Government Contracting Glossary: UEI, CAGE, NAICS and More

Government contracting acronyms and terms like UEI, CAGE, NAICS and IDIQ are mostly labels for a few simple ideas: the IDs you get when you register, the notices agencies post, the documents you bid on, and the programs that reserve work for small businesses. This glossary defines 53 of the terms you'll see most, in plain English, with links to the guides that go deeper.

The 5 terms you'll see first

Here's how they fit together. You register on SAM.gov, which gives you a UEI and, if you register to bid on contracts, a CAGE code. In your registration you list NAICS codes for the work you do. When an agency posts a set-aside, it tags it with one NAICS code, and you can bid only if you're small under that code's size standard.

Registration and IDs

CAGE code

A CAGE code (Commercial and Government Entity code) is a five-character ID the Defense Logistics Agency (DLA) assigns to businesses that register to bid on federal contracts. It's free, and U.S. businesses don't apply separately: SAM.gov sends your data to DLA. Foreign firms need a NATO CAGE (NCAGE) code before they register.

DUNS number

A DUNS number was the business ID the federal government used before April 4, 2022. It's retired. The UEI, issued by SAM.gov, replaced it, so a form or website that still asks for a DUNS number is out of date.

Login.gov

Login.gov is the government's secure sign-in service, and it's how you sign in to SAM.gov. It's "for secure sign in only," so it holds no information about your SAM.gov registration. Each person needs their own account.

NAICS code

A NAICS code (North American Industry Classification System code) is a six-digit code for an industry, such as 561720 for janitorial services. You list your codes in SAM.gov, and each solicitation generally carries one code that sets the size standard for that contract. See how to find and choose NAICS codes.

PSC

A PSC (Product and Service Code) is a four-character code for what the government is buying, such as S201 for custodial and janitorial services. NAICS describes the seller's industry; PSC describes the purchase. PSCs are optional in SAM.gov registration.

Reps and certs

Reps and certs (representations and certifications) are the formal statements you make about your business in SAM.gov registration, such as your size and ownership. If you bid on Defense work, you also answer Defense (DFARS) questions. Agencies rely on them when you bid, so keep them accurate.

SAM.gov

SAM.gov (System for Award Management) is the official government website where businesses register to work with the federal government and agencies post contract opportunities. The General Services Administration (GSA) runs it, and registration is free. See what SAM.gov is and how to register.

Size standard

A size standard is the Small Business Administration's (SBA's) cutoff for counting as small in an industry. SBA sets one per NAICS code, as either average annual receipts or average number of employees. Janitorial services (561720), for example, is $22.0 million in receipts. Check yours with SBA's size standards tool.

UEI

A UEI (Unique Entity ID) is the 12-character ID SAM.gov assigns to your business when you register. It replaced the DUNS number in 2022. The UEI doesn't expire, but your registration must be renewed every year to stay active.

Finding opportunities

APEX Accelerators

APEX Accelerators are free local centers that help businesses sell to the government, from registration to bids. They were called PTACs until November 2022 and are funded in part by the Department of War. Find yours at apexaccelerators.us.

Capability statement

A capability statement is a one-page summary of your business for agencies and prime contractors. It covers core competencies, differentiators, past performance, and company data like your UEI, CAGE code and NAICS codes. There's no official format; see how to write a capability statement.

FPDS

FPDS (Federal Procurement Data System) is the government's database of contract awards above the micro-purchase threshold. Its old website is gone: award search moved into SAM.gov on February 24, 2026, and you need a free SAM.gov account to use it.

OSDBU

An OSDBU (Office of Small and Disadvantaged Business Utilization) is a federal agency's small business office. The Small Business Act requires one in each agency with buying authority. It's a good first contact at any agency.

Presolicitation

A presolicitation is a SAM.gov notice telling sellers that a solicitation is coming. It gives you time to prepare, but you can't bid on it yet. Not every buy has one.

RFI

An RFI (request for information) is a request for market information, such as prices and capabilities, that an agency uses to plan a purchase. The agency doesn't intend to award a contract from it, and responses aren't offers. SAM.gov has no separate RFI notice type, so RFIs are usually posted as sources sought or special notices.

Solicitation

A solicitation is the document an agency posts to ask for bids, quotes or proposals. It describes the work, the contract terms, how to respond, and how offers will be judged. RFPs, RFQs and IFBs are all solicitations; see how to read a government solicitation.

Sources sought

A sources sought notice is market research: an agency asks which businesses can do a job before it decides how to buy. Answering tells the agency you exist, and enough capable small businesses can lead it to set the contract aside. It's the best place for beginners to start.

