Authorization

Definition

An authorization bill establishes or continues a federal program and recommends funding levels. The NDAA is a defense authorization. Authorization does NOT provide funding — that requires a separate appropriation bill.

Where this matters in federal contracting

Authorization is a measurement used in federal contract evaluation, source selection, oversight, or performance management. Understanding Authorization matters because evaluators use metrics like it to compare proposals quantitatively, score past performance, set award-fee outcomes, and decide who gets the next option year. Contractors who track how Authorization is calculated — and what target values look like in their NAICS or service area — write proposals that are concrete and defensible instead of generic and easily dismissed. Authorization also has implications for contract administration: getting the calculation methodology wrong post-award is a common source of disputes and contracting-officer modifications. Pair Authorization with the related metrics above to see how the federal government composes evaluation criteria into source-selection narratives.

More metric terms