Definitions of supplier diversity terminology.
60 terms, certifications, and acronyms running from 8(a) to WOSB. Each entry includes a plain-English definition, the context that makes it matter to a diverse business owner, and links to the full guides where the term appears.
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AbilityOne Program
A federal program that provides employment opportunities for people who are blind or have significant disabilities.
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Affidavit of Eligibility
A sworn statement declaring that a business and its owners meet certification eligibility requirements.
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Airport Concession DBE
(ACDBE)A specialized DBE certification for businesses seeking concession opportunities at airports receiving FAA funding.
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Bid Proposal
A formal response to a solicitation that details how a contractor will meet requirements and at what price.
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Blanket Purchase Agreement
(BPA)A simplified acquisition method for filling anticipated repetitive needs for supplies or services.
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Buy American Act
(BAA)A law requiring the federal government to prefer U.S.-made products in its purchases.
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Capability Statement
A one-page document summarizing a company's competencies, certifications, and qualifications for contracting.
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Commercial and Government Entity Code
(CAGE)A 5-character identifier assigned to businesses and government agencies for defense and federal supply systems.
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Commercially Useful Function
(CUF)A requirement that a diverse subcontractor perform real, substantial work rather than simply passing through funds.
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Data Universal Numbering System
(DUNS)A unique 9-digit identifier previously used for business registration in federal systems, now replaced by UEI.
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Defense Federal Acquisition Regulation Supplement
(DFARS)The supplement to the FAR that contains acquisition regulations specific to the Department of Defense.
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Disability:IN
(Disability:IN)The leading nonprofit resource for disability inclusion in business and the certifying body for disability-owned businesses.
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Disability-Owned Business Enterprise
(DOBE)A business that is at least 51% owned by one or more individuals with a disability.
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Disadvantaged Business Enterprise
(DBE)A for-profit small business that is at least 51% owned and controlled by one or more socially and economically disadvantaged individuals.
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Diverse Spend
The total dollar value of purchases made from certified diverse suppliers.
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Economically Disadvantaged Women-Owned Small Business
(EDWOSB)A WOSB whose women owners also meet specific economic disadvantage thresholds.
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Economic Disadvantage
A condition where an individual's ability to compete in the free enterprise system has been impaired due to diminished capital and credit o…
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National LGBT Chamber of Commerce
(NGLCC)The business voice of the LGBT community and the exclusive certifying body for LGBT-owned businesses.
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National Minority Supplier Development Council
(NMSDC)The leading third-party certifying organization for minority-owned businesses in the United States.
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National Veteran Business Development Council
(NVBDC)A third-party certifier of veteran-owned businesses for corporate supplier diversity programs.
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North American Industry Classification System
(NAICS)The standard used by federal agencies to classify businesses by industry for statistical and contracting purposes.
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Past Performance
A record of a contractor's previous work experience used to evaluate their capability for new contracts.
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Personal Net Worth
(PNW)The total value of an individual's assets minus liabilities, used to determine economic disadvantage.
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Prime Contractor
A contractor that has a direct contractual relationship with the government or purchasing organization.
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Procurement Technical Assistance Center
(PTAC)Local organizations that provide free counseling to businesses seeking government contracts.
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Product Service Code
(PSC)A 4-character code used by the federal government to describe products and services in procurement.
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Service-Disabled Veteran-Owned Small Business
(SDVOSB)A small business that is at least 51% owned and controlled by one or more veterans with a service-connected disability.
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Set-Aside Contract
A federal contract reserved exclusively for competition among specific categories of small businesses.
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Small Business Administration
(SBA)The federal agency that supports small businesses through loans, contracting assistance, and certification programs.
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Small Business Development Center
(SBDC)SBA-funded centers that provide free business consulting and training to small businesses.
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Small Business Enterprise
(SBE)A business that meets size standards established by the SBA for its industry classification.
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Small Business Goaling
The statutory requirement for federal agencies to award a percentage of contracts to small businesses.
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Small Disadvantaged Business
(SDB)A small business that is at least 51% owned by one or more disadvantaged individuals.
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Social Disadvantage
A condition where individuals have been subjected to racial or ethnic prejudice or cultural bias that has affected their business opportuni…
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Sole Source Contract
A contract awarded to a specific contractor without competitive bidding.
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Standard Industrial Classification
(SIC)A legacy 4-digit classification system for industries that has been largely replaced by NAICS codes.
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Subcontracting Plan
A required plan for federal contracts over $750,000 describing how a contractor will use small business subcontractors.
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Subcontractor
A contractor that is hired by a prime contractor to perform a portion of work under a contract.
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Supplier Diversity Program
A proactive business program that promotes the use of diverse-owned businesses in an organization's supply chain.
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System for Award Management
(SAM)The official federal government database where businesses must register to receive government contracts.
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Teaming Agreement
A written agreement between companies to work together in pursuit of a specific contract opportunity.
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Tier 1 Supplier
A supplier that sells directly to the purchasing organization (also known as a direct supplier or prime supplier).
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Tier 2 Supplier
A supplier that provides goods or services to a Tier 1 supplier rather than directly to the end buyer.
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Women-Owned Small Business
(WOSB)A federal certification for small businesses that are at least 51% owned and controlled by one or more women.
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Women's Business Enterprise
(WBE)A business that is at least 51% owned, operated, and controlled by one or more women.
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Women's Business Enterprise National Council
(WBENC)The largest third-party certifier of women-owned businesses in the United States.
Apply the vocabulary to your own business.
The certification quiz checks your business against every term that matters: ownership thresholds, NAICS codes, size standards, geographic eligibility. The result is a ranked list of certifications that fit, with the buyers each one opens.