Appendix 4 – Terms and Abbreviations

Appendix 4

Terms and Abbreviations

Acceptance: Act of an authorized representative of the government by which the government for itself, or as an agent of another, assumes ownership of identified supplies tendered or approves specific services rendered as partial or complete performance of a contract.

Acquisition and Cross-Servicing Agreement (ACSA): Agreement negotiated on a bilateral basis with US allies or coalition partners that allows US forces to exchange most common types of support, including food, fuel, transportation, ammunition, and equipment. Authority to negotiate these agreements is usually delegated to the combatant commander by the Secretary of Defense. Authority to execute these agreements lies with the Secretary of Defense and may or may not be delegated. Governed by legal guidelines, these agreements are used for contingencies, peacekeeping operations, unforeseen emergencies, or exercises to correct logistic deficiencies that cannot be adequately corrected by national means. The support received or given is reimbursed under the conditions of the ACSA. See also "cross-servicing" and "servicing" in Joint Publication 1-02, Department of Defense (DoD) Dictionary of Military and Associated Terms, and Joint Publication 407, Joint Tactics, Techniques, and Procedures for Common-User Logistics during Joint Operations.

Acquisition: Process of acquiring by contract, with appropriated funds, supplies or services (including construction) by and for the use of the federal government through purchase or lease, whether the supplies or services already exist or must be created, developed, demonstrated, and evaluated.

Administrative Contracting Officer (ACO): Individual who administers a contract and enforces its provisions. The procuring contracting officer (PCO) sometimes serves as the ACO, especially for contracts performed on a government installation.

Agent: Individual appointed or designated by another party (principal) to enter into a business or contractual relationship with third parties. These relationships are legally binding on the principal and the third parties. A contracting officer signing a government contract does so as an agent of the US government.

Allocable Costs: Costs that are incurred specifically for the contract, that benefit both the contract and other work and can be distributed in reasonable proportion to the benefits received, or that are necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.

Allowable Costs: Costs that are allowable on a government contract when in keeping with the rules set forth in FAR Part 31, Contract Cost Principles and Procedures, and not otherwise disallowed.

Alternative Dispute Resolution (ADR): Any type of procedure or combination of procedures used voluntarily to resolve issues in controversy. Examples of ADR procedures are conciliation, facilitation, mediation, fact-finding, mini-trials, arbitration, and use of ombudsmen.

Amendment: Change made to a solicitation.

Antideficiency Act: Law that prohibits authorizing or incurring obligations or expenditures in excess of amounts apportioned by the Office of Management and Budget (OMB) or in excess of amounts permitted by agency regulations. The act requires establishment of procedures for determining the responsibility for violations and for reporting violations to the President, through the OMB, and to the Congress.

Best Value: Expected outcome of an acquisition that, in the government's estimation, provides the greatest overall benefit (technical and price) in response to the requirement.

Bid: Offer. In the sealed bidding method of contracting, the offer takes the form of a sealed bid. A bid is fixed as of the time of bid opening, and there is no possibility of negotiating even a relatively minor change in it, even if the change would be to the government's advantage. It must be accepted or rejected as submitted.

Bidder: Offeror.

Bilateral Modification: Contract modification (supplemental agreement) signed by the contractor and the contracting officer.

Blanket Purchase Agreement (BPA): Simplified method of filling anticipated repetitive needs for supplies or services by establishing charge accounts with qualified sources of supply.

Blanket Purchase Agreement Caller: Individual authorized to purchase under a BPA. This person is identified either by title, position, or name in the terms of the agreement, and the dollar limitation per purchase is furnished to the supplier. Designating an individual as COR does not entitle that person to place calls against a BPA. This is an entirely separate function.

Cardinal Changes: Modifications to an existing contract that are beyond the general scope of that contract and are so extensive that a new procurement should be used.

Change Order: Written order, signed by the contracting officer, directing

the contractor to make a change that the Changes clause authorizes. Changed Conditions: Construction site or repair conditions that differ significantly from conditions indicated in the contract or conditions ordinarily encountered in the performance of the type of work in the contract.

Chief of the Contracting Office (COCO): Any person who has direct managerial responsibility for the operation of a contracting office. Unless specifically excepted, the COCO may, at the option of the designated official, be the deputy chief or acting chief of the contracting office.

Civil Augmentation Programs (CAP): Standing, long-term contracts designed to augment service logistic capabilities with contract support

in both preplanned and short-notice contingencies. Examples are US Army Logistics Civilian Augmentation Program, US Air Force Contract Augmentation Program, and US Navy Construction Capabilities Contract.

Claim: Written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of a certain sum of money, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract. The submission may be converted to a claim by written notice to the converting officer if it is disputed either as to liability or amount or is not acted upon in a reasonable time.

Clause: Term or condition used in a contract or in both the contract and the solicitation.

Combatant Commander (COCOM): Commander of one of the unified or specified combatant commands established by the President.

Commercial Item (CI): Item customarily used for nongovernmental purposes. Commercial items are sold, leased, or licensed to the general public, or have been offered for sale, lease, or license to the general public. Items not yet available in the commercial marketplace, but can be expected to be sold in the commercial marketplace in time to meet the government's requirement, are also considered commercial items.

Commercial Item Description (CID): Indexed, simplified description, prepared by the government using performance characteristics, of an available, acceptable commercial item that will satisfy the government's needs.

