Glossary of Defense Contracting Terms (V)
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.
View ACRONYMS used in Defense Contracting
VALUE ADDED RESELLER (VAR) A company that adds features or services to an existing product, then resells it (usually to end-users) as an integrated product or complete “turn-key" solution. This practice occurs commonly in the electronics industry, where, for example, a VAR might bundle a software application with supplied hardware.
VALUE ENGINEERING (VE) A systematic method to improve the “value" of goods or products and services by using an examination of function.
VALUE ENGINEERING CHANGE PROPOSAL (VECP) Post-award value engineering proposals made by construction contractors during the course of construction under a value engineering clause in the contract.
VARIABLE COST In cost-volume-profit analysis, costs of each unit that remain constant no matter how many units are made in the relevant range of production. Total variable cost increases as the total number of units produced increases.
Guidance for Doing Business with Military Bases