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Term Definition

An agreement between the Federal government and a prime recipient to provide goods and services for a fee.


A business, organization, or agency that receives funding and/or performs work on a contract. A contractor may be a corporation, small business, university, non-profit, sole proprietor, or other entity. When a company has a contract with the U.S. government, they may hire another company to perform part of the work. When this happens, the company who received the award is called the prime contractor. The company hired by the prime is called the sub-contractor.