Competition in Contracting Act (CICA): Law stating that lack of planning is not adequate justification for a sole-source contract and requiring a detailed explanation as to why competition cannot be achieved.

Competition: Acquisition strategy in which more than one contractor is sought to bid on a procurement. In acquisitions at or below the micropurchase threshold, only assurance of a fair and reasonable price is required. In simplified acquisitions, maximum practicable competition is obtained by soliciting at least three sources. In actions using other than simplified acquisition procedures, full and open competition is to be used unless there are valid exemptions or exceptions.

Constructive Change: Oral or written act or omission by the contracting officer that is construed as having the same effect as a written change order yet lacks formal written authority. An example of a constructive change is holding a contractor to an original delivery schedule despite an excusable delay. No written change was made; however, by insisting the excusable delay will have no impact on the schedule, an accelerated schedule has been constructed.

Contingency Contracting Officer (CCO): Individual with delegated contracting authority to enter into, administer, and terminate contracts on behalf of the government in support of a local contingency, steady-state deployments, or other contingency operations. The CCO also acts as the primary business advisor to the deployed or on-scene commander.

Contingency Operation: Military operation that (1) is designated by the Secretary of Defense as an operation in which members of the Armed Forces are or may become involved in military actions, operations, or hostilities against an enemy of the United States, or against an opposing military force, or (2) results in the call or order to, or the retention on, active duty members of the uniformed services under any other provision of law during a war or during a national emergency declared by the President or Congress.

Contract: Agreement, enforceable by law, between two or more competent parties to do or not do something not prohibited by law for a legal consideration. FAR 2.101, Definitions, defines a contract as a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them.

Contract Administration Office (CAO): Activity identified in the DoD Directory of Contract Administration Services Components assigned to perform contract administration responsibilities. For DoD, the CAO is often a Defense Contract Management Command (DCMC) office servicing the contract.

Contract Administration Plan (CAP): Plan describing the procedures and tasks to be used by the government to administer a contract. Those tasks include file documentation and quality assurance functions. Implementation of the CAP will establish a quality audit trail of contract performance with respect to the specifications, cost, delivery requirements, and applicable laws, regulations, and contract provisions.

Contract Advisory and Assistance Services (CAAS): Services provided under contract by nongovernmental sources to support or improve organizational policy development, decisionmaking, management and administration, program and/or project management and administration, or research and development activities. CAAS also include the furnishing of professional advice or assistance rendered to improve the effectiveness of federal management processes or procedures (including those of an engineering and technical nature). Outputs may take the form of information, advice, opinions, alternatives, analyses, evaluations, recommendations, training, and day-to-day aid of support personnel needed for the performance of ongoing federal operations. Advisory and assistance services are classified in one of the following categories: (1) management and professional support services; (2) studies, analyses, and evaluations; and (3) engineering and technical services.

Contract Data Requirements List (CDRL): List of contract data requirements authorized for a specific acquisition and made a part of the contract. CDRLs are specified by DD Form 1423-1, Contract Data Requirements List.

Contract Discrepancy Report (CDR): Report issued for any supply or service found to be unacceptable during contract performance. The CDR is notification to the contractor of failure to meet the contract requirements.

Contract Disputes Act (CDA) of 1978, as amended (41 USC 601 to 613): Law establishing procedures and requirements for asserting and resolving claims subject to the CDA. The act also provides for (1) payment of interest on contractor claims, (2) certification of contractor claims, and (3) a civil penalty for contractor claims that are fraudulent or based on a misrepresentation of fact.

Contract Line Item Number (CLIN): Number that identifies a separate supply or service to be provided under contract. Each CLIN should have a single unit price, separate identification, separate delivery schedule, and single accounting classification citation.

Contracting Officer: Individual who is duly appointed and designated with specific authority to enter into, administer, and terminate contracts and to make related determinations and findings on behalf of the US government.

Contracting Officer's Final Decision (COFD): Decision made by the contracting officer to accept or deny a protest filed by a contractor. If the contracting officer denies the protest, the contractor can appeal under the Disputes clause.

Contracting Officer's Representative (COR): Individual designated and authorized in writing by the contracting officer to perform specific technical or administrative functions related to monitoring a contract. According to Defense Federal Acquisition Regulation Supplement (DFARS) Subpart 201.602-2, Responsibilities, the COR must be (1) a government employee (unless otherwise authorized in agency regulations), (2) qualified by training and experience commensurate with responsibilities to be delegated in accordance with department or agency guidelines, and (3) designated in writing. The COR has no authority t.

make any commitments or changes that affect price, quality, quantity.

delivery, or other terms and conditions of the contract. Contracting Officer's Representative (COR) Nominee: Individual identified by the requiring unit and accepted by the contracting officer as having the general competencies, agency experience, relevant technical experience, and training (or a training plan if not yet trained) to perform those COR functions delegated by the contracting officer. When appropriate, the COR should be nominated as early in the acquisition cycle as practicable. This allows the COR nominee to provide subject matter expertise and to ensure that he or she is familiar with the requirements, specific terms and conditions of the resultant contract, and the functions to be delegated.

Contracting Support Plan (CSP): Document describing contracting support planned for an operation. The CSP ensures that contracting personnel plan, prepare, and coordinate the support of deployed forces and that contracting plans and procedures are known and included in overall operational plans.

Contractor Acquired Property (CAP): Property acquired or otherwise provided by the contractor for its use in performing a contract and to which the government has or will acquire title.

