Guide
What do UEI, CAGE, NAICS, RFQ, IFB, and RFP mean? A federal contracting glossary for veteran-owned trade contractors
SAM is the federal registration system, and SAM.gov assigns your Unique Entity ID (UEI) when you register. [SAM.gov, Entity registration] A CAGE code identifies your business by location. [FAR 2.101, Definitions] NAICS codes classify your industry and set which size standard applies. [FAR 19.102, Size standards and NAICS codes] An RFQ asks for quotations under simplified procedures, an IFB asks for sealed bids judged on price, and an RFP asks for proposals in a negotiated buy. [FAR 2.101, Definitions]
SAM (System for Award Management)
SAM is a database government agencies search to find contractors, and you must register your business in it to take part in government contracting. [SBA, Size standards] Offerors and quoters must be registered in SAM when they submit an offer or quotation, with a few narrow exceptions. [FAR 4.1102, SAM registration policy] You must renew your registration every 365 days to keep it active. [SAM.gov, Entity registration]
UEI (Unique Entity ID)
The FAR defines a unique entity identifier as a number or other identifier used to identify a specific commercial, nonprofit, or government entity, and points to SAM.gov as the place it is established. [FAR 2.101, Definitions] If you register your entity, SAM.gov assigns your UEI during registration. You can also get a UEI without registering, but then you cannot apply directly for federal awards. [SAM.gov, Entity registration]
CAGE code
A Commercial and Government Entity (CAGE) code is an identifier assigned by the Defense Logistics Agency’s CAGE Branch to identify a business by its location. [FAR 2.101, Definitions] When a solicitation requires SAM registration or a UEI, offerors must give the contracting officer the CAGE code for their location before award of any contract action above the micro-purchase threshold. [FAR 4.1802, CAGE code policy]
NAICS code
The North American Industry Classification System (NAICS) is the standard federal statistical agencies use to classify business establishments. It was developed under the Office of Management and Budget and adopted in 1997 to replace the Standard Industrial Classification system. [U.S. Census Bureau, NAICS] A business usually has a primary NAICS code but can list more than one if it sells multiple products and services. [SBA, Size standards] The contracting officer assigns one NAICS code and its size standard to each solicitation, picking the industry that best describes the principal purpose of what is being bought. [FAR 19.102, Size standards and NAICS codes]
Size standard
SBA sets small business size standards industry by industry and ties each one to a NAICS code. [FAR 19.102, Size standards and NAICS codes] A size standard is the maximum size a business and its affiliates can be to qualify as small for a particular contract, and the limits vary by industry. [SBA, Size standards] Check the size standard for each NAICS code you list.
VetCert, SDVOSB, and VOSB
VetCert is SBA’s Veteran Small Business Certification program. The National Defense Authorization Act for Fiscal Year 2021 moved veteran certification from the VA to SBA as of January 1, 2023. [SBA, Veteran contracting assistance programs] A veteran-owned small business (VOSB) is a small business at least 51% owned and controlled by one or more veterans, with veterans controlling management and daily operations. [FAR 2.101, Definitions] For SDVOSB certification, at least 51% must be owned and controlled by veterans the VA rates as service-disabled. [SBA, Veteran contracting assistance programs] SBA says certified SDVOSBs can compete for sole-source and set-aside contracts across the federal government, and certified VOSBs can also compete for sole-source and set-aside contracts from the VA. [SBA, Veteran contracting assistance programs] SBA does not charge to apply. [SBA VetCert portal]
SBS (Small Business Search)
Certified veteran firms can be verified through SBA’s Small Business Search, and SBA does not charge for SBS content or profile management. [SBA VetCert portal]
Set-aside
A set-aside limits competition to a certain kind of small business. For example, a contracting officer may restrict competition to SDVOSBs when market research shows a reasonable expectation that two or more eligible SDVOSBs will submit offers and the award will be at a fair market price. [FAR 19.1405, Set-aside procedures] Since January 1, 2024, the contracting officer checks that an SDVOSB offeror is shown in SAM as certified by SBA, or applied for certification by December 31, 2023, before evaluating the offer. [FAR 19.1405, Set-aside procedures]
