While government contracting can be a great fit for many businesses, getting started can be challenging. If you are struggling to understand the ins and outs of contracting, the answers to our list of 25 frequently asked questions about contracting and SAM government registration can help.
- What Is SAM Government Registration & Why Do I Need It?
Every business owner that wants to bid on federal contracting jobs must register in the System for Award Management (SAM), which is the U.S. government’s central database for contracting and procurement. If you do not have an active SAM listing, you cannot bid on any federal contracts.
- How Long Does SAM Registration Take?
While the government charges no fee for SAM registration, this is a lengthy process that can take 10 or more hours to complete. Business owners need to research everything from their North American Industry Classification System (NAICS) codes to Federal Acquisition Regulations (FAR) in order to complete their registration.
Because SAM government registration can be complex and takes a huge amount of time, many companies simply hire a third-party registration service to complete their SAM registration. This can save time as well as ensure that your registration is completed accurately. Mistakes can delay your approval and prevent you from bidding on federal contracts. We offer fast, 100% accurate SAM registration and SAM renewal services for all types of businesses.
When it comes to SAM renewal, it is important to understand that you must renew your SAM account every 12 months. We recommend renewing it about six weeks in advance of your expiration date to ensure that your account remains active. In some cases, it can take several weeks for the Federal Service Desk to approve a renewal, so it’s smart to think about renewals well ahead of the expiration date.
- Who is Eligible for Government Contracting?
The federal government purchases everything from office supplies and software to construction services, engineering, healthcare, transportation, and consulting. As a result, businesses of nearly every size and industry may be eligible to compete for government contracts.
In general, eligible businesses include:
- Sole proprietorships
- Limited Liability Companies (LLCs)
- Corporations (C Corps and S Corps)
- Partnerships
- Nonprofit organizations (for certain contracts and grants)
- Manufacturers
- Distributors and wholesalers
- Professional service providers
- Construction and skilled trades companies
- Technology and cybersecurity firms
- Healthcare providers
- Educational and training organizations
- What Is a UEI Number?
The Unique Entity Identifier, or UEI number, is a unique 12-character alphanumeric code that identifies your business. In order to complete SAM registration, you must first apply for your UEI, and we can help you with this process if you use our service for SAM registration.
In the past, the government required business owners to provide their DUNS number, but this was phased out several years ago and replaced by the UEI, which is generated by the U.S. government.
- What Is a CAGE Code?
A Corporate and Government Entity (CAGE) Code is also a unique identifier for federal contractors. Unlike the UEI, which you must attain before SAM registration, the government provides you with a CAGE Code after your registration is approved. Both of these codes can be used by federal agency procurement specialists to look up your business in SAM.gov.
- What Are NAICS Codes?
The North American Industry Classification System (NAICS) contains codes for just about every type of business, and these codes describe the goods and services a company can provide. You will be asked to provide relevant NAICS codes when you register for SAM, and you must pick the best match for what you can provide to the federal government.
You can find these codes at Census.gov, but if you decide to use our services for SAM government registration, we can determine which codes are the best fit for your unique business.
- What is an MPIN?
The Marketing Partner Identification Number (MPIN) is a nine-character code created during SAM registration. Unlike UEIs, CAGE Codes, and NAICS codes, you should never share this code with anyone. It is essentially a secret code that you use to gain access to SAM and to authorize certain federal systems and transactions. If a procurement agent or prime contractor asks for your MPIN, do not provide this information.
- What is a Capability Statement?
This is a resume for government contractors and includes a wide variety of information. You will want to include your contact information and physical address, as well as your UEI, CAGE Code, NAICS codes, and any relevant certifications.
You also want to include sections such as Core Competencies (details about your goods and services), Past Performance (a highlight of projects that demonstrate your ability to perform work similar to that outlined in the federal contract), and Differentiators (what sets your company apart from another qualified contractor).
- What Are Small Business Set Asides?
The federal government sets aside a portion of its contracts and awards them to small businesses. In order to bid on these contracts, you must qualify as a small business and sign up with the Small Business Administration (SBA).
The SBA manages several different programs for small business owners. While you can qualify as a general small business, there are also contracts set aside specifically for companies that qualify as a Veteran-Owned Small Business (VOSB), Service-Disabled Veteran-Owned Small Business (SDVOSB ), or Woman-Owned Small Business (WOSB).
