Government contracting has its own language, and almost every solicitation, registration form, and agency email is full of acronyms. If you are new to selling to the government, not knowing the vocabulary can slow you down or cause you to miss requirements that matter. This glossary defines the terms you will run into most often, in plain English. Bookmark it — or use a platform like GovQon that matches opportunities to your business profile, so you spend less time decoding notices and more time bidding.
Getting Registered
SAM.gov
SAM.gov is the federal government’s official vendor registration system (SAM stands for System for Award Management). You must register your business there before you can receive a federal contract award, and your registration must be renewed every year.
UEI (Unique Entity ID)
The Unique Entity ID is the 12-character identifier the federal government uses to recognize your business. It replaced the old DUNS number in 2022 and is assigned free when you register in SAM.gov.
NAICS Code
A NAICS code is a six-digit number from the North American Industry Classification System that describes what your business does. Agencies attach a NAICS code to every solicitation, and the code determines which small business size standard applies to that contract.
PSC Code
A Product Service Code (PSC) classifies the specific goods or services the government is buying, while a NAICS code classifies the industry of the seller. Agencies use both on solicitations, and searching by your NAICS codes plus relevant PSCs gives you the best coverage when looking for bids.
Small Business Size Standard
A size standard is the SBA’s definition of “small” for a given NAICS code, measured either by average annual revenue or by number of employees. If your business falls under the standard for a solicitation’s NAICS code, you count as a small business for that contract.
The Bidding Process
Solicitation
A solicitation is any formal request from an agency asking businesses to submit offers for a product or service. RFPs, RFQs, and Invitations for Bid are all types of solicitations.
RFP (Request for Proposal)
An RFP asks vendors to propose how they would perform work, and the agency evaluates proposals on factors beyond price, such as technical approach and past performance. It is the most common format for complex services contracts.
RFQ (Request for Quotation)
An RFQ asks vendors for price quotations, usually for simpler or lower-value purchases where the government knows exactly what it wants. Evaluation focuses mainly on price and the ability to deliver as specified.
RFI (Request for Information)
An RFI is an agency’s way of gathering information from industry before deciding how to buy something. Responding to an RFI is not bidding — no contract is awarded — but it can help shape the eventual solicitation in your favor.
Sources Sought
A sources sought notice is market research in which an agency asks which businesses are interested and capable of performing upcoming work. Responding gets your company on the agency’s radar and can influence whether the contract is set aside for small businesses.
Section L
Section L of a federal RFP contains the instructions to offerors: how to structure your proposal, page limits, formatting rules, and deadlines. Treat it as a rulebook you must follow exactly, because non-compliant proposals can be rejected unread.
Section M
Section M of a federal RFP explains the evaluation factors the government will use to score proposals, such as technical approach, past performance, and price. Writing your proposal directly to these factors is the surest way to earn points.
Compliance Matrix
A compliance matrix is a table that maps every requirement in the RFP to the section of your proposal where you answer it. It ensures nothing is missed and doubles as your proposal outline and review checklist.
Color Team Review
Color team reviews are structured checkpoints in proposal development: a Pink Team reviews the early draft, a Red Team attacks it from the evaluator’s perspective, and a Gold Team polishes the final version. They catch weak spots before the government does.
Set-Asides and Contract Vehicles
Set-Aside
A set-aside is a contract (or part of one) reserved for a specific category of small businesses, such as 8(a), HUBZone, women-owned, or service-disabled veteran-owned firms. Only eligible businesses may compete for set-aside contracts.
8(a) Business Development Program
The 8(a) program is an SBA program for small businesses owned by socially and economically disadvantaged individuals. Participants can receive sole-source and set-aside contracts and business development support over a nine-year term.
HUBZone
The HUBZone program supports small businesses located in historically underutilized business zones, with a required share of employees living in those zones. HUBZone-certified firms can compete for set-aside contracts and receive a price evaluation preference in open competitions.
