Abacus Contract Management Definitions

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"BAA." See "Broad Agency Announcement" or "Buy American Act."

"Background invention" is any invention--other than a subject invention--that is owned or licensed by the contractor, and that will be incorporated into contract deliverables.
Intellectual Property: Navigating through Commercial Waters, USD (AT&L), Oct 15, 2001, p 19.

"Bailment" may be defined as a relationship in which goods are lawfully in the possession of someone who is not the owner.
DAU CON 210 Government Contract Law Course Text - Chapter 5, Sections 2 and 3.
See FAR 45.3 Providing Government Property to Contractors.

"Bailment contract" is an agreement for the delivery of personal property in trust for a specific purpose, to be returned when the specific purpose is accomplished. DAU CON 210 Government Contract Law Course Text - Glossary of Legal Terms.

"Balance of Payments Program" (see FAR Subpart 25.3) is similar to the Buy American Act in its implementation, except that it applies to the purchase of supplies for use outside the United States and construction materials for construction contracts performed outside the United States.
FAR 25.001(b) Foreign Acquisition.

"Ball bearings." See "Bearing Components" and "Miniature and instrument ball bearings."

"Base labor index" means the average of the labor indices for the three months which consist of the month of bid opening (or offer submission) and the months immediately preceding and following that month.
DFARS 252.216-7001 Economic Price Adjustment--Nonstandard Steel Items (Jul 1997) as prescribed in DFARS 216.203-4-70(b).

"Base steel index" means the Contractor's established price (see Note 6) including all applicable extras of $________ per ____________ (see Note 1) for ______________ (see Note 2) on the date set for bid opening (or the date of submission of the offer).
DFARS 252.216-7001 Economic Price Adjustment--Nonstandard Steel Items (Jul 1997) as prescribed in DFARS 216.203-4-70(b).

"Baseball (Last-Offer Arbitration)." Parties negotiate to the point of impasse, then respectively submit a final offer to the arbitrator whose sole responsibility is to select one or the other.
American Arbitration Association Terms and Definitions".

"Basic agreement" is a written instrument of understanding, negotiated between an agency or contracting activity and a contractor, that
(1) contains contract clauses applying to future contracts between the parties during its term and
(2) contemplates separate future contracts that will incorporate by reference or attachment the required and applicable clauses agreed upon in the basic agreement.
A basic agreement is not a contract.
FAR 16.702 Basic agreements.

"Basic ordering agreement" is a written instrument of understanding, negotiated between an agency, contracting activity, or contracting office and a contractor, that contains
(1) terms and clauses applying to future contracts (orders) between the parties during its term,
(2) a description, as specific as practicable, of supplies or services to be provided, and
(3) methods for pricing, issuing, and delivering future orders under the basic ordering agreement.
A basic ordering agreement is not a contract.
FAR 16.703 Basic ordering agreements.

"Basic research" means that research directed toward increasing knowledge in science. The primary aim of basic research is a fuller knowledge or understanding of the subject under study, rather than any practical application of that knowledge.
FAR Part 2 - Definitions of Words and Terms; and
FAR 31.205-18 Independent research and development and bid and proposal costs.

"Bearing components" means the bearing element, retainer, inner race, or outer race.
DFARS 252.225-7016 Restriction on Acquisition of Ball and Roller Bearings (Dec 2000) as prescribed in DFARS 225.7019-4, and
DFARS 225.7001 Authorization Acts, Appropriations Acts, and Other Statutory Restrictions on Foreign Acquisition.

"Best practices," as used in this subpart, means techniques that agencies may use to help detect problems in the acquisition, management, and administration of service contracts. Best practices are practical techniques gained from experience that agencies may use to improve the procurement process.
FAR 37.5 Management Oversight of Service Contracts.

"Best value" means the expected outcome of an acquisition that, in the Government's estimation, provides the greatest overall benefit in response to the requirement.
FAR Part 2 - Definitions of Words and Terms.

"Bid" means any response to a solicitation, including a proposal under a negotiated acquisition.  See the definition of "offer" at 2.101.
FAR 28 Bonds and Insurance - Definitions.

"Bid and proposal (B&P) costs" means the costs incurred in preparing, submitting, and supporting bids and proposals (whether or not solicited) on potential Government or non-Government contracts.  The term does not include the costs of effort sponsored by a grant or cooperative agreement, or required in the performance of a contract.
Bid and proposal costs are defined at FAR 31.205-18 and have their allowability controlled by that subsection.
FAR 31.205-38 Selling costs.

"Bid bond." See "Bond."

"Bid guarantee" means a form of security assuring that the bidder-
(1) Will not withdraw a bid within the period specified for acceptance; and
(2) Will execute a written contract and furnish required bonds, including any necessary coinsurance or reinsurance agreements, within the time specified in the bid, unless a longer time allowed, after receipt of the specified forms.
FAR 28 Bonds and Insurance.
See FAR 28.101 Bid guarantees.

