Becoming a government contractor can be a confusing process, but at Federal Contractor Registry we’d like to make the process a bit easier. Take a look at our handy SAM registration guide which contains plenty of helpful tips to get you started.
First off, let’s talk a bit about SAM, which stands for the System for Award Management. This is a central database for all government contractors. There used to be several databases, including the Online Representations and Certification Application (ORCA) and the Central Contractor Registration (CCR).
You still often will see references to ORCA and CCR, but these systems are no longer in place, and everything is stored in SAM. So, if someone tells you to register with ORCA or CCR, understand that these are old databases. At any rate, in order to get started with government contracting, here’s what you need to do.
1. Gather Up Your Basic Information
Before you get started with SAM registration, you will need to know some important information. For instance, you will need your company tax ID number, which should be listed on tax forms.
You also will need the routing number and account number for your business bank account, as payments to you will be made through SAM so this info is stored in your SAM account. You also will need to know your North American Industry Classification System Codes. These codes identify the specific goods or services (or both) that your company provides.
If you opt for our SAM registration services, we can help you determine which codes apply for your business. There are hundreds of possible codes, and it can be tricky to figure out what applies to you, but again, we can help with this process.
2. Get Your DUNS Number
DUNS stands for Data Universal Numbering System, and every business can have a DUNS number assigned to them at no charge. If you don’t already have a DUNS or are not sure if you have a DUNS, simply go to the Dun & Bradstreet website and check or apply for one at https://www.dnb.com/duns-number/get-a-duns.html.
3. Send In Your Notarized Letter
This is one of the newer requirements within the SAM registration process. Because of suspected fraud in the SAM database a year or so ago, the General Services Administration, the entity that maintains SAM, began requiring companies to send in a notarized letter designating an Entity Administrator.
This administrator is simply the person in your company that is authorized to make changes to your SAM account. There are templates for this letter available at https://fsd.gov/fsd-gov/home.do. To find it, go to the top of the page under the Top Help Topics area. Hover over that area and you will see a section for SAM and a section that states “Tips for Notarized Letter.” This will lead you to templates for your letter. Just copy the template exactly and send it in as soon as possible.
We can still process your SAM registration for you while you wait for your letter to be approved. In the past, the letter had to be approved prior to your attaining SAM approval, but that is no longer the case. Still, the letter does need to be received as quickly as possible, in order to ensure your SAM registration stays active once it is approved.
4. Sign Up With SBA
If your business qualifies as a small business, you will want to register with the Small Business Administration. This federal agency was created to help small businesses thrive and grow, and you will find many resources here.
If your company only has a dozen or so employees, you are sure to qualify as a small business, but it might surprise you to learn that some types of businesses can have many more employees and still qualify. To determine if your business qualifies as a small business, go to https://www.sba.gov/size-standards/.
You will need to know your NAICS codes for this process, and as stated before, we can help determine your codes if you use our SAM registration services. Or, you can check out the full list of codes at Census.gov. Once you enter your NAICS codes and your number or employees, you can determine if you qualify as a small business.
5. Determine Your Set-Aside Codes
The SBA has created several categories for special types of small businesses, and given each of them a special code, known as a set-aside code. It is called this because a portion of the federal governments contracting budget is “set aside” specifically for small businesses.
For instance, if your company is majority (51% or more) woman-owned, there is a set-aside code for woman-owned small businesses. If your company is majority veteran-owned, this is another set-aside. There also are set asides for companies located in historically under-represented areas, as well as set-asides for very small emerging businesses. If you qualify for a set-aside, you definitely will want to take advantage of it as it can make it easier for you win contracts.
6. Sign Up With Your PTAC
While our SAM registration guide can help with some of the basics, there’s no getting around the fact that government contracting can be confusing and difficult to understand at first, but your Procurement Technical Assistance Center (PTAC) can help you wade through some of the mire.
