Glossary of Defense Contracting Terms (I)

This Glossary provides you with the most frequently used terms in government and military base contracting. Familiarity with the language of government contracting is essential for doing business with the Department of Defense (DoD) and working with contracting offices at military bases and DoD agencies.  You may also find it helpful to use our master list of Acronyms frequently used in DoD contracting.


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View ACRONYMS used in Defense Contracting


INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ)     Federal type of contract that provides for an indefinite quantity of supplies or services during a fixed period of time and is not specified until a delivery or task order is issued.

INDIRECT COST   Also referred to as burden. Any cost not directly identified with a single, final cost objective, but identified with two or more final cost objectives or an intermediate cost objective. An indirect cost must not be allocated to a final cost objective if other costs incurred for the same purpose in like circumstances have been included as a direct cost of that or any other final cost objective.

INDUSTRIAL FUNDING FEE (IFF)     A .75% user fee built into General Services Administration (GSA) Schedule Contract prices to cover the Federal Acquisition Service's (FAS) cost of operating the Multiple Award Schedule Program (MAS). The total revenue collected by the vendor as a result of the IFF is reported to the Office of Contract Management and sent to the FAS quarterly.

INELIGIBLE   Excluded from Government contracting (and subcontracting, if appropriate) pursuant to statutory, Executive order, or regulatory authority other than the FAR and its implementing and supplementing regulations.

ISSUE IN CONTROVERSY    A material disagreement between the Government and the contractor which may result in a claim or is part of an existing claim. 


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Guidance for Doing Business with Military Bases