If you’re considering venturing into government contracting, registering with the federal award management system is usually the initial step. While the registration and overall contracting process might appear overwhelming to newcomers, the insights provided below will shed some light on the procedure.
- The Government Has Strict Purchasing Rules
The government purchases the bulk of its goods and services from the private sector, which is meant to bolster the economy and help private businesses grow. However, unlike the private sector, where a company employee might be able to easily purchase goods and services needed by a business, the federal government cannot simply call up a company and purchase items or even ask for a cost quote.
Every federal agency employs procurement agents to handle purchasing tasks, and these agents must follow strict rules. In most cases, businesses must compete to win federal awards (contracts) and the bidding process can be complicated. We recommend doing some research into bidding and the types of government contracts before diving into the contracting world.
- SAM Registration Is Required For All Contractors
The System for Award Management (SAM) is the proper term for the database that contains information about all government contractors. You cannot bid on federal government contracts without completing SAM registration, and your listing must be active and in good standing.
Each entity’s SAM account will contain helpful information for government procurement officers. By perusing your SAM listing, a procurement agent can learn about your company’s financial information and performance history as well as the type of goods and services you can provide. The agent also can check to ensure that you are not on the Exclude Parties List, which is comprised of companies that have been debarred or suspended from the federal procurement process.
The listing also includes contact information, the size of your business and if you qualify for any Small Business Administration (SBA) set-aside programs. The government “sets aside” a portion of its contracts just for small businesses, and registering with the SBA can make it easier for small businesses to find success with government contracting.
- Registration Is Free, But . . .
The government does not charge a fee for SAM registration, however, that doesn’t mean that the process is easy. In fact, it’s just the opposite. SAM registration can take 10-12 hours to complete, and many people find the process so frustrating and filled with confusing government-speak, that they bail on the idea of becoming a government contractor.
If you find that SAM registration is too complicated or just want to skip the hassle, it can be smart to simply hire a third-party registration service to complete this process. While a SAM registration service does charge a fee, this is simply like hiring an accountant to complete your taxes. You could do your taxes on your own, but it’s complicated and mistakes are costly. SAM registration is much the same, which is why some people choose to hire a pro to handle this task.
- Don’t Share Your MPIN
One of the steps of SAM registration includes creating a SAM MPIN number. MPIN stands for Marketing Partner Identification Number. This is a nine-digit code that all new SAM registrants will receive.
No procurement agent should ever ask you to reveal this code, which is much like your PIN used for a bank ATM. Occasionally, we have heard about people being asked to share their MPIN, but, under no circumstances should you share this number with anyone.
Once your federal award management registration is complete, you will be assigned a Commercial and Government Entity (CAGE) code. This code can be shared with others, and procurement agents can use this code to find your business and review your SAM data. Again, sharing a CAGE code is perfectly fine, but do not share your MPIN number.
- Companies Must Apply For A Unique Entity Identifier (UEI)
In the past, companies were asked to provide their Data Universal Numbering System (DUNS) number as part of SAM registration. These numbers were generated from Dun & Bradstreet, a non-government entity.
These days, DUNS numbers are no longer required. Instead, the federal government will generate a UEI number for your company. However, you do have to apply for this number before beginning SAM registration. If you decide to use your registration services, we will complete this step for you.
- Companies Must Identify Your Entity Administrator Via Mail
Several years ago, the Federal Service Desk (the agency in charge of the System for Award Management) added an extra step to SAM registration. New registrants are now required to send in a notarized letter listing their company’s Entity Administrator. This is simply the person who is authorized to make changes to your SAM listing. We can help you complete the SAM notarized letter requirement as part of our SAM registration services.
- SAM Must Be Renewed Every Year
Every 12 months your SAM registration will expire and will need to be updated and renewed. Usually, this is not as complicated as the initial registration process. For instance, you don’t need to send in another notarized letter, apply for the UEI or link your account to SBA.
However, you will still need to go through each section of the application carefully and make any updates or changes. This can be time-consuming and sometimes challenging, so if you would prefer to have a pro handle this task, we do offer SAM renewal services.
While federal award management registration can be complicated, the team at Federal Contractor Registry can help. We will complete your registration quickly and 100% accurately, as well as help you with the UEI number, the notarized letter requirement and help you sign up with SBA, if applicable. To get started, just click on the green New Registration tab on our homepage.