The System for Award Management (SAM) is the federal government’s centralized system for managing contractor eligibility, awards, and compliance. For businesses considering government contracting, understanding SAM is essential, and we’ve compiled some answers to our most frequently asked questions about SAM and contracting in general.
What Is The System For Award Management?
The U.S. Government has been buying goods and services from the private sector for more than 200 years, almost since our nation’s founding in 1776. Through the years, the contracting process has evolved, and, in 2012, the System for Award Management was created.
This database, known as SAM or SAM.gov, contains information about all federal contractors as well as federal grant applications and recipients. In the past, there were several different databases for government contractors, but the federal government streamlined the entire contracting system into one centralized database. You must complete SAM registration in order to bid on government contractor jobs.
Why Is the System for Award Management Important?
If your entity is not listed in SAM, you cannot do business with any federal agency or apply for federal grants. Additionally, SAM is the first place federal procurement agents go to learn more about your company and its status. Prime contractors also use SAM as a tool to find subcontractors.
What Happens If A SAM Registration Becomes Inactive
Your SAM registration expires every 12 months, so you must renew your listing every year. If your listing expires, federal agencies will no longer be able to work with your company, and you will be ineligible to bid on any federal contractor jobs.
We recommend that you complete SAM renewal well ahead of your expiration date. If your date is fast approaching, many procurement agents will not consider your company for contracts because if the account becomes inactive, they cannot work with you, and this can cause serious delays and issues for the government agency.
Do Subcontractors Need To Be Registered in SAM?
Subcontractors are hired by prime contractors to perform a specific portion of work under a large government contract. The prime contractor does the actual bidding on the contract and handles all of the back and forth with the federal agency.
For some contracts, subcontractors are not required to complete SAM registration. However, some contracts do specify that all contractors (prime and subcontractors) have active SAM registrations. Additionally, prime contractors often are required to use designated small businesses to fulfill contract requirements.
Therefore, opting to complete SAM registration can open up more subcontracting opportunities, so we highly recommend taking this step even if you never plan on bidding on contracts as a prime contractor.
Additionally, if you own a small business, it’s wise to sign up with the Small Business Administration, as they offer special programs to make it easier for small businesses to win government contracts. They also run SubNet, which is the federal government’s subcontracting database.
Who Qualifies For SAM?
In general, any entity (individual or business) that wants to do business with the U.S. federal government generally qualifies to register in the System for Award Management. The types of entities that typically qualify include:
- Small, Mid-Size & Large Businesses
- Sole Proprietors & Independent Contractors
- Nonprofit Organizations
- Educational Institutions
- State, Local & Tribal Governments
- Non-U.S. Entities
While the aforementioned groups generally are eligible, no one is guaranteed federal contracts, grants or funding. Registering in SAM simply allows you to bid and participate in federal contracting and grant programs.
What Is A Small Business Set Aside?
The government “sets aside” certain government contracts just for small businesses, and while your business may qualify as a general small business, the Small Business Administration offers several special set-aside programs, including:
- 8(a) Business Development Program
- HUBZone Certification
- Woman-Owned Small Business (WOSB)
- Economically-Disadvantaged Woman-Owned Small Business (EDWOSB)
- Veteran-Owned Small Business (VOSB)
- Service-Disabled Veteran-Owned Small Business (SDVOSB)
If you qualify for any of these programs, you may find it easier to win federal government contractor jobs, as these set-aside contracts often have less competition than regular federal contracts. During the SAM registration process, we can determine which set-asides fit your business and help you sign up with SBA, and we will link your SBA account to SAM so that prime contractors and procurement agents can see your status when they are searching for potential contractors in SAM.
What is the Excluded Parties List (EPL) in SAM?
This is a list of individuals or entities that are no longer allowed to do business with any federal government agencies. If you are on the EPL, you cannot bid on government contracts or apply for federal grants. Entities are placed on the list for a variety of reasons, including:
- Committing fraud or providing false statements
- Contract performance failures
- Tax delinquency
- Criminal convictions or civil judgments
- Ethics violations
- Failure to comply with federal laws
There are two types of exclusions:
- Suspension – Temporary, often imposed while an investigation is ongoing
- Debarment – Longer-term, imposed after a formal determination
In some cases, you simply must wait for the exclusion period to end. Then, if the federal government finds no additional issues, the exclusion may be removed. In some cases, you can apply for early removal if you can demonstrate that you are now operating as a responsible contractor and in line with all government regulations.
How Much Does SAM Registration Cost?
The federal government does not charge a fee for SAM entity registration or for SAM renewal. However, it can be a very complicated process and typically takes 10-12 hours for those unfamiliar with the system and aspects such as Federal Acquisition Regulations, NAICS codes, and other government-related terms.
Because it’s confusing and time-consuming, many business owners will hand off this task to a third-party registration service, such as Federal Contractor Registry. While we do charge a fee, we handle hundreds of SAM registrations every year and understand the complexities of this process. Our team will provide you with fast and accurate SAM registration services so that you can get started bidding on government contracting jobs as quickly as possible.
How Long Does SAM Approval Take?
In general, it takes about two weeks for an entity to have its SAM registration approved; however, this timeline can vary. If mistakes are made on your application, for example, this can delay approval, as you will need to make corrections and resubmit. Mistakes are common, which is why it can be smart to use a third-party registration service to ensure accuracy.
Additionally, the Federal Service Desk, which handles SAM registration, sometimes experiences backlogs due to a high volume of registrations and renewals, so this also can delay approval. This is typically why we recommend that companies renew their SAM registration at least six weeks in advance, as this allows the Federal Service Desk plenty of time to approve your renewal.
Let Us Help With SAM Registration!
If you would like to become a federal contractor, we can provide you with fast and accurate registration in the System for Award Management. Our SAM registration services also include helping small businesses sign up with SBA and help with tasks such as acquiring your UEI number and completing the SAM notarized letter requirement. To get started, just click on the green New Registration tab on our homepage.