Government contracting glossary, in everyday words
A
Addendum
An addendum is a change to a bid package issued after it is posted and before bids are due.
B
Basis of design
The basis of design is the product an engineer used to design a project and names in the specification.
Bid bond
A bid bond is a surety company's promise that a bidder will sign the contract at the price it bid.
Bid tabulation
A bid tabulation is the published list of every bid an agency received for a project, with each bidder's price.
Buy America
Buy America rules require iron, steel, manufactured products and construction materials in federally funded infrastructure projects to be produced in the United States.
C
Capital improvement plan
A capital improvement plan is a city's, county's or utility's list of the projects it plans to build or buy over the next several years, with estimated costs and the years it expects to fund them.
Cooperative purchasing contract
A cooperative purchasing contract is a contract one agency or purchasing group competes and awards that other public agencies can then buy from without running their own bid.
I
Invitation for bid
An invitation for bid (IFB) asks for sealed prices on a clearly defined job, and the contract goes to the lowest responsive, responsible bidder.
O
Or equal
"Or equal" in a specification means a bidder may offer a product other than the one named if it meets the same requirements.
P
Performance bond
A performance bond is a surety's guarantee that a contractor will finish the work as the contract says.
Pre-bid meeting
A pre-bid meeting is a walk-through or call before bids are due, where bidders see the site and ask questions.
R
Request for information
A request for information (RFI) is how an agency asks the market what is possible before it writes a bid.
Request for proposal
A request for proposal (RFP) asks vendors to propose how they would do the work and at what price, and the agency scores proposals on several criteria besides price.
Request for quote
A request for quote (RFQ) asks for prices on a small or simple purchase, usually below the amount that requires a formal sealed bid.
S
Set-aside
A set-aside is a contract only certain businesses may bid on, such as small businesses or businesses certified as women-owned, veteran-owned or disadvantaged.
Sole source
A sole source purchase is one an agency makes from a single vendor without competition, because only that vendor can supply what is needed.
State revolving fund
A state revolving fund (SRF) is a state-run loan program, funded largely by the federal government, that lends to local utilities for water and wastewater projects.
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