Cost-Reimbursement Contract: Agreement that provides for payment of allowable incurred costs, to the extent prescribed in the contract.

Cure Notice: Document the contracting officer sends to a contractor to notify the contractor that the contract may be terminated by reason of default if the condition endangering performance of the contract is not corrected. There must be 10 days for the contractor to make the cure.

Customer Complaint: Form of feedback that can be used to monitor quality assurance; this is particularly useful in service contracts.

Data Item Description (DID): Document that defines the data required of a contractor. The DID specifically defines the data content, format, and intended use.

Data Rights: Rights to use recorded information, regardless of its form or the media on which it may be recorded. The term includes rights to technical data and computer software. The term does not include rights to information incidental to contract administration, such as financial, administrative, cost or price, or management information. The government can acquire three types of data rights: (1) unlimited rights to all data, which is costly; (2) limited rights or restricted rights (a few essential rights for government personnel only, which has a relatively low cost); and (3) government-purpose rights, which includes rights for government contractors as long as the use is for a government purpose, at a moderate cost.

Default: Omission or failure to perform a legal or contractual duty t.

observe a promise, discharge an obligation, or perform an agreement. Defense Contract Audit Agency (DCAA): Agency that audits all DoD contracts and provides accounting and financial advisory services regarding contracts and subcontracts to DoD components responsible for procurement and contract administration. These services are provided in connection with negotiation, administration, and settlement of contracts and subcontracts. DCAA also provides contract audit services to some other government agencies.

Defense Contract Management Agency (DCMA): Independent agency within DoD that serves as DoD's contract manager. DCMA is responsible for ensuring that federal acquisition programs (systems, supplies, and services) are delivered on time, delivered within projected cost or price, and meet performance requirements.

Defense Federal Acquisition Regulation Supplement (DFARS): Supplement to the FAR that provides DoD-specific acquisition regulations.

Defense Information Systems Agency (DISA): Agency responsible for inspections prior to final closeout of classified documents.

Delivery Order (DO): Order for supplies placed against an established

contract or with government sources. Delivery Order Contract: Contract for supplies that does not procure or specify a firm quantity of supplies (other than a minimum or maximum quantity) and that provides for the issuance of orders for the delivery of supplies during the period of the contract.

Department of Defense (DoD): Federal department responsible for coordinating and supervising all agencies and functions of the government relating directly to the military and national security.

Design Specification: Document that details the exact dimensions, materials, composition, physical and chemical requirements, and other characteristics of the product to be furnished. The contractor must provide the item as specified, but the government bears the responsibility for ensuring that the specifications are correct and will produce the desired result.

Designated Agency Ethics Official (DAEO): Individual appointed or designated by the Attorney General to administer, coordinate, and manage a department's ethics program. The Assistant Attorney General for Administration has been designated to serve as the DAEO.

Dispute: Disagreement between the contractor and contracting officer

regarding the rights of the parties under a contract. Economic Price Adjustment (EPA): Provision in a fixed-price contract that allows for upward or downward revision of the stated contract price under specified contingencies.

Electronic Commerce: Paperless process for accomplishing business transactions. Electronic mail, electronic bulletin boards, electronic funds transfer, and electronic data interchange are examples.

Employee-Employer Relationship: Relationship under service contracts in which contractor personnel are subject to the relatively continuous supervision and control of a government employee.

Equitable Adjustment: Adjustment of price, including an adjustment for profit, due to a change in contracted work, such as a change in the delivery schedule or any other terms of the contract.

Excusable Delay: Delay arising from causes beyond the control and without the fault or negligence of the contractor. Examples are (1) acts of a public enemy, (2) acts of the government in its sovereign or contractual capacity, (3) fires, (4) floods, (5) epidemics, (6) quarantine restrictions.

(7) strikes, (8) freight embargoes, and (9) unusually severe weather.

Executive Agency: Instrumentality of the US government bound by the FAR. Executive agencies include the executive departments, the military departments, any independent establishment, and any wholly owned government corporation within the meaning of 31 USC 102, Executive Agency.

Executive Agent: Term used to indicate a delegation of authority by the Secretary of Defense to a subordinate to act on the Secretary's behalf. Designation as an executive agent, in and of itself, confers no authority. The exact nature and scope of the authority delegated must be stated in the document designating the executive agent. An executive agent may be limited to providing only administration and support or coordinating common functions; however, an executive agent may be delegated authority, direction, and control over specified resources for specified purposes.

External Support Contract: Prearranged contingency contract or contract awarded during a contingency from service contracting authorities external to the operational area. The largest contracts of this types have been the services' civilian/contract augmentation programs.

External Support Contractor: Entity hired to provide an external support contract (see above).

Fair and Reasonable Price: Basic tenet of government contracting that an award be made at a fair and reasonable price to both parties to the contract. If the contract is set up with the correct contract type allowing for appropriate cost risk, a good contractor should be able to make a reasonable profit.

Federal Acquisition Regulation (FAR): Regulation that applies to all acquisitions of the executive branch of the US government. DoD-specific policies and procedures are established in the DFARS.

Federal Business Opportunities (FBO or FedBizOpps): Media used by US government agencies to notify the public of proposed contract actions and contract awards.

Federal Supply Schedule (FSS): Program, directed and managed by the General Services Administration, that provides US government agencies with a simplified process for obtaining common supplies and services at prices associated with volume buying.

Field Ordering Officer (FOO): Individual authorized, in writing, by the contracting officer to execute micropurchases using Standard Form 44, Purchase Order-Invoice-Voucher.

