On November 12, 2024, the FAR Council, composed of the Department of Defense, the General Services Administration, and NASA, introduced a rule that marks a significant change for government contractors. This new regulation revises the Federal Acquisition Regulation (FAR) clause regarding the System for Award Management (SAM) registration, specifically removing the continuity requirement that had previously caused many contractors to lose eligibility due to minor lapses in registration status. This article explores the implications of this change, how it benefits contractors of all sizes, and what it means for those pursuing government contracts.

What it Means for Government Contractors

The SAM registration requirement, governed by FAR 52.204-7, has been a longstanding part of the federal procurement process. Previously, the clause required contractors not only to be registered in SAM at the time of submitting an offer but also to maintain that registration uninterrupted until the contract award. This “continuity” aspect had been a point of contention, as even a single day of lapse in registration could disqualify an offeror, often on what some deemed a technicality. This situation has surfaced in various bid protests, notably in cases like TLS Joint Venture, LLC, and Myriddian, LLC v. The United States, where lapses in SAM registration directly impacted award eligibility.

The interim rule issued by the FAR Council removes this continuity requirement. Now, contractors are only required to be registered in SAM when submitting an offer and at the time of the award. This seemingly small change could have a considerable impact on contractors, reducing the risk of disqualification and lowering the chances of bid protests that have frequently arisen from minor registration lapses.

Why Was the Change Necessary?

The former SAM registration requirement created complications not only for contractors but also for contracting officers, who were responsible for ensuring compliance with the continuity clause. In practice, contracting officers would check a contractor’s registration at the time of offer submission and then again at the award. However, the continuity clause’s language left room for interpretations that led to stricter compliance expectations. This, in turn, led to bid protests and legal battles, wasting time and resources for both contractors and the government.

Cases like TLS Joint Venture and Myriddian, LLC highlighted the limitations of the previous rