Federal Agencies Now Outsource SAM Registrations

Federal agencies are now outsourcing SAM registrations to third-party vendors because businesses “have difficulty completing the complex administrative and technical process involved with System for Award Management (“SAM.gov”) registration.”

The General Services Administration (“GSA”) officially changed their interface system on SAM.gov for the U.S. federal contractor registration process on April 4, 2022. The GSA manages federal acquisition and awards previously processed through ten online websites, which have now been consolidated into one. 

SAM.gov is the official U.S. government website for people who make, receive, and manage federal awards. However, the consolidation of websites has not been without its fair share of problems, including considerable delays in processing SAM registrations.

Regarding SAM registrations, the change is primarily in the validation of general business information in the registration process, including the registered administrator, legal business name, and address of the company.

The prior GSA contract for SAM validation was with Dun & Bradstreet (“D&B”) requiring companies to have a DUNS number associated with their registration. GSA has subsequently replaced the DUNS number validation with the issuance of a 12-character alphanumeric ID assigned to an entity by the GSA called the Unique Entity Identifier number (“UEI”).

As part of the new business validation process, upon entering a SAM registration or renewal, the GSA must find a ‘match’ for your specific entity data. It pulls this data from different industry sources to try to match the company’s registered administrator, legal business name, and address before validation can be completed.

If the validation does not automatically match records submitted in SAM, the business must provide a notarized letter and a customer service ticket to the GSA Federal Services Desk (“FSD”), as well as provide corresponding documents showing the correct business information to allow for proper registration validation.

Once the customer service ticket is submitted to the FSD, the processing can take from weeks up to months to be validated before registration can be completed. Because of these changes, as well as staffing and training issues, the GSA remains backlogged. It is highly recommended to begin your SAM renewal process at least 90 days before your expiration date.

While a business can self-certify in SAM, because of the complexity of the registration process federal agencies now recognize many businesses are better suited to use a professional service to complete their registration.  This may be considered in the same way that many businesses use a professional accountant to file their tax returns to ensure they are complete and compliant.

One of the registration areas that is important to properly identify is your industry classification using NAICS and PSC codes. NAICS codes are the North American Industry Classification System, and PSC are Product (and/or) Service Codes. Simply put, NAICS codes are for your business function or commercial activity, and PSC describe your products or services themselves.  These codes let the federal government, or the federal buyers know what it is you do and makes it easier for them to identify you for award opportunities based on your industry and your products or services offered.

Additionally, businesses must conform to the Federal Acquisition Regulations, referred to as the FAR.  The FAR are the overriding set of regulations for federal procurement and agreement to adherence to the FAR is required to be registered in SAM.  Having a clear understanding of the FAR as you are completing your SAM registration is very critical. A misrepresentation or wrong answer could not only get you in trouble but could bar you from federal work.

Businesses also register their business size and socio-economic status while completing the required solicitation clauses and certification. By completing the required solicitation clauses and certifications you certify that the information provided about your company and its business activities are correct.

SAM is also a marketing tool for businesses. SAM allows government agencies and contractors to search for your company based on your industry, size, location, experience, ownership and more. SAM also informs searchers of firms certified by the SBA under the 8(a) Development and HUBZone Programs, as well as veteran-owned, women-owned, and minority-owned small businesses.  In addition, it is very important that your SBA registration in the Dynamic Small Business Search or DSBS be properly aligned with your SAM for marketing purposes.

FedBiz Access works with business to help them establish their foundation with the federal government from their initial SAM registration to setting strategy to find the right government buyer. These business development services include market research and engagement strategy coaching, registrations, certifications, and GSA Schedules, as well as marketing packages to targeted buyers at the federal, state, and local levels.

FedBiz Access has over 21 years of experience working with thousands of companies worldwide to help them win over $35.7 billion in awards. From registration to award, FedBiz Access helps businesses succeed in the government marketplace.