This glossary is intentionally practical rather than exhaustive. Terms can have more precise meanings in statutes, regulations, individual clauses, and case law, so always read the actual subcontract and incorporated documents.
Use the linked guides when a term affects price, scope, data, payment, schedule, or the company's ability to pursue a remedy.
Contract Structure
A requirement from the prime contract that is passed into a subcontract when the clause, law, or prime agreement requires or chooses that result.
Making another document or clause part of the agreement without reproducing all of its text in the body.
Applying language with the changes necessary for the new context, often by substituting party references in flowdown clauses.
The rule that decides which document controls when two incorporated contract documents conflict.
Scope and Teaming
The portion of opportunity or contract work expected or committed to a teaming partner or subcontractor.
A restriction on pursuing the same opportunity with another partner, often limited by scope, time, or release events.
An SBA concept that can affect how qualifying lower-tier work is treated under limitations on subcontracting.
A subcontractor relationship that can create affiliation concerns when the small prime becomes unusually reliant on a subcontractor for the primary and vital requirements or other key factors.
Payment and Claims
A portion of an otherwise payable progress amount held until specified performance or completion conditions are met.
A contractual deduction of an amount claimed to be owed by the subcontractor against an amount otherwise payable to it.
A request for equitable adjustment seeking a change to price, time, or other terms, commonly arising from changed performance conditions.
A lower-tier claim against the Government that is presented through the prime because the subcontractor generally lacks direct privity with the agency.
Cyber and Data
Federal Contract Information: nonpublic information provided by or generated for the Government under a contract, excluding certain public or simple transactional information.
Controlled Unclassified Information: information requiring safeguarding or dissemination controls under law, regulation, or Government-wide policy.
DoD's Cybersecurity Maturity Model Certification framework for assessing required security protections on systems used for covered contract performance.
A DoD technical-data rights category that permits defined Government-purpose use for a specified period before rights may expand under the applicable clause.
Termination and Performance
Formal notice identifying a performance failure and, where the governing agreement provides it, an opportunity to correct the problem before default termination.
Direction to pause covered performance, triggering mitigation, restart, schedule, and potential cost questions.
A material change in performance caused by qualifying direction or conduct even though the parties did not first execute a formal change order.
Added effort to preserve an unchanged deadline after asserted excusable or owner-caused delay when adequate schedule relief is not granted.