Federal contracting runs on acronyms, and the jargon stops more small businesses than the actual work does. This glossary defines the terms that matter — grouped by identity codes, classification codes, and key people — in plain English.
The core federal contracting acronyms fall into three groups: identity codes (UEI, CAGE, SAM — who your business is), classification codes (NAICS, PSC, FAR — what your business does), and key people (CO, COR, OSDBU — who you'll work with). Master these and the rest of the vocabulary falls into place.
Federal contracting runs on acronyms. In your first week you will encounter UEI, CAGE, NAICS, PSC, CO, COR, FAR, SAM, and a dozen more — often with no explanation. This glossary defines the ones that actually matter for a small business entering the federal market, grouped so you can see how they fit together.
Identity Codes: Who Your Business Is
These codes establish your business as a recognized federal vendor. You cannot bid on a federal contract without them.
UEI — Unique Entity Identifier
Your business's official federal ID number, assigned through SAM.gov during registration. The UEI replaced the old DUNS number system. Every entity doing business with the federal government needs one, and it is required to bid on or receive a federal contract.
CAGE — Commercial and Government Entity Code
A five-character code that identifies your business location for procurement and payment. For U.S. entities, CAGE is typically assigned automatically as part of SAM.gov registration. (Non-U.S. entities receive an NCAGE code.)
SAM — System for Award Management
The official U.S. government portal where you register your entity, get your UEI, complete your Reps & Certs, and search contract opportunities. Registration is free. See our complete SAM.gov registration guide.
MPIN — Marketing Partner ID Number
A self-created password-like code in your SAM registration that grants access to other government systems and authorizes certain actions. Treat it like a sensitive credential.
Classification Codes: What Your Business Does
These codes tell the government what you sell and determine which opportunities and size standards apply to you.
NAICS — North American Industry Classification System
Six-digit codes that classify your industry. Your primary NAICS code should match your core business; you can add secondary codes for related capabilities. NAICS codes drive two critical things: which opportunities match your business, and whether you count as “small” under the SBA size standard for that code.
PSC — Product Service Code
A code agencies use to classify the specific product or service being purchased. Where NAICS describes your industry, PSC describes the exact thing the government is buying. Matching your capabilities to the right PSCs helps you find and filter relevant opportunities.
FAR — Federal Acquisition Regulation
The primary rulebook governing how federal agencies buy goods and services. Every federal contract contains FAR clauses that are legally binding. You do not need to memorize it, but you should understand the parts relevant to your work. See What the FAR Is.
Size Standard — SBA Size Standard
The revenue or employee-count threshold that determines whether your business qualifies as “small” under a given NAICS code. Size is NAICS-specific — you can be small under one code and other-than-small under another.
Key People: Who You'll Encounter
Knowing who does what inside an agency keeps you from knocking on the wrong door.
CO — Contracting Officer
The only person with legal authority to enter into, administer, or terminate a federal contract. The CO runs the procurement and makes the award decision. Do not cold-pitch COs — engage through proper channels first.
COR — Contracting Officer's Representative
The government representative who monitors technical performance after award. The COR manages the day-to-day of the work but does not have authority to change the contract — only the CO can do that.
CS — Contract Specialist
Assists the CO with market research and drafting solicitations. Contract specialists are often involved early, which is why a well-timed capability statement can influence how a solicitation is written.
OSDBU — Office of Small and Disadvantaged Business Utilization
Most agencies have one. The OSDBU promotes small business participation, hosts outreach events, and publishes vendor contact directories. It is often the best first point of contact at a new agency.
SBS — SBA Small Business Search
The database (formerly DSBS) contracting officers use to find small business vendors during market research. A complete, keyword-rich SBS profile makes your business discoverable before you ever submit a proposal.
Opportunity & Process Terms
Sources Sought — Sources Sought Notice
A market research notice agencies post before writing a solicitation. Responding demonstrates your capability and can influence whether a contract becomes a small business set-aside. One of the most underused tools available to small vendors.
RFI / RFQ / RFP — Request for Information / Quote / Proposal
The three main solicitation types. An RFI gathers market information; an RFQ requests a price quote for simpler buys; an RFP requests a full proposal for complex requirements.
Set-Aside — Small Business Set-Aside
A contract reserved exclusively for small businesses, barring large corporations from bidding. See Set-Asides Explained.
Simplified Acquisition — Simplified Acquisition Procedures
Streamlined procedures for contracts under $250,000. Faster timelines and less paperwork — often the best entry point for new federal contractors.
CPARS — Contractor Performance Assessment Reporting System
The government system where your contract performance is rated after completion. CPARS ratings are a permanent record that future evaluators read when scoring your proposals.
The acronyms intimidate people out of federal contracting more than the actual work does. But every one of these is just a label for something simple. UEI is your ID. NAICS is what you do. The CO makes the decision. Once the vocabulary clicks, the whole system stops feeling like a foreign language — and you start seeing the opportunities that were there all along.
Ready to Take Your First Step?
Biz2Gov helps small businesses go from unregistered to pipeline-ready in 90 days. Founded by former DoD Contracting Officer Bruce Ayres, we provide hands-on implementation — not just advice.
Frequently Asked Questions