SDVOSB
SDVOSB stands for Service-Disabled Veteran-Owned Small Business. Federal agencies set contracting goals for these firms, and certain agencies — notably the VA — run dedicated set-aside programs for them.
WOSB / EDWOSB
WOSB means Women-Owned Small Business, and EDWOSB means Economically Disadvantaged Women-Owned Small Business. Both are SBA certification programs that make firms eligible for set-aside contracts in industries where women-owned businesses are underrepresented.
GSA Schedule
A GSA Schedule (also called the Multiple Award Schedule) is a long-term contract with the General Services Administration that pre-negotiates your prices and terms. Agencies can then buy from Schedule holders quickly without running a full open competition each time.
IDIQ
IDIQ stands for Indefinite Delivery, Indefinite Quantity — a contract type where the government knows it will need supplies or services over a period but not exactly how much or when. Work is ordered over time through individual task or delivery orders.
GWAC
A GWAC (Government-Wide Acquisition Contract) is a pre-competed contract vehicle, usually for IT products and services, that any federal agency can use. Winning a spot on a GWAC gives you access to task order competitions across the whole government.
BPA (Blanket Purchase Agreement)
A BPA is a simplified purchasing arrangement an agency sets up with a vendor for recurring needs, often under a GSA Schedule. Instead of a new contract for every purchase, the agency places orders against the agreement as needs arise.
Your Business on Paper
Capability Statement
A capability statement is a short document — usually one or two pages — that introduces your company to government buyers. It covers your core competencies, past performance, differentiators, and company data, and acts like a resume for your business.
Past Performance
Past performance is the record of work your company has already completed, used by evaluators to judge whether you can do the job again. Relevant, recent, and well-documented past performance is one of the strongest assets in a proposal.
People, Partners, and Rules
Contracting Officer (CO)
The contracting officer is the government official with authority to sign contracts and make binding decisions on the agency’s behalf. Only a CO (or a contracting officer’s representative acting within limits) can change a contract’s terms.
Prime Contractor
The prime contractor is the company that holds the contract directly with the government and is responsible for delivering the work. A prime may perform everything itself or delegate parts to subcontractors under its management.
Subcontractor
A subcontractor performs part of the work for the prime contractor rather than holding the contract directly. Subcontracting is a common way for new or small firms to build government past performance without winning a prime contract first.
Teaming Agreement
A teaming agreement is a written arrangement between companies — usually a prime and one or more subcontractors — defining roles, responsibilities, and how they will work together on a specific opportunity. Clear agreements made before bidding prevent disputes after award.
Bid Protest
A bid protest is a formal challenge to how the government ran a competition or made an award, filed with the agency, the Government Accountability Office (GAO), or the Court of Federal Claims. Protests must be filed quickly — deadlines are measured in days.
FAR (Federal Acquisition Regulation)
The FAR is the main rulebook governing how federal agencies buy goods and services. It covers everything from competition requirements to contract clauses, and its rules flow down into nearly every federal solicitation and contract.
Frequently Asked Questions
Do I need to know all of these terms before I start?
No. Learn the registration terms first (SAM.gov, UEI, NAICS, size standards), then the bidding terms (RFP, Section L, Section M) when you find your first opportunity. The rest will make sense as you encounter them in real solicitations.
Where can I check the official definition of a term?
The FAR (primarily Part 2) contains official definitions for most acquisition terms, and SAM.gov and SBA.gov publish plain-language explanations for registration and certification terms. When a term appears in a solicitation, that document’s own definitions section controls.
What is the fastest way to learn the language of government contracting?
Read real solicitations in your industry — even ones you do not bid on — and look up every term you do not recognize. Pair that reading with free help from your local Procurement Technical Assistance Center, and the vocabulary becomes familiar within a few bid cycles.
Government contracting jargon looks intimidating at first, but it is a finite vocabulary — the few dozen terms on this page cover the large majority of what you will see. Learn them, keep your SAM.gov registration current, and you will be ready to read any solicitation with confidence.