Glossary of Terms
Bonding, or payment protection: Bonding is required for construction contracts over $25,000 and for some other projects, such as for tree planting, when included in the solicitation.
Commercial item: Item(s) commercially available to the general public and being advertised by the Federal agency often in FedBizOpps only, most often resulting in a formal solicitation not being issued. Contractors respond with pricing to FedBizOpps advertisement by written or faxed response.
Contract: A mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them.
Cooperative Agreement: Financial assistance in which the agency is supporting a non-federal cooperator with funds or items of value and has substantial involvement in the project being funded. The agency is substantially involved when it acts as a partner with the cooperator.
Delivery order: An order for the delivery of a supply item issued by an authorized ordering officer against an indefinite-delivery/indefinite-quantity (IDIQ) supply contract.
8(a) set aside: Small Business Administration's (SBA) legislative "Business Development Program" for qualified contractors (FAR Part 19.8).
Federal Acquisition Regulation (FAR): Government-wide procurement regulations outlining requirements and methods for executing virtually all procurement actions.
Firm-fixed price: RFQ, IFB, or RFP requesting a specified price for a definitive statement of work. Awarded contract dollar total remains constant unless contract is modified.
Grant: Financial assistance in which the agency is supporting a non-federal cooperator with funds or items of value but has no significant involvement in the project being funded.
HUBZone set aside: SBA's legislative program to support and stimulate economic development and create jobs in urban and rural communities, in specifically designated distressed areas, by providing access to more Federal contracting opportunities. Identified solicitations are set aside for contractors who maintain a principal office in specifically designated areas. To register, access the SBA's HUBZone website.
Indefinite-delivery/indefinite-quantity (IDIQ): Type of contract where the statement of work in the solicitation outlines definitive service or product requirements, but quantities are unknown. Maximum and minimum quantities to be awarded are identified. IDIQ contract is awarded for the delivery of basic requirements with delivery or task orders issued for specified quantities.
Intergovernmental Orders (IGOs): Formerly Interagency Agreements or IAAs, a contract between two government agencies, departments, or between major organizational units within an agency.
Memorandum of Understanding (MOU): Type of agreement where the agency and the cooperator are cooperating on a project of mutual interest and no funds or other things of value are being transferred. MOUs can be effective for up to five years.
Performance based: Type of contract where the statement of work does not specify method of performance, only the end results required. Contractor determines the best method of meeting the end results and provides pricing accordingly and is responsible for quality assurance.
Responsible contractor: A contractor who is determined to have adequate capability, competency, capacity, credit, integrity, perseverance, tenacity, etc. (FAR Part 19.6) to ensure satisfactory completion of contract.
Service-disabled veteran-owned small business concern (SDVOSB): A contractor at least 51 percent owned and controlled by one or more service-disabled veterans.
Secure Rural Schools: A legally authorized program in support of counties where 1) projects are recommended by Resource Advisory Committees and 2) award preference is given to firms who hire locally.
Socio-economic goals: Legislative programs such as the Small Business Administration 8(a), HUBZone, and the Jobs-in-the-Woods set asides which limit competition to specific designated groups.
Statement of work: A definitive, or sometimes a very general and non-definitive, explanation of the project requirements required by the Federal agency.
Stewardship: A procurement tool authorizing land management projects, wherein the value of timber and other forest products can be credited to the contractor for completion of additional service work rather than depositing receipts in the federal treasury.
Task order: An order for tasks, issued by an authorized ordering officer against an awarded IDIQ service contract, to be completed by the contractor.