There are local PTACs in every state, and signing up for your PTAC is free once you’ve completed SAM registration. After your SAM registration is completed, you will be assigned a Commercial and Government Entity (CAGE) code. The CAGE code is a unique identifier assigned to your company.
At any rate, when you sign up with your PTAC, you will want to give them your CAGE code. To sign up, go to http://www.aptac-us.org/ and near the top left of the page, you will see a map of the United States and a header that reads Find a PTAC. Just select your state, and you will find a list of possible PTACs in your area.
This organization was created to support businesses and help them find success with government contracting. They have resources on the website and also host training events throughout the year. Your PTAC representative can be a valuable resource, so be sure to sign up.
7. Create A Capability Statement
This is basically a resume for your business, but it’s a unique type of resume that government agencies look for when selecting potential contractors. It contains several sections including general data about your company, as well as a listing of your past clients, your core competencies and your differentiators.
You can do a quick internet search for “capability statements” and you will find tons of great examples and some helpful hints for creating this crucial document and what to name each header, etc.
8. Create A Government Webpage
If you want to do businesses with anyone these days, a great website is crucial. We highly recommend that you add a page to your website specifically for government contracting. This page will be geared toward government agencies, which have different agendas than many of your clients.
After all, the government exists, in part, to provide services for its citizens and not to generate a profit. This might require a different sales approach than you might use for your regular clients. In addition, you will want to provide your capability statement on this page, and, in general, describe how your business can benefit a government agency.
9. Sign Up With Your State Government
In the world of government contracting, it’s definitely not just about the federal government. State and county governments also need contractors, and once you sign up with SAM and get your CAGE code, you can sign up with your state government as well.
To find your state’s government website for contractors simply do an internet search with your state name and the word “procurement.” The top result should be the government agency that handles contractors. Signing up should be free, and once you’ve been approved, you will be eligible to bid on state contracts as well as federal contractors, which can be quite lucrative.
10. Attend Workshops & Seminars
Earlier in this article, we talked about how your PTAC will offer training sessions and workshops from time to time, but state governments also often host events for potential government contractors. These may or may not be free, but usually are fairly inexpensive and you can gain valuable information about contracting and meet some representatives from various government agencies.
11. Research Government Agencies
There are literally hundreds of state, local and federal government agencies. Many people just think about agencies such as FEMA or the Department of Defense, but there are so many out there it can make your head spin.
For instance, there is an Arctic Research Commission that literally researches the Arctic Circle. There’s also a Railroad Retirement Board created to support U.S. railroad workers. There’s a National Cemetery Administration, the Southwestern Power Administration and the list of obscure agencies goes on and on.
From time to time, just about every federal or state agency might need contractors, so it can be smart to check and see what’s currently out there. Just go to https://www.fbo.gov/ and you can look up thousands of contracting opportunities by agency, set-aside code, state and other criteria.
12. Renew Your Registration Early
Once you’ve completed your SAM registration, you might think you are home free, but you actually must renew this registration every year. It is absolutely crucial that you renew several months ahead of your expiration date.
It takes a few weeks for renewals to get approved, especially if there is a backlog, and if you wait to the last minute, you might miss out on some great contracts. When an agency sees that your SAM registration is a month or so from expiration, they might bypass you because if it expires, they no longer can do business with you.
This means you could be in the middle of a contracting job and have to stop all work because your SAM registration is not current. You won’t get paid, and the agency won’t receive its goods or services. This is why you need to renew early every year.
While our SAM registration guide should help you understand some of the basics of contracting, SAM registration can be a difficult process. It can take 10 or more hours to complete, and can be quite frustrating. This is why many people opt to have us complete SAM registration for them. We help hundreds of companies every year sign up and renew SAM registrations.
If you’ve been struggling with SAM registration, read over our SAM registration guide and then consider giving us a call. We can complete your SAM registration quickly and accurately and get you ready to start bidding on those government contracts. To get started, click on the green New Registration tab on our homepage.