System for Award Management: Frequently Asked Questions

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.

9 Items You Need To Complete SAM Registration

If you want to become a government contractor, completing your System for Award Management (SAM) registration is a required first step. At Federal Contactor Registry, we handle SAM registration for hundreds of companies every year and we can provide you with reliable, fast and accurate registration services. Before we get started on your registration, however, there are a few pieces of information we will need to complete the process, including the following.

 

  1. Your Legal Business Name

This may seem obvious, but some businesses use slightly different names for advertising purposes than the names registered with the federal government or state government or other entities. We need to know the official name of your entity as registered with state or local authorities.

 

  1. Your Physical & Mailing Address

The government will not accept a P.O. Box as a physical address, so while you may receive mail at a separate location from your physical location, the government will need both of these addresses.

 

  1. Your Taxpayer Identification Number

You will need to provide us with your Taxpayer Identification Number (TIN) or your Employer Identification Number (EIN). These are issued by the IRS and should be found easily enough on your tax forms.

 

  1. Banking Information

The System for Award Management is not just a database filled with information about every federal contractor. It’s also the system used to pay those contractors, and as such, you will need to provide us with the name of your bank, its routing number, the account number and the account holder’s name. We also will need Electronic Funds Transfer information.

 

  1. Your Unique Entity Identifier

This is a fairly new requirement. In the past, the government required entities to provide their Data Universal Numbering System (DUNS) numbers to complete SAM registration. That has been phased out, and the government now generates what is known as the Unique Entity Identifier, or UEI number. If you don’t already have this number, our team will procure it for you as part of our SAM registration services.

 

  1. NAICS Codes

The North American Industry Classification System (NAICS) is a document that contains codes for every type of business or industry. Whether you provide computer repair services, janitorial services, office furniture, HVAC equipment or something else, there’s a code that describes that business. If you don’t know your codes, you can find them at Census.gov or we can determine which codes best match your business as we work on your U.S. federal contractor registration.

 

  1. Business Details

In addition to your legal business name and addresses, we also will need to know the number of full-time and part-time employees as well as whether or not your business qualifies as a non-profit. We also will need information regarding your entity’s legal structure (corporation, LLC, etc.)

 

  1. Contact Information

Of course, it’s essential to provide the name, title, phone number and email address of the main contact at your company who will serve as the liaison with government procurement agents. Typically, we ask for the main contact as well as any alternate points of contact.

 

  1. Ownership & Control

We need to know the names of the owners, of course, but also whether or not the business is perhaps woman-owned, veteran-owned or perhaps minority-owned, as there are special certifications that might apply to your business and make it easier to attain government contract jobs.

 

Why Hire A Third Party?

While the government won’t charge you a fee to register in the System for Award Management, the process is arduous and can take 10, 12 or more hours to complete. We receive calls daily from folks who have reached their breaking point, frustrated with the confusing government-speak and uncertain if they are filling out the application correctly.

 

Hiring a professional SAM registration service takes the guesswork out of the process and saves you many hours. With our level of expertise, we also won’t make any mistakes. Mistakes can delay your approval and prevent you from being able to bid on lucrative contracts.

 

Additionally, we can help with several SAM-related tasks. As stated above, we can help you obtain your UEI number, and we also can help you get started with the SAM notarized letter requirement. This letter, which must be notarized and mailed to the Federal Service Desk, identifies your Entity Administrator. This is the individual at your company authorized to make changes to your SAM account.

 

We also will help you sign up with the Small Business Administration (SBA). SBA offers grants, small business loans and other services for small business owners. However, when it comes to government contracting jobs, the SBA’s set-aside programs are one of this agency’s best offerings. The federal government sets aside a portion of all contracting dollars just for small businesses.

 

While general small businesses can bid on most contracts, there are also special small business set aside contract programs, including the 8 (a) Business Development program (a.ka. 8a certification), the Woman-Owned Small-Business (WOSB) set aside, the Service-Disabled, Veteran-Owned Small Business (SDVOSB) set aside and HUBZone certification. We can determine which set-asides match your business, help you sign up with SBA and link your SBA account to your SAM account.

 

Ready to get started? Contracting can be a fantastic way to boost your profitability, and we can help by providing you with fast, accurate SAM registration services. To learn more head to our main SAM registration page or click on the green New Registration tab on our homepage.

System For Award Management: Fast & Easy Registration

Every year, the United States federal government spends billions of dollars purchasing goods and services from the private sector via government contracting jobs. If you’d like to throw your hat into the ring and start bidding on government contracts, the team at Federal Contractor Registry can help and the first step is to complete your System for Award Management registration.

 

What Is The System For Award Management?

The System for Award Management (SAM) is an official website of the U.S. government that serves several key functions for entities (such as businesses, non-profit organizations, and government entities) interacting with the federal government. Its primary purposes include:

 

  1. Registration for Federal Contracts: Entities must register in SAM to do business with the federal government. This is a prerequisite for bidding on government contracts or receiving federal grants.

 

  1. Streamlining Processes: SAM consolidates the federal procurement systems and the Catalog of Federal Domestic Assistance into one system, making it easier for users to manage their federal awards and contracts.

 

  1. Centralizing Information: It serves as a central repository for information about entities that are eligible to receive federal contracts or grants. This includes details like business size, location, ownership, and activities.

 

  1. Compliance and Transparency: SAM helps ensure entities comply with federal regulations. It also offers transparency into entities that are receiving federal contracts and grants, as part of government accountability efforts.

