The federal government includes hundreds of departments, agencies and offices and most of these entities need goods and services from the private sector. In order to work with the federal government, you will need to complete your System for Award Management registration, a complicated process, which is why we’ve created this SAM registration guide.
What is the System for Award Management?
The System for Award Management, usually just called SAM, is the huge database that contains all government contractors as well as those wanting to apply for federal grants. To do business with any government agency, including FEMA, the Department of Defense, etc. you must have completed SAM registration.
How Much Does SAM Registration Cost?
The government does not charge a fee for SAM registration. At Federal Contractor Registry, we are a third-party SAM registration service. You might wonder why someone would pay a third party to register them into the SAM database. While SAM registration is free, the truth is it’s extremely complicated and frustrating. Many of our clients are business owners that started to complete their SAM application, got frustrated or fed up and simply called us instead.
It can take 10-15 hours to complete the SAM application. The application is filled with puzzling government-speak, and if you’ve never dealt with government agencies, you can become quickly confused by the questions and acronyms.
This is why it can make sense to hire a SAM expert just as you would hire someone to complete your taxes. The government does charge you a fee to file your taxes, but they also don’t make the tax code easy to understand, which is why many people hire an accountant.
Additionally, it’s easy to make mistakes on a SAM application, and this can delay the approval process. Using our service or another third-party registration service ensures that your application is completed correctly on the first attempt, and you will be eligible to bid on government contracts sooner.
What We Need From You
Before we can complete your SAM registration, we will need some information about you or your company, including the following:
• The legal name of your business
• The physical address of the business
• A contact phone number
• The names of your company officers
• Your DUNS number (Not sure? Go to www.DNB.com)
• Your checking account number
• Your bank routing number
• A description of your goods or services
• The number of full-time & part-time employees
• Your company’s Tax Identification Number or Employer Identification Number
Once we have this information, we can get started on your SAM registration. When it comes to the bank check account number and routing number, these are required for SAM registration, because this is the account where a government agency will deposit any money owed to you.
How Do I Find Government Contracts?
No SAM registration guide would be complete without some information about what happens after your application is approved. Once you are eligible to bid on contracts, you can find government contracting jobs at Beta.SAM.gov and, if you qualify as a small business, at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm.
The latter website is run by the Small Business Administration (SBA). If you qualify as a small business, there are federal contractor jobs set aside exclusively for small businesses. Once you are approved with SAM, you should register your small business at SBA.gov and determine if you qualify for any of the special “set asides” defined by the SBA.
Set asides are categories of small businesses, such as a woman-owned small business, a service-disable veteran-owned small business or perhaps a business located in a HUBZone. A HUBZone is a historically underutilized area, such as an economically disadvantaged neighborhood in a city. The idea is that the government can improve the economy in these zones by supporting small business owners.
Don’t Forget About State Government Contracting Jobs
Once you are approved with SAM, you will receive what is known as a CAGE code, this is your unique identifier in the SAM database. While you need this CAGE code to do business with the federal government, you also need this to do business with state government agencies, as well.
Contracting with your state government or county governments can be very lucrative, and sometimes it’s easier to get started with state government contracting than with the contracting at the federal level. To find your government procurement website, simply do an internet search with your state name and the word “procurement.” Look for the result with the .gov extension at the end and click on that link to sign up and learn more about opportunities in your state.
Do Subcontractors Need To Register With SAM?
Yes, subcontractors must have an active SAM registration to work with a prime contractor or any government agency. Subcontracting can be a great way to get started with government contracting. Prime contractors (companies with large government contractors) often are required to with subcontractors (small businesses) in order to win those huge government contracts.
Working with a prime contractor can be a great way to get your feet wet in the contracting game, as the prime contractor will handle much of the back and forth with government procurement agents, but you will still learn a bunch about government contracting and how it all works.
5 Steps Every New Government Contractor Should Take
1. Create A Capability Statement – This is basically a resume for government contractors, although it does look different than the resumes people hand into hiring managers. This document should have several sections including a section detailing general information about your company as well as your Core Competencies, Differentiators and Past Performance.
2. Join Your Local PTAC – The Association of Procurement Technical Assistance Centers can be a great resource for those new to government contracting. Go to APTAC-US.org to find your local Procurement Technical Assistance Center or PTAC.
3. Find Your Niche – Do a search for government contracting jobs at Beta.SAM.gov using your Product Service Codes or North American Industry Classification System (NAICS) codes to see what types of contracting jobs are available that match your goods and services. If you don’t know your codes, we can help with this during the SAM registration process. This can help you identify which government agencies might be the best fit for you in terms of contracting.
4. Learn About The Bidding Process – There are many different types of bids, and it’s smart to learn all you can about each one before you start bidding on contracts. Sometimes your local PTAC or SBA will offer webinars and sometimes state procurement agencies offer webinars to help. Also, check out this workbook from SBA.gov at https://www.sba.gov/sites/default/files/2018-02/proposals_workbook.pdf.
5. Study The Types Of Government Contracts – There are several different types of government contracts and the more you know about the different types, the more successful you will be in finding contracts that fit your business. You also can check out our article “A Look at 5 Types of Government Contracts” to learn some general information about this topic.
This general SAM registration guide can help you learn the basics of government contracting. It does take time to learn and understand government procurement, but, in the end, it can provide you with an excellent source of revenue. The government will always need goods and services, and just about any business can find lucrative contracts.
If, after reading this SAM registration guide, you are ready to get started with government contracting, give us a call at (800) 985-7658 or click on the green New Registration tab on our homepage, and we will get to work on your SAM registration so you can start bidding on government contracts.