Frequently Asked Questions About Government Contracting

1. What is a DUNS Number?
A Data Universal Numbering System (DUNS) number that to identify unique business establishments. This nine-digit number is assigned and maintained by Dun and Bradstreet. Click here to get your DUNS number.

2. What is the Central Contractor Registry (CCR)?
The Central Contractor Registry (CCR) registers organizations who want to do business with the Federal Government. Organizations must have a DUNS number to register with the CCR. Organizations provide specific organizational information to enable government buyers to locate them. CCR is sponsored by DOD and NASA. To register in CCR a company must have a DUNS number. Click here to register in CCR.

3. What is the Federal Acquisition Regulation (FAR)?
The body of regulations which is the primary source of authority governing the government procurement process. The FAR, which is published as Chapter 1 of Title 48 of the Code of Federal Regulations, is prepared, issued, and maintained under the joint auspices of the Secretary of Defense, the Administrator of General Services Administration, and the Administrator of the National Aeronautics and Space Administration. Actual responsibility for maintenance and revision of the FAR is vested jointly in the Defense Acquisition Regulatory Council (DARC) and the Civilian Agency Acquisition Council (CAAC). Click here to view the FAR.

4. What is a NAICS code?
The North American Industry Classification System (NAICS) is an industry classification system used by the statistical agencies of the United States for classifying business establishments.

5. What is a CAGE code?
The Commercial and Government Entity (CAGE) code is a five character ID number used extensively within the Department of Defense (DOD) and NASA.

6. What is ORCA?
Online Representations and Certifications Application (ORCA)replaces most of the paper based Representations and Certifications (Reps and Certs) in Section K of solicitations with an Internet application.

7. What is Federal Business Opportunities?
Federal Business Opportunities or www.FedBizOpps.gov is the single government point-of-entry (GPE) for Federal government procurement opportunities over $25,000. Government buyers are able to publicize their business opportunities by posting information directly to FedBizOpps via the Internet. Through one portal - FedBizOpps (FBO) - commercial vendors seeking Federal markets for their products and services can search, monitor and retrieve opportunities solicited by the entire Federal contracting community.

8. What is a GSA Contract?
A GSA contract, also known as a GSA Schedule, Federal Supply Schedule contracts, or multiple award schedules, is an indefinite delivery, indefinite quantity (IDIQ) contract negotiated between the US General Services Administration (GSA) and commercial companies and available for use by federal agencies worldwide. GSA contracts make it easy for the government to purchase state-of-the-art, high-quality commercial products and services. To maintain continued sources of supplies and services, schedule contract periods are as long as five years with three five-year option periods.

9. What Is The General Services Administration (GSA)?
GSA is a centralized, federal procurement, property management, policy development and information provision agency, created by Congress to improve government efficiency and help federal agencies better serve the public. The US General Services Administration (GSA) is a management agency of the federal government that provides federal agencies with the tools necessary to perform their day-to-day operations. The GSA is best likened to the landlord or housekeeper of the federal government because it provides such supplies and services as furniture; equipment and supplies (power tools; phones, computers, etc.), workspaces; security; travel and transportation services; federal motor vehicle fleet management;  historic building preservation; fine art program management; and on and on and on.

10. What is the Federal Supply Service (FSS)?
The Federal Supply Service (FSS) is one of three divisions managed by the GSA and charged with managing and operating the Federal Supply Schedule program. The primary responsibility of the FSS is to negotiate indefinite-delivery/indefinite-quantity, no-guarantee-of-sale contracts with commercial business to provide goods and services at fixed prices for specific periods of time. These contracts are called GSA contracts, GSA Schedules, Federal Supply Schedule contracts, or multiple award schedules.

Currently, FSS negotiates schedule contracts for more than 50 different product groups, ranging from hardware to power tools, to office supplies and furniture, to information technology equipment and services, to environmental consulting services, to professional engineering services. FSS awards these contracts under negotiated procurement procedures, which permit offerors the opportunity to revise offers before the contract is awarded.

11. What are Set Asides?
Under the Small Business Act, federal agencies conduct a variety of procurements that are reserved exclusively for small business participation. These transactions are called "small business set-asides" and include the Small Business Reserve, Set-Asides above the simplified acquisition threshold, the Small Business Competitiveness Demonstration Program, the HUBZone Empowerment Contracting Program, and the Service Disabled Veteran Owned Small Business Program.

12. What is a Service Disabled Veteran Owned Small Business?
A business which qualifies as a small business and is 51% unconditionally owned and controlled by one or more person(s) who served in the Active Military , Naval, or Air Service, and who was discharged or released under conditions other than dishonorable, and whose disability was incurred or aggravated in line of duty in the active military, Naval, or Air Service, or in the case of permanent or severe disability, the spouse or permanent care giver of such veteran. Click here for more information.

13. What is the HUBZone Business Program?
The program encourages economic development in historically underutilized business zones - "HUBZones" - through the establishment of preferences. Firms must be certified by the SBA in order to participate. For more information: https://eweb1.sba.gov/hubzone/internet/general/whoweare.cfm#2

14. What is a HUBZone Business?
To be certified as a HUBZone Business, the firm must be a small business and:
it must be located in a "historically underutilized business zone" or HUBZone.
it must be owned and controlled by one or more US Citizens, and at least 35% of its employees must reside in a HUBZone. For more information: http://app1.sba.gov/faqs/faqindex.cfm?areaID=4

15. What is 8(a)?
The SBA's 8(a) Program, named for a section of the Small Business Act, is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market. To participate in the 8(a) Program, a firm must be certified by the SBA. For more information: http://www.sba.gov/8abd/indexfaqs.html

16. What is an 8(a) Business?
To participate in the 8(a) Program, a firm must be certified by the SBA. To qualify, the firm:
must be a small business,
must be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States, and
must demonstrate potential for success.
For more information: http://www.sba.gov/8abd/indexfaqs.html

17. What is a SDB Small Disadvantaged Business Concern?
A small business concern that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly owned business that has at least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and whose management and daily business is controlled by one or more such individuals.

18. What is a Certified SDB?
A Small Disadvantaged Business Concern that is certified by the SBA. SBA certifies SDBs to make them eligible for special bidding benefits.  Click here for more information.

19. What is a Certified 8(a) Firm?
A firm owned and operated by socially and economically disadvantaged individuals and eligible to receive federal contracts under the Small Business Administration’s 8(a) Business Development Program. Click here for more information.  Click here to apply. 

20. What is a Product Service Code (PSC)?
PSC's are categorizations of what the U.S. Government buys. They consist of Federal Supply Classification Codes (FSC) for commodities, which are numbered 10-99, and Research and Development codes cover all aspects of research, development, and evaluation including management and support, which are lettered a-z. To pick the correct product or service code: http://fpdcapp.gsa.gov/pls/fpdsweb/PscWiz.

21. What is an Acquisition?
The acquiring of supplies or services by the federal government with appropriated funds through purchase or lease.

22. What is a Best and Final Offer?
For negotiated procurements, a contractor's final offer following the conclusion of discussions.

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

24. What is 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.

25. What is Electronic Data Interchange (EDI)?
Transmission of information between computers using highly standardized electronic versions of common business documents.

26. What is an Emerging Small Business?
A small business concern whose size is no greater than 50 percent of the numerical size standard applicable to the Standard Industrial Classification code assigned to a contracting opportunity.

27. What is a 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.

28. What is a Prime Contract?
A contract awarded directly by the Federal government.

29. What is a Request for Proposal (RFP)?
A document outlining a government agency’s requirements and the criteria for the evaluation of offers.

30. What is a Small Business?
A business smaller than a given size as measured by its employment, business receipts, or business assets.

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