Terms Used in Government Contracting

A

Advanced Research Projects Agency-Energy (ARPA-E)

An ARRA program intended to fund and support transformational research and development programs.

Agency Specific Data Sets

Information that an agency collects in addition to data collected on SF-424 series forms.

American Recovery and Reinvestment Act of 2009

A $787 billion economic stimulus package that includes $72 billion in direct investments and $22 billion in tax incentives for upgrading and modernizing the electric grid.

Application package

Forms and documents for a specified funding opportunity used to apply for a grant.

Application package template

Forms and documents that can be reused in multiple opportunity-specific application packages.

Arbitrage

The practice of simultaneously buying and selling an asset to profit from a difference in price.

Asset management

Refers to procedures and policies intended to control costs, reduce risk, enhance performance, improve investment and project scheduling decisions, and deal with aged equipment.

Authorized Organization Representative (AOR)

A person authorized by a company, institution, organization, or government to submit grants and sign all required documents.

Award

Financial assistance. Also, the document that confirms funding of a proposal.

C

Cage code

A five-character code assigned by Central Contracting Register (CCR) to companies doing business or planning to do business with the federal government.

Capital cost

The one-time setup cost of a project such as a generating plant, distinct and separate from continuing operating costs.

Central Contracting Register (CCR)

The primary vendor database for the federal government. Validates applicant information and electronically shares it with the finance offices of federal agencies.

Closeout

Process indicating that all actions and work regarding an award have been completed by the recipient and the agency providing the award.

Competition ID

ID selected by the grant provider to distinguish between applications with the same funding opportunity number.

Contract

An agreement between the federal government and a private for-profit or non-profit entity to perform specific services for a fee for the government.

Contractor

The entity that performs services stipulated by a contract. A contractor is typically a for-profit company but may be a university, research laboratory, nonprofit, etc. Under some federal contracts the work may be performed by a subcontractor.

Cooperative agreement

Similar to a grant agreement, but indicates that the federal agency will be substantially involved in the project for which the grant was awarded.

Cost accounting standards (CAS)

Federal accounting standards designed to ensure uniformity in reporting project costs, budgeting, and accounting.

Cost sharing or matching

That part of program or project costs that are not the responsibility of the federal government.

Clean Renewable Energy Bonds (CREBs)

Administered by the IRS. Lenders receive a federal government tax credit rather than an interest check from the borrower. Small clean generation projects get first priority.

Critical Infrastructure Protection (CIP)

Administered by NERC, CIP standards are intended to safeguard the North American bulk power system from attack and ensure utility compliance.

D

Data Universal Numbering System (DUNS)

Nine-character ID number required to apply for stimulus funds. Assigned by Dun & Bradstreet.

Department of Energy

A cabinet-level federal agency, DOE was established to advance national, economic, and energy security, protect the environment, and support scientific and technological innovation.

Deregulation

The removal of regulations over a formerly-regulated industry or part of an industry.

Direct costs

Allowed costs directly attributable to a specific project, such as equipment and salaries.

Disallowed costs

Charges against an award which the awarding agency deems not permissible.

Discretionary grant

A grant in which the awarding agency may select the recipient from those eligible, may decide whether to make an award, and may determine the award amount.

Distribution

Delivering electricity from a local substation to nearby residences and businesses.

E

Electric Power Research Institute (EPRI)

An independent public interest energy and environmental research organization that focuses on challenges related to electric power.

Electric utility

Public or privately-held companies that generate and/or deliver electricity in exchange for payment at rates set by an outside regulating authority.

Energy Independence and Security Act (EISA)

Enacted by Congress in 2007 to direct national energy policy. Title XIII of the act established the Federal Smart Grid Task Force.

F

FedBizOpps.gov

All federal agency projects of a value over $25,000 are posted on the Website FedBizOpps.gov.

Federal Energy Regulatory Commission (FERC)

An independent agency responsible for regulating interstate transmission of electricity, high-voltage transmission systems, wholesale electricity sales, and aspects of oil, gas, and hydroelectric operations.

Federal fiscal year

.

The federal government’s fiscal year begins on October 1 and ends the following Sept.30. For example, fiscal year 2009 – or FY09 – began on Oct. 1, 2008 and will end on Sept. 30 2009.

Federal Procurement Data System (FPDS)

The federal database that tracks contracts by various federal agencies  and departments, including what was procured, from whom and where.

Federal Smart Grid Task Force

Established under EISA to coordinate smart grid activities across all federal departments and related programs.

Firm obligation

A commitment to provide electricity or make capacity available at any time throughout the term of the commitment.

