If you want to bid on government contracts, you’re first step will be to register with the System for Award Management (SAM), a database for all government contractors. This can be a difficult process, and many people wonder about the SAM registration fee, but we can break down all you need to know about SAM registration.
There actually is no SAM registration fee, and it is free to sign up with SAM. At Federal Contractor Registry, we can complete your SAM registration for you, but we do charge a fee for our services.
Many people wonder why they should hire a third-party registration service if there is no official SAM registration fee, and the main reason is that you will save a ton of time and frustration.
SAM registration is very complicated, and can take 10 hours or more. While the government provides you with some tutorials and guides, the application is still filled with government acronyms and government-speak that can be extremely confusing.
As SAM experts, we handle SAM registration for individuals, small business up to huge Fortune 500 firms. We understand all of the complexities of SAM registration, and we liken our services to that of an account. Filing your taxes is free, but the tax code is complicated, so we hire experts to handle the process.
It’s just the same with SAM registration. While there’s no SAM registration fee, it’s a complicated process and hiring someone else makes good sense and frees you up to handle your day-to-day business tasks.
Before you give us a call, there are a few pieces of information that we will need, including:
1. Your DUNS Number
If you don’t have one, you can register for free at Dun & Bradstreet. This number is provided to all businesses at no charge. Simply go to https://www.dnb.com/duns-number/get-a-duns.html to get started.
2. Your Taxpayer ID Number
This taxpayer ID number (TIN) also might be known as an EIN (Employer Identification Number). If you aren’t sure what your number is, simply look on your most recent tax documents for your business.
3. Your Company Addresses
We need your business’s actual physical address, as well as the mailing address if this is different.
4. Your Company Banking Information
When you win government contracts, these agencies will need your basic banking information, including your bank routing number and bank account number, both of which will be required for SAM registration.
Gather all of that together and give us a call, and we can get started on your SAM registration. We also will ask you some questions about the goods or services you provide, the size of your business and a few other pertinent questions.
From there, we will complete the process as soon as possible and then it takes a couple of weeks for your SAM registration to be approved. Once approved, you will be given a CAGE code, which stands for Commercial and Government Entity code. It’s just five characters and it is the unique identifier for your business.
Once you have this CAGE code, not only can you bid on federal government contracts, you also can bid on state and local government contracts. You will need to sign up with your state’s agency for government contractors and possibly with your county government. All government agencies, regardless of the level, will ask for your CAGE code when you sign up.
We highly recommend that you also sign up with your local Procurement Technical Assistance Center or PTAC. This is free, and these centers exist to help government contractors win bids, specifically smaller businesses.
Your PTAC representatives can answer questions you may have, provide some helpful advice and the PTAC might host webinars or seminars from time to time that are very helpful for those getting started in government contracting.
State government agencies also often host events for government contractors where you can learn some helpful contracting information as well as meet with agencies that might need your goods or services. These typically are low-cost events, and often well worth your time.
Another tip we recommend, especially for small businesses, is to consider subcontracting. In the world of government contracting, there are Prime Contractors and Subcontractors. A prime contractor often is a large business with a good amount of government contracting experience.
Becoming a subcontractor can be a great way to get started, as this prime contractor will handle much of the government back and forth, and you can learn a lot about the process without having to do it all yourself. Additionally, government payments can take some time, but when you are a subcontractor, you typically are paid by the prime contractor rather than having to wait on a government payment.
All in all, subcontracting can be a good way to get started and build up your government contracting resume with less risk and less hassle. There are many subcontracting jobs available, and prime contractors often are required to hand off a portion of their contract to a subcontractor that is designated as a small business.
In general, the government truly wants to hire contractors and they truly want to support small businesses. While the process can be confusing and difficult at times, once you get some experience, this can be a highly valuable way to build up your business.
Again, while there is no official SAM registration fee, we are happy to help you with the registration process as well as your SAM renewals. Contact us today and we quickly will get started on your SAM registration and get you ready to bid on those lucrative government contracts.