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Sole Source Contracts
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SAM.gov Registration
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NAICS Codes Explained
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Contract Recompetes
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IDIQ Contracts Explained
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GovCon for Beginners
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Plain-language definitions of every Budget & Appropriations term that shows up in government contracting work.
The Anti-Deficiency Act prohibits federal agencies from obligating or expending funds in excess of the amount appropriated by Congress, with violations carrying personal civil and criminal penalties for responsible officials.
Read definitionAn appropriation is a Congressional authorization for federal agencies to incur obligations and make expenditures from the U.S. Treasury for specified purposes during a defined time period.
Read definitionAuthorization legislation establishes federal programs and sets spending ceilings, while appropriation legislation provides the actual budget authority to spend money, and both must pass for funds to be legally available.
Read definitionThe Bona Fide Need Rule requires that appropriated funds be obligated only for goods or services that represent a legitimate need of the agency during the period for which those funds were appropriated.
Read definitionThe President's Budget Request is the executive branch's annual proposal to Congress for appropriations for the upcoming fiscal year, submitted each February as the starting point for congressional appropriations action.
Read definitionColor of money refers to the type of congressional appropriation funding a contract - operations and maintenance, procurement, or RDT&E - each with different rules governing what can be purchased and when funds expire.
Read definitionA Continuing Resolution is a temporary appropriations law that funds federal agencies at roughly the prior year's spending rate when Congress has not enacted regular annual appropriations by the start of the fiscal year.
Read definitionThe Full Funding Policy requires that DoD major defense acquisition programs have all required procurement funding available before contract award, preventing underfunded program starts that lead to cost overruns and cancellations.
Read definitionIncremental funding is the practice of obligating funds on a contract in stages as appropriations become available rather than fully funding the total estimated contract value at award.
Read definitionThe period of availability is the timeframe during which a specific appropriation may be used to incur new obligations, varying by appropriation type from one year for O&M to five years for military construction.
Read definitionThe Period of Performance is the timeframe specified in a federal contract during which the contractor is obligated to deliver work and the government may incur costs and accept deliverables.
Read definitionPPBE is the DoD management system that translates national strategy into program requirements and budget requests through four sequential phases: strategic planning, programming, budget formulation, and execution.
Read definitionProcurement appropriations are three-year congressional funds that finance the purchase of capital equipment, weapons systems, and other end items that exceed the investment cost threshold.
Read definitionThe Program Objective Memorandum is the primary planning document in DoD's budget process through which each military service proposes its program and funding requirements for the next five-year Future Years Defense Program period.
Read definitionSequestration is an automatic, across-the-board reduction in federal discretionary spending triggered when Congress fails to meet statutory deficit-reduction targets, applied uniformly to most federal accounts.
Read definitionUnfunded requirements are documented military or agency needs that are validated and prioritized but did not receive funding in the current budget request due to fiscal constraints.
Read definitionSee how Bidovate turns these government contracting terms into pipeline. Explore the platform or book a 15-minute demo.
