NCMA CFCM key terms

The government-wide regulation, issued jointly under the Office of Federal Procurement Policy Act, that governs how executive agencies plan, solicit, award, and administer contracts for supplies and services.

A departmental regulation layered on top of the FAR, such as the DFARS or GSAR, that implements FAR requirements for a specific agency or adds agency-unique clauses and procedures.

The publication vehicle used to amend the FAR, issued as a numbered package containing one or more item amendments, each effective on a stated date and summarized in the FAR's loose-leaf history.

An official holding a warrant that authorizes them to enter into, administer, and terminate contracts and make related determinations and findings on behalf of the government, binding the government within that authority.

A person designated in writing by the contracting officer to perform specified contract administration duties, such as monitoring performance and inspecting deliverables, without authority to change price, terms, or scope.

An agreement made by a government employee lacking contracting authority that creates a potential obligation, which the agency may ratify if the requirements and funds otherwise comply with law and regulation.

The process by which an authorized official approves an unauthorized commitment, making it binding, after review confirms the government received the benefit and funds are available and legally usable.

The requirement that funds appropriated for a given fiscal year be used only for needs arising in that period, preventing agencies from obligating current funds for requirements of future years.

Services that are continuing or recurring in nature and can be separated into distinct time periods, allowing the government to fund them in increments rather than obligating the full contract value at award.

A unilateral right in a contract under which the government may elect to purchase additional supplies or services, or extend the term, within stated limits and at a price or formula set at award.

The dollar level at or below which an agency may buy supplies or services without competitive procedures, currently generally $10,000, subject to higher thresholds for certain activities and to inflation adjustment.

The dollar ceiling, generally $250,000, under which contracting officers may use simplified procedures with reduced competition documentation and streamlined evaluation requirements.

An item or service of a type customarily used by the general public for nongovernmental purposes, or offered for sale or lease, that has been sold or offered competitively and is available to the general market.

The process of collecting and analyzing information about market capabilities, prices, and commercial practices before developing requirements and choosing an acquisition strategy, documented in the acquisition plan.

A documented strategy describing how an agency will meet a requirement, covering competition approach, contract type, source selection method, funding, and risk, tailored to the size and complexity of the buy.

The internal document that sets out how proposals will be evaluated, including criteria, relative importance, rating methods, and the schedule, prepared before release of the solicitation.

An acquisition approach in which the government selects the offer representing the greatest overall benefit in response to requirements, considering price and non-price factors whose relative importance is stated in the solicitation.

A source selection method permitting the government to accept a higher-priced proposal when its superior technical merit outweighs the price premium, based on stated evaluation factors and documented judgment.

A source selection method in which proposals meeting stated minimum technical requirements are ranked by price alone, appropriate when requirements are well defined and price is the dominant consideration.

A formal method using invitations for bids in which award goes to the responsive, responsible bidder with the lowest price, suitable when requirements are clear and price alone determines selection.

A procurement method using requests for proposals that allows discussions, clarifications, and proposal revisions before award, used when requirements or evaluation factors require judgment beyond price.

The group of offerors whose proposals are most highly rated and with whom the contracting officer intends to conduct discussions, established after evaluation of initial proposals.

Limited communication with an offeror after receipt of proposals to resolve minor ambiguities or apparent errors, which does not constitute discussions and does not permit revision of the proposal.

Substantive exchanges between the government and offerors within the competitive range about deficiencies, weaknesses, or adverse past performance, after which offerors may submit revised final proposals.

The offeror's last revised submission following discussions, which becomes the basis for award and may not be changed afterward except through the contracting officer's request for clarification of an error.

The contracting officer's affirmative finding that a prospective contractor has adequate financial resources, capacity, integrity, and skills, or will obtain them, before award may be made.

Administrative actions excluding a contractor from government business for a stated period because of misconduct or unsatisfactory performance, with suspension immediate and debarment generally following conviction or serious cause.

A written determination by the Small Business Administration that a small business concern is responsible and can perform, which overrides a contracting officer's negative responsibility finding and requires award.

A procurement reserved for small business concerns when there is a reasonable expectation that at least two responsible small businesses will submit offers and award will be made at fair market price.

A required document for large business prime contractors on covered acquisitions setting forth goals for awarding subcontracts to small and disadvantaged businesses and the methods for achieving them.

Rules capping the portion of work a small business prime may pass to non-similarly situated firms, requiring the prime to perform a specified share of the cost of personnel or manufacturing.

A situation in which a contractor's other activities or relationships could bias its judgment or give it an unfair competitive advantage, requiring mitigation, avoidance, or waiver before award.

The pricing arrangement chosen for an award, ranging from firm-fixed-price through cost-reimbursement and incentive forms, selected based on the nature of the requirement and the degree of cost risk the contractor can bear.

An arrangement in which the contractor bears full responsibility for performance costs and resulting profit or loss, used when requirements are well defined and cost risk is reasonably predictable.

An arrangement paying the contractor allowable incurred costs to the extent prescribed, with an estimated total cost and a fee, used when costs cannot be estimated with enough accuracy for a fixed price.

A cost that is reasonable, allocable to the contract, and compliant with applicable cost principles and contract terms, and therefore reimbursable under a cost-based arrangement.

A contract provision requiring the contractor to notify the government when incurred costs approach the estimated amount and barring the contractor from continuing work beyond that amount without increased funding.

A standard provision allowing the contracting officer to order changes within the general scope of the contract, with the contractor entitled to an equitable adjustment in price, schedule, or both.

An informal act by government personnel that is not a written change order but has the effect of altering the contractor's performance, entitling the contractor to an equitable adjustment.

A price or schedule modification that restores the contractor to the position it would have occupied absent a government-directed change, computed from the cost impact plus reasonable profit.

The span of time during which a contractor is obligated to perform, including any options exercised, used to monitor progress and calculate funding needs and incremental obligations.

A document describing how the government will monitor contractor performance against measurable standards, including surveillance methods, sampling, and the remedies available for unacceptable performance.

Recorded evaluations of a contractor's prior work, including quality, schedule, cost control, and management, used as an evaluation factor and as evidence of responsibility in future awards.

A written objection by an interested party to a solicitation or award, filed with the agency, the Government Accountability Office, or a court, challenging legality or the evaluation process.

The contracting officer's determination, documented in the award document and supporting record, that a particular offeror's proposal represents the best value or lowest responsive price under the solicitation.

An agency's departure from a FAR requirement, authorized only through prescribed approval levels, and classified as individual for one action or class for a group of actions.