B2G Markets Key Terms

Key words you will want to know when working with B2G markets and procurement professionals

By Ann Starr

B2G or business to government is a $5.5 trillion market. Federal and state agencies have procurement offices that are required to work with minority-owned businesses, women-owned businesses, veterans-owned businesses and small businesses. Many opportunities exist for you if you are willing to learn how to navigate the complex array of agencies, rules and regulations in the B2G marketplace. Often, small businesses work as subcontractors for B2G companies because larger organizations have the resources to steer their way through the bidding process. You will want to familiarize yourself with some of the important acronyms if you are interested in doing business with government agencies.

North American Industry Classification System

NAICS stands for North American Industry Classification System. It is used by government and private sector businesses to categorize and measure economic activity in the United States, Canada and Mexico. It is a six-digit code that designates the industry, business sector, sub sectors and specific industries. B2G enterprises use the NAICS to determine what industry a business fits into.
Try: The National Technical Information Service is the place to order the NAICS manual.

Federal Acquisition Regulation

The Federal Acquisition Regulation (FAR) is a set of rules and regulations issued by the U.S. government that are used for acquiring services and goods. These regulations spell out what government personnel must do when procuring for the government. B2G enterprises have to be very knowledgeable about these regulations.
Try: Lectric Law Library has a more detailed definition of FAR. The official website for FAR is Federal Acquisition Regulation.

Unique selling proposition

A unique selling proposition or USP is a marketing term that refers to a business's ability to differentiate itself from its competition by providing a distinct product or service. Usually expressed in a succinct and attention-getting manner, the sales person uses it to quickly connect with a potential customer. B2G enterprises need a USP in order to separate themselves from their competition.
Try: This term is further defined at The Blake Project.

Invitation for bid

An invitation to bid (IFB) is a request for suppliers or vendors to submit a proposal for a service or product. When the supplier bids on the product or service they are offering it at a set price. Because B2G enterprises bid on projects for governmental agencies they are often attempting to be the lowest cost provider.
Try: BusinessDictionary.com has a more complete definition of this term.

Request for proposal

A request for proposal is an invitation for businesses to submit a plan for how they would provide a service or the specifications they would meet for a product or commodity. B2G enterprises know that RFPs bring structure to the procurement process and provides them an opportunity to identify the benefits of their services or products.
Try: A more complete explanation of an RFP can be found at TechTarget. If you want to see a database of RFPs you can find one at Confluent Forms.

Central Contractor Registration system

Central Contractor Registration is "the" database if you want to do business with the federal government. B2G enterprises know that this is where the government stores, collects, validates and disseminates data on what federal agencies are acquiring.
Try: The database is located at CCR. Information focused on small businesses is also located at CCR.