| Term |
Definition |
| 8(a) Program |
(Reference FAR Subpart 19.8)
A program, authorized by Section 8(a) of the Small Business Act, as amended, where in the SBA contracts for goods and services with Federal agencies. The SBA in turn subcontracts the actual performance of the work to socially and economically disadvantaged small businesses that have been certified by SBA as eligible to receive these contracts. These businesses are termed “8(a) contractors”. The SBA may award the subcontracts to 8(a) firms competitively or on a sole-source basis. The SBA also offers managerial, technical, and financial support to participating firms.
DOT gives special emphasis to identifying procurement requirements that match the capabilities and potential of approved 8(a) firms. DOT has obtained special authority to negotiate directly with 8(a) firms on the behalf of the SBA.
You can learn more about the 8(a) program on the SBA web site: http://www.sba.gov/8abd. |
| Best Value |
The expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement |
| Central Contractor Registration (CCR) |
The primary Federal Government database for contractor information. Contractors must maintain active registration in the CCR to be eligible for contract awards from the Federal Government. For more information, visit the CCR web site at: http://www.ccr.gov/ |
| Contractor |
A business entity that holds a Government contract. |
| Data Universal Numbering System (DUNS) |
The 9-digit number assigned by Dun & Bradstreet, Inc to identify unique business entities. |
| Day |
Unless otherwise specified in the contract, it means a calendar day. |
| HUBZone Empowerment Contracting Program |
(Reference FAR Subpart 19.13)
The HUBZone Empowerment Contracting program provides federal contracting opportunities for qualified small businesses located in historically underutilized business (HUB) zones. The program is an effort to increase employment opportunities, investment, and economic development in those areas through the establishment of preferences. The SBA administers this program.
The SBA certifies firms for eligibility to receive HUBZone contracts and maintains a listing of qualified HUBZone small businesses that Federal agencies can use to locate prospective vendors.
You can learn more about the HUBZone program and apply electronically on the SBA web site at http://www.sba.gov/hubzone/ |
| Legal Company Name |
The name by which a business is listed with the State/Province or equivalent government body. |
| MARAD |
Maritime Administration |
| May |
Denotes the permissive. |
| North American Industry Classification System (NAICS) |
NAICS codes classify supplies and services into related groups of activity. The SBA has established size standards for each NAICS code. More information can be found at: http://www.census.gov/epcd/www/naics.html |
| Micro-Purchase |
Acquisitions of supplies or services that are below $2500, except it means-
(1) $2,000 for construction subject to the Davis Bacon Act; and (2) $15,000 for acquisitions of supplies or services that, where an authorized official determines, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack. |
| Offeror |
A business entity that submits an offer in response to a Government solicitation. |
| Partial Set-Asides |
(Reference FAR Subpart 19.502-3)
A procurement wherein the Contracting Officer reserves a portion of the acquisition for the exclusive participation of small business. |
| Payment Bond |
A written instrument to assure payments as required by law to all persons supplying labor or material in the prosecution of the work provided for in the contract. |
| Performance Bond |
A written instrument to secure performance and fulfillment of the contractor’s obligations under the contract. |
| Setting Aside Acquisitions |
(Reference FAR Part 19)
Contracting Officers have the authority to reserve an acquisition for the exclusive participation of a specific group of businesses. Acquisitions may be set aside for 8(a), small, or HUBzone small businesses. The Contracting Officer must consider each acquisition on its own merits and make the set-aside decision based on the specific circumstances of the acquisition. In general, acquisitions above the micro-purchase threshold and below the simplified acquisition threshold are set aside for the exclusive participation of small businesses. For procurements above the simplified acquisition threshold, the Contracting Officer shall set aside acquisitions when there is an expectation that (1) offers will be from at least two responsible small business concerns offering the products of different small business concerns and (2) award will be made at fair market prices. |
| Shall |
Means the imperative; it must be done. |
| Simplified Acquisitions |
(Reference FAR Part 13)
Procurements for goods and services that are valued above the micro-purchase threshold and below the simplified acquisition threshold. The simplified acquisition threshold is generally $100,000; however, for acquisitions of supplies or services that, as an authorized official may determine, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack the term means-
(1) $250,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and (2) $500,000 for any contract to be awarded and performed, or purchase to be made, outside the United States
Further, if commercial items are being procured, the simplified acquisition threshold is $5,000,000, or $10,000,000 if an authorized official determines the supplies or services are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack. |
| Simplified Acquisition Procedures |
Acquisition procedures that are described under part 13 of the Federal Acquisition Regulations. Simplified acquisition procedures are considered informal, and are intended to reduce administrative burdens and promote efficient acquisitions. |
| Small Business Preferential Contracting Programs |
Preferential contracting was first authorized by the Small Business Act of 1953, which set up the Small Business Administration (SBA) to aid and counsel small businesses and to ensure that small firms receive a fair share of Government contracts. Amendments such as Public Law 95-507 have significantly expanded and strengthened Federal Government contract and subcontract opportunities for small and small disadvantaged businesses. The various regulations pertaining to programs provided under the Act, as amended, are generally found in FAR Part 19.
