What is SAM? Your First Step to Federal Contractor Registration
What is SAM, the System for Award Management? It is your first step toward becoming a federal contractor.
Welcome to our podcast FedBiz 5, where you get informed, get connected and get results. In our last episode we discussed some of the fundamentals of federal contracting, evaluating your finances, and preparing your business. Now you are ready for your first step – registration in the System for Award Management, commonly referred to as SAM.
SAM is a federal registration that is required if you are going to participate in the federal market. It is sometimes called your “accounting record” and is used as the primary database of vendors doing business with the federal government.
A business can self-certify in SAM, but because of the complexity of the registration process 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 ability, 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.
This podcast is sponsored by FedBiz Access – https://fedbizaccess.com. For government contracting made simple, call (888) 299-4498.
Frequently Asked Questions
- 1 What is SAM and why is it important for federal contracting?
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SAM, the System for Award Management, is a federal registration required as your first step to becoming a federal contractor. It serves as the primary database for vendors doing business with the federal government, essentially acting as your business's accounting record for federal market participation.
- 2 Is SAM registration a complex process, and can I get help with it?
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Yes, SAM registration can be complex. While businesses can self-certify, many find professional services beneficial to ensure their registration is complete and compliant, similar to how businesses use accountants for tax returns.
- 3 What are NAICS and PSC codes, and why are they critical for SAM registration?
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NAICS (North American Industry Classification System) codes classify your business function or commercial activity, while PSC (Product/Service Codes) describe your specific products or services. Properly identifying these codes in SAM is critical as they help federal buyers identify your business for relevant award opportunities.
- 4 What are the Federal Acquisition Regulations (FAR) and how do they relate to SAM?
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The Federal Acquisition Regulations (FAR) are the overriding set of regulations for federal procurement. Agreement to adhere to the FAR is required to be registered in SAM, making a clear understanding of them critical during your registration process.
