Unlocking the Power of SAM Registration: Your Gateway to Government Contracting

Are you ready to dive into the world of government contracting? As you delve into the research process, you may encounter unfamiliar terms such as SAM registration and CAGE codes. But fear not, for we are here to shed light on the significance of SAM registration and why it is crucial for aspiring government contractors like you. Let's explore this process, which serves as one of the initial steps on your path to becoming a successful government contractor.

The System For Award Management (SAM)

At the heart of the matter lies the System for Award Management (SAM), a comprehensive database housing information about all government contractors. Procurement agents, entrusted with the task of fulfilling government contracting jobs, rely on this database to conduct research on potential contractors.

It is important to note that an inactive or expired SAM listing renders your business ineligible for government contracts. SAM registrations expire annually, making it vital to prioritize timely renewal. We recommend completing the renewal process several months prior to the expiration date, as a nearing expiration date may raise concerns among procurement agents and contracting officers, who may worry that your listing will expire before the contract is complete.

SAM registration can be completed independently (the government does not charge a fee for registering with SAM) or with the assistance of a third-party service provider. Opting for the latter can offer significant advantages, including:

• Time Efficiency: The SAM registration process can be time-consuming, with each section requiring several hours of work. It is not uncommon for individuals to spend 10 or more hours on their SAM registration. Hiring a professional to handle the registration eliminates this significant time investment.

• Simplified Process: SAM registration is fraught with complex government jargon that can prove challenging for those without prior experience. Navigating through this maze of terminology can be overwhelming. Relying on a SAM expert simplifies the process, ensuring accurate completion without getting lost in the sea of government-speak.

• Avoiding Costly Mistakes: Mistakes in your SAM registration can lead to delays in approval until the errors are rectified. This delay hampers your ability to bid on government contracting jobs and may cause you to miss out on lucrative opportunities. Engaging a SAM expert guarantees quick and accurate handling of your SAM registration, minimizing the risk of costly errors.

Sam Registration Latest Update 2023

SAM.gov, the website for the System for Award Management, has recently undergone changes to its registration and update process. Feedback from clients indicates that the process has become slower, even for entities seeking to renew existing registrations. Considering that SAM delays can lead to payment delays, it is imperative not to procrastinate when it comes to renewing your SAM entry. This is particularly crucial because the update process in SAM involves verifying your business against a database of organizations and addresses, leaving room for mismatches, human error, and confusion. SAM registration is a prerequisite for registering on SAM.gov and obtaining a Unique Entity ID.

What is the Process?

Entity validation is required for various actions, including registering a new entity, renewing an entity registration annually, obtaining a Unique Entity ID, and updating or changing an entity's name or address. Regardless of whether an entity is new to SAM.gov or already registered, the process involves entering entity information and locating your company among the Entity Validation Service records.

Fortunately, if the entity is found in the results and all information is accurate, the process is relatively straightforward. However, even in this scenario, entities may still be required to submit documentation. The same holds true for updating or correcting information on SAM.gov. In summary, submitting documentation is an essential aspect of the process, and it may involve submitting documents that have not been required for many years.

It is important not to submit multiple validation tickets for the same issue, as doing so can prolong the entity validation process.

Who Can Complete the Process?

As of March 3, 2023, only designated Entity Administrators who are employees, officers, or board members of the registered organization are allowed to complete the SAM registration process and updates. The person responsible for the registration or update will be required to affirm their affiliation with the registered entity. This change will have implications for entities that rely on external services or internal shared services to manage SAM registrations for multiple affiliates. If your entity falls into one of these categories or relies on someone who is not an employee, officer, or board member to manage your SAM registration, you will need to take action before March 3, 2023. This involves either sending an Entity Administrator Appointment Letter to the Federal Service Desk to appoint a new administrator or requesting that your current external Entity Administrator assign the role to someone within your entity.

What Documents Are Required?

Contractors must submit documents to verify the following:

• List A: Name and/or Address
• List B: Start Year and State of Incorporation
• List C: National Identifier (for international entities)

Common documents for List A include:

• Stamped Articles of Incorporation/Organization/Formation filed with an authority
• Redacted bank statements
• Stamped Certificate of Formation/Organization filed with authority
• Department of Treasury IRS letter assigning the entity's EIN
• Utility bill (water, gas, or electric only).

For tax returns, filings, or bank statements, contractors should redact or limit unnecessary information. FSD requires only the relevant data required for validating the company and entity on SAM.gov.

Common documents for List B include:

• Documents from List A, provided they include the state and the month, day, and year of incorporation (for U.S.-based entities)
• Documents from List A, provided they include the country and the month, day, and year of incorporation (for non-U.S.-based entities)

Common documents for List C include:

• Screenshot/PDF file of the entity's business profile from the official online business registry of the entity's country (U.S. federal website screenshots are not permitted)
• Government-issued proof of tax identification number, employer identification number, or other identifier issued by the entity's government
• Government-issued tax receipt/return
• Passport (for sole proprietors or individuals operating under a trade name) with a non-expired document containing the entity's exact name and address

What Should You Avoid?

Contractors should be aware that certain documents require authentication. Additionally, federal contract awards will not be accepted for validation.

Other common pitfalls that can result in validation rejection include:

• Using outdated documentation (documents generated monthly or annually should be from the last five years)
• Providing contradictory information
• Using a P.O. Box as an address (these will always be rejected)
• Attaching non-English originals without certified English translations (translations must be line-by-line and accompany the original content)
• Submitting unapproved documentation (all documents must be official, and pending applications or screenshots will be rejected)
• Uploading poor-quality documents (low contrast or obscured information will be rejected)
• Leaving the text box on the documents page vague or empty (if you choose to include a request, explain any relevant details to help FSD understand the connection between the entered information, selected entity, and provided documents)

Furthermore, the information provided for validation must match the data in SAM.gov exactly.

FSD will review the submitted documentation and communicate the results via email. It is important to monitor your email for this correspondence. Failure to respond to requests for information or additional documentation within 5 business days will require restarting the validation process.

Please note that manual review takes time. Although FSD claims that the average review process takes four days, the increased volume of documentation being uploaded by contractors may lead to longer review times.

Once the review process is complete, entities must return to SAM.gov to finalize registration or obtain a Unique Entity ID.

Conclusion

SAM registration is a crucial step for any business aspiring to enter the world of government contracting. The recent updates to the SAM registration and update process highlight the importance of timely action and thorough preparation. By understanding the process and requirements, companies can navigate the complexities with confidence and avoid unnecessary delays or rejections.

The new entity validation process emphasizes the role of designated Entity Administrators who must be employees, officers, or board members of the registered organization. This change impacts entities that rely on external services or internal shared services to manage SAM registrations for multiple affiliates, necessitating the appointment of a new administrator or assigning the role to an individual within the entity.