UEI is E13XAMB3GMW5.

WCAG

Web Content Accessibility Guidelines — the international standard for accessible web content. Level AA is the common target.

Women-Owned Small BusinessWOSB

A small business at least 51% owned and controlled by women, eligible for certain set-asides under the SBA program.

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