Firm-Fixed-Price (FFP) Contract: Agreement to pay a specified price when the supplies or services called for by the contract have been delivered and accepted within a specified time.

Fragmentary Order (FRAGO): Abbreviated form of an operations order (OPORD) that is issued as needed to change or modify the OPORD or to execute a branch or sequel to the OPORD.

Free on Board (FOB) Destination: Shipping term indicating that the seller or consignor selects the mode of transportation and delivers the supplies to the final delivery place designated by the government. Unless otherwise specified in the contract, the seller or consignor is responsible for the cost of shipment and the risk of loss or damage during shipment.

Free on Board (FOB) Origin: Shipping term indicating that the seller or consignor is responsible only for placing supplies on a conveyance (means of transportation). Unless otherwise specified in the contract, the buyer or consignee (the government) is responsible for the cost of shipment and the risk of loss.

Full and Open Competition: Procurement environment in which all

responsible sources are permitted to compete. General Services Administration (GSA): Agency in the executive branch of the US government that procures common supplies and services (including construction) used by government agencies.

Government Accountability Office (GAO): Independent government entity known as "the investigative arm of Congress" and "the congressional watchdog." GAO supports Congress in meeting its constitutional responsibilities and helps improve the performance and accountability of the federal government.

Government Bill of Lading (GBL): Accountable transportation document, authorized and prepared by a government official.

Government Performance and Results Act (GPRA): Law mandating that federal agencies measure their performance.

Government-Furnished Property (GFP): Property in the possession of or directly acquired by the government and subsequently made available to the contractor.

Government-wide Commercial Purchase Card (GCPC): Card, similar to a commercial credit card, issued to authorized agency personnel to use to acquire and pay for supplies and services.

Head of the Contracting Activity (HCA): Individual who has overall responsibility for managing the contracting activity. Host Nation Support Agreement (HNSA): Basic support agreement normally conducted at government-to-government or government-tocombatant commander level. General agreements, umbrella agreements, and memoranda of understanding are examples of HNSAs.

Humanitarian or Peacekeeping Operation: Military operation in support of humanitarian or foreign disaster assistance or in support of a peacekeeping operation under Chapter VI or VII of the Charter of the United Nations. The term does not include routine training, force rotation, or stationing.

Imprest Fund: Cash fund of a fixed amount established through an advance of funds, without appropriation change, to an authorized Imprest fund cashier to make immediate cash payments of relatively small amounts for authorized purchases of supplies and nonpersonal services.

Indefinite-Delivery Contract: Contract used to acquire supplies or services when the exact times and/or exact quantities of future deliveries are not known at the time of contract award. There are three types of indefinite-delivery contracts: definite-quantity contracts, requirements contracts, and indefinite-quantity contracts.

Independent Government Estimate (IGE): Estimate of the cost for supplies or services to be procured by contract. Government personnel independent of contractors prepare IGEs.

Information Resources: All resources and activities employed in the acquisition, development, collection, processing, integration, transmission, dissemination, distribution, use, retention, storage, retrieval.

maintenance, access, disposal, security, and management of information. Information resources include doctrine, policy, data, equipment, and software applications, as well as related personnel, services, facilities, and organizations.

Information Technology (IT): Any equipment, or interconnected system or subsystem of equipment, used for the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or receipt of data or information. IT includes computers, ancillary equipment, software, firmware, and similar procedures, services (including support services), and related resources.

Information Technology Management Reform Act (ITMRA): Law seeking to improve federal information management and to facilitate acquisition of state-of-the-art information technology that is critical for improving the efficiency and effectiveness of government operations.

Inspection: Process broadly defined as "the examination of an item by comparing it with predetermined standards to determine conformance to requirements." The narrow definition of inspection is "a visual examination which does not use special laboratory equipment or procedures." In the phrase inspection and acceptance, the broad definition applies. In the phrase test and inspection, the narrow one applies.

Integrated Product Team (IPT): Team composed of representatives from all appropriate functional disciplines working together to build successful programs, identify and resolve issues, and make sound and timely recommendations to facilitate decisionmaking. There are three types of IPTs: (1) overarching IPTs (OIPTs), which focus on strategic guidance, program assessment, and issue resolution; (2) working IPTs (WIPTs), which identify and resolve program issues, determine program status, and seek opportunities for acquisition reform; and (3) program-level IPTs, which focus on program execution and may include representatives from both government and industry.

Inter-Service Support Agreement (ISSA): Formal, long-term, or operation-specific support agreement between services, DoD, and/or non-DoD agencies governed by DoD Instruction 4000.19, Interservice and Intragovernmental Support. ISSAs, normally developed at the service secretariat and governmental agency director level, document funding and reimbursement procedures, as well as standards of support between the supplying and receiving service or agencies. Although they are binding, ISSAs do not connote DoD-level executive agent responsibilities.

Invitation for Bids (IFB): Solicitation used by the government (in the sealed bidding method of contracting) to invite offerors to make a bid on a specific requirement and to describe the conditions under which offers will be received.

Job Order Contract (JOC): Indefinite-delivery, indefinite-quantity (IDIQ) contract awarded on the basis of full and open competition to acquire real property maintenance and repair or minor construction at base level. The JOC includes a comprehensive collection of detailed repair maintenance and minor construction task descriptions or specifications, units of measure and established unit prices for each discrete task. Each project or job ordered under a JOC normally consists of a number of predescribed and prepriced tasks.