Small business firms, especially newly formed organizations, are encouraged to contact their nearest SBA office for assistance and to learn of the many programs and opportunities that are available to them. These include contracting and technical assistance as well as financial and management assistance. |
| Small Business Set-asides |
(Reference FAR Subpart 19.5)
Acquisitions that are reserved for the exclusive participation of small businesses. A "set-aside for small business" is the reserving of an acquisition exclusively for participation by small business concerns. A small business set-aside of a single acquisition or a class of acquisitions may be total or partial.
In addition to the automatic small business set asides for purchases above the micro-purchase and below the simplified acquisition thresholds, the contracting officer shall set aside any acquisition exceeding the simplified acquisition threshold for small business participation when there is an expectation that (1) offers will be from at least two responsible small business concerns offering the products of different small business concerns and (2) award will be made at fair market prices. |
| Small Disadvantaged Business Certification Program (SDB) |
(Reference FAR Subpart 19.12)
A program that the SBA administers. Under the SDB Certification Program, the SBA certifies a business as SDB qualified when it meets specific social, economic, ownership, and control eligibility criteria. Once certified, the firm is added to an on-line registry of SDB-certified firms maintained in the CCR. Certified firms remain on the list for three years. Contracting officers and large business prime contractors may search this on-line registry for potential suppliers. This program’s goal is to assist SDBs in procurements in industrial classifications cited by the Department of Commerce as still suffering from the effects of discrimination.
Benefits of SDB Certification
- Small disadvantaged businesses are eligible for price evaluation adjustments of up to 10 percent when bidding on federal contracts in certain industries.
- The program also provides evaluation credits for prime contractors who achieve SDB subcontracting targets.
Small businesses interested in securing SDB certification can obtain an application and other information on-line at http://www.sba.gov/sdb
|
| Subcontracting Opportunities |
MARAD promotes the involvement of small business at the subcontract level. Large MARAD prime contracts include a contract clause that requires the prime contractor to maximize small and minority business subcontracting opportunities. Small and disadvantaged business firms are encouraged to identify their capabilities to major prime contractors. Businesses are encouraged to view the Subcontracting section of the OSDBU web site at: http://osdbuweb.dot.gov/business/procurement/index.html |
| Total Small Business Set-Asides |
(Reference FAR Subpart 19.502-2)
A procurement wherein the Contracting Officer reserves the entire acquisition for the exclusive participation of small business. |
| Very Small Business Set-Aside Pilot Program (VSB) |
(Reference FAR Subpart 19.9)
The Very Small Business Set-Aside Pilot Program (VSB) was implemented in September 1998. To help the smallest businesses get a "foot in the door" of the Federal Procurement market, this program focuses on businesses that have 15 or fewer employees together with an average annual revenue that does not exceed $1 million.
To learn more about this program and to see a listing of the designated pilot areas, visit the SBA web site at http://www.sba.gov/GC/indexprograms-vsb.html |
| Veteran's Business Development Program |
Public Law 106-50 establishes goals for veteran-owned and service disabled veteran-owned small businesses’ participation in Federal contracting. SBA's Office of Veteran's Business Development (OVBD) provides business training, counseling and mentoring, and referrals for eligible veterans owning or considering starting a small business. In addition to the goals set for Federal Agencies, goals will be included in the Federal government’s major prime contractor's subcontracting plans.
You can learn more about the Veteran's Business Program on the SBA web site at http://www.sba.gov/VETS/ or the Department of Veterans Affairs Center of Veterans Enterprise site at: http://www.vetbiz.gov. |
| Women-Owned Business Program |
SBA's Women-Owned Business Program is designed to promote the growth of woman-owned businesses through programs that (a) address business training and technical assistance and (b) provide access to credit and capital, federal contracts, and international trade opportunities.
The SBA's Office of Women's Business Ownership (OWBO) is at the forefront of helping women start and build successful businesses. You can learn more about them on the SBA web site at http://www.sbaonline.sba.gov/womeninbusiness/.
SBA also provides assistance for women through the Online Women's Business Center at http://www.onlinewbc.gov/. |
