10 terms

Defense industry terms

Defense-acquisition, contracting, and compliance terms every defense-tech founder should know — DARPA, SBIR, CMMC, ITAR, and more. 10 terms defined.

CFIUS

The U.S. interagency committee that reviews foreign investment in American companies for national-security risk.

Also: Committee on Foreign Investment in the United States

CMMC

The Department of Defense's framework for verifying that a contractor's IT systems protect sensitive government data.

Also: Cybersecurity Maturity Model Certification · CMMC compliance

CPARS

The U.S. government's official database of contractor performance report cards, used to award future contracts.

Also: Contractor Performance Assessment Reporting System

DARPA

The U.S. Department of Defense's high-risk, high-reward research agency, created in 1958 to prevent technological surprise.

Also: Defense Advanced Research Projects Agency

FedRAMP

The U.S. government's standardized security-authorization program for cloud products and services sold to federal agencies.

Also: Federal Risk and Authorization Management Program

GSA Schedule

Long-term, government-wide contracts GSA pre-negotiates with vendors so agencies can buy at set prices without a full bid.

Also: Multiple Award Schedule · MAS · Federal Supply Schedule

IDIQ Contract

A flexible federal contract vehicle for an indefinite quantity of supplies or services within stated limits over a fixed period.

Also: Indefinite-Delivery, Indefinite-Quantity contract

ITAR

The U.S. export-control rulebook governing defense-related technology, hardware, and technical data on the U.S. Munitions List.

Also: International Traffic in Arms Regulations · ITAR compliance

NDAA

The annual U.S. law that sets defense policy and authorizes Department of Defense spending levels.

Also: National Defense Authorization Act

SBIR

A U.S. program that gives small businesses non-dilutive federal R&D funding — no equity or IP taken — to mature new technology.

Also: Small Business Innovation Research · SBIR grant · SBIR program

Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994