Supplier Diversity Glossary
Definitions for 60 terms, acronyms, and concepts in supplier diversity
A
AbilityOne Program
A federal program that provides employment opportunities for people who are blind or have significant disabilities.
Government ProgramsAffidavit of Eligibility
A sworn statement declaring that a business and its owners meet certification eligibility requirements.
Compliance & LegalAirport Concession DBE
ACDBEA specialized DBE certification for businesses seeking concession opportunities at airports receiving FAA funding.
CertificationsB
Bid Proposal
A formal response to a solicitation that details how a contractor will meet requirements and at what price.
ProcurementBlanket Purchase Agreement
BPAA simplified acquisition method for filling anticipated repetitive needs for supplies or services.
ProcurementBuy American Act
BAAA law requiring the federal government to prefer U.S.-made products in its purchases.
Government ProgramsC
Capability Statement
A one-page document summarizing a company's competencies, certifications, and qualifications for contracting.
Business TermsCommercial and Government Entity Code
CAGEA 5-character identifier assigned to businesses and government agencies for defense and federal supply systems.
Codes & ClassificationsCommercially Useful Function
CUFA requirement that a diverse subcontractor perform real, substantial work rather than simply passing through funds.
Compliance & LegalD
Data Universal Numbering System
DUNSA unique 9-digit identifier previously used for business registration in federal systems, now replaced by UEI.
Codes & ClassificationsDefense Federal Acquisition Regulation Supplement
DFARSThe supplement to the FAR that contains acquisition regulations specific to the Department of Defense.
Government ProgramsDisability:IN
Disability:INThe leading nonprofit resource for disability inclusion in business and the certifying body for disability-owned businesses.
OrganizationsDisability-Owned Business Enterprise
DOBEA business that is at least 51% owned by one or more individuals with a disability.
CertificationsDisadvantaged Business Enterprise
DBEA for-profit small business that is at least 51% owned and controlled by one or more socially and economically disadvantaged individuals.
CertificationsDiverse Spend
The total dollar value of purchases made from certified diverse suppliers.
Business TermsE
Economically Disadvantaged Women-Owned Small Business
EDWOSBA WOSB whose women owners also meet specific economic disadvantage thresholds.
CertificationsEconomic Disadvantage
A condition where an individual's ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities.
Compliance & LegalG
M
N
National LGBT Chamber of Commerce
NGLCCThe business voice of the LGBT community and the exclusive certifying body for LGBT-owned businesses.
OrganizationsNational Minority Supplier Development Council
NMSDCThe leading third-party certifying organization for minority-owned businesses in the United States.
OrganizationsNational Veteran Business Development Council
NVBDCA third-party certifier of veteran-owned businesses for corporate supplier diversity programs.
OrganizationsNorth American Industry Classification System
NAICSThe standard used by federal agencies to classify businesses by industry for statistical and contracting purposes.
Codes & ClassificationsP
Past Performance
A record of a contractor's previous work experience used to evaluate their capability for new contracts.
Business TermsPersonal Net Worth
PNWThe total value of an individual's assets minus liabilities, used to determine economic disadvantage.
Compliance & LegalPrime Contractor
A contractor that has a direct contractual relationship with the government or purchasing organization.
ProcurementProcurement Technical Assistance Center
PTACLocal organizations that provide free counseling to businesses seeking government contracts.
OrganizationsProduct Service Code
PSCA 4-character code used by the federal government to describe products and services in procurement.
Codes & ClassificationsR
S
Service-Disabled Veteran-Owned Small Business
SDVOSBA small business that is at least 51% owned and controlled by one or more veterans with a service-connected disability.
CertificationsSet-Aside Contract
A federal contract reserved exclusively for competition among specific categories of small businesses.
ProcurementSmall Business Administration
SBAThe federal agency that supports small businesses through loans, contracting assistance, and certification programs.
OrganizationsSmall Business Development Center
SBDCSBA-funded centers that provide free business consulting and training to small businesses.
OrganizationsSmall Business Enterprise
SBEA business that meets size standards established by the SBA for its industry classification.
CertificationsSmall Business Goaling
The statutory requirement for federal agencies to award a percentage of contracts to small businesses.
Business TermsSmall Disadvantaged Business
SDBA small business that is at least 51% owned by one or more disadvantaged individuals.
CertificationsSocial Disadvantage
A condition where individuals have been subjected to racial or ethnic prejudice or cultural bias that has affected their business opportunities.
Compliance & LegalSole Source Contract
A contract awarded to a specific contractor without competitive bidding.
ProcurementStandard Industrial Classification
SICA legacy 4-digit classification system for industries that has been largely replaced by NAICS codes.
Codes & ClassificationsSubcontracting Plan
A required plan for federal contracts over $750,000 describing how a contractor will use small business subcontractors.
Government ProgramsSubcontractor
A contractor that is hired by a prime contractor to perform a portion of work under a contract.
ProcurementSupplier Diversity Program
A proactive business program that promotes the use of diverse-owned businesses in an organization's supply chain.
Business TermsSystem for Award Management
SAMThe official federal government database where businesses must register to receive government contracts.
Codes & ClassificationsT
Teaming Agreement
A written agreement between companies to work together in pursuit of a specific contract opportunity.
Business TermsTier 1 Supplier
A supplier that sells directly to the purchasing organization (also known as a direct supplier or prime supplier).
ProcurementTier 2 Supplier
A supplier that provides goods or services to a Tier 1 supplier rather than directly to the end buyer.
ProcurementW
Women-Owned Small Business
WOSBA federal certification for small businesses that are at least 51% owned and controlled by one or more women.
CertificationsWomen's Business Enterprise
WBEA business that is at least 51% owned, operated, and controlled by one or more women.
CertificationsWomen's Business Enterprise National Council
WBENCThe largest third-party certifier of women-owned businesses in the United States.
OrganizationsNot Sure Which Certification You Need?
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