Best value
Method of evaluating bids in which the contracting officer uses many criteria, including the capabilities of the bidder, to determine which offer is in the best overall interest of the buyer.

Blanket purchase agreement (BPA)/Blanket purchase order
A contract that establishes prices, terms, conditions and period of time for which a vendor agrees to provide goods or services as required by the buyer. No quantities are specified.

Certificate of Competency
A certificate issued by the Small Business Administration (SBA) stating that the holder is "responsible" (in terms of capability, competency, capacity, credit, integrity, perseverance, and tenacity) for the purpose of receiving and performing a specific government contract.

Commercial Marketing Representative (CMR)
SBA employee who works with large prime contractors to ensure that small businesses can compete for subcontract awards. CMRs also counsel small businesses on how to market to large prime contractors and identify subcontracting opportunities.

Confidentiality Agreement
A contract between two parties contemplating sharing proprietary information that stipulates how each party may use or disclose the other party's information, data or documents, and providing for penalties in the event of a breach. Also called a Non-Disclosure Agreement or Advance Confidentiality Agreement.

Contracting Officer
A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings.

Contractor Team Arrangement
An arrangement in which (a) two or more companies form a partnership or joint venture to act as potential prime contractor; or (b) an agreement by a potential prime contractor with one or more other companies to have them act as its subcontractors under a specified government contract or acquisition program.

Cooperative purchasing
The combining of requirements of two or more governmental units to obtain the benefits of volume purchases and/or reduction in administrative expenses.

Default
Failure by a party to a contract to comply with contractual requirements.

Electronic Data Interchange
Transmission of information between computers using highly standardized electronic versions of common business documents.

Fair and Reasonable Price
A price that is fair to both parties, considering the agreed-upon conditions, promised quality, and timeliness of contract performance. "Fair and reasonable" price is subject to statutory and regulatory limitations.

Full and Open Competition
With respect to a contract action, "full and open" competition means that all responsible sources are permitted to compete.

Line item
An item specified in a solicitation for which the vendor must specify a separate price.

Multiple award
Contracts awarded to more than one supplier for comparable supplies and services. Awards are made for the same generic types of items at various prices.

Negotiation
Contracting through the use of either competitive or other-than-competitive proposals and discussions. Any contract awarded without using sealed bidding procedures is a negotiated contract.

NIGP Code
A proprietary product classification system promulgated by the National Institute of Governmental Purchasing, Inc. The NIGP Code is used by 30 states for classifying products and commodities for procurement purposes.

Procurement Center Representative (PCR)
SBA employee who reviews proposed acquisitions at government buying offices to ensure that small businesses have the maximum practicable opportunity to compete for federal contracting orders. PCRs are available to counsel small businesses on how to do business with the government.

Purchase Card
A card used by governments and corporations to pay for procured goods and services. A purchase card replaces traditional invoice and check transaction methods with an instantaneous, electronic transaction that captures all necessary transaction data and provides more timely receipt of funds to the seller.

Request for Bid (RFB)/Invitation to Bid
A solicitation in which the terms, conditions, and specifications are described and responses are not subject to negotiation.

Request for Proposal (RFP)
A document outlining a government agency's requirements and the criteria for the evaluation of offers, which are subject to negotiation.

Requisition
An internal document that a program office sends to the purchasing department detailing products or materials needed to fulfill a specific need.

Responsible offeror or bidder
An offeror or bidder that has the capacity, both technically and financially, to perform the contract on which it is bidding or making an offer.

Solicitation
The process used to communicate procurement requirements and to request responses from interested vendors.

Statement of work (SOW)
A detailed statement describing the buyer's requirements, including, if necessary, what products, services and methods will be used to fulfill the need.

Subcontract
A contract between a prime contractor and a subcontractor to furnish supplies or services for the performance of a prime contract or subcontract.

Teaming Agreement
A commitment by two or more companies to combine their resources for the purposes of bidding on a specific government contract. This may take the form of a joint venture, which would act as the prime contractor, or as one company acting as the prime contractor with the intent of awarding a subcontract to the other team member(s) upon contract award.

Termination
Cancelling or voiding a previously awarded contract. Termination for default means the contract is ended due to the contractor's failure to perform. Termination for convenience means the contract is ended at the discretion of the buyer (no reason required).

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