Joint Acquisition Review Board (JARB): Board formed to approve and prioritize designated, related high-value and/or high-visibility requirements and to determine the proper source of support for those requirements.

Joint Contracting Support Board (JCSB): Board that functions as a coordination or deconfliction activity for contracting in a Joint operations area (JOA). The goal of the JCSB is to maximize the contracting capabilities of the JOA, while minimizing the competition for limited contractor capabilities. The JCSB also establishes specific theater and external support contracting procedures and reporting requirements.

Joint Forces Commander (JFC): General term applied to a combatant commander, subunified commander, or Joint task force commander authorized to exercise combatant command (command authority) or operational control over a Joint force.

Joint Operations Area (JOA): Area of land, sea, and airspace, defined by a geographic combatant commander or subordinate unified commander, in which a Joint force commander (normally a Joint task force commander) conducts military operations to accomplish a specific mission.

Justification and Approval (J&A): Document that justifies and obtains approval for contract solicitations that use other than full and open competition.

Labor-Hour Contract: Contract that provides for the procurement of services on the basis of direct labor hours at specified, fixed hourly rates (which include direct and indirect labor, overhead, and profit).

Legal Counsel: Judge Advocate General, or Staff Judge Advocate, or civilian counsel providing legal services to the installation organization concerned.

Letter Contract: Written preliminary contractual instrument that authorizes the contractor to begin immediately manufacturing supplies or performing services.

Life-Cycle Cost (LCC): Total cost to the government of acquisition and ownership of a system over its useful life. LCC includes development, acquisition, operations, and support (including manpower), and, where applicable, disposal.

Market Research: Process used for collecting and analyzing information about the market available to satisfy the minimum agency needs to arrive at the most suitable approach to acquiring, distributing, and supporting supplies and services.

Memorandum of Understanding (MOU): Agreement of cooperation between organizations. The MOU defines the roles and responsibilities of each organization in relation to the other or others with respect to an issue over which the organizations have concurrent jurisdiction.

Modification: Written change in the terms of the contract. It can be unilateral (signed by the government only) or bilateral (signed by both the government and the contractor).

Negotiation: Contracting approach that uses either competitive or other than competitive proposals and discussions. Any contract awarded without using sealed bidding procedures is a negotiated contract. Negotiation may also be used to modify the contract after award.

Nonappropriated Fund (NAF): Funds generated by DoD military and civilian personnel and their dependents and used to augment funds appropriated by the Congress to provide a comprehensive morale, welfare, recreation, religion, and education program to improve the well-being of military and civilian personnel and their dependents.

Nondevelopmental Item (NDI): Item developed and used exclusively for governmental purposes by a federal agency, a state or local government, or a foreign government with which the United States has a mutual defense cooperation agreement. An NDI may require minor modification to meet agency-specific requirements. Items that are developed and will soon be used by the federal government, a state or local government, or a foreign government are also considered NDIs.

Nonexcusable Delay: Delay that could have been prevented by the contractor. Such a delay would not be a reason to extend the delivery schedule without consideration.

Nonpersonal Services Contract: Contract under which the personnel rendering the services are not subject, either by the contract's terms or by the manner of its administration, to the supervision and control usually prevailing in relationships between the government and its employees.

Offer: One of the five elements of a contract. As a response to a government solicitation, an offer, if accepted by the government's contracting officer, would legally bind the offeror to perform the resultant contract. An offer could be in the form of a bid or a proposal.

Offeror: Entity that offers, via a proposal, to provide supplies or perform services needed by the government. An offeror becomes a contractor when the government accepts the offer. In sealed bidding the offeror is called a bidder.

Option: Contract term giving the government the unilateral right, for a specified time, to purchase additional supplies or services called for by the contract or to extend the term of the contract. Examples are an increase in the quantity of supplies beyond that originally stipulated, an extension of time for services beyond that originally stipulated, and a change to the principal period of performance (such as the hours of the workday in a maintenance contract). A critical factor in an option is the window during which an option can be exercised. Missing the window voids the unilateral nature of the option.

Oral Contract: Agreement not documented in writing. It is the government's policy not to use oral contracts. No appropriated funds can be used to pay for supplies or services until the contract is in writing.

Order: Instrument used to order work under a task order or delivery order contract. Orders are written and, when obligating funds, must be on a form prescribed by the FAR or DFARS. Orders are made a part of the contract file.

Ordering Officer (OO): Individual appointed or designated by a contracting officer to make purchases up to the micropurchase threshold using any method listed in Part 13 of the FAR. Examples are purchase orders, SF 44 transactions, Imprest funds, calls against BPAs, and government credit card transactions. An OO also may be authorized to place delivery orders under indefinite-delivery type contracts.

Organizational Conflict of Interest: Situation that exists when the nature of the work to be performed under a proposed government contract may, without some restriction on future activities, result in an unfair competitive advantage to the contractor or impair the contractor's objectivity in performing the contract work.

Partial Payment: Payment for supplies or services, delivered to and accepted by the government, that represent only part of the contract requirements.

Past Performance: History of how well a contractor performs on a contract or contracts. The government tracks contractor performance to assess the risk of using the same contractor on a similar project sometime in the future. (The government supplements past performance data with data from other sources..

Performance Requirements Summary (PRS): Document containing information about the key services that a contractor is required to perform, standards to enable the government to test the quality of a contractor's performance, and surveillance methods to be used.

