Government Contracting Glossary

At NexGen Consulting Partners, we help small- to medium-sized businesses succeed in government contracting. We offer a full suite of services that ensure compliance, streamline processes, and improve your chances of winning contracts. Our expertise spans compliance, audit readiness, AI solutions, and advanced technologies tailored for the federal marketplace.

To make navigating government contracting easier, we’ve compiled a glossary of essential terms and abbreviations that you’ll encounter.

Glossary

1. Audit Readiness Ensuring systems and documentation meet government audit standards.

   
   

2. CIJ (Commercial Item Justification) Documentation justifying the acquisition of commercial items in compliance with FAR 12.

   
   

3. Compliance Meeting the regulatory standards set by government agencies, ensuring adherence to contract requirements.

   
   

4. Cost Analysis Detailed examination of a proposal’s costs to assess fairness and reasonableness.

   
   

5. CPSR (Contractor Purchasing System Review) A government assessment of a contractor’s purchasing system for compliance and effectiveness.

   
   

6. DCAA (Defense Contract Audit Agency) Agency auditing Department of Defense contracts for regulatory compliance.

   
   

7. DCMA (Defense Contract Management Agency) Agency ensuring timely, cost-effective, and quality delivery of supplies and services in government contracts.

   
   

8. FAR (Federal Acquisition Regulation) Rules governing the federal procurement process (e.g., FAR 12 for commercial items, FAR 15 for negotiation).

   
   

9. Government Contracting The process of bidding on and securing contracts to supply goods or services to the federal government.

   
   

10. Incurred Cost Submissions Financial reports documenting costs incurred during contract performance, submitted to the government.

    
    

11. Indirect Rate Setting Determining indirect costs, like overhead, in government cost proposals.

    
    

12. MAAR (Mandatory Annual Audit Requirements) Specific audit checks (e.g., MAAR 6 for labor compliance) required for government contractors.

    
    

13. Price Reasonableness Ensuring proposed prices align with market standards, as required by FAR.

    
    

14. Process Improvement Streamlining operations to increase efficiency, reduce costs, and maintain compliance.

    
    

15. Strategic Sourcing A purchasing approach that focuses on cost efficiency and long-term supplier relationships.

16. Supplier Negotiation Discussions with vendors to secure the best terms for goods and services.

    
    

17. Supply Chain Optimization Improving supply chain efficiency through sourcing, procurement, and inventory management.

    
    

18. TINA (Truthful Cost or Pricing Data) Formerly the Truth in Negotiations Act, it requires contractors to provide accurate pricing data in negotiations.

    
    

19. VMI (Vendor Managed Inventory) Supply chain strategy where the vendor maintains inventory levels on behalf of the customer.

This glossary will help you understand the terms and abbreviations you need to navigate the government contracting landscape successfully. For more information, contact NexGen Consulting Partners at info@ngcp.ai or visit www.dcaaservices.com.