1. Audit means an examination, typically by the Defense Contract Audit Agency, of a contractor’s proposal to determine if it was prepared in accordance with acceptable accounting standards and to verify that it reflects the contractor’s normal practices and established rates. It may include a technical evaluation to determine if the material, labor, and technical approach proposed are consistent with the requirements of the solicitation and represent a reasonable solution.
2. Competition means that the ability to bid on a proposed contract is not restricted to a limited number of sources. This often results in improved quality and reduced prices because a contractor must offer the best combination of quality, price, and/or other factors to obtain the contract.
3. A complex acquisition means one that involves one or more of the following attributes:
a. Seeks to acquire a complicated product or service, usually of a high dollar value
b. Requires multiple evaluation factors to determine successful offeror
c. Requires rigorous negotiations with a sole source contractor to arrive at a satisfactory agreement
d. Requires in depth cost or price analysis to determine a fair and reasonable cost or price
e. Is going to involve numerous and onerous high level reviews and take a lot longer that it should to complete
4. A condition in a contract means a standard that must be met in order to qualify for contract award.
5. A contract term means a requirement that must be adhered to by the parties to that contract.
6. Cost means the amount of money, excluding profit or fee, necessary to fulfill the obligation of the contract.
7. A dispute means a material disagreement between the parties to a contract regarding the obligations of one or more of the parties under said contract.
8. An equitable adjustment means consideration (financial or otherwise) that a contractor receives for executing a change to its contract.
9. An evaluation factor means a defined capability or qualification that the Government deems important to the successful completion of the proposed. These factors, one of which must be cost or price, will be used by the Government to determine which offeror will be selected for award.
10. Treating contractors fairly means conducting business in an unbiased manner that does not give one contractor an unfair advantage over another and does not require performance outside of the terms of the contract without adequate compensation.
11. An incentive means additional compensation offered to a contractor for exceeding one or more requirements of the contract.
12. Need refers means some capacity that the Government has determined to be necessary in the conduct of Government business.
13. Profit is the difference between the total price of the contract and the cost of everything that is necessary to provide the goods or services required by the contract.
14. A purchase request package is a set of documents submitted to the Contracting Office by an organization with a need to buy goods or services. Theoretically it should sufficiently describe what is needed and provide an acceptable strategy for developing a contract to obtain the required goods or services. This is rarely the case.
15. A rating is a defined measurement of the attributes of a contractor’s proposal when compared against established evaluation criteria.
16. The relative importance of evaluation factors refers to a comparative ranking of those factors from most important to least important. This gives potential contractors information about which capabilities will be given the most weight when determining the outcome of the competition.
17. A requirement consists of the goods or services that are necessary to fulfill an established need of the Government.
18. Risk refers to the possibility of negative consequences resulting when a contractor does not perform as intended by the contract.
19. Tradeoff means the decision made, based on the established evaluation criteria by the person responsible for determining the outcome of a contract competition, about whether to pay more for better quality or performance.
20. Uncertainty relating to performance outcomes means that the results are not accurately or reliably predictable.