Performance Specification: Description of the end item in terms of output, function, or operation. The contractor is responsible for determining the specific design necessary to achieve the performance levels stated. Performance specifications are preferred over design specifications.

Performance Work Statement (PWS): Description of the required results in clear, specific, and objective terms with measurable outcomes.

Performance-Based Services Contract (PBSC): Contract that focuses on the purpose of the services to be performed rather than the manner in which the work is to be performed. A PBSC is designed to ensure that contractors are given the freedom to determine how to meet the government's performance objectives, that appropriate performance quality levels are achieved, and that payment is made only for services that meet these levels.

Personal Services Contract: Contract that creates an employer-employee relationship between the government and the contractor's personnel. The government is normally required to obtain its employees by direct hire under competitive appointment, designation, or other procedures required by the civil service laws. Obtaining personal services by contract, rather than by direct hire, circumvents those laws unless Congress has specifically authorized acquisition of the services by contract. In addition, converting a legal nonpersonal service contract into a personal service contract removes it from being enforceable in a court of law.

Pre-award Survey (PAS): Study of a prospective contractor's financial, organizational, and operational status. A PAS is conducted prior to contract award to determine the contractor's responsibility and eligibility for government procurement.

Private Security Contractor (PSC): Company contracted by DoD to perform security functions. In a designated area of combat operations, the term PSC expands to include all companies employed by US government agencies performing security functions under a covered contract. Contractors performing security functions are not authorized to perform inherently governmental functions. In this regard, they are limited to a defensive response to hostile acts or demonstrated hostile intent.

Procurement Initiator: Local or installation director, office chief, or functional element authorized to receive contract support.

Procurement Integrity Act: Law prohibiting disclosure of contractor bid and proposal information and source selection information by a person who (1) is acting or has acted for or on behalf of, or who is advising or has advised the United States with respect to, a federal agency procurement, and (2) by virtue of that office, employment, or relationship, has or had access to contractor bid or proposal information or source selection information. See Section 27 of the Office of Federal Procurement Policy Act (41 USC 423, as implemented in FAR 3.104, Procurement Integrity).

Procurement Request: Initial request for a contracting action, submitted by the requiring unit. The procurement request consists of all the documentation required to establish a contract, a purchase order, or a construction contract.

Procuring Contracting Officer (PCO): Individual who awards the contract. This individual may also administer the contract and may handle termination settlements, functions that, in many instances, are handled by an ACO and a TCO, respectively.

Progress Payment: Method of contract financing in which the government pays a contractor as work progresses even though supplies or services have not been delivered. Progress payments may be based on cost incurred, percentage of work completed, or completion of particular phases.

Prompt Payment Act: Law defining the standard amount of time allowed for payment to government contractors.

Proposal: Document submitted by an offeror in response to a request for proposals, issued by the government, for providing supplies or performing services.

Proprietary Data: Data that belong to an offeror or contractor, and apply to manufacturing processes, operations, or techniques that may distinguish that entity from its competition. The entity must label it.

proprietary data, and the government must prevent the release of proprietary data to unauthorized parties.

Protest: An interested party's written objection to an agency's solicitation of offers for a proposed contract to acquire supplies or services. A protest also may be an interested party's written objection to the proposed or actual award of a contract.

Provision: Term or condition that is used in the solicitation and applies before contract award.

Purchase Order: Order for supplies or services (used in the simplified acquisition method of contracting). Normally used above the micropurchase level, purchase orders may be unilateral (requiring only a government signature) or bilateral (requiring the signature of both the contracting officer and the contractor).

Purchase Request (PR): Initial request for any contracting action, normally submitted by the technical or functional area organization (requiring unit).

Quality: Combined attributes (performance features and characteristics.

that indicate the ability of a supply or service to satisfy a given need. Quality Assurance: Process consisting of planned, systemic actions necessary to provide confidence that adequate technical requirements are established, supplies and services conform to established technical requirements, and satisfactory performance is achieved.

Quality Assurance Representative (QAR): When a contract has been delegated to the Defense Contract Management Agency to administer, the COR will work closely with the QAR. The QAR ensures the contractor is in compliance with contractual requirements, evaluates and documents contractor performance, follows up with the contractor on documented deficiencies, and provides input for the Performance Evaluation Board through the administrative contracting officer.

Quality Assurance Schedule: Timeline established by the government to observe contractor performance.

Quality Assurance Surveillance Plan (QASP): Guide that describes the contract monitoring methods in detail. The QASP is usually written by the same team that develops the work statement and is used in monitoring a contract. A QASP is mandatory for contracts, task orders, or delivery orders over the micropurchase threshold, including service contracts and construction contracts.

Quality Control Plan (QCP): Method put into place by a contractor to monitor or control the performance of services to meet contract requirements. This plan is also known as a quality assurance plan (QAP).

Random Sampling: Method of inspection used when it is not feasible to examine all items presented prior to acceptance. Under this method, a predetermined quantity is inspected at random. In this way, the contractor does not know which items will be inspected. In theory, random sampling is highly reliable as an indicator of overall quality.

Ratification: Approval, by an official with the required authority (such as the contracting officer), of an unauthorized commitment. The contracting officer is not compelled to ratify an unauthorized commitment.

Reachback: Process of obtaining supplies, services, applications, forces, equipment, or material from organizations that are not forward deployed.

