Glossary of Government Contracting Terms
Holland & Knight’s Government Contracts Group brings this understanding to our clients, based on our experience representing contractors of all sizes in all phases of the procurement process. Under proper circumstances, the use of these procedures can result in economies in ordering parts for equipment support by reducing administrative lead-time, inventory investment, and inventory obsolescence due to design changes. The program recognizes the historical lack of equal access that minorities and other disadvantaged individuals have had to the resources needed to develop their small businesses. The program assists 8 approved firms to participate in the business sector and to become independently competitive in the marketplace. The assistance available includes access to federal government contracts as well as management and technical assistance programs.
In particular, Government Contracting officers should avoid protracted use of a cost-reimbursement or time-and-materials contract after experience provides a basis for firmer pricing. Purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description of supplies and services required selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. A mutually binding legal relationship obligating the seller to furnish the supplies or services and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing. The 8 Program was created in 1974 to help minority and other small disadvantaged businesses to grow through a program of federal contracting preferences and set-asides.
The Federal Register
Government bids are generally cost-specific, based on the cost of labor, materials, profit, and overhead. Bids are normally not negotiated and cannot be changed once accepted by the owner. Bids are time sensitive and are generally good for 30 to 60 days after the bid opening.
- A basic agreement may be changed only by modifying the agreement itself and not by a contract incorporating the agreement.
- Uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed-price contract.
- Learn about when companies expand across state lines and the potential need for “foreign qualification” requirements.
- The Statewide Contract Management Office assists with day-to-day contract management, contract administration, reporting requirements and vendor performance.
- A written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract.
- Although originated by the Department of Defense, CAGE codes are now also used by the Department of Transportation and NASA, among other federal government agencies.
An award to a U.S. or foreign business, an educational or nonprofit institution, or a Government Agency with a place of performance outside of the United States . An award to a U.S. or foreign business, an educational or nonprofit institution, or a Government Agency with a place of performance inside the United States . A small business that is at least 51% owned and controlled by a woman or minority. On a federal level Congress considers a minority owned business as generally anyone other than white. The process used to communicate procurement requirements and to request responses from interested vendors.
The contracting rulebook and bible: Federal acquisition regulations
The FAR, which had its beginnings in the Armed Services Procurement Regulation established in 1947, is considered the Bible for federal government contracting. The FAR contains all the rules governing the contracting process as well as all the forms and clauses used in contracts. The Government Contracting Program of SBA ensures that small businesses receive their fair share of federal contracts. SBA’s programs include the establishment of small business set-asides, certification of small businesses to perform on federal contracts, and opportunities in subcontracting to large business prime contractors. In conjunction with members of our Labor, Employment and Benefits Group, we represent government contractors on special issues affecting their workforce, including collective bargaining agreements and project labor agreements. Our lawyers also advise and represent clients in matters before the Department of Labor Office of Federal Contract Compliance Programs , as well as wage and hour matters, including under the Service Contract Act and the Davis Bacon Act.
Orders shall be within the scope, issued within the period of performance, and be within the maximum value of the contract. Limitations on use of requirements contracts for advisory and assistance services. Requirements contracts may permit faster deliveries when production lead time is involved, because contractors are usually willing to maintain limited stocks when the Government will obtain all of its actual purchase requirements from the contractor. Task-order contract means a contract for services that does not procure or specify a firm quantity of services and that provides for the issuance of orders for the performance of tasks during the period of the contract.