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A plain-language guide to the terms, acronyms, and questions every government contractor runs into from registration to award.
SAM (System for Award Management)
The federal government's official registration database for contractors. You must be registered and "active" in SAM.gov to be eligible for federal prime contracts, grants, or payments.
UEI (Unique Entity ID)
The 12-character identifier SAM.gov assigns your business during registration. It replaced the legacy DUNS number and is required for any federal award.
CAGE Code (Commercial and Government Entity Code)
A five-character ID assigned by the Defense Logistics Agency that identifies a specific business location. Generated automatically when you register in SAM.
NAICS Code (North American Industry Classification System)
A numeric code that categorizes the type of work your business performs. Agencies use NAICS codes to define small business size standards and to target set-aside solicitations to the right industries.
PSC (Product Service Code)
A code describing the specific product, service, or research the government is buying — more granular than NAICS, and often used in contract search filters.
Small Business Size Standard
The SBA-defined threshold (based on revenue or employee count, depending on NAICS code) that determines whether a company qualifies as "small" for a given procurement.
8(a) Business Development Program
A nine-year SBA program for firms owned by socially and economically disadvantaged individuals. 8(a) firms can receive sole-source and set-aside contract awards to help build past performance and capacity.
HUBZone (Historically Underutilized Business Zone)
A certification for small businesses located in and employing residents of economically distressed areas. The government aims to award at least 3% of federal contract dollars to HUBZone firms annually.
WOSB / EDWOSB (Women-Owned Small Business / Economically Disadvantaged WOSB)
Certification for businesses at least 51% owned and controlled by women. The federal government targets at least 5% of contracting dollars toward WOSBs each year; EDWOSB adds an economic disadvantage requirement for certain set-asides.
SDVOSB (Service-Disabled Veteran-Owned Small Business)
Certification for businesses at least 51% owned by veterans with a service-connected disability, giving access to dedicated set-asides and sole-source awards.
Small Business Size Standard
A solicitation restricted to small businesses (or a specific socioeconomic category) rather than open to all contractors. Set-asides can be competitive (multiple small businesses bid) or sole-source (awarded directly to one qualified firm).
VOSB (Veteran-Owned Small Business)
Similar to SDVOSB but without the service-connected disability requirement; primarily relevant to VA contracting preferences.
FAR (Federal Acquisition Regulation)
The primary rulebook governing how federal agencies buy goods and services. Nearly every term on this page traces back to a FAR part or subpart.
IDIQ (Indefinite Delivery, Indefinite Quantity)
A contract type that lets the government order an undefined quantity of goods or services over a fixed period, without committing to exact amounts up front. Common for multi-year, variable-demand work.
GWAC (Governmentwide Acquisition Contract)
A pre-competed, multiple-award IDIQ contract, typically for IT, that any federal agency can use to place task orders, saving them from running a full competition themselves.
BPA (Blanket Purchase Agreement)
A simplified ordering agreement set up with pre-vetted vendors (often under a GSA Schedule) to streamline repeat purchases without re-negotiating terms each time.
GSA Schedule (Multiple Award Schedule / MAS)
A long-term, government-wide contract vehicle that pre-negotiates pricing and terms with vendors, letting agencies buy commercial products and services faster than through a full open-market competition.
Task Order / Delivery Order
A specific work assignment issued under an existing IDIQ, GWAC, or BPA. "Task order" typically refers to services; "delivery order" typically refers to supplies.
Prime Contractor / Subcontractor
The prime holds the direct contract with the government and bears overall responsibility; a subcontractor performs work under the prime's contract but has no direct contractual relationship with the agency.
Teaming Agreement / Joint Venture (JV)
Arrangements where two or more companies combine capabilities to pursue a contract, a teaming agreement keeps each company separate under a prime/sub structure, while a JV creates a new combined entity to bid as one.
Sole-Source Contract
An award made to a single contractor without competition, usually justified by unique capability, urgency, or a socioeconomic set-aside program (e.g., 8(a) sole-source).
Sources Sought Notice
An early, non-binding market research notice agencies post to gauge which vendors (and what socioeconomic categories) could perform a future requirement. Responding helps shape the eventual solicitation.
RFI (Request for Information)
A market research tool used to gather capability, pricing, or interest information from industry — not a solicitation, and no award results directly from it.
RFQ (Request for Quote)
Used when the government wants price and delivery information for a well-defined requirement, typically under simplified acquisition procedures or existing contract vehicles.