"Bid sample" means a product sample required to be submitted by an offeror to show characteristics of the offered products that cannot adequately be described by specifications, purchase descriptions, or the solicitation (e.g., balance, facility of use, or pattern).
FAR Part 2 - Definitions of Words and Terms.

"Bid sample" means a sample to be furnished by a bidder to show the characteristics of the product offered in a bid.
FAR 14.202-4 General rules for solicitation of bids - Bid samples.

"Bidder" means any entity that is responding or has responded to a solicitation, including an offeror under a negotiated acquisition.
FAR 28 Bonds and Insurance - Definitions.

"Bilateral modification (supplemental agreement)" is a contract modification that is signed by the contractor and the contracting officer. Bilateral modifications are used to-
(1) Make negotiated equitable adjustments resulting from the issuance of a change order;
(2)
Definitize letter contracts; and
(3) Reflect other agreements of the parties modifying the terms of contracts.
FAR 43.103(a) Types of contract modifications.

"Billing rate," as used in this subpart, means an indirect cost rate--
(1) Established temporarily for interim reimbursement of incurred indirect costs; and
(2) Adjusted as necessary pending establishment of final indirect cost rates.
FAR 42.7 Indirect Cost Rates.

"Biobased product," as used in this subpart, means a commercial or industrial product (other than food or feed) that utilizes biological products or renewable domestic agricultural (plant, animal, and marine) or forestry materials.
FAR 23.7 Contracting for Environmentally Preferable and Energy-Efficient Products and Services.

"Biometrics" refers to the automated methods of identifying or authenticating the identity of a living person based on a physical or behavioral characteristic. Unique physical traits, such as fingerprints, iris scans, voiceprints, faces, signature, or the geometry of the hand can be used.
DoD Biometrics Management Office.
This definition is distinguishable from the field of development of statistical and mathematical methods applicable to data analysis problems in the biological sciences (see Biometrics.

"Blanket purchase agreements (BPAs)" are a simplified method of filling anticipated repetitive needs for supplies or services by establishing "charge accounts" with qualified sources of supply (see Subpart 16.7 for additional coverage of agreements).
FAR 13.303-1 Blanket purchase agreements (BPAs).

"Bona fide agency" means an established commercial or selling agency, maintained by a contractor for the purpose of securing business, that neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts nor holds itself out as being able to obtain any Government contract or contracts through improper influence.
FAR 3.4 Contingent Fees.

"Bona fide employee" means a person, employed by a contractor and subject to the contractor's supervision and control as to time, place, and manner of performance, who neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts nor holds out as being able to obtain any Government contract or contracts through improper influence.
FAR 3.4 Contingent Fees.

"Bond" means a written instrument executed by a bidder or contractor (the "principal"), and a second party (the "surety" or "sureties") (except as provided in 28.204), to assure fulfillment of the principal's obligations to a third party (the "obligee" or "Government"), identified in the bond. If the principal's obligations are not met, the bond assures payment, to the extent stipulated, of any loss sustained by the obligee. The types of bonds and related documents are as follows:
(1) An advance payment bond secures fulfillment of the contractor's obligations under an advance payment provision.
(2) An annual bid bond is a single bond furnished by a bidder, in lieu of separate bonds, which secure all bids (on other than construction contracts) requiring bonds submitted during a specific Government fiscal year.
(3) An annual performance bond is a single bond furnished by a contractor, in lieu of separate performance bonds, to secure fulfillment of the contractor's obligations under contracts (other than construction contracts) requiring bonds entered into during a specific Government fiscal year.
(4) A patent infringement bond secures fulfillment of the contractor's obligations under a patent provision.
(5) A payment bond assures payments as required by law to all persons supplying labor or material in the prosecution of the work provided for in the contract.
(6) A performance bond secures performance and fulfillment of the contractor's obligations under the contract.
FAR 28 Bonds and Insurance.

"Borrower" means a contractor, subcontractor (at any tier), or other supplier who receives a guaranteed loan.
FAR 32.3 Loan Guarantees for Defense Production.

"Breach of contract" is failure to perform as agreed.
DAU CON 210 Government Contract Law Course Text - Glossary of Legal Terms.

"Breakout of Parts." See "Spare Parts Breakout Program."

"Brief" is a written argument submitted on trial or appeal in support of pleadings.
DAU CON 210 Government Contract Law Course Text - Glossary of Legal Terms.

"Broad agency announcement" means a general announcement of an agency's research interest including criteria for selecting proposals and soliciting the participation of all offerors capable of satisfying the Government's needs (see 6.102(d)(2)).
FAR Part 2 - Definitions of Words and Terms.