Reasonable Cost: Cost that a prudent entity would pay in the normal course of business. Reasonable is subjective. For example, the reasonable cost of plywood would be higher in a coastal area under a hurricane watch than in other areas, but there would still be a point at which the cost could be considered unreasonable.

Replacement in Kind (RIK): Type of payment on an acquisition and cross-servicing agreement in which logistics support, supplies, or services ar.

transferred to a unit and that unit pays by providing the same kind o.

logistics support, supplies, or services at a later date. Request for Information (RFI): Request by the government for information from industry. The government may issue an RFI to obtain price, delivery, capabilities, and other market information for planning purposes (for example, for developing a solicitation document, such as an RFP).

Request for Proposals (RFP): Solicitation used for negotiated acquisitions to communicate government requirements to prospective contractors and to obtain proposals.

Requirements Contract: Indefinite-delivery type of contract that commits the government to the exclusive use of the contractor to provide supplies or services as outlined in the contract for the period state. This type of contract does not commit the government to a specific quantity of supplies or services. Delivery orders are used to request supplies and services when needed. Delivery orders also give the location and time of delivery or performance. Under this type of contract, the government is at risk of a breach of contract suit if, for any reason, it gives a competitor the work promised before the contractor has a chance to refuse it.

Responsibility: Determination that the contractor has the capability to perform a contract successfully. Because the responsibility decision must be made prior to award, it is somewhat speculative. It can be based on a formal pre-award survey of technical capability, production capability, quality assurance capability, financial capability, accounting system, and other factors such as property control, transportation, packaging, security, safety, environmental or energy conservation, and flight operation or flight safety. It is also possible to make a responsibility determination without a formal pre-award survey when data are available to support a positive decision.

Rule Four File: Government response to a contractor's claim against the government brought before the Armed Services Board of Contract Appeals (ASBCA). DFARS Appendix A contains the ASBCA rules. The fourth rule addresses preparation, content, organization, forwarding, and status of the appeal file. The appeal file itself has picked up the name Rule Four File from this origin of the rules concerning it.

Sealed Bidding: Method of contracting that employs competitive bids, involves public opening of bids, and makes an award to the responsive, responsible bidder, considering only price and price-related factors.

Section 508: Section of the Rehabilitation Act that requires federal agencies to make their electronic and information technology accessible to people with disabilities.

Senior Contracting Official (SCO): Individual, designated by the lead service or Joint command and appointed by the HCA, who assumes direct managerial responsibility over theater support contracting. Multiple SCOs may be appointed in the same operational area, depending on the mission or regional focus.

Senior Procurement Executive (SPE): Individual who is responsible for management direction of the acquisition system of an executive agency, including implementation of agency-unique acquisition policies, regulations, and standards.

Set-aside: Reserving of an acquisition or portion of an acquisition exclusively for participation by an identified group.

Show-Cause Letter: Document sent by the contracting officer to a contractor that is failing to perform in accordance with the terms of the contract. The letter notifies the contractor that the contract may be terminated by reason of default unless the contractor can prove within 10 days that the condition was not the fault of the contractor.

Simplified Acquisition Procedure (SAP): Method for purchasing supplies or services that do not exceed the simplified acquisition threshold. Generally, the threshold is $100K or less. However, when the supplies or services are needed to support a declared contingency operation or to facilitate defense against or recovery from nuclear, biological, or radiological attack, the threshold is:

• $250K for any contract to be awarded and performed, or purchase to be made, inside the United States and
• $1M for any contract to be awarded and performed, or purchase to be made, outside the United States

Small and Disadvantaged Business Utilization Specialist (SADBU): Position (created under the authority of the Small Business Act, 15 USC 644, Section 7) responsible for overall management and direction of the DoD Small Business Program, which includes advising on matters relating to the program, providing guidance and periodically reviewing the direction and implementation of DoD activities in promoting contract awards to small businesses, and developing overall command small business goals and consulting with the Small Business Administration (SBA) regarding the establishment of such goals.

Small Business: Entity, including its affiliates, that is independently owned and operated, is not normally dominant in the field of operation in which it is performing on government contracts, and meets certain other size criteria set by the SBA.

Small Business Program: Program designed to ensure that small businesses—including small disadvantaged businesses, 8(a) firms, women-owned businesses, minority colleges, and labor surplus area firms, among others identified by law—receive a fair share of DoD procurement dollars. In furtherance of economic objectives, various public laws and executive orders have designated that these groups be provided special opportunities in solicitation and award of federal contracts.

Sole Source: Source that is characterized as the one and only source, regardless of the marketplace, possessing a unique and singularly available performance capability for the purpose of the contract award.

Sole-Source Acquisition: Contract for the purchase of supplies or services that is entered into, or proposed to be entered into, by an agency after soliciting and negotiating with only one source. Sole-source contracts require special approvals.

Solicitation: Request for proposal or invitation for bids issued t.

prospective offerors or bidders. Source Selection: Process in which the requirements, facts, recommendations, and government policy relevant to an award decision in a competitive procurement are examined and a decision is made.

Specification: A document used in development and procurement that describes the technical requirements for items, materials, and services. A specification also describes the procedures that the government will use to determine if the requirements have been met. Specifications may be unique to a specific program or common to several applications.

Standard Procurement System (SPS): Automated contracting system designed to standardize procurement processes across DoD. Once fully deployed, the SPS will be used to generate all DoD contracting forms, including solicitations.

