Glossary
Government procurement glossary
44 terms you meet in public bids, from RFP and IFB to HUBZone, IDIQ, CPV and Find a Tender: what each means, how it differs from its neighbors, current thresholds with official sources, and live open bids that use the term.
Facts checked
Solicitations and methods
Request for proposals (RFP)A request for proposals (RFP) is a solicitation that asks suppliers to explain how they would do the work and at what price.Request for quotation (RFQ)A request for quotation (RFQ) asks suppliers for a price on clearly defined goods or services, usually for smaller purchases.Invitation for bids (IFB / ITB)An invitation for bids (IFB), also called an invitation to bid (ITB), is the solicitation used for sealed bidding.Request for information (RFI)A request for information (RFI) is market research: the buyer is not ready to award a contract and wants price, delivery, capability or other information for planning.Sources sought noticeA sources sought notice is a federal market-research notice asking capable firms to identify themselves and describe their experience.Sealed biddingSealed bidding is the method behind an invitation for bids: bidders submit firm, sealed prices by a deadline, the bids are opened publicly, and the contract goes to the lowest-priced responsive bid from a responsible bidder, without discussions (FAR Part 14).Reverse auctionIn a reverse auction, sellers bid prices down in real time and can see the current low price, not who offered it.Best and final offer (BAFO)A best and final offer (BAFO) is the last revised proposal a buyer asks for after discussions.Sole-source awardA sole-source award is a contract given to one supplier without competition.PrequalificationPrequalification is approval of a supplier's experience, capacity or finances before it is allowed to bid.Addendum (amendment)An addendum, called an amendment in federal contracting, changes a solicitation after it is issued: new dates, revised specifications, answers to questions.Pre-bid conferenceA pre-bid (or pre-proposal) conference is a meeting the buyer holds before the deadline to explain the requirement, often with a site visit.
Small-business and diversity programs
Set-asideA set-aside reserves a contract for competition among one class of businesses: small businesses in general, or firms certified as 8(a), HUBZone, service-disabled veteran-owned (SDVOSB) or women-owned (WOSB).8(a) Business Development programThe 8(a) Business Development program is a nine-year SBA program for small businesses at least 51% owned and controlled by socially and economically disadvantaged U.S.HUBZoneHUBZone (Historically Underutilized Business Zone) is an SBA program for small businesses whose principal office is in a HUBZone and at least 35% of whose employees live in one.Service-disabled veteran-owned small business (SDVOSB)An SDVOSB is a small business at least 51% owned and controlled by veterans with a service-connected disability.Women-owned small business (WOSB / EDWOSB)A WOSB is a small business at least 51% owned and controlled by women who are U.S.Disadvantaged Business Enterprise (DBE)The Disadvantaged Business Enterprise (DBE) program (49 CFR Part 26) sets participation goals for small disadvantaged firms on highway, transit and airport contracts paid with U.S.Minority- and women-owned business enterprise (MBE / WBE / MWBE)MBE, WBE and MWBE are certifications issued by states, cities and other public bodies, not by SBA, for minority- and women-owned firms.
Contract vehicles
Indefinite delivery, indefinite quantity contract (IDIQ)An IDIQ contract covers an indefinite quantity of supplies or services, within stated minimum and maximum limits, over a fixed period (FAR 16.504).GSA Schedule (Multiple Award Schedule) (MAS)The GSA Multiple Award Schedule (MAS), still often called the GSA Schedule, is a set of long-term, government-wide contracts with pre-negotiated prices and terms.Blanket purchase agreement (BPA)A blanket purchase agreement (BPA) is a simplified way to fill expected repetitive needs by setting up "charge accounts" with qualified sources (FAR 13.303-1).Cooperative purchasingCooperative purchasing lets one public buyer use a contract another government or a purchasing cooperative already competed, instead of running its own solicitation.Piggyback contractA piggyback contract is a purchase made by one public agency on another agency's competitively awarded contract, at the same prices and terms.Framework agreementA framework agreement sets terms, and often prices, with one or more suppliers for a period, and the buyer later awards individual call-off contracts under it.
Codes, thresholds and registration
NAICS codeNAICS (North American Industry Classification System) codes are six-digit industry codes.Product and Service Code (PSC)Product and Service Codes (PSCs) are four-character codes that describe what the federal government buys, such as a type of IT service or a class of equipment.UNSPSC codeThe United Nations Standard Products and Services Code (UNSPSC) is a global classification of products and services, managed by GS1 US for the UN Development Programme.CPV codeThe Common Procurement Vocabulary (CPV) is the EU's classification for the subject of public contracts, set by Regulation (EC) No 2195/2002.Micro-purchase thresholdThe micro-purchase threshold is the dollar amount below which a federal buyer can purchase without competing quotes when the price is reasonable, usually with a government purchase card.Simplified acquisition threshold (SAT)The simplified acquisition threshold (SAT) is the ceiling for simplified acquisition procedures under FAR Part 13: quicker solicitations, often by RFQ, with lighter documentation.Vendor registrationVendor registration is creating a supplier record with a buyer so you can be notified, bid and get paid.SAM.gov Unique Entity ID (UEI)The Unique Entity ID (UEI) is the 12-character alphanumeric identifier assigned in SAM.gov to every entity doing business with the federal government.CAGE codeA Commercial and Government Entity (CAGE) code is a free five-character identifier for a business at a specific location, assigned by the Defense Logistics Agency.E-procurement portalAn e-procurement portal is the website where a government posts its solicitations and, often, takes electronic bids: SAM.gov for U.S.Bid bondA bid bond (bid guarantee) is a surety's promise that a bidder will sign the contract and provide the required performance and payment bonds if it wins.Performance and payment bondsA performance bond guarantees the contractor will finish the work as contracted; a payment bond guarantees that subcontractors and suppliers get paid.
UK, EU and international
TenderIn British, European and Commonwealth usage, a tender is both the buyer's formal invitation to bid and the supplier's bid itself: a buyer "issues a tender" and a supplier "submits a tender".OJEU and TED (OJ S / TED)EU public contracts above the EU thresholds must be advertised in the Supplement to the Official Journal of the European Union (OJ S, formerly called OJEU).Find a TenderFind a Tender is the UK government's central digital platform for public procurement.Pre-qualification questionnaire (PQQ)A pre-qualification questionnaire (PQQ) was the form UK buyers used to shortlist suppliers before inviting tenders, later replaced by the Standard Selection Questionnaire (SQ).Competitive flexible procedureThe competitive flexible procedure is one of the two competitive tendering procedures in section 20 of the UK Procurement Act 2023.European Single Procurement Document (ESPD)The European Single Procurement Document (ESPD) is a standard self-declaration a supplier submits instead of certificates, as preliminary evidence that it is not excluded and meets the selection criteria (Directive 2014/24/EU, Article 59).United Nations Global Marketplace (UNGM)The United Nations Global Marketplace (UNGM) is the shared procurement portal of the UN system: one registration reaches more than 30 UN organizations.