Government Contracting Crash Course: A Big Client for Small Business
Look inside the world of government contracting and find out what it takes to become a vendor with the world’s biggest customer. Learn the basics of how to get certified and how to partner as a way to get your foot in the door.
The companies and organizations responsible for the websites listed on this page do not necessarily endorse American Express OPEN®. Prepared for American Express OPEN by Bredin Business Information.
Written agreement between a buyer and a seller outlining the terms, specifications and prices of the goods or services to be supplied. A basic ordering agreement is not a contract.
Blanket Purchase Agreement (BPA)
Simplified way to fill anticipated repetitive needs for services and products.
Business Matchmaking (BMM)
Business Matchmaking (BMM) is the nation's premier public-private initiative supporting procurement opportunities for small business in every industry.
Central Contractor Registration (CCR)
Primary vendor database for the federal government. All individuals or companies wanting to be awarded government contracts must be registered in the CCR.
Certified 8(a) Firm
Business eligible to receive government contracts under the Small Business Administration’s 8(a) Business Development Program because it is owned and operated by socially and economically disadvantaged individuals.
Change Order
Written order directing the contractor to amend a contract.
Commercial And Government Entity (CAGE) Code
Five-character ID number that identifies government contractors, provided by the Defense Logistics Information Service.
Contracting Officer (CO)
Individual who has the authority to enter into, administer and/or terminate contracts and makes related decisions regarding the contract.
Contractor Team Arrangement (CTA)
An agreement in which two or more contractors join together to provide a total solution to meet an agency's needs.
D-U-N-S® (Data Universal Numbering System) Number
Nine-digit number issued by Dun & Bradstreet that the federal government uses to identify a contractor and list its address, telephone number, employee size and other information.
eBuy
An online tool within GSA Advantage! that facilitates requests for quotes for goods and services offered by GSA Schedule and Governmentwide Acquisition Contract contractors.
FedBizOpps
Online entry point for government procurement opportunities over $25,000. Buyers are allowed to publicize their opportunities directly at the web site (fbo.gov).
Federal Acquisition Regulation Council
Governing body that makes FAR interpretations and rulings.
Federal Acquisition Regulations (FAR)
Set of rules that government agencies must follow when purchasing goods and services.
Federal Acquisition Service (FAS)
FAS establishes contracts for commercial products and services in the areas of products and services, technology, motor vehicle management, transportation, travel and procurement and online acquisition tools.
Federal Supply Schedules (FSS) Program
Large contracts through which government agencies can acquire products and services from more than 8,000 suppliers.
Full and Open Competition
Refers to the rule that all appropriate suppliers may compete for a contract.
General Services Administration (GSA)
Independent federal agency that establishes procurement policy and secures the buildings, products, services, technology and other workplace essentials for government agencies.
Governmentwide Acquisition Contracts (GWAC)
GWACs help agencies purchase IT products exclusively.
GSA Advantage!
An online shopping service for government customers. Once a business is put on the GSA Schedule, it is required to add company and pricing information to GSA Advantage!
GSA Contract Number
A number assigned to an approved GSA Schedule vendor. An agency may purchase your GSA-approved products and services through this GSA Schedule contract number.
GSA Schedule
Lists the prices the government has agreed to pay for a vendor’s commercial products and services.
GSA Schedule Number
The breakdown of program categories; for example, 'Schedule 70 – Information Technology' and 'Schedule 72 – Furnishings and Floor Coverings.'
HUBZone Small Business
A certified small business with its principal office located in a Historically Underutilized Business Zone and with at least 35% of its employees residing in a HUBZone, as defined by Federal Acquisition Regulation.
Invitation For Bid (IFB)
Method used to accept a sealed bid and includes a description of the product or service to be acquired, bidding instructions, packaging, delivery, payment, contract clauses and deadline.
Mentor
Individual or business who creates a program to advance strategic relationships with a less experienced business.
Minority-Owned Business
A small business that is at least 51% owned and operated by a U.S. citizen whose ancestry is Asian-Pacific American, Black American, Hispanic American, Native American, Subcontinent Asian American, Indian Tribe or Native Hawaiian, as defined by Federal Acquisition Regulation.
Multi-Agency Contracts
Contracts established by one agency for use by government agencies to obtain a variety of supplies and services.
Multiple Award Schedules (MAS)
One of GSA’s largest purchasing vehicles. Contracts are awarded to multiple vendors with similar products or services to enable more choices for government buyers.
North American Industry Classification System (NAICS)
Set of categories developed by the United States, Canada and Mexico to classify businesses in the three countries. This classification replaces the old SIC code.
Prime Contractor
Individual or business contracted to perform a specified piece of work.
Procurement Technology Assistance Centers (PTACs)
Located across the United States, these centers help small businesses complete the steps to work with the federal government.
Protégé
Individual or developing business who cooperates with another more experienced individual or company to improve its capabilities.
Public Buildings Service (PBS)
PBS acquires space on behalf of the government through new construction and leasing. It also acts as a caretaker for 9,300 government properties around the United States.
Request for Proposal (RFP)
Government document outlining the criteria and requirements to evaluate offers.
SCORE, Counselors to America's Small Business
Nonprofit association that provides entrepreneurs with free, confidential face-to-face and email business counseling. SCORE is a business partner of American Express OPEN.
Service-Disabled Veteran-Owned Small Business
A small business that is at least 51% owned by a qualified disabled veteran whose disability is service-related and whose management and daily business operations are controlled by a qualified service-disabled veteran, as defined by Federal Acquisition Regulation.
Single Award Schedules (SAS)
Contracts made with one supplier for a specific product at a stated price for delivery to a geographical area defined in the Schedule.
Small Business Administration (SBA)
Independent agency chartered to protect the interests of small businesses and maintain free competitive enterprise.
Small Disadvantaged Business
A small business that is at least 51% owned and controlled by a socially and economically disadvantaged individual, as defined by Federal Acquisition Regulation.
Standard Industrial Classification (SIC) Code
See NAICS.
Subcontractor
Individual, business or corporation hired by a prime contractor to perform a specified piece of work required as part of an overall contract.
Taxpayer Identification Number
Number assigned to a business by the IRS that is needed to complete CCR registration.
Teaming
An arrangement in which two or more businesses join forces to pursue and win specific government contracts.
Veteran-Owned Small Business
A small business that is at least 51% owned by a qualified veteran and whose management and daily business operations are controlled by a qualified veteran, as defined by Federal Acquisition Regulation.
Women Impacting Public Policy, Inc. (WIPP)
The Voice for Women in Business in our Nation's Capital, Women Impacting Public Policy, Inc. (WIPP) is a national nonpartisan public policy organization that advocates for and on behalf of women-owned businesses.
Women-Owned Small Business (WOSB)
Small business that is at least 51 percent owned and controlled by a woman, as defined by Federal Acquisition Regulation.
8(a) Business Development Program
Named after a section of the Small Business Act, the 8(a) program provides business development assistance to companies owned by socially and economically disadvantaged individuals. The SBA requires businesses to document how they are socially or economically disadvantaged in their applications.
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