USAspending.gov

USAspending.gov is the official public website for federal spending data, run by the Treasury Department's Bureau of the Fiscal Service. Use it to see which agencies buy what you sell, who won past contracts, and for how much.

Solicitations and bidding

Amendment

An amendment is a change to a solicitation after it's posted, such as a new deadline or answers to questions. Agencies often use Standard Form 30 (SF 30). You generally must acknowledge each amendment in your offer, so keep checking until the deadline.

Best value

Best value is the outcome that gives the government "the greatest overall benefit" for its need, in the FAR's words. Agencies get there in two main ways: a tradeoff, where they can pay more for a stronger proposal, or LPTA, where the lowest-priced acceptable offer wins.

Bid protest

A bid protest is a formal challenge to a solicitation's terms or to a contract award. You can protest to the agency, the Government Accountability Office (GAO), or the U.S. Court of Federal Claims. At GAO, only interested parties (actual or prospective bidders) can file, deadlines are short (often 10 days), and decisions come within 100 days. You aren't required to have a lawyer, though an APEX Accelerator or attorney can help.

IFB

An IFB (invitation for bids) is the solicitation used in sealed bidding. Bids are opened at a set time and place and evaluated without discussions, and the award is based on price and price-related factors.

LPTA

LPTA (lowest price technically acceptable) is a way of choosing a winner where each proposal is rated only as acceptable or not, and the acceptable one with the lowest price wins. Tradeoffs aren't allowed, so extra quality earns no extra credit.

Past performance

Past performance is your record on previous contracts, which agencies use to judge how likely you are to do the job well. Having none isn't disqualifying: an offeror with no relevant past performance can't be rated favorably or unfavorably on it. Evaluators may also consider your key people and major subcontractors.

RFP

An RFP (request for proposals) is the solicitation used in negotiated buys. You submit a proposal, and the agency can weigh price against factors like technical approach and past performance, and may hold discussions with offerors.

RFQ

An RFQ (request for quotations) is a solicitation asking for price quotes, common in smaller and simpler buys. A quote isn't an offer: the government's order is the offer, and a contract forms when you accept it.

Section L

Section L is the part of a solicitation, in the uniform contract format, that tells you how to prepare and submit your offer: what to include, how to organize it, and how to send it.

Section M

Section M is the part of a solicitation that explains how offers will be evaluated: the factors, any subfactors, and their relative importance. Read it alongside Section L, because it tells you what the agency will score.

Statement of work

A statement of work (SOW) is the part of a solicitation, usually Section C, that describes the work to be done. Some agencies use a performance work statement (PWS) instead, which focuses on the results they want rather than how you get there.

Wage determination

A wage determination is a Department of Labor schedule of minimum wages and fringe benefits for workers on a federal contract. Construction contracts over $2,000 (Davis-Bacon) and service contracts over $2,500 (Service Contract Act) include one. They're published on SAM.gov; check yours before you price.

Contract types and vehicles

BPA

A BPA (blanket purchase agreement) is a simple way for an agency to fill repeat needs by setting up "charge accounts" with qualified suppliers, then ordering as needed. Agencies can also set up BPAs under the GSA Schedule.

Contract vehicle

A contract vehicle is a contract, or group of contracts, that lets agencies place many orders with a preselected vendor or group of vendors. The GSA Schedule, IDIQs and BPAs are common examples. If you don't hold the vehicle, you can't compete for the orders placed through it.

GSA Schedule

The GSA Schedule, also called the Multiple Award Schedule (MAS), is a long-term governmentwide contract that lets agencies buy commercial products and services from approved companies. Getting on it takes GSA's required training and readiness assessment, usually two years of relevant experience, and an offer through eOffer. Holders see requests for quotes in GSA eBuy.

IDIQ

An IDIQ (indefinite delivery, indefinite quantity) contract is one where the government commits to a minimum amount, sets a maximum, and places orders as needs come up during a fixed period. Many IDIQs are awarded to several companies, which then compete for task orders.

Option year

An option year is an extra year of work the government can add to a contract at its choice. Many service contracts run a base year plus several option years. The agency decides each time whether to exercise the next option, so that revenue isn't guaranteed.

Prime contractor

A prime contractor is the business that holds a contract directly with the government. It's responsible for all the work, including anything it hands to subcontractors, and it must be fully registered in SAM.gov.

Sole-source award

A sole-source award is a contract given to one company without competition, which is allowed only in specific cases. Certified 8(a), HUBZone, WOSB and SDVOSB firms can get sole-source awards up to set ceilings: $8.5 million for manufacturing and $5.5 million for other work ($5 million for SDVOSBs).