Formula grants

Allocated to states or their subdivisions for ongoing activities; amounts are based on a distribution formula set by law or administrative ruling.

Funding Opportunity Announcement (FOA)

A public document issued by federal agencies to announce their intent to award grants or cooperative agreements.

Funding Opportunity Number

The identifying number a federal agency assigns to a funding opportunity announcement.

G

Grant

An authorized expenditure awarded to a non-federal recipient for a defined public or private purpose for services.

Grants.gov

Lists funding opportunity announcements, provides numerous help options for vendors (including tracking applications, determining grant eligibility).

Grants.gov Tracking Number

An identifier number used by Grants.gov to track each application it receives.

H

Holding company

A parent company that either directly or indirectly owns most or all voting securities of one or more utilities.

I

Intelligent heuristic analysis system

A computer application that matches specific user requirements to its selection of methods to be used in data analysis.

Investment tax credit (ITC)

Generally, the amount of money entities may deduct from their tax liability that is equal to the amount they reinvest in themselves.

Investor-owned utility (IOU)

A privately-held utility (not operated by a government entity or a consumer cooperative).

M

Market value

The current price of a commodity. The price at which a commodity can be bought and sold.

Match

That part of program or project costs that are not the responsibility of the federal government. Also referred to as cost sharing.

N

National Energy Technology Laboratory (NETL)

A subsidiary of DOE, NETL conducts its own research and development programs and in partnership with other companies, institutions. Provides financial assistance.

National Institute of Standards and Technology (NIST)

A U.S. Department of Commerce agency charged with identifying and evaluating standards and technologies relevant to Smart Grid adoption.

North American Industry Classification System (NAICS)

Used for categorization purposes to provide a greater degree of detail about the type of economic or industrial output expected from a contract.

Nuclear Regulatory Commission (NRC)

Federal regulatory agency responsible for monitoring safety of nuclear reactors and radioactive materials, storage and disposal, and licensing.

O

Office of Energy Efficiency and Renewable Energy

Administers energy efficiency and conservation programs, as well as specific grant programs such as renewables.

P

Production tax credit (PTC)

A per kilowatt hour tax credit for electricity generated and sold by the taxpayer.

Profile

Data collected from funding applicants.

Project grants

These are awarded for specific projects with a fixed or known time period; examples are research grants and demonstration projects.

Public Utility Commission (PUC)

A state agency responsible for setting rates and regulating services and other activities of electric, gas, and telecommunications utilities operating within its state boundaries.

Public Utility District (PUD)

A single-purpose district established for the generation, transmission, and distribution of electricity or other services. Boundaries frequently extend beyond local jurisdictions.

Purchased power

Electricity bought from other providers.

R

Rate

The charges electric utilities assess customers for power delivery, expressed per unit or level of use over a fixed time period, i.e., monthly.

Rate base

A utility's property value that determines the utility's permitted rate of return. That rate is set by a regulatory agency.

Rate case

A request filed by an electric utility for a consumer price increase with the appropriate state public utility commissions.

Rate of return

Expressed as a percentage. Rate of return represents the ratio of net operating income a utility earns and determined as a percentage of its rate base.

Rate schedule

Incorporates the financial terms and conditions of an electric utility that delivers service to its customers.

Real-time pricing

A policy of charging consumers varying rates for a service to reflect frequent cost fluctuations occurring over time, as opposed to fixed pricing.

Regional transmission operator (RTO)

An organization established at the direction of FERC to control the electrical power transmission system in a service area that extends beyond state borders.

Regulation

The overall responsibilities of government agencies that oversee industries, including monitoring and administering enforcement of compliance with applicable laws and policies.

Request for proposal (RFP)

Announcement soliciting applicants for specific projects, topics of research, products to be delivered, or other specified services.

Research and Development (R&D)

Generally, the processes by which companies or institutions develop and implement new materials, systems, technologies, devices, and prototypes.

S

Supervisory Control and Data Acquisition (SCADA)

A computer system that monitors an industrial, infrastructure, or facility-based control process.

Service area

Territory defined as the area utilities are required to or have the right to provide electricity to consumers.

Standard Form 424 Series Forms (SF-424)

Standard federal government grant applications forms.

Standards

Critical to the industry, codified and administered standards ensure reliability, efficiency, and interoperability. Typically administered by government entities such as FERC and state PUCs.

State Energy Program (SEP)

A program established to provide states with discretionary funds for energy efficiency and renewable energy projects.

Stimulus plan

Another term for the American Recovery and Reinvestment Act.

T

Termination

Cancellation, in whole or in part, of an award at any time before the completion date.

U

Unobligated balance

Funds awarded that have not been used or obligated by the recipient.