Federal glossary · Metric
O&M (Operations and Maintenance) is a one-year appropriation used for day-to-day operations, maintenance, training, and most services contracts. The most common appropriation type for services contracting.
Example: The Simplified Acquisition Threshold or a fiscal-year budget measure.
Reference record · Sources: OMB budget guidance · Verified Jul 2, 2026 · Covers definition, governing source
Operations and Maintenance
Also known as
O&M (Operations and Maintenance) is a one-year appropriation used for day-to-day operations, maintenance, training, and most services contracts. The most common appropriation type for services contracting.
(Operations and Maintenance) is a metric concept federal contractors and grant writers run into across solicitations, regulations, and award filings
O&M is a measurement used in federal contract evaluation, source selection, oversight, or performance management. For example: Example: The Simplified Acquisition Threshold or a fiscal-year budget measure. Understanding O&M 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 O&M 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. O&M also has implications for contract administration: getting the calculation methodology wrong post-award is a common source of disputes and contracting-officer modifications. Pair O&M with the related metrics above to see how the federal government composes evaluation criteria into source-selection narratives.
Example: The Simplified Acquisition Threshold or a fiscal-year budget measure.
Meaning in practice
O&M is a measure used to score, compare, or track government activity.
Where you’ll see it
You will see it in evaluation criteria, dashboards, scorecards, reports, and oversight reviews. Example: Example: The Simplified Acquisition Threshold or a fiscal-year budget measure..
Common confusion
People often confuse the metric with the threshold or decision rule attached to it.
What to do next
Check how the metric is calculated before you compare records or opportunities.
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Get notified when usage of O&M changes in contracts or guidance.
Search active federal contracts and solicitations related to O&M on Bureauify.
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