RFP (Request for Proposal)
The formal solicitation type used for more complex requirements, asking vendors to propose technical approach, staffing, and price — evaluated against stated criteria rather than price alone.
Solicitation
The umbrella term for any government notice inviting vendors to submit a bid, quote, or proposal (includes RFPs, RFQs, and IFBs).
Bid / Proposal
A vendor's formal response to a solicitation. "Bid" is more common in sealed-bid (price-only) procurements; "proposal" is used for negotiated, criteria-based procurements like RFPs.
Evaluation Criteria
The factors (technical approach, past performance, price, small business participation, etc.) an agency states in a solicitation and uses to score competing proposals.
Award
The point at which the government selects a winning vendor and executes the contract.
Protest (Bid Protest)
A formal challenge, filed with the agency, GAO, or the Court of Federal Claims, disputing the terms of a solicitation or the outcome of an award decision.
CO (Contracting Officer)
The government official with legal authority to enter into, administer, and terminate contracts on behalf of the agency.
COR (Contracting Officer's Representative)
A government employee designated to monitor day-to-day contract performance and technical compliance, without the CO's authority to modify the contract.
PWS / SOW / SOO (Performance Work Statement / Statement of Work / Statement of Objectives)
Documents defining what the contractor must deliver, a SOW spells out specific tasks, a PWS focuses on performance outcomes and standards, and a SOO states high-level objectives and lets vendors propose their own approach.
Period of Performance (PoP)
The timeframe during which a contractor is authorized to perform work under a contract.
Option Year
An additional contract period the government can unilaterally exercise (rather than re-competing) if it chooses to continue the relationship beyond the base period.
Modification (Mod)
A formal, bilateral or unilateral change to an existing contract's terms, scope, price, or period of performance.
FPDS (Federal Procurement Data System)
The government's official system of record for federal contract award data — the source behind most contract-history and competitor-research tools.
Do I need to be registered anywhere before I can bid on a federal contract?
Yes. You must have an active SAM.gov registration with a Unique Entity ID (UEI) before you can be awarded a federal prime contract. Many agencies also expect you to identify your NAICS codes and applicable certifications during registration.
What's the difference between a prime contract and a subcontract?
A prime contractor holds the direct legal agreement with the government and is accountable for full performance. A subcontractor works under the prime's contract and is paid by the prime, not the government directly. Subcontracting is often the fastest way for new entrants to gain federal past performance.
Do I need a small business certification to compete for federal work?
No, certifications like 8(a), HUBZone, WOSB, and SDVOSB aren't required to bid, but they unlock set-aside and sole-source opportunities that are otherwise closed to non-certified firms, which meaningfully improves competitive odds for eligible businesses.
What's the difference between an RFI, RFQ, and RFP?
An RFI gathers market information and isn't a solicitation. An RFQ requests pricing for a defined requirement, typically under simplified procedures. An RFP is a full solicitation for complex work, evaluated on technical approach and past performance in addition to price.
How long does it typically take to win a first federal contract?
It varies widely, some firms win within months, particularly through subcontracting or simplified acquisitions, while building a first prime award often takes 1–2 years of consistent capability-building, relationship development, and bidding.
What is a set-aside, and how is it different from full and open competition?
A set-aside restricts competition to a specific category of business (small business, 8(a), HUBZone, WOSB, SDVOSB), while full and open competition is open to any responsible vendor regardless of size or socioeconomic status.
What is past performance, and why does it matter so much?
Past performance is the government's record of how well you've delivered on prior contracts (quality, schedule, cost control, management). It's a formal evaluation factor in most RFPs, which is why many new entrants prioritize subcontracting or smaller contracts early on — to build a track record.
Can I challenge a contract award I think was unfair?
Yes, through a bid protest — filed with the contracting agency, the Government Accountability Office (GAO), or the Court of Federal Claims, depending on timing and grounds. Protests have strict, short filing deadlines, so timing matters.
What's the difference between a GWAC, a GSA Schedule, and an IDIQ?
An IDIQ is the general contract type that allows variable order quantities over time. A GWAC is a specific kind of multi-agency IDIQ, typically for IT. A GSA Schedule is a separate, long-running government-wide vehicle with pre-negotiated commercial pricing. In short: all GWACs and Schedules use IDIQ-style ordering, but not all IDIQs are GWACs or Schedules.