Glossary of Defense Contracting Terms (N)

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


NEGLIGENCE    Failure to exercise that degree of care that a reasonable and prudent person would exercise under the same circumstances

NEGOTIATED CONTRACT COST (NCC)    The estimated cost negotiated in a cost-plus-fixed-fee contract or the negotiated contract target cost in either a fixed-price incentive contract or a cost-plus-incentive fee contract

NET PRICE   Pricing after all discounts, rebates and such have been allowed

NO BID    A response to a solicitation for bids stating that the respondent doesn't wish to submit an offer.

NON-COLLUSION AFFIDAVIT   A notarized statement by a bidder that he has prepared his bid without collusion of any kind.

NONPROFIT ORGANIZATION   Any corporation, foundation, trust, or institution operated for scientific, educational, or medical purposes, not organized for profit, and no part of the net earnings of which is to the financial benefit of any private shareholder or individual.

NONRECURRING COSTS    Those costs which are generally incurred on a one-time basis and include such costs as plant or equipment relocation, plant rearrangement, special tooling, special test equipment, preproduction engineering, initial spoilage and rework, and specialized work force training.

NONSEVERABLE   Property that cannot be removed after erection or installation without substantial loss of value or damage to the property or to the premises where installed.

NORTH AMERICAN INDUSTRIAL CLASSIFICATION SYSTEM (NAICS)     A classification system for collecting, analyzing and publishing statistical data related to the economy.

NOTICE OF AWARD    A written notification to a vendor stating that the vendor has received an award.

NOTICE TO BIDDERS     A notice contained in the bidding requirements informing prospective bidders of the opportunity to submit bids on a project and setting forth the procedures for doing so

NOTICE TO PROCEED    Written communication issued by the owner to the contractor authorizing him/her to proceed with the work and establishing the date of commencement of the work.  


Pentagon Spokesman Department of Defense (DoD)

Guidance for Doing Business with Military Bases