Additionally, you may qualify for the SBA’s 8(a) Business Development Program, which includes access to special federal contracting jobs as well as mentoring and other help. If your business is located in a Historically Underutilized Zone, or HUBZone, you also might be eligible for HUBZone certification.
At Federal Contractor Registry, our SAM registration services include determining if any set-asides fit your business and helping you sign up with the SBA to take advantage of these government contracting programs.
- Where Can I Find Government Contracting Jobs?
The primary place to find federal contract opportunities is SAM.gov, the federal government’s centralized source for locating contracting opportunities. You can search active opportunities without an account, although creating an account allows you to save searches and follow changes to opportunities.
When searching, avoid relying solely on broad keywords. You can narrow your search using criteria such as NAICS codes, PSC codes, federal organizations, and place of performance. SAM.gov also provides advanced search tools to help contractors locate opportunities that closely match their capabilities.
We also recommend that small business owners consider subcontracting. This can be an excellent way to get started in the federal marketplace as you will work under a prime contractor, and they will handle the bidding process and communication with the federal agency. You can find many subcontracting opportunities at SBA.gov, which runs a subcontracting network, known as SUBNet.
- How Do I Submit a Government Bid?
The process for submitting a government bid or proposal varies depending on the specific opportunity. Start by carefully reviewing the solicitation, including the scope of work, eligibility requirements, evaluation criteria, required documents, submission method, and deadline. The solicitation should provide specific instructions explaining how and where to submit your response.
Follow these instructions exactly. Depending on the opportunity, you may need to submit pricing, a technical proposal, past performance information, certifications, or other documentation. Missing information or failing to follow submission requirements can hurt your chances of winning the contract.
There are companies that you can pay to create a government bid, and it can be smart to let a pro handle this the first few times you bid on a federal contract. Many federal agencies, including the SBA, will host contracting workshops and events that can help you learn the ropes of the bidding process, and we recommend taking advantage of any help you can get, as it can be challenging to learn how to create a quality bid.
- What Is an RFP?
An RFP, or Request for Proposal, is a type of solicitation used to request proposals from potential contractors. Businesses respond by explaining how they will meet the government’s requirements and providing the information requested in the solicitation.
RFPs are often used for negotiated procurements where the government will evaluate factors such as technical approach, past performance, experience, and price. In fact, under the Federal Acquisition Regulation (FAR), a proposal is an offer submitted in response to an RFP.
- What Is an RFQ?
An RFQ, or Request for Quotation, is a request for businesses to provide pricing and other requested information for specific products or services. RFQs are commonly associated with simplified acquisition procedures and are often less complex than RFPs.
One important technical distinction is that a quotation is generally not an offer that the government can simply accept to form a binding contract. Instead, the government’s resulting order may constitute the offer, which the supplier accepts through performance or other specified means.
- What Is an RFI?
An RFI, or Request for Information, is used when a federal agency wants to gather information from businesses before moving forward with a potential procurement. The agency might use an RFI to learn more about available products, services, technologies, industry capabilities, or potential sources.
An RFI is generally part of the government’s market research process and is not a request for a bid or proposal. However, responding can help an agency better understand your company’s capabilities and may provide valuable insight into a potential future contracting opportunity.
- What is a Federal Acquisition Regulation?
The Federal Acquisition Regulation (FAR) is the primary rulebook for federal government contracting. It explains how federal agencies purchase products and services and outlines many of the rules that contractors must follow when competing for and performing government contracts.
The FAR is divided into 53 sections that address different aspects of federal contracting, and some federal agencies also have their own supplemental acquisition regulations. Fortunately, you don’t need to memorize all 53 parts of the FAR to become a government contractor. However, you should carefully review each solicitation and understand the FAR provisions and contract clauses that apply to your specific opportunity.
If you are unsure about a requirement, consider seeking guidance from an experienced government contracting professional. All contractors must comply with the FAR and any other relevant government requirements. The government often conducts audits to ensure compliance, so be sure to document every aspect of a government contract carefully.
Contact Us Today for SAM Registration!
If you have read through this list and are ready to try your hand at federal contracting, we can help. We can save you the time and hassle of SAM government registration as well as procuring your UEI and helping you sign up with SBA, if applicable. To get started, click on the green New Registration tab on our homepage and fill out our quick contact form.