The world of government contracting can be confusing, and many people are overwhelmed by the process. Many people are confused by some of the terminology related to contracting, such as CAGE codes and SAM registration, so we wanted to provide you with some helpful information for contracting beginners.
1. SAM Registration Is The First Step
Whether you want to work as a FEMA contractor, apply for DOD contracts or work for another federal agency, you must have an active SAM registration. SAM stands for System for Award Management and it’s simply a database listing all government contractors. There are two ways to complete SAM registration – you can do it yourself or hire a third-party registration service.
The government does not charge a fee for SAM registration, but the process is complicated and time-consuming. Many people spend 10 or more hours trying to figure out the application, and sometimes people simply give up and forget about government contracting jobs because it all seems too complicated.
If you’ve been struggling with SAM registration or you simply don’t want to deal with the hassle, we are one of those third-party registration sites and you can hire us to complete the SAM registration for you. This is similar to hiring an accountant to complete your taxes. Tax forms can be complicated, and it often just makes more sense to hire a tax expert. It’s just the same with SAM registration.
2. After SAM Approval, You’ll Receive A CAGE Code
Whether you use our SAM registration service or go it alone, once your SAM registration is approved, you will receive a Corporate and Government Entities Code or CAGE Code. This is simply your unique identifier in SAM. Just like your social security number identifies you to the Internal Revenue Service, your CAGE Code is your identifier as an approved government contractor.
It can take a few weeks to gain approval from the Federal Service Desk, the agency which manages SAM, but occasionally, they will approve you in just a few days. Basically, if the Federal Service Desk is busy, it will take longer, but usually, it’s just a few weeks for SAM registration approval and often less.
3. All Government Agencies Ask For Your CAGE Code
While all federal agencies will require your CAGE Code as your bid on jobs, state, county and local government agencies will ask for this information if you bid on their contracts.
While federal government contracting can be very lucrative, state and local governments also offer contracts and these can be just as worthwhile. Every state has a variety of agencies and they all need help from private businesses.
We highly recommend that you sign up with your state procurement agency. Technically, you can bid on jobs in other states, as well, but it’s often easier to get started with your state first. To find your state’s procurement agency, just do a quick internet search with your state name and the word “procurement,” and select the option with the .gov extension.
Not only can you find excellent state contracting jobs, but these also can be easier to attain than federal jobs, where there might be more competition. Additionally, state procurement agencies and procurement agents often host workshops and events for contractors where you can learn more about contracting and make some contacts within state agencies.
4. You Need To Keep Your SAM Registration Current
SAM registration is important, but you cannot forget about SAM renewal. Your SAM registration expires one year to the day after you were approved, but you should never wait until the last minute to gain approval. For one thing, while SAM approval is usually quick, sometimes there’s a backlog and it could take a few weeks to gain approval and your registration could expire.
If your registration expires, no government agency is authorized to work with you, even if you are in the middle of a contracting job. Many agencies won’t even award contracts to companies nearing their expiration date, so it’s best to handle SAM renewal a few months early. We can provide you with SAM renewal services if you don’t wish to do this alone. It’s not as lengthy a process as a new SAM registration, but it can be complicated, so contact us if you want to use our service instead.
5. Sign Up With The Small Business Administration
If your company qualifies as a small business, and many do, it is crucial that you sign up with the Small Business Administration (SBA). In addition to qualifying as a general small business, you may qualify for a special type of small business known as a set-aside.
The government sets aside a portion of its federal contracting dollars specifically for small businesses. In some cases, these are just for general small businesses, and sometimes for these special set-aside businesses. There are many categories of set-asides, including woman-owned small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone set aside and 8(a) contracts.
A HUBZone is a “historically underutilized business” zone, and these are located all over the country. Some are in urban areas, while others are rural or on Native American reservations. In some cases, areas hit by a natural disaster or some other type of disaster might be temporary HUBZones. Basically, the government is trying to boost the economy in these special areas. To see if your business is located in a HUBZone, go to https://maps.certify.sba.gov/hubzone/map.
8(a) contracts are another option for small businesses, and this is a category specifically for disadvantaged small businesses. In general, if you belong to a group that historically has been socially or economically disadvantaged due to race, creed, gender, sex, sexual orientation, religion, etc., you may qualify for this program. To learn more, go to https://www.sba.gov/federal-contracting/contracting-assistance-programs/8a-business-development-program#section-header-2.
These are just a few facts about CAGE Codes, SAM registration and government contracting to get you started. You can take a look through our blog library to find further helpful information about government contracting. If you need help with SAM registration, just head to our homepage and click on the green New Registration tab.