Thousands of government contracting jobs are created each year to provide federal agencies with the goods and services they need. In order to grab your piece of the contracting pie, so to speak, you must ensure that your company complies with all regulations regarding contractors, and you must complete your CAGE Code registration.
The world of government contracting can be difficult for new contractors to understand. At Federal Contractor Registry, we can help you with the registration process as well as help you understand some of the basics of contracting, including the following:
What Is CAGE Code Registration?
The System for Award Management (SAM) is the central database for everything that has to do with government contracting. All contractors must maintain an active SAM account to do business with the federal government. This registration process is sometimes called CAGE code registration, but its proper name is SAM registration.
Once you’ve completed SAM registration and the registration is approved by the federal government, you will receive what is known as a CAGE code. This stands for Commercial and Government Entity Code. It is a unique identifier given to each government contractor. When you bid on any government contracts, your CAGE code will be one of the pieces of information you will need to provide to the government.
The government does not charge a fee for SAM registration, and both Americans and foreign entities can register in the System for Award Management. While it’s free to apply, the registration process is difficult and can take 10 or more hours to complete.
Many business owners will hire a third-party entity registration service to complete the process, such as Federal Contractor Registry. While we do charge a fee for this process, we handle hundreds of registrations every year and can complete your registration quickly and 100% accurately.
We also help first-time registrants with steps such as completing the notarized letter requirement and the acquisition of the Unique Entity Identifier (UEI). For the letter, we can provide you with a template and you simply need to fill out the template, have the letter notarized and mail it to the Federal Service Desk.
The UEI number is a new requirement. In the past, companies were asked to provide their DUNS (Data Universal Numbering System) number, but this has been phased out. New registrants need to apply for their UEI, and we can handle this task for you as part of our SAM registration services.
What Do I Need To Know About Compliance?
Government contractors are subject to a wide range of compliance requirements that can vary significantly depending on the type of contract, the agency issuing the contract, and the specific goods or services being provided.
Compliance is crucial not only for winning contracts but also for maintaining good standing and eligibility for future opportunities. Here’s an overview of the primary types of compliance required by government contractors:
Regulatory Compliance
Federal Acquisition Regulation (FAR): The primary set of rules in the Federal Acquisition Regulation System, which governs the acquisition process by which agencies of the federal government of the United States acquire goods and services. FAR applies to most contracts and requires contractors to follow specific procedures and standards.
Defense Federal Acquisition Regulation Supplement (DFARS): Additional requirements that apply to contractors working with the Department of Defense (DoD). DFARS includes provisions related to cybersecurity, the protection of classified information, and more.
Keep in mind, that you can bid on DOD contracts where high security is not an issue and not all DOD contractors have to worry about protecting classified information, etc. For instance, if the DOD puts out a request for a company that can provide copy paper or office furniture, security typically isn’t a huge concern.
Legal Compliance
Employment Laws: Contractors must comply with federal employment laws, including the Fair Labor Standards Act (FLSA), the Americans with Disabilities Act (ADA), and the Family and Medical Leave Act (FMLA).
Ethics and Conduct: Adherence to ethical business practices is mandatory, including conflict-of-interest policies and rules against bribery and corruption.
Financial Compliance
Cost Accounting Standards (CAS): Applicable to certain contracts, these standards dictate how costs should be estimated, accumulated, and reported.
Truth in Negotiations Act (TINA): Requires contractors to provide cost or pricing data for contracts exceeding a certain threshold and certifies that the data is accurate, complete, and current.
Security Compliance
National Industrial Security Program (NISP): If accessing classified information, contractors must comply with NISP requirements to safeguard this information.
Cybersecurity Maturity Model Certification (CMMC): DOD contractors must meet CMMC requirements to protect Controlled Unclassified Information (CUI) within their network systems. Again, this is only for contractors where security is an issue. If you are providing something such as basic office supplies to the DOD, this likely won’t be an issue.
Environmental Compliance
Environmental Regulations: Contractors must adhere to federal, state, and local environmental laws and regulations, including waste disposal, air quality standards, and water pollution control.
Socioeconomic Compliance
Small Business Subcontracting: Large contractors must make efforts to subcontract a portion of their work to small businesses, including those owned by minorities, women, veterans, and economically disadvantaged individuals.
Equal Employment Opportunity (EEO) and Affirmative Action: Contractors must ensure equal employment opportunities and may need to implement affirmative action plans.
Quality Assurance Compliance
ISO 9001: While not always mandatory, many government contracts require contractors to have ISO 9001 certification, which demonstrates compliance with quality management principles. If this is required, it should appear in the contract set forth by the federal agency’s procurement agents.
Maintaining compliance in these areas is critical for government contractors. Non-compliance can result in penalties, including fines, suspension, debarment from future contracts, and criminal liability in severe cases. Contractors should have robust compliance programs in place to ensure they meet all necessary requirements.
In many cases, your company is likely already in compliance with most of these regulations. To ensure that you are a good fit for a specific contract, it will be imperative to read the contract and the requirements set forth therein as carefully as possible.
Furthermore, if you are a small business, you may likely qualify for set-aside contracts. A portion of all federal contracts are “set aside” specifically for small businesses. Some contracts are set aside for general small businesses, while others are set aside for businesses majority-owned by women, veterans or people who belong to a historically disenfranchised group.
The team at Federal Contractor Registry can determine which set-asides might fit your business and help you sign up for these programs, which are run by the Small Business Administration (SBA). We can help you set up your SBA account and then we will link it to your SAM account, as well. This step is included in our SAM registration fee.
Should I Become A Federal Contractor?
In general, the first step you need to take is to determine if there is a market for your goods and services. To do this, you can go to SAM.gov and click on the Contract Opportunities tab. From there, click on Advanced Search. In the drop-down menu, you can search by Product or Service Information. We recommend using your North American Industry Classification System (NAICS) codes for this search.
NAICS codes describe the type of goods or services a company provides, and once you enter your codes, this should generate government contracting results. If you see multiple contracts that your company could fulfill, chances are you could find government contracting to be a profitable endeavor.
While bidding on federal contracting jobs can seem like a daunting task, once you have gone through the process a few times, it does become easier. It can take a year or more to win your first contract, so it’s important to be patient and keep trying.
Once you earn that first contract, earning additional contracts can be easier simply because you are building a government resume. Additionally, we recommend that you also look for state and county government contractor jobs, as these can be quite profitable, as well.
Take The First Step & Get Your CAGE Code
If you want to bid on contracts and would like the team at Federal Contractor Registry to complete your SAM registration/CAGE code registration, just click on the green New Registration tab on our homepage. We will quickly and accurately complete your registration, as well as help you with SBA registration, so that you can start bidding on government contracts as soon as possible.