Subcontractor

A subcontractor is a business hired by a prime contractor to do part of a government contract. Subcontracting is a common way to build past performance, and large primes with subcontracting plans look for small businesses to team with.

Task order

A task order is an order for services placed under an existing contract, usually an IDIQ. An order for supplies is called a delivery order. Only holders of the base contract can compete for its orders.

Teaming agreement

A teaming agreement is a written deal between companies to pursue a government contract together. The codified FAR (9.601) calls these contractor team arrangements and recognizes two forms: a joint venture or partnership that acts as the prime, or a prime that agrees to use the others as subcontractors. The FAR overhaul text moved this guidance out of the rules and into its non-regulatory FAR Companion.

Small business programs

8(a) program

The 8(a) program is SBA's nine-year business development program for small businesses owned and controlled by socially and economically disadvantaged U.S. citizens. Participants can win 8(a) set-asides and sole-source contracts. A rule effective September 10, 2026 removed the presumption of social disadvantage for individually owned firms, so applicants must now show it. See set-aside contracts explained.

EDWOSB

An EDWOSB (economically disadvantaged women-owned small business) is a WOSB whose women owners also meet financial limits, such as personal net worth under $850,000 each. EDWOSBs need certification to win EDWOSB set-asides.

HUBZone

A HUBZone is a Historically Underutilized Business Zone, and SBA's HUBZone program helps small businesses based in one. Your principal office must be in a HUBZone, and at least 35% of your employees must live in one. Benefits include HUBZone set-asides and a 10% price evaluation preference in full and open competitions.

Rule of two

The rule of two says a contracting officer must set a contract aside for small businesses when they reasonably expect offers from at least two responsible small businesses at fair market prices. It applies to buys above the $15,000 micro-purchase threshold, which is why answering sources sought notices matters.

SDVOSB

An SDVOSB (service-disabled veteran-owned small business) is a small business at least 51% owned and controlled by service-disabled veterans. SDVOSBs can win set-asides and sole-source contracts at any agency, but since January 1, 2024 they need SBA certification through VetCert.

Set-aside

A set-aside is a contract reserved for small businesses, or for one type of small business such as HUBZone or women-owned firms. A plain small business set-aside needs no certification: you must meet the size standard for the contract's NAICS code and say so in SAM.gov. See set-aside contracts explained.

VetCert

VetCert is SBA's free certification program for veteran-owned (VOSB) and service-disabled veteran-owned (SDVOSB) small businesses. SBA took it over from the Department of Veterans Affairs on January 1, 2023. You apply through MySBA Certifications and recertify every three years.

WOSB

A WOSB (women-owned small business) is a small business at least 51% owned and controlled by women who are U.S. citizens, with women managing daily operations. WOSB set-asides are limited to eligible NAICS codes, and self-certification ended in October 2020: you need SBA certification, though SBA also accepts approved third-party certifications uploaded to MySBA Certifications.

Rules, data and oversight

Contracting officer

A contracting officer is the government official with authority to enter into, manage and end contracts. Only a contracting officer can sign a contract for the government, so a promise from anyone else, like a program manager, doesn't bind the agency.

CPARS

CPARS (Contractor Performance Assessment Reporting System) is the government's system for contractor report cards. Agencies must rate most contracts above the simplified acquisition threshold ($350,000). Construction, architect-engineer work and many Defense contracts use different thresholds. You get a chance to comment, and about two weeks after you're notified, the rating is available to evaluators across the government, with or without your comments.

FAR

The FAR (Federal Acquisition Regulation) is the main rulebook for how federal agencies buy. It's being rewritten: agencies have adopted "Revolutionary FAR Overhaul" text by class deviation while formal rulemaking continues, so two versions are in use. Check the current text at acquisition.gov.

Micro-purchase

A micro-purchase is a buy at or below the micro-purchase threshold: $15,000 since October 1, 2025 (lower for some construction and services). Agencies often pay with a government purchase card, and card micro-purchases don't require SAM.gov registration. They don't need competing quotes if the price is reasonable.

Simplified acquisition threshold

The simplified acquisition threshold (SAT) is $350,000, raised from $250,000 on October 1, 2025. Buys at or below it can use simpler, faster procedures. Under the codified FAR, buys above $15,000 up to the SAT are reserved for small businesses when the rule of two is met.

Next steps

See these terms in action: how to find government contracts shows where notices are posted, and how to read a government solicitation walks through Sections L and M. Or filter open notices by these terms in FedReady's free search.

This guide is general information, not legal or financial advice. Rules and thresholds change, so confirm details on SAM.gov and the official agency sites linked above before you act. FedReady is an independent company and is not affiliated with any government agency.