If you want a piece of the government contracting pie, completing your registration with the System for Award Management (SAM) is one of your first and most important steps. Before you get started, consider perusing our list of helpful facts about SAM.
1. The Basics About SAM
The System for Award Management (SAM) is a huge database that contains information about all approved government contractors. If you want to bid on government contracting jobs, your business must appear in this database. In the past, there were other databases, but everything now has been consolidated into SAM. Once you register with SAM, you will receive what is known as a CAGE code, which stands for Commercial and Government Entity Code. This code is the identifier that represents your business in the System for Award Management (SAM) database.
2. Three Steps To Take Before Registration
Before you actually begin the System for Award Management & SAM registration process, there are a few tasks you need to complete. First, you will need to attain a DUNS number. DUNS stands for Data Universal Numbering System, and you can receive a DUNS number at no charge by going to the Dun & Bradstreet website at https://www.dnb.com/duns-number/get-a-duns.html.
Unlike most of the tasks associated with SAM registration, acquiring a DUNS number is fairly straightforward and simple. In addition to the DUNS numbers, you will need to know your company’s taxpayer identification number and be able to provide bank account and routing numbers. Third, you will need to obtain an Entity Administrator notarized letter to send in with your SAM registration. This can be very confusing and there is more information about this letter and how to handle this procedure at https://www.fsd.gov/fsd-gov/answer.do?sysparm_number=KB0013183.
3. Understanding The Notarized Letter Debacle
Requiring a notarized letter is a new requirement for those registering for the System for Award Management (SAM). The General Services Administration, or GSA, which is responsible for the SAM database, noticed a small amount of fraudulent activity and came up with a strategy to prevent this problem. Therefore, they now require the letter in order as an extra layer of protection and fraud prevention.
Unfortunately, when this announcement first was made, they required businesses to have this letter on file with the GSA before their System for Award Management (SAM) registration was activated. What ended up happening is that thousands of businesses sent in their letter, but the GSA did not have the resources to process and file these letters, so SAM registrations and renewals were not being processed as the letters had not been filed.
This was particularly troublesome for those with SAM renewals as their SAM registration would expire even though they had attempted to renew in a timely fashion. This left some companies in very dire straits, as they might have been in the middle of a government contracting job and suddenly, they no longer had valid SAM registration and therefore, could not be paid. The good news is that the process has changed slightly, and while the letter is still required, it doesn’t have to be processed prior to registration or renewal. So, you can send in the letter and complete your SAM registration without worrying whether or not this letter’s status will affect your registration.
4. International Companies May Apply For SAM
While the requirements are slightly different, international companies also are welcome to complete System for Award Management (SAM) registration and bid on government contracts. Foreign entities that apply for SAM must have an NCAGE code, which stands for NATO Commercial Entity Code. Additionally, the notarized letter template for foreign companies differs from the letter for domestic companies.
5. Take Advantage Of The SBA
If your business qualifies as a small business, there are many programs and incentives to help you attain government contracts. The Small Business Administration can be a helpful resource, so be sure to check out their website at https://www.sba.gov/. The government is supposed to set aside a specific portion of government contracting just for small businesses, so if you qualify (and qualifications vary widely depending on your industry), there are job opportunities aplenty for your consideration.
6. Hiring A Third-Party Registration Service
If you browse the GSA website searching for information about System for Award Management (SAM), you will see that this website states emphatically that SAM registration is free, and you can do it yourself. This is absolutely true. SAM registration is free, and you can do it yourself. So why hire a third-party registration service?
Spend a few minutes reading about the notarized letter issue on the website listed above. If that seems even the slightest bit confusing, then you will have a taste of just how complex and confusing SAM registration can be. While there are tips and tutorials available, it’s still not easy or quick. In fact, it can take more than 15 hours to complete the registration process. It’s frustrating, it’s confusing and it takes up a ton of time that you could instead spend running your business. If you hire someone to do your taxes, why not hire an expert to handle your SAM registration? We’ve completed hundreds of SAM registrations and renewals each year and understand all of the intricacies of the process. Rather than deal with this frustration, simply click on the New Registration tab on our homepage, fill out our quick form and a representative will contact you as soon as possible.