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NAICS Codes Explained
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IDIQ Contracts Explained
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GovCon for Beginners
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Plain-language definitions of every GovCon Business Operations term that shows up in government contracting work.
A base of allocation is the measurable cost driver used to distribute indirect cost pool expenses across government contracts in a fair, consistent, and auditable manner.
Read definitionContract funding status refers to the total amounts obligated, invoiced, and remaining available on a government contract, which determines how much a contractor may spend and bill.
Read definitionA CPSR is a government evaluation of a contractor's purchasing policies, procedures, and records to ensure subcontracts are awarded competitively and in compliance with FAR flow-down requirements.
Read definitionA cost pool is a grouping of indirect costs with a common relationship that are accumulated together and then allocated to contracts using a single allocation base.
Read definitionDCAA-compliant accounting refers to financial systems and practices that satisfy the Defense Contract Audit Agency's standards for tracking, reporting, and auditing federal contract costs.
Read definitionAn Earned Value Management System is a program management framework that integrates scope, schedule, and cost data to objectively measure contract performance and forecast completion.
Read definitionA final billing rate is the audited and negotiated indirect cost rate that replaces provisional rates after a contractor's fiscal year closes, settling all outstanding cost-reimbursable billings.
Read definitionA GovCon accounting system is a financial management platform configured to track costs by contract, comply with FAR Part 31, and withstand DCAA audit scrutiny.
Read definitionAn indirect rate structure is a contractor's framework for grouping indirect costs into pools and allocating them to contracts through defined cost bases, as required by FAR Part 31.
Read definitionAn Integrated Baseline Review is a joint government-contractor examination of the performance measurement baseline to verify it realistically represents the scope, schedule, and budget for a contract.
Read definitionThe Limitation of Funds clause (FAR 52.232-22) caps contractor cost reimbursement to the obligated amount and requires advance notice when costs approach the funding ceiling.
Read definitionA property management system is a contractor's documented process for controlling, recording, and reporting government property in its possession in compliance with FAR Part 45 requirements.
Read definitionA provisional billing rate is a temporary indirect cost rate used to bill the government on cost-reimbursable contracts until actual annual rates are negotiated and finalized.
Read definitionTimekeeping compliance in government contracting means maintaining accurate, contemporaneous labor records that satisfy FAR, DCAA, and contract requirements for charging labor costs to federal contracts.
Read definitionUncompensated overtime is hours worked by salaried employees beyond the standard workweek that are not paid at an additional rate, which must be disclosed and accounted for in government contract pricing.
Read definitionSee how Bidovate turns these government contracting terms into pipeline. Explore the platform or book a 15-minute demo.
