When you first step into federal contracting, it can feel like learning a new language. Acronyms and legal phrases appear in SAM.gov registrations, Requests for Proposals (RFPs), and contract documents, and a misunderstanding can slow you down or even disqualify your bid. The good news: once you understand a few core terms, the entire landscape starts to look much more manageable.
Below are some of the most common federal contracting terms, explained in plain language and connected to what they mean for your business.
SAM.gov is the federal government’s primary registration system for vendors.
hink of SAM as your “entry ticket” to federal contracting. Without an active SAM registration, the government cannot award your company a contract or pay your invoices. Your SAM profile contains key details about your business, including banking information, NAICS codes, and representations and certifications. Errors, expired registrations, or unresolved entity validation issues can delay awards and payments.
NAICS (North American Industry Classification System) codes describe what your business does.PSC (Product Service Codes) describe what you are selling (products or services) to the government. Both codes serve as a classification for what your business does. NAICS is used in the federal government more often, while PSC is more for state and local government. PSC also tends to get more into the “nitty-gritty” of what you do.
Agencies search by NAICS and PSC to find vendors, so these codes influence which opportunities you see on SAM.gov and other platforms.Misaligned or incomplete codes can cause you to miss relevant opportunities or appear less credible.
RFP (Request for Proposal) is when a government agency is asking for detailed technical and pricing responses and will evaluate multiple factors, not just cost. An RFQ (Request for Quotation) is usually simpler, focused on pricing and basic capability. Sources Sought / RFI (Request for Information) is market research; the agency is exploring who is out there and what is possible. Simply put, RFP is like a full job interview with written tests, RFQ is closer to a price quote request, and Sources Sought/RFI is the government asking, “Who can do this and how?” Responding correctly to each type helps you invest your time wisely and shape future opportunities before they are formally released.
Contract opportunities reserved for specific categories of small businesses (for example, Small Business, Woman-Owned Small Business, 8(a), HUBZone, Veteran-Owned, or Service-Disabled Veteran-Owned). A set-aside is the government choosing to compete an opportunity only among certain eligible small businesses. If you qualify, set-asides can dramatically narrow your competition. If you do not qualify, you may still participate as a subcontractor or teaming partner with an eligible prime.
Past performance is the the government’s assessment of how well you have performed on previous contracts. Essentially, this is your track record. It answers, “Have you done this successfully before, and can we trust you to do it again?” Strong, relevant past performance often separates winning proposals from the rest—even when pricing and technical approaches are similar.
The GSA Schedule is a long-term governmentwide contract managed by the General Services Administration that pre-negotiates your pricing and terms, allowing agencies to buy from you more easily. A GSA Schedule is like being pre-approved as a vendor with catalog pricing, so agencies can buy from you faster and with less paperwork. While not required for all federal work, a well-managed GSA Schedule can expand your visibility and streamline purchasing for your federal customers.
Understanding these terms is a first step toward becoming a confident, competitive federal contractor. If you want help aligning your SAM profile, choosing the right NAICS and PSC codes, navigating GSA, or developing stronger proposals, FEDCON provides hands-on support, from registrations and compliance through capture and digital strategy—so you can focus on delivering excellent work while we help you navigate the language of federal contracting.