DAWIA Contracting key terms

A written strategy that explains how an agency will meet a mission need, covering schedule, competition, contract type, pricing, and risk. It guides the contracting team before solicitation and is updated as circumstances change.

The process of collecting and analyzing information about available products, services, suppliers, and pricing before defining a requirement. It helps the agency choose a realistic acquisition strategy, competition approach, and contract type.

The government's own estimate of the probable cost or price of a requirement, prepared from data and judgment without relying on offeror proposals. It supports budgeting, price analysis, and evaluation of whether proposed prices are reasonable.

A document that describes the required work in specific terms, including tasks, deliverables, schedules, and acceptance criteria. It tells the contractor what to do and is common when the government knows the solution it wants.

A statement that describes the required results in measurable performance terms rather than prescribing detailed methods. It states outcomes, quality standards, and surveillance so contractors can propose efficient ways to meet the need.

A high-level statement of the government's goals and desired outcomes, without detailed tasks or methods. Offerors use it to propose their own performance work statement and technical approach in negotiated acquisitions.

A written document required when an agency intends to award a contract without full and open competition. It explains the legal basis, describes the circumstances, and must be approved at the level set by regulation.

A competitive method in which offerors submit sealed prices at one time, and the contract is awarded to the responsible bidder whose bid conforms to the invitation and offers the lowest price. It suits well-defined requirements.

A competitive or noncompetitive method in which the government discusses proposals with offerors and may revise requirements or terms before award. It is used when price alone is not enough or requirements need clarification.

A document that sets out how a source selection will be conducted, including evaluation factors, rating methods, team roles, and decision process. It helps ensure consistent, defensible evaluation of proposals before award.

The criteria stated in a solicitation that the government will use to judge proposals, such as technical approach, past performance, and price. They must be meaningful, stated in the solicitation, and applied consistently.

A source selection approach in which the government compares the relative benefits of proposals against their prices and may pay more for superior performance. It requires documented judgment rather than automatic award to the lowest price.

A source selection method in which proposals must meet stated minimum technical requirements and the lowest-priced acceptable offer wins. It is appropriate when requirements are clear and price is the dominant factor.

The contracting officer's judgment that a prospective contractor can perform the contract, considering factors such as financial resources, integrity, past performance, and facilities. A responsible contractor must also be eligible for award.

A challenge by an interested party to the award or proposed award of a contract, or to the terms of a solicitation. It may be filed with the agency, GAO, or the Court of Federal Claims.

A contract type in which the contractor agrees to perform the work for a fixed price, regardless of actual costs. The contractor bears cost risk and may earn more or less depending on efficiency.

A cost-reimbursement contract in which the government pays allowable incurred costs plus a fixed fee. The contractor has limited incentive to control costs, so the government monitors performance closely.

A contract type that pays the contractor a fixed hourly rate for labor and reimburses materials at cost. It is used when the extent of work is uncertain, and it requires monitoring of hours and limits.

A set of accounting rules that require certain contractors to consistently measure, assign, and allocate costs to government contracts. CAS aims to make cost-based contract pricing and administration consistent and comparable.

A negotiated agreement between the government and a contractor that sets labor and overhead rates to be used for pricing future contracts or modifications during a stated period. It reduces the need to audit each proposal.

Costs actually incurred by a contractor in performing a cost-reimbursement or flexibly priced contract. Contractors submit an incurred cost proposal so the government can determine allowable, allocable, and reasonable costs.

Payments made to a contractor during performance based on a percentage of costs incurred or work completed. They help finance performance on larger contracts and require adequate accounting and controls.

An individual designated in writing by the contracting officer to monitor contract performance, review invoices, and provide technical direction within limits. The COR does not have authority to change contract terms or prices.

The Contractor Performance Assessment Reporting System, used by agencies to record and share evaluations of contractor performance. Past performance ratings in CPARS can support responsibility determinations and source selection evaluations.

A change to contract price, schedule, or other terms that restores the contractor to the position it would have occupied but for a government-caused change. It must be based on the impact of the change.

A written modification, issued by the contracting officer under a changes clause, that directs a contractor to make a change within the scope of the contract. It may adjust price, schedule, or both.

A government action or inaction that is not a formal change order but has the effect of changing the contractor's performance obligations or costs. The contractor may seek an equitable adjustment for the impact.

The government's right to end a contract when it is in the government's interest, even though the contractor is not at fault. The contractor is paid for work accepted, allowable costs, and a reasonable profit on that work.

A termination based on the contractor's failure to perform, such as late delivery or failure to meet contract requirements. The contractor may be liable for excess costs of reprocurement and may face other consequences.

A contractor's written request that the contracting officer adjust the contract price or schedule for a government-caused change or other compensable event. It is not a certified claim unless it meets claim requirements.

A written demand by a contractor for money, adjustment, or relief under the contract that is not a routine invoice or request and that may be certified. Claims are resolved through the disputes process.

A unilateral right in a contract under which the government may buy additional supplies or services within a stated period and at stated terms. The government is not obligated to exercise the option.

An indefinite-delivery, indefinite-quantity contract that provides for an uncertain number of orders during a stated period. It sets a minimum and maximum quantity, and the government issues task or delivery orders as needs arise.

A long-term governmentwide contract awarded by the General Services Administration for commercial products and services at pre-negotiated prices. Agencies place orders against it after following applicable ordering procedures.

A contract action, such as a letter contract, that authorizes performance before all terms and price are agreed. The parties must definitively document the final terms within required limits and timeframes.

A non-FAR agreement used by certain agencies to carry out research, development, or prototype projects with flexible terms. OTs are not procurement contracts and follow separate statutory authority.

A procurement restricted to eligible small businesses so that a fair share of government contracts goes to small firms. The contracting officer must determine that at least two responsible small businesses can compete.

A required plan from a large-business prime contractor showing how it will give small business concerns the maximum practicable opportunity to participate as subcontractors. It includes goals and reporting requirements.

A program in which an experienced contractor mentors a smaller or disadvantaged firm to improve its business and contracting capabilities. Agencies may provide incentives, and the relationship requires an approved agreement.

A pre-award agreement in which firms agree to work together on a bid or proposal and define their expected roles. It is generally not binding as a subcontract until the prime contract is awarded.