EDI Government Definitions

American National Standards Institute [ANSI]
is the coordinator and clearinghouse for national standards in the United States. ANSI does not develop national standards; it charters organizations called "Accredited Standards Committees [ASCs] composed of voluntary representatives from industry, labor, consumer, and government to prepare consensus standards. Upon public comment and approval, ANSI ASCs publish national standards.

ANSI X12 Transaction Sets.
An EDI transaction involves the electronic transmission of a business document that is prepared in accordance with an ANSI X12 format, known as a transaction set. There are currently almost two hundred transaction sets supporting the following business areas: communications and controls, product data, finance, government, materials management, transportation, purchasing, industry standards transition, distribution and warehousing, and insurance.

Applications Link.
The software bridge developed to facilitate the interface between a company's internal business management software and EDI translation software.

ASC X12
[Accredited Standards Committee, a designation assigned by ANSI] was chartered to develop the structure, format, and content of business transactions conducted through Electronic Date Interchange [EDI]. The ASC X12 is supported by the Data Interchange Standards Association Inc. [DISA], its secretariat, and a not-for-profit corporation. DISA manages the ASC x12 membership, balloting, standards development and maintenance, publications, and communications with ANSI on behalf of ASC X12. The result of the ASC X12 efforts are the ANSI X12 Standards.

Bar Coding.
The encoding of alphanumeric characters by a series of varying thickness bars to be read by a scanning device.

CAD.
The electronic storage of drawings developed using computer-aided design applications.

Department of Defense [DoD] EC/EDI Infrastructure
is the system of interconnected communications and computer systems supporting the exchange of EDI transactions between Government activities and their trading partners. The use of a single infrastructure allows both Government activities and the Value Added Networks to connect to the two Network Entry Points [NEPs] in an economical and efficient manner. The infrastructure also supports the concept of a "single face to industry" which allows Government trading partners to register with the Government once through the Central Contractor Registration [CCR] system in Columbus, Ohio, and be able to do business with any Government procurement activity.

Electronic Commerce [EC]
is the paperless exchange of business information, using Electronic Data Interchange [EDI], electronic mail, electronic bulletin boards, electronic funds transfer and other similar technologies.

Electronic Data Interchange [EDI],
a major part of Electronic Commerce [EC], is the computer-to-computer exchange of business data in a standardized format.

Electronic Commerce Resource Center [ECRC]
is a collection of nationwide centers funded by the Defense Logistics Agency to help companies understand and implement EC/EDI solutions to problems preventing them from conducting business electronically. Further information and locations of ECRCs around the country.

Electronic Funds Transfer [EFT].
The electronic transfer of money between accounts at different banks.

EDI Translation Software.
Software that translates data in and out of the ANSI X12 format.

E-Mail.
The electronic transmission of information in a non-standardized format.

FAX.
The electronic transmission of images through a facsimile (FAX) machine.

Federal Acquisition Network [FACNET]
is an electronic system intended to provide a single face to industry by the Federal Government and interoperability within the federal sector. FACNET has parameters built along functional lines, with requirements set forth for Government and private users. The Government-wide FACNET will be designed to: inform the public about contracting opportunities; outline the details of Government solicitations; permit electronic bids and proposals; facilitate responses to questions about solicitations; enhance the quality of data available about the acquisition process; and be accessible to anyone with access to a personal computer and a modem.

Federal Acquisition Regulation [FAR]
is a set of rules governing how the federal government buys goods and services. You can search the FAR on-line. RCAC maintains the FAR in print form as well.

Federal Acquisition Streamlining Act OF 1994 [FASA] [Public Law 103-355],
signed by President Clinton on October 13, 1994, was designed to simplify and streamline the Federal procurement process. It will significantly change how the Government does business. The Act repeals or substantially modifies more than 255 provisions of law to reduce paperwork burdens, facilitate the acquisition of commercial products, enhance the use of simplified procedures for small purchases, transform the acquisition process to electronic commerce, and improve the efficiency of the laws governing the procurement of goods and services.

Implementation Conventions
are a subset of the ANSI X12 standards. They represent an agreement among EDI trading partners on how a specific standard [transaction set] will be used in a specific business context. Thus, implementation conventions specify how all segments and associated data elements will be used. Implementation conventions are necessary because ANSI X12 standards are developed broadly to suit the needs of EDI users in a variety of industries with differing business requirements. In the Federal Government community, implementation conventions have been developed, for specific transaction sets, by DoD for ANSI X12 Version 2003 and 3010, and by the Federal Electronic Commerce Program Management Office for ANSI X12 Version 3040. There is an effort underway within the Government community to standardize on a single Government-wide implementation convention for the ANSI X12 Version 3050. Therefore, if you intend to do business with a Government activity using EDI, you need to use the implementation convention that is used by your Government trading partner. Generally, this can only be either "Federal 3040 Implementation Conventions" [non-DoD] or "DoD 3010 Implementation Conventions."

Method of Transfer of Information Between Government and Its Trading Partners.
Information from a Government activity such as a DoD Contracting Office is sent through an application system to the supporting Gateway. After translation, archiving, and other processing by the Gateway, the information is transmitted to a Network Entry Point [NEP]. NEPs receive the EDI transactions and transfer them to VANs that have been certified and connected to the DoD Infrastructure. VANs distribute the EDI transactions to their customers in ANSI X12 format. EDI transactions are returned to the Government by its trading partners in reverse order.

Network Entry Point [NEP]
is a collection of hardware and software systems which provides communication connectivity between Value Added Networks [VANs] and the Government Gateways to support the exchange of EDI transactions between Government procurement activities and the private sector Trading Partners. There are currently two NEPs located in Columbus, Ohio and Ogden, Utah. A Gateway consists of both hardware and software that provide EDI translation services, archving, security, and environment management for converting non-ANSI X12 business application systems data into ANSI X12 format for Government procurement activities. Gateways typically support numerous Government business systems that are located locally or are dispersed geographically.

Procurement Technical Assistance Center [PTAC]
is an organization funded by the Defense Logistics Agency in partnership with [typically] a state government of other economic development organization to help small businesses compete for federal, state and local government contracts. PTACs exist in forty-six states.

Small Business
for purposes of participation in the Procurement Technical Assistance Program is a business, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria and size standards in 13 CFR 121.601. For a discussion of small business determination, initiate FAR Search, go to section 19.102 for this topic.

Small Disadvantaged Business
for purposes of participation in the Procurement Technical Assistance Program is a small business concern that is at least 51 percent unconditionally owned by one or more individuals who are both socially and economically disadvantaged, or a publicly owned business that has at least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and that has its management and daily business controlled by one or more such individuals. The term also means a small business concern that is at least 51 percent unconditionally owned by an economically disadvantaged Indian tribe or Native Hawaiian organization, or publicly owned business that has at least 51 percent of its stock unconditionally owned by one of these entities, that has its management and daily business controlled by memebers of an economically disadvantaged Indian tribe or Native Hawaiian organization, and that meets the requirements of 13 CRF 124.

Trading Partners.
Parties or entities who exchange EC/EDI transactions.

Value Added Network [VAN]
is generally a commercial entity [similar to a long distance telephone company, or a computer on-line service] that provides communications services, electronic store and forward mailboxing, and other related services for EDI transactions. VANs are necessary because it would be too expensive and impractical to establish direct point-to-point connections with all of a company's trading partners. VANs are also useful because they are accessible to a company regardless of physical location, support reliable connectivity to a company's trading partners via varying communications speeds and protocols, provide security for transactions including audit trails, and generally offer other value added services and ANSI X12 EDI translation software.

Value Added Service [VAS]
may be a separate commercial organization [also known as EDI service bureau], or a VAN that provides extra fee-based services beyond standard VAN services to its customers. Such services may range from "EDI-to-FAX" services to complete EDI-integrated business systems. Such VAS services are specifically applicable to small Government contractors who opt not to invest in EDI-related computer hardware and software.
There are advantages and disadvantages to subscribing to value added services such as Fax-to-EDI; on the plus side, they may allow you to quickly participate in EDI-based Government procurement efforts without making the investment in becoming EDI-capable; on the minus side they may place limits on the number and type of transactions you can exchange, take more time to exchange transactions than standard EDI, and be costly in the long term. You should conduct an analysis to determine their suitability to your business and condition. In addition to the traditional, point to point service, some VANs now offer EDI over the Internet. A client transmits its information to a Website where the translation into appropriate X12 or other standards [depending upon the ultimate recipient's need] takes place automatically.

Woman-Owned Small Business
for purposes of participation in the Procurement Technical Assistance Program is a small business concern - (1) which is at least 51 percent owned by one or more women; or in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and (2) whose management and daily business operations are controlled by one or more women.

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