While government contracting can be lucrative, there’s no getting around the fact that newbie contractors have a lot to learn. The mountain of government contracting acronyms and terminology can be tricky to understand, but at Federal Contractor Registry, we can help you get started with contracting and demystify some of the common terms you might see, including the following.
System for Award Management (SAM):
For the rest of the blog, we will head down the list in alphabetical order, but the System for Award Management (SAM) is important enough that it deserves a spot at the top. SAM is a huge database that includes information about all government contractors. If you want to work with any federal government agency (and many state agencies), you need to complete SAM registration. We can complete SAM registration for you quickly and accurately, but we will talk more about that in a bit. First, let’s look at some other common government terms.
Beta.SAM.gov
On this website, you can search for contracting opportunities. In the past, you went to FedBizOpps or FBO.gov, but that has been replaced by Beta.SAM.gov. If you go to the homepage, scroll down to Contract Opportunities and click on “Search Contract Opportunities.” This will take you to a search engine listing current and past government contracts. There are many ways to search – by date, by federal organization, location, NAICS codes, PSCs, Set Asides and more.
We go into more detail about NAICS codes, PSCs and Set Asides later in this article, and using these tend to be the easiest way to search for contracting jobs. Keep in mind you can use multiple search parameters such as location and NAICS codes, and this can be your best option.
Commercial and Government Entity (CAGE) Codes:
You may be wondering, “how do I get a CAGE code,” and that’s not surprising. Without a CAGE code, you cannot do business with the federal government. This is a unique identifier given to each company or person after they have completed SAM registration. Not only with agents from federal agencies ask for your CAGE code, but state government personnel often also will ask for your CAGE code if you bid on state-level or county-level government contracting jobs. Sometimes, you might hear SAM registrations or SAM renewal called CAGE code registration or CAGE code renewal.
Central Contractor Registration (CCR):
Before there was SAM, there was CCR. This was a database with government contractors, but it no longer exists. We are writing about it, however, because we still see references to CCR or CCR.gov from time to time, and we know all of this terminology can be confusing. However, if you see CCR, just dismiss it as everything is in SAM now.
Data Universal Numbering System (DUNS)
To register with SAM, you have to provide a DUNS number. If your company does not already have a DUNS, you can apply for one at the Dun & Bradstreet website at no charge. It will take a few days for Dun & Bradstreet to send you this number, but it is an easy process to apply.
Government agencies sometimes search for contractors using DUNS numbers, and it’s required for SAM registration, but it will be changing sometime in the future. The government was supposed to switch over to a new system in 2020, but the pandemic sort of put that on the backburner. The new number will be known as a Unique Entity Identifier (UEI) and won’t be issued by Dun & Bradstreet. However, this is not something to worry about as the government has decided to phase this in between now and April 2022.
Entity Administrator
When you first complete your SAM registration, you have to send a notarized letter to the Federal Service Desk (the agency in charge of SAM) to inform them who is your Entity Administrator. This is simply the person in your company that is authorized to make changes to your SAM account.
The Federal Service Desk, or FSD, updated its website in December 2020 and finding the notarized letter information used to be a fairly easy process, but it definitely is a bit trickier now. To learn more about the notarized letter requirement, head to FSD.gov and type “notarized letter” into the Search Knowledge Base section.
Once you click there, the first result states, “How can I become the new administrator for our entity registration?” Click on that link, and you will find tips about the notarized letter and links to templates. Fortunately, once you’ve sent in this letter, you never have to do it again unless the Entity Administrator is changed.
GSA Schedules
The GSA (General Services Administration) is the agency that procures many goods and services for other federal agencies. For instance, they provide a fleet of automobiles and trucks for various government agencies. They also manage and maintain many government-owned buildings. GSA Schedules are special long-term contracts that allow government contractors to sell goods and services again and again to government agencies.
Here’s a quick example. Let’s say you manufacture computer monitors. All government agencies will need monitors from time to time. Instead of creating a new contract every time they need computer monitors and looking at proposals from many contractors, they can simply use a vendor with a GSA Schedule Contract. This simplifies the process for both the agency and the vendor.
Attaining a GSA Schedule Contract is not an easy or a quick process, but if you are approved, it can be much easier and faster to sell to the government. Not all businesses will qualify for GSA Schedules and you do have to meet certain criteria in order to participate in this program. To learn more about this program, go to https://www.gsa.gov/buying-selling/purchasing-programs/gsa-schedules.
Historically Underutilized Zones (HUBZones):
Small businesses located in HUBZones sometimes have an easier time acquiring government contracts. HUBZones were created to promote small businesses in areas prone to economic hardship. These zones are located in rural areas, urban areas and even on Tribal reservations. In some cases, a HUBZone also might be in an area hit by a major disaster, such as a hurricane or tornado. These are temporary HUBZones created to improve the economy in an area affected by a disaster.
