If you are new to the world of government contracting, you might be wondering, “what is SAM registration?” This is the first step that you before you become a government contractor. No person or company can be classified as a government contractor without first completing SAM registration. Here are a few facts that you need to know.
- SAM Is The System For Award Management
SAM, officially the System for Award Management, is simply a database that includes all government contractors. There are hundreds of government agencies and all of them look to the private sector to provide them with goods and services. Procurement agents at each agency will use SAM to learn more about government contractors that bid on their agency contracts.
In order to bid on or win any government contract jobs, you must have an active SAM registration, so this is the first step into becoming a government contractor. Once you have completed SAM registration, you will receive a Commercial and Government Entities Code, or CAGE Code, which is your unique identifier in SAM. Not only will federal procurement agents expect you to have a CAGE code, if you contract with a state government agency, they also will expect you to have a CAGE code and active SAM registration.
- You Don’t Have To Complete SAM Registration Yourself
Aside from the question, “what is SAM registration?” people often ask, “how to complete SAM registration?” The process of completing SAM registration is basically filling out a huge online application form. The form has many pages, and, unfortunately, it can take 10 or more hours to complete.
The good news is that you can hire a third-party registration service to complete your SAM registration for you. The government won’t charge you a fee for SAM registration, but the application is extremely complicated and can be quite frustrating to fill out. Some people simply find it easier to pay us a fee and let us handle SAM registration. It’s sort of like paying an accountant to do your taxes. We handle hundreds of SAM registrations each year and can complete your application quickly and accurately so that you are eligible to bid on everything from FEMA disaster jobs to DOD contracts and much more.
- You Need To Gather Some Information First
Before you begin the SAM registration process, it is important to gather together some information. You will need your company’s Employer Identification Number, or EIN, which can be found on your tax forms. You also need your DUNS number, which stands for Data Universal Numbering System. If you don’t have a DUNS, you can register for one at no charge at www.DNB.com.
You also will need your bank account number and bank routing number. This is needed because government agencies will be depositing money into your bank account, so this information is kept in your SAM registration. You also need to know your NAICS codes and PSC codes.
NAICS stands for North American Industry Classification System and your NAICS codes describe the types of goods and services your company provides. PSCs are Product Service Codes, which are essentially the same thing. If you don’t know these codes, don’t worry, just provide us with some basic information about your goods and services and we will figure this out for you as we complete your SAM registration.
- SAM Is Just A Starting Point
While SAM registration must be completed and approved before you can bid on government contracts, this is just the tip of the iceberg as far as winning federal contractor jobs goes. Learning about the types of government contracts and the actual bidding process can be complicated, so be prepared to spend some time researching this process.
There are quite a few companies that provide training for new contractors, and if you register with your state procurement system, they often provide helpful workshops and even events where you can learn about contracting and even meet with procurement agents from various state agencies. You also can find some information about federal contracting training at GSA.gov, which is the website for the General Services Administration.
The Small Business Administration (SBA) provides some helpful information for small companies and we highly recommend this resource for any small business. Be sure to sign up with the SBA and check to see if you qualify for any set-asides. These are special designations, such as a woman-owned small business or veteran-owned small business, and the government is required to set aside a portion of its yearly contracting budget for these types of businesses.
Even if you are not woman-owned or veteran-owned, you might qualify for 8a certification. This program was created to help businesses owned by just about any person that belongs to a historically marginalized group and that includes people who often have faced discrimination due to their race, creed, religion, sexual orientation, gender, disability or other factors. If you qualify for a set-aside or 8a certification, this can make it easier to win government contracts at both the federal and state level.
Small businesses also should consider subcontracting. Many large Prime Contractors are required to use small businesses as subcontractors in order to win a big government contract. Subcontracting can be an easy way to get started with government contracts, as the Prime Contractor works directly with the government and handles the heavy lifting, so to speak. To learn more about opportunities for small businesses, go to SBA.gov.
- Don’t Forget To Renew!
Your SAM registration expires every year, and it’s crucial that you renew this registration several months ahead of your expiration date. We can provide you with a quick SAM renewal so that your account does not expire. If your account expires, government agencies are no longer allowed to do business with you, and they often won’t award contracts to businesses nearing their expiration date, which is why you want to renew a couple of months early.
We hope this short blog has answered the question – what is SAM registration? but if you need more help, don’t hesitate to contact us at any time. If you want to get started with your SAM registration and would like to hire us to complete the application, just click on the green New Registration tab on our homepage, fill out our quick contact form and a registration specialist will be in touch shortly.