Solicitation
A solicitation is any request to submit offers or quotations to the government. Under sealed bid procedures it is called an invitation for bids, and under negotiated procedures it is called a request for proposals. Under simplified acquisition procedures it may ask for either a quotation or an offer. [FAR 2.101, Definitions]
RFQ (request for quotations)
Responses to requests for quotations are quotations, not offers. [FAR 2.101, Definitions] A quotation cannot be accepted by the government to form a binding contract. When the government issues an order in response to your quotation, the order is the government’s offer, and a contract is formed when you accept it. [FAR 13.004, Legal effect of quotations] Agencies must use simplified acquisition procedures to the maximum extent practicable for purchases of supplies or services up to the simplified acquisition threshold. [FAR 13.003, Simplified acquisition policy] The FAR sets that threshold at $350,000 and the general micro-purchase threshold at $15,000, with exceptions, including a $2,000 micro-purchase threshold for construction subject to the federal construction wage rate requirements. [FAR 2.101, Definitions]
IFB (invitation for bids)
An IFB is the solicitation used in sealed bidding. [FAR 2.101, Definitions] Bids are opened publicly and evaluated without discussions, and award goes to the responsible bidder whose bid conforms to the invitation and is most advantageous to the government, considering only price and price-related factors. [FAR 14.101, Elements of sealed bidding]
RFP (request for proposals)
RFPs are used in negotiated acquisitions to tell prospective contractors what the government needs and to ask for proposals. [FAR 15.203, Requests for proposals] The government may award without discussions, using only limited exchanges called clarifications. [FAR 15.306, Exchanges with offerors after receipt of proposals] When negotiations happen, they can include bargaining over price, schedule, technical requirements, and other terms, and in a competitive buy they take place after the competitive range is set and are called discussions. [FAR 15.306, Exchanges with offerors after receipt of proposals]
Bid, proposal, or quote
The FAR uses different words for each response. Responses to invitations for bids are offers called bids or sealed bids, responses to requests for proposals are offers called proposals, and responses to requests for quotations are quotations, not offers. [FAR 2.101, Definitions] Read the solicitation to know which one you are submitting.
Common questions
- Is a UEI the same as SAM registration?
- No. SAM.gov assigns a UEI during registration, but you can also get a UEI without registering. With only a UEI, you cannot apply directly for federal awards. [SAM.gov, Entity registration]
- Who assigns my NAICS code on a bid?
- The contracting officer assigns one NAICS code and its size standard to each solicitation, based on the principal purpose of what is being bought. [FAR 19.102, Size standards and NAICS codes]
- Is a quote the same as a bid?
- No. Under the FAR, bids and proposals are offers, but quotations are not offers. When the government orders against your quotation, the order is the offer, and the contract forms when you accept it. [FAR 2.101, Definitions] [FAR 13.004, Legal effect of quotations]
- Can I talk to the government after I submit a sealed bid?
- Sealed bids are evaluated without discussions. Discussions are part of negotiated buys under an RFP, not sealed bidding. [FAR 14.101, Elements of sealed bidding] [FAR 15.306, Exchanges with offerors after receipt of proposals]
- When do I need a CAGE code?
- When the solicitation requires SAM registration or a UEI, you give the contracting officer your CAGE code before award of any contract action above the micro-purchase threshold. [FAR 4.1802, CAGE code policy]
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Sources
- SAM.gov, Entity registration
- FAR 2.101, Definitions
- FAR 19.102, Size standards and NAICS codes
- FAR 4.1102, SAM registration policy
- SBA, Size standards
- FAR 4.1802, CAGE code policy
- U.S. Census Bureau, NAICS
- SBA, Veteran contracting assistance programs
- SBA VetCert portal
- FAR 19.1405, Set-aside procedures
- FAR 13.003, Simplified acquisition policy
- FAR 13.004, Legal effect of quotations
- FAR 14.101, Elements of sealed bidding
- FAR 15.203, Requests for proposals
- FAR 15.306, Exchanges with offerors after receipt of proposals
Checked against these sources on October 16, 2026. Rules change, so always read the current solicitation and regulation. This guide is general information, not legal advice.