Government contracting jobs can be easier to win if your business is small and located in a HUBZone and at least 3% of all federal contracting dollars are set aside for HUBZone-certified businesses. To learn more about the HUBZone program, go to https://www.sba.gov/federal-contracting/contracting-assistance-programs/hubzone-program.
Marketing Partner ID Number (MPIN):
This is the code or password that you create for your business’ SAM listing. While someone might ask for your CAGE code, no one should ever ask for your MPIN number. Do not let anyone have access to your MPIN other than your Entity Administrator.
North American Industry Classification System (NAICS):
This is a handbook that contains codes for virtually every type of good and service you could imagine. Whether your company builds fencing, repairs heating systems or provides financial services, there are NAICS codes to fit these goods and services. There are codes for farming, restaurants, toy manufacturing, furniture retailers, clothing manufacturers, advertising, information technology and thousands of other industries.
When you register with SAM, you will need to provide NAICS codes. You can find the most recent NAICS manual at https://www.census.gov/eos/www/naics/ or we can help you determine these codes if you hire us to complete your SAM registration.
Online Representations & Certification Application (ORCA)
This was the online database of government contractors before SAM was created. ORCA no longer exists, but you do still sometimes see references to ORCA and ORCA government contracts. All you need to know is that ORCA has been replaced by SAM and is now obsolete.
Prime Contractor
These are large businesses that often need or are required to use the services of smaller businesses, or subcontractors. For instance, a company such as Boeing is a prime contractor, but they might use subcontractors to acquire goods and services they need to complete a government contract. In many cases, prime contractors are required to use small business subcontractors in order to win a contract.
Procurement/Purchasing Agent:
This is the person at each government agency who makes decisions about government contracting. While private companies also sometimes have procurement agents or purchasing agents, there are many more rules surrounding government contracting. For instance, in a government setting, a supervisor or cannot simply select a vendor as might happen in a private company. There are set processes and many rules regarding how the government acquires goods and services, and the procurement agent (and their staff) is in charge of the process.
Product Service Codes (PSCs):
These codes are similar to NAICS codes, as they describe the goods and services that your business offers. These will be listed on your SAM registration as well as on your Capability Statement. Procurement agents and even prime contractors can search in SAM.beta.gov for companies using PSCs. We can help you determine these codes during the SAM registration process, or you can find a guide with PSCs at https://www.fpds.gov/downloads/top_requests/PSC_Manual_FY2016_Oct1_2015.pdf.
Small Business Administration (SBA):
This one is slightly out of alphabetical order because it makes more sense to place it ahead of the following term – Set Asides. The SBA has a ton of resources for small business owners, and many businesses that might not seem small actually qualify for SBA programs. SBA government contracting can be a great option for small businesses.
To see if your business qualifies, go to https://www.sba.gov/size-standards/ and you can see if your business is eligible for government contracting programs sponsored by the SBA. The SBA also can help small business owners with loans, grants and even finding investment capital.
Set Asides
The federal government sets aside a portion of its yearly government contracting budget just for small businesses. You might qualify as a general small business, but you also might qualify for special “set aside” categories. These include woman-owned small businesses, veteran-owned small businesses and businesses located in HUBZones.
Any government contract worth $150,000 or less automatically is set aside only for owners of small businesses. There are plenty of more lucrative contracts you can bid on, but with anything over this amount, you likely will be competing with larger businesses, although sometimes larger contracts are set aside for qualifying small businesses.
Typically, procurement agents are supposed to look to small businesses first to fulfill government contracts, even if the value is more than $150,000. This is why it is so important to sign up with SBA and see what set asides fit your business.
8(a) Contracts
This is another type of SBA set aside designed for what the government has determined are socially and/or economically disadvantaged businesses. If you belong to just about any group that has faced discrimination due to race, creed, religion, gender (or gender identity), disability, sexual orientation, etc., and you own 50% or more of a small business, you may qualify for this program.
Get Started With Government Contracting Now – We Can Help!
At Federal Contractor Registry, we complete SAM registration and SAM renewals for all types of companies, from small businesses to Fortune 500 companies and everything in between. While the government does not charge a fee to register with SAM, heading to SAM.gov and filling out the lengthy application is a frustrating and complicated process and many people simply hire a third-party registration service to complete their SAM registrations.
While we do charge a fee, we can ensure that your SAM registration is completely quickly and correctly, saving you time and the aggravation of trying to figure out each section of the application. In many ways, we are similar to accountants. While you could fill out your tax forms, these are often complicated and frustrating, so hiring an expert makes sense.
If you want to get started with government contracting, we can complete your SAM registration and as soon as the government approves your application, you will be eligible to bid on contracts. Give us a call today or click on the green New Registration tab on our homepage, and one of our registration specialists will be in touch to get started on your SAM registration as soon as possible.