 

  1. Facilitating Payments: Entities registered in SAM can receive electronic payments from federal agencies for contracts and grants.

 

SAM is a critical tool for any entity looking to engage in business with the federal government, either through contracts or grants, and it helps streamline and manage the complex processes involved in federal procurement and award management.

 

In the past, multiple websites handled all of these functions, with websites such as the Central Contractor Registration or CCR, and ORCA (Online Representations and Certifications Application). You will still hear people talk about CCR and ORCA government contracts, but if you see those terms, they are obsolete and everything is now part of SAM.gov, which is run by the Federal Service Desk, an agency within the General Services Administration.

 

Should You Become A Government Contractor?

The government needs an abundance of goods and services throughout the year and there are contracts for just about every type of industry imaginable. Whether you run a printing service, an HVAC repair shop, a construction debris removal company or perhaps sell medical supplies, the federal government needs all that and much more.

 

If you are on the fence about government contracting, here are a few compelling reasons to consider bidding on federal contractor jobs:

  1. Stable & Consistent Revenue Stream: Government contracts can provide a reliable and consistent source of income. Governments often have large budgets for various projects and services, and once a contract is secured, it typically guarantees a steady flow of work and revenue for its duration.

 

  1. Diversification of Business Portfolio: Participating in government contracts can diversify your business portfolio. This diversification can reduce reliance on private sector contracts, which may be more susceptible to market fluctuations. The government sector often provides opportunities in a wide range of industries, from technology to construction, allowing businesses to expand their expertise and market reach.

 

  1. Prestige and Credibility: Winning a government contract can enhance your company’s reputation. It demonstrates that your business meets the high standards required to fulfill government projects, which can be a powerful endorsement of your company’s capabilities. This can boost your credibility and make your business more attractive to other clients, both in the public and private sectors.

 

  1. Potential for Long-Term Relationships: Securing a government contract can open the door to long-term relationships with government agencies. These relationships can lead to repeat business and make it easier to win future contracts. Government agencies often prefer working with trusted vendors who have a proven track record of delivering quality services or products.

 

  1. Access to Large-Scale Projects: Government contracts often involve large-scale projects that might be unavailable in the private sector. These projects can enable a business to grow rapidly, increasing its capacity, resources, and workforce. Additionally, working on such projects can allow a business to demonstrate its ability to manage and deliver large-scale operations, further enhancing its marketability.

 

Before you decide to complete your SAM registration, we recommend going to SAM.gov and browsing through the many opportunities to determine if your company is a good match. Once you go to SAM.gov, simply click on the Contract Opportunities page and then click on Advanced Search.

 

From there, we recommend searching for contracts using your North American Industry Classification System (NAICS) codes, which can be found at Census.gov. NAICS codes describe the types of goods or services your company can provide, so searching using these criteria allows you to find contracts that truly match what you have to offer the federal government. To search using NAICS codes, you will need to select the drop-down menu from the section marked “Product or Service Information.”

 

How To Register With SAM

System for Award Management registration is required for anyone bidding on government contracts, and while the government does not charge a fee to register in SAM, entity registration can be a very complicated and time-consuming process.

 

Fortunately, you can bypass the frustration of SAM registration by simply hiring a third-party registration. At Federal Contractor Registry, we handle hundreds of SAM registrations and SAM renewals every year. (Note: You must have an active SAM registration to do business with the federal government, and your SAM account expires after 12 months and must be renewed.)

 

Hiring Federal Contractor Registry is similar to hiring an accountant to handle your taxes. While filing taxes is “free,” the tax code is complex and making mistakes is costly and hiring a tax expert makes good sense. SAM registration is similar in that it’s time-consuming and difficult and mistakes can delay your approval. We do charge a fee for our services, naturally, but this fee also includes several value-added features, such as:

 

Small Business Administration (SBA) Registration: The SBA is an excellent resource for any small business owner in general, but when it comes to government contracting, the SBA is in charge of several special programs that make it easier for small businesses to win government contracts. These contracts are known as set-aside contracts because they are “set aside” just for small businesses, such as a Woman-Owned Small Business (WOSB) or Service-Disabled Veteran-Owned Small Business (SDVOSB).

 

If you don’t qualify for those two, there are several other options including 8a certification and HUBZone certification. Our registration experts can evaluate your business and determine which set-asides fit your firm, help you sign up with SBA, and link your SBA account to your SAM account.

 

Additionally, if you qualify as a Super 8a contractor (owned by an Alaskan Native Corporation, Native Hawaiian Organization or any Native American tribe), we can introduce you to other federal contractors in our network.

 

Notarized Letter Requirement: All first-time SAM registrants must send a notarized letter to the Federal Service Desk listing their firm’s Entity Administrator. This is simply the person or persons who are authorized to update or make changes to your SAM account. We can help you with this process, as the letter must be very exact in its contents.

 

Unique Entity IDs: For many years, all SAM registrants were required to provide their DUNS number to register, but that has been phased out and the Unique Entity Identifier or UEI number has replaced this requirement. Still, you will need to acquire your UEI, but we can help!

 

Best of all, we can save you hours of work and all the hassles associated with SAM registration, and our team will be able to quickly and 100% accurately complete your registration so that you are approved and ready to bid on contracts as soon as possible. To get started with your System for Award Management registration, just head to our homepage and click on the New Registration tab.