"Building" or "work" generally means construction activity as distinguished from manufacturing, furnishing of materials, or servicing and maintenance work. The terms include, without limitation, buildings, structures, and improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitation and reactivation of plants, scaffolding, drilling, blasting, excavating, clearing, and landscaping. The manufacture or furnishing of materials, articles, supplies, or equipment (whether or not a Federal or State agency acquires title to such materials, articles, supplies, or equipment during the course of the manufacture or furnishing, or owns the materials from which they are manufactured or furnished) is not "building" or "work" within the meaning of the regulations in this subpart unless conducted in connection with and at the site of such building or work as is described in the foregoing sentence, or under the United States Housing Act of 1937 and the Housing Act of 1949 in the construction or development of the project.
FAR 22.401 Labor Standards for Contracts Involving Construction.

"Building Service Contract" means a contract for recurring services related to the maintenance of a public building. Recurring services are services that are required to be performed regularly or periodically throughout the course of a contract, and throughout the course of the succeeding or follow-on contract(s), at one or more of the same public buildings. E.O. 12933 [revoked by E.O. 13204] lists examples of building service contracts as including, but not limited to, contracts for the recurring provision of custodial or janitorial services; window washing; laundry; food services; guard or other protective services; landscaping and groundskeeping services; and inspection, maintenance, and repair of fixed equipment such as elevators, air conditioning, and heating systems. Building service contracts do not include--
(1) Contracts that provide maintenance services only on a non-recurring or irregular basis. For example, a contract to provide servicing of fixed equipment once a year, or to mulch a garden on a one-time or annual basis, is a non-recurring maintenance contract that is not covered by this subpart; and
(2) Contracts for day-care services in a Federal office building.
FAR 22.12 Nondisplacement of Qualified Workers Under Certain Contracts deleted by FAC 97-26 May 16, 2001.

"Buildings, structures, or other real property." See Construction."

"Bundled contract" means a contract where the requirements have been consolidated by bundling. (See the definition of bundling.)
FAR Part 2 - Definitions of Words and Terms.

"Bundling" means--
(1) Consolidating two or more requirements for supplies or services, previously provided or performed under separate smaller contracts, into a solicitation for a single contract that is likely to be unsuitable for award to a small business concern due to--
(i) The diversity, size, or specialized nature of the elements of the performance specified;
(ii) The aggregate dollar value of the anticipated award;
(iii) The geographical dispersion of the contract performance sites; or
(iv) Any combination of the factors described in paragraphs (1)(i), (ii), and (iii) of this definition.
(2) "Separate smaller contract" as used in this definition, means a contract that has been performed by one or more small business concerns or that was suitable for award to one or more small business concerns.
(3) This definition does not apply to a contract that will be awarded and performed entirely outside of the United States.
FAR Part 2 - Definitions of Words and Terms.
See FAR Subpart 19.2 Small Business Programs - Policies.

"Burden." See Undue burden."

"Burden of proof" is the responsibility of providing (sic) allegations made.
DAU CON 210 Government Contract Law Course Text - Glossary of Legal Terms .

"Bureau helium distributor" means a private helium distributor which has established and maintains eligibility to distribute helium purchased from the Bureau of Land Management, as specified in 30 CFR 602.
FAR 8.5 Acquisition of Helium.  Definition deleted by Final Rule: Acquisition of Helium, effective 4 Apr 2002.

"Bureau of Land Management" means the-
Department of the Interior
Bureau of Land Management
Helium Field Operations
801 South Fillmore Street
Amarillo, TX 79101-3545
FAR 8.5 Acquisition of Helium.

"Business combination" means a transaction whereby assets or operations of two or more companies not previously under common ownership or control are combined, whether by merger, acquisition, or sale/purchase of assets.
DFARS 231.205-70(b) External restructuring costs.

"Business practices" are the tasks, duties, and functions performed to support the objectives of an organization.
Commercial Item Acquisition: Considerations and Lessons Learned, June 26, 2000, p. 3.

"Business unit" means any segment of an organization, or an entire business organization that is not divided into segments.
FAR Part 2 - Definitions of Words and Terms.

"Business unit" means any segment of an organization, or an entire business organization which is not divided into segments.
Final Rule: Transactions Other Than Contracts, Grants, or Cooperative Agreements for Prototype Projects, effective 27 Aug 2002.

"Buy American Act--"
(1) Restricts the purchase of supplies, that are not domestic end products, for use within the United States. A foreign end product may be purchased if the contracting officer determines that the price of the lowest domestic offer is unreasonable or if another exception applies (see Subpart 25.1); and
(2) Requires, with some exceptions, the use of only domestic construction materials in contracts for construction in the United States (see Subpart 25.2).
FAR Part 25 - Foreign Acquisition.
See 41 U.S.C. 10a thru 10d.

"Buy American Act exemption proposed DoD rule." See Proposed DoD Buy American Act Exemption for Commercial U.S.-Made End Products, 8 Aug 2001 Federal Register.

"Buying-in," as used in this section, means submitting an offer below anticipated costs, expecting to--
(1) Increase the contract amount after award (e.g., through unnecessary or excessively priced change orders); or
(2) Receive follow-on contracts at artificially high prices to recover losses incurred on the buy-in contract.
FAR 3.501 Other Improper Business Practices - Buying-in.

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