FedBiz’5 Podcast | Episode 28: The Importance of SAM
The Importance of SAM
SAM (“System for Award Management”) 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.
In this episode of FedBiz’5, we are hosting Cassie Elbany from FedBiz Access to discuss the importance of your SAM registration.
SAM can be found on the official government website (SAM.gov) used to register entities for government contracts or grants.
When you register in SAM you are assigned a CAGE code (Commercial and Government Entity) and a UEI number (Unique Entity ID) as your official federal government identifiers. Within the SAM website federal buyers can search for your business, and you can use the system to search for contract opportunities using search features such as keywords, NAICS codes (North American Industry Classification System), or PSC codes (Product and Service Codes).
That is why it is important to properly identify is your industry classification using NAICS and PSC 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.
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.
For businesses looking to work with the federal government, they must remain compliant and keep their registration active to be awarded a federal contract.
As your business evolves, so should your SAM be updated to reflect your most current information. SAM must be renewed annually, but can be updated more frequently.
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.
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.
One source federal buyers turn to to easily find information you register in SAM is FedBiz Connect, a searchable database of businesses registered for federal contracting that highlights their business to contracting officers and prime contractors. The database is searchable by keywords, business name, CAGE code, UEI No., location, socio-economic status, NAICS Codes, PSC, capability statement, past performance, FEMA registered, smart cards, points of contact, etc.
FedBiz is a leading government contracting business development and marketing firm that offers SAM registration services, as well as research and engagement strategy coaching, and certification and GSA Schedule registrations.
FedBiz 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 helps businesses succeed in the government marketplace.
