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Learn the Lingo: Decode Six Government Contracting Terms with Peraton
Navigating the world of government contracting can feel like learning a new language. Whether you’re a seasoned professional or preparing to transition from military service, understanding key government contracting terms is essential to making informed career decisions.
In a recent ClearedJobs.Net Military Monday webinar, Jeff Carson, Military & Veteran Talent Acquisition Outreach Lead at Peraton, shared valuable insights into government contracting terminology. What’s an “RFP” or a “Statement of Work?” How does an “incumbent hire” affect you? Jeff Carson covers all of this and more in the webinar and summary below to help you approach your cleared job search confidently.
Request for Proposal (RFP)
A Request for Proposal (RFP) is a public announcement by the government inviting companies to bid on a contract to provide specific services or support. It’s essentially a detailed wish list outlining what the government needs, including the contract’s scope, required clearance levels, job roles, locations, and more. Companies then submit proposals showcasing their capabilities, past performance, and pricing in hopes of winning the contract.
For job seekers, RFPs are significant because they signal potential job opportunities, even if the contract hasn’t been awarded yet. Companies preparing to submit a proposal may reach out to candidates to demonstrate they can fill roles, sometimes asking for resumes or even a letter of commitment to show they have qualified personnel ready.
Statement of Work (SOW)
The Statement of Work (SOW) is a document that outlines the specific requirements for a contract, including the qualifications needed for each position, such as clearance levels, education, certifications, and experience. It acts as a blueprint that companies must follow when hiring for the contract. For example, if the SOW specifies a TS/SCI clearance or a master’s degree, the company cannot hire someone who doesn’t meet those criteria, even if they’re otherwise qualified.
This can be frustrating for job seekers who feel they could perform the job but don’t meet all the prerequisites. Jeff Carson explains, the SOW spells out exactly what types of applicants can be hired—most companies can’t override it, even if they want to hire you. Understanding the SOW helps you target roles that match your qualifications and avoid applying for positions where you don’t meet the non-negotiable requirements.
Contract Rebid/Recompete
A contract rebid or recompete occurs when a government contract nears its end and is put back out for bidding. The current contractor, known as the incumbent, must compete against other companies to retain the contract. Jeff Carson explained that it can be a stressful time for companies because they have to prove why they should keep the contract, while others compete to take it away. The incumbent has an advantage if they’ve performed well, but there’s no guarantee they’ll win.
For job seekers already working on a contract, a rebid can create uncertainty about job stability. If the incumbent company loses, employees may need to negotiate with the new contractor to keep their role, potentially facing changes in salary or benefits. However, many companies prioritize hiring incumbent employees because they’re already qualified and familiar with the work.
If you’re considering a job on a contract with only a year or two left, don’t be deterred. Ask recruiters about the contract’s history and the company’s track record in winning rebids. Some companies, like Peraton, have held contracts for decades due to strong performance. Additionally, inquire about internal programs the company may have like Peraton’s “Family First,” which helps employees find new roles within the company if a contract is lost.
Incumbent Hire
An incumbent hire refers to an employee already working on a contract who is retained by a new contractor after a rebid. Incumbents are highly valued because they have the necessary clearances, experience, and familiarity with the job, making transitions smoother for the government client. Jeff Carson emphasized how much employers depend on incumbent hires, because there often isn’t enough time and resources to find people with the same skill set. Incumbents are especially critical for large contracts with hundreds of positions.
If you’re an incumbent, you may need to interview with the new contractor and negotiate salary and benefits, as these can differ from the previous employer. However, your experience gives you a significant advantage. For new job seekers, understanding incumbent hiring can highlight the importance of getting your foot in the door, as it positions you favorably for future contract transitions.
Years Left on Contract
The years left on a contract refers to the remaining duration of a contract before it expires or goes up for rebid. This is a critical question for job seekers to ask, as it impacts job stability. Some contracts may have only 90 days left, while others could have several years. Jeff Carson advises to always ask how many years are left on the contract—but even if it’s just one year, don’t shy away if the role and company are a good fit.
A short contract duration doesn’t guarantee you’ll have to look for a new job again, as the incumbent company may win the rebid, potentially extending the contract for several more years. Weigh the opportunity against the company’s reputation and support programs. A strong company culture and internal job placement programs can provide stability even if a contract ends.
Contingent Offer
A contingent offer is a conditional job offer that depends on specific conditions being met, such as the company winning the contract, your security clearance being approved, or passing a polygraph exam. “A contingent offer is not a full bona fide offer,” clarifies Jeff Carson. “Don’t quit your current job, because it’s still contingent upon some things.”
For job seekers, contingent offers are common in government contracting, especially during the RFP phase. They indicate a company’s interest in you, but they aren’t a guarantee of employment. For example, a contract award might be delayed, or a clearance crossover between agencies could take months.
Accepting a contingent offer is a strategic move, but don’t stop exploring other opportunities until the offer becomes firm. If you’ve accepted contingent offers from multiple companies, be sure to notify the companies if your circumstances change, or once you accept a firm offer and have a start date.
Watch the Webinar
To dive deeper into these government contracting terms, watch the full Military Monday webinar with Jeff Carson.
It’s helpful to see how an RFP can signal job openings *before* a contract is awarded. That insight alone can give job seekers a real edge in being proactive during their search.