Statement of Objectives (SOO): Statement, provided in the RFP, that specifies the basic top-level objectives of the acquisition, but does not include how to instructions. With a SOO, potential offerors have the flexibility to develop cost-effective solutions and the opportunity to propose innovative alternatives meeting the requirement. By reviewing an offeror's solutions, the government can assess the extent to which the offeror understands all aspects of the effort to be performed.

Statement of Work (SOW): Statement, provided in the RFP, that specifies the basic, top-level objectives of the acquisition, as well as the detailed requirements of the government. The SOW also provides the contractor with how to instructions to accomplish the required effort, and it forms the basis for successful performance by the contractor and effective administration of the contract by the government.

Status of Forces Agreement (SOFA): Agreement that defines the legal position of a visiting military force deployed in the territory of a friendly state. SOFAs may be bilateral or multilateral. Provisions pertaining to the status of visiting forces may be set forth in a separate agreement, or they may form a part of a more comprehensive agreement. These provisions describe how the authorities of a visiting force may control members of that force and the amenability of the force or its members to the local law or to the authority of local officials. To the extent that agreements delineate matters affecting the relations between a military force and civilian authorities and population, SOFAs may be considered civil affairs agreements.

Supplemental Agreement: Contract modification accomplished by the mutual action of the contracting officer and contractor. This is a bilateral agreement and must be executed by both the contractor and the contracting officer.

Supplies: All property except land or interest in land (as defined by the FAR). Synchronized Predeployment and Operational Tracker (SPOT): Joint, Web-accessible database used for tracking contractor personnel movements within the forward area and for validating individual contractor personnel associated with specific contracts, their authorization for access to specific DoD facilities, and their individual eligibility for specific DoD support services.

Synopsis: Government's notice in the FBO announcing the specific requirement for supplies or services and the procedure for receiving a copy of the solicitation document. The government is required to use this vehicle for ensuring full and open competition unless a valid exception exists.

System Support Contract: Contracts awarded by service acquisition program management offices to obtain technical support, maintenance support, and, in some cases, Class IX support for selected military weapons and support systems.

System Support Contractor: Entity, normally with high levels o.

technical expertise, hired to support specific military systems. Task Order: Instrument used to order work under a task order contract (see below). Task orders are always written by the contracting officer, and when obligating funds, must be on a form prescribed by FAR or DFARS. Task orders are made a part of the contract file and the COR's working file. Task orders are also referred to as delivery orders.

Task Order Contract: Contract for services that does not procure or specify a firm quantity of services (other than a minimum or maximum quantity) and that provides for the issuance of orders for the performance of tasks during the period of the contract.

Terminating Contracting Officer (TCO): Individual who settles terminated contracts.

Termination: Cancellation of all or part of the work that has not been completed and accepted under a contract. Under specific circumstances, termination may be for default of the contractor or for convenience of the government.

Theater Support Contract: Type of contingency contract awarded by a contracting officer deployed to the operational area and serving under the direct contracting authority of the service component, special operations force command, or designated Joint chief of contracting for the designated contingency.

Theater Support Contractor: Entity hired in and operating in a specific operational area.

Time-and-Materials (T&M) Contract: Contract that provides for acquiring supplies or services on the basis of (1) direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit and (2) materials at cost, including, if appropriate, material handling costs as part of material costs. A T&M contract establishes a ceiling price that the contractor may not exceed. Substantial surveillance on the government's part is required to ensure that efficient methods are used. A QASP is mandatory for any contract, task order, or delivery order that involves a T&M service contract or for a T&M construction contract over the micropurchase threshold.

Unauthorized Commitment: Agreement that is not binding, because the government representative who made the agreement lacked the authority to obligate the government contractually. An unauthorized commitment must be ratified at very high levels. If the approval authority decides not to ratify the unauthorized commitment, the person who caused it may be held personally and financially liable. Even if the action is ratified, the person who caused it may be subjected to administrative or other penalties.

Undefinitized Contract Action (UCA): Action for which the contract terms, specifications, or price are not agreed upon before performance is begun under the action. Examples are letter contracts, orders under basic ordering agreements, and provisioned item orders.

Uniform Contract Format (UCF): Standard format that, for example, specifies the location of particular contract clauses and provisions.

Unilateral Modification: Modification that is effective upon signature by the contracting officer; the contractor's signature or assent is not required. Unilateral modifications are used to:

• Make administrative changes
• Issue change orders
• Make changes authorized by clauses other than a Changes clause (such as Property, Options, or Suspension of Work clauses)
• Issue termination notices

Unpriced Purchase Order: Order for supplies or services, the price of which is not established at the time the order is issued.

Value Engineering Change Proposal (VECP): Proposal that (1) requires implementation of a change to the contract and (2) reduces the overall projected cost to the government without impairing essential functions or characteristics.

Warranty: Promise given by the contractor regarding the nature, usefulness, or condition of the supplies or services furnished under a contract. Warranties normally provide a contractual right for the correction of defects, notwithstanding any other contract provision. Warranties also establish a time period for exercising this right. The government should take advantage of commercial warranty provisions normally offered by contractors rather than designing unique warranty provisions. However, the use of warranties is not mandatory; they should be used only when in the best interest of the government.

Wide Area Work Flow (WAWF): Web-based system that enables contractors to transmit invoices and shipping notices electronically and enables DoD to record inspection, receipt, acceptance, and invoice approval electronically. WAWF distributes data to downstream systems, including entitlement (payment) systems, accounting systems, property records, and others.

Work Plan: Guideline for monitoring contract performance.