Acquisition
The
acquiring of supplies or services by the federal government with appropriated
funds through purchase or lease.
Affiliates
Business
concerns, organizations, or individuals that control each other or that
are controlled by a third party. Control may include shared management
or ownership; common use of facilities, equipment, and employees; or family
interest.
Best
and Final Offer
For
negotiated procurements, a contractor's final offer following the conclusion
of discussions.
Business Information
Centers (BICs)
One-stop locations
for information, education, and training designed to help entrepreneurs
start, operate, and grow their businesses. The centers provide free on-site
counseling, training courses, and workshops and have resources for addressing
a broad variety of business startup and development issues.
Certificate
of Competency
A certificate
issued by the Small Business Administration (SBA) stating that the
holder is "responsible" (in terms of capability, competency,
capacity, credit, integrity,
perseverance, and tenacity) for the purpose of receiving and performing
a specific government contract.
Certified 8(a)
Firm
A firm owned and
operated by socially and economically disadvantaged individuals and eligible
to receive federal contracts under the Small Business Administrations
8(a) Business Development Program.
Contract
A
mutually binding legal relationship obligating the seller to furnish supplies
or services (including construction) and the buyer to pay for them.
Contracting
Purchasing, renting,
leasing, or otherwise obtaining supplies or services from nonfederal sources.
Contracting includes the description of supplies and services required,
the selection and solicitation of sources, the preparation and award of
contracts, and all phases of contract administration. It does not include
grants or cooperative agreements.
Contracting Officer
A person with
the authority to enter into, administer, and/or terminate contracts and
make related determinations and findings.
Contractor
Team Arrangement
An
arrangement in which (a) two or more companies form a partnership or joint
venture to act as potential prime contractor; or (b) an agreement by a
potential prime contractor with one or more other companies to have them
act as its subcontractors under a specified government contract or acquisition
program.
Defense Acquisition
Regulatory Council (DARC)
A group composed
of representatives from each Military department, the Defense Logistics
Agency, and the National Aeronautics and Space Administration and that
is in charge of the Federal Acquisition Regulation (FAR) on a joint basis
with the Civilian Agency Acquisition Council (CAAC).
Defense
Contractor
Any
person who enters into a contract with the United States for the production
of material or for the performance of services for the national defense.
Electronic Data
Interchange
Transmission of
information between computers using highly standardized electronic versions
of common business documents.
Emerging Small
Business
A small business
concern whose size is no greater than 50 percent of the numerical size
standard applicable to the Standard Industrial Classification code assigned
to a contracting opportunity.
Equity
An
accounting term used to describe the net investment of owners or stockholders
in a business. Under the accounting equation, equity also represents the
result of assets less liabilities.
Fair and Reasonable
Price
A price that is
fair to both parties, considering the agreed-upon conditions, promised
quality, and timeliness of contract performance. "Fair and reasonable"
price is subject to statutory and regulatory limitations.
Federal
Acquisition Regulation (FAR)
The
body of regulations which is the primary source of authority governing
the government procurement process. The FAR, which is published as Chapter
1 of Title 48 of the Code of Federal Regulations, is prepared, issued,
and maintained under the joint auspices of the Secretary of Defense, the
Administrator of General Services Administration, and the Administrator
of the National Aeronautics and Space Administration. Actual responsibility
for maintenance and revision of the FAR is vested jointly in the Defense
Acquisition Regulatory Council (DARC) and the Civilian Agency Acquisition
Council (CAAC).
Full and Open Competition
With respect to
a contract action, "full and open" competition means that all
responsible sources are permitted to compete.
Intermediary
Organization
Organizations
that play a fundamental role in encouraging, promoting, and facilitating
business-to-business linkages and mentor-protégé partnerships. These can
include both nonprofit and for-profit organizations: chambers of commerce;
trade associations; local, civic, and community groups; state and local
governments; academic institutions; and private corporations.
Joint Venture
In the SBA Mentor-Protégé
Program, an agreement between a certified 8(a) firm and a mentor firm
to perform a specific federal contract.
Mentor
A
business, usually large, or other organization that has created a specialized
program to advance strategic relationships with small businesses.
Negotiation
Contracting through
the use of either competitive or other-than-competitive proposals and
discussions. Any contract awarded without using sealed bidding procedures
is a negotiated contract.
One-Stop
Capital Shops
OSCSs
are the SBAs contribution to the Empowerment Zones/Enterprise Communities
Program, an interagency initiative that provides resources to economically
distressed communities. The shops provide a full range of SBA lending
and technical assistance programs.
Partnering
A mutually beneficial
business-to-business relationship based on trust and commitment and that
enhances the capabilities of both parties.
Prime
Contract
A
contract awarded directly by the Federal government.
PRO-Net
SBAs Procurement
Marketing Access Network, or PRO-Net, is a "virtual" one-stop
procurement shop. The database offers an electronic search engine for
contracting officers and serves as a marketing tool for small businesses
that register with the system. It contains the profiles of thousands of
small firms.
Protégé
A
firm in a developmental stage that aspires to increasing its capabilities
through a mutually beneficial business-to-business relationship.
Request for Proposal
(RFP)
A document outlining
a government agencys requirements and the criteria for the evaluation
of offers.
SCORE
The
Service Corps of Retired Executives (SCORE) is a 12,400-member volunteer
association sponsored by the SBA. SCORE matches volunteer business-management
counselors with present prospective small business owners in need of expert
advice.
Small Business
A business smaller
than a given size as measured by its employment, business receipts, or
business assets.
Small
Business Development Centers (SBDC)
SBDCs
offer a broad spectrum of business information and guidance as well as
assistance in preparing loan applications.
Small Business
Innovative Research (SBIR) Contract
A type of contract
designed to foster technological innovation by small businesses with 500
or fewer employees. The SBIR contract program provides for a three-phased
approach to research and development projects: technological feasibility
and concept development; the primary research effort; and the conversion
of the technology to a commercial application.
Small
Disadvantaged Business Concern
A
small business concern that is at least 51 percent owned by one or more
individuals who are both socially and economically disadvantaged. This
can include a publicly owned business that has at least 51 percent of
its stock unconditionally owned by one or more socially and economically
disadvantaged individuals and whose management and daily business is controlled
by one or more such individuals.
Standard Industrial
Classification (SIC) Code
A code representing
a category within the Standard Industrial Classification System administered
by the Statistical Policy Division of the U.S. Office of Management and
Budget. The system was established to classify all industries in the US
economy. A two-digit code designates each major industry group, which
is coupled with a second two-digit code representing subcategories.
Subcontract
A contract
between a prime contractor and a subcontractor to furnish supplies or
services for the performance of a prime contract or subcontract.
Also see SBA's Glossary of Terms