Original Equipment Manufacturer(OEM)
A company that manufactures products or components that are marketed under another company's brand or incorporated into another company's product.
Overview
An Original Equipment Manufacturer (OEM) is a firm that produces equipment, components, or products that are sold under another entity's brand or used as parts of another product. In government contracting, OEM status can affect intellectual property rights, warranty obligations, and eligibility for certain contracts (e.g., sole-source for OEM parts).
Why It Matters in GovCon
Agencies often require OEM parts for maintenance, compatibility, or warranty reasons. OEMs may have sole-source leverage for spare parts and upgrades. Distributors and resellers must understand OEM authorization requirements — many solicitations require OEM-approved or authorized distributors.
Key Details
- Sole-Source: OEM parts may be procured sole-source when no acceptable alternative exists.
- Authorization: Reseller contracts may require OEM authorization or certification.
- IP: OEMs retain intellectual property rights; licensing affects government use and reprocurement.
- Aftermarket: Non-OEM (aftermarket) parts may be acceptable depending on solicitation terms.
Related Terms
- Sole Source
- Authorized Distributor
- Spare Parts
- National Stock Number (NSN)
More Products Terms
A cross-functional team that manages a product, subsystem, or program element from development through delivery.
A government-maintained list of products that have been tested and approved as meeting specified standards, enabling streamlined procurement.
Work performed to expand scientific or technical knowledge and apply it to new or improved products, processes, or services — a major category of federal contracting.
A comprehensive list of raw materials, components, and quantities needed to manufacture or assemble a product for a government contract.
A four-digit coding system used to group similar items of supply for cataloging and procurement purposes.
The first attainment of the capability to effectively employ a new weapon system, equipment, or platform in an operational context.
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