Service Corps of Retired Executives (SCORE)
The Service Corps of Retired
Executives (SCORE) is a 12,400-member volunteer association sponsored by the
SBA. SCORE matches volunteer business-management counselors with present
prospective small business owners in need of expert advice.
North American Industry Classification System (NAICS)
An NAICS code is the Standard Industrial Classification number listed in the
Standard Industrial Classification Manual which is published by the Office of
Management and Budget. The NAICS Manual is available at your local library or on
the Internet site http://www.osha.gov/oshstats. NAICS codes are used by the
Federal Government to identify and classify specific categories of business
activity that represent the primary line of business of a firm. SBA size
standards are based on NAICS codes.
A contract between a prime contractor and a subcontractor to furnish supplies or
services for the performance of a prime contract or subcontract.
Standard Industrial Classification (SIC) Code
A code representing a category within the Standard Industrial Classification
System administered by the Statistical Policy Division of the U.S. Office of
Management and Budget. The system was established to classify all industries in
the US economy. A two-digit code designates each major industry group, which is
coupled with a second two-digit code representing subcategories.
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
Small Business Innovative Research (SBIR) Contract
A type of contract designed to foster technological innovation by small
businesses with 500 or fewer employees. The SBIR contract program provides for a
three-phased approach to research and development projects: technological
feasibility and concept development; the primary research effort; and the
conversion of the technology to a commercial application.
Small Business Development Centers (SBDC)
SBDCs offer a broad spectrum of business information and guidance as well as
assistance in preparing loan applications.
A business smaller than a given size as measured by its employment, business
receipts, or business assets.
Request for Proposal (RFP)
A document outlining a government agency’s requirements and the criteria for the
evaluation of offers.
A firm in a developmental stage that aspires to increasing its capabilities
through a mutually beneficial business-to-business relationship.
SBA’s Procurement Marketing Access Network, or PRO-Net, is a “virtual” one-stop
procurement shop. The database offers an electronic search engine for
contracting officers and serves as a marketing tool for small businesses that
register with the system. It contains the profiles of thousands of small firms.
A contract awarded directly by the Federal government.
A mutually beneficial business-to-business relationship based on trust and
commitment and that enhances the capabilities of both parties.
One-Stop Capital Shops (OSCSs)
OSCSs are the SBA’s contribution to the Empowerment Zones/Enterprise Communities
Program, an interagency initiative that provides resources to economically
distressed communities. The shops provide a full range of SBA lending and
technical assistance programs.
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.
A business, usually large, or other organization that has created a specialized
program to advance strategic relationships with small businesses.
In the SBA Mentor-Protégé Program, an agreement between a certified 8(a) firm
and a mentor firm to perform a specific federal contract.
Organizations that play a fundamental role in encouraging, promoting, and
facilitating business-to-business linkages and mentor-protégé partnerships.
These can include both nonprofit and for-profit organizations: chambers of
commerce; trade associations; local, civic, and community groups; state and
local governments; academic institutions; and private corporations.
Full and Open Competition
With respect to a contract action, “full and open” competition means that all
responsible sources are permitted to compete.
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).
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.
An accounting term used to describe the net investment of owners or stockholders
in a business. Under the accounting equation, equity also represents the result
of assets less liabilities.
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.
Electronic Data Interchange
Transmission of information between computers using highly standardized
electronic versions of common business documents.
Any person who enters into a contract with the United States for the production
of material or for the performance of services for the national defense.
Defense Acquisition Regulatory Council (DARC)
A group composed of representatives from each Military department, the Defense
Logistics Agency, and the National Aeronautics and Space Administration and that
is in charge of the Federal Acquisition Regulation (FAR) on a joint basis with
the Civilian Agency Acquisition Council (CAAC).
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.
A person with the authority to enter into, administer, and/or terminate
contracts and make related determinations and findings.
Purchasing, renting, leasing, or otherwise obtaining supplies or services from
nonfederal sources. Contracting includes the description of supplies and
services required, the selection and solicitation of sources, the preparation
and award of contracts, and all phases of contract administration. It does not
include grants or cooperative agreements.
A mutually binding legal relationship obligating the seller to furnish supplies
or services (including construction) and the buyer to pay for them.
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.
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.
Business Information Centers (BICs)
One-stop locations for information, education, and training designed to help
entrepreneurs start, operate, and grow their businesses. The centers provide
free on-site counseling, training courses, and workshops and have resources for
addressing a broad variety of business startup and development issues.
Best and Final Offer
For negotiated procurements, a contractor’s final offer following the conclusion
Business concerns, organizations, or individuals that control each other or that
are controlled by a third party. Control may include shared management or
ownership; common use of facilities, equipment, and employees; or family
The acquiring of supplies or services by the federal government with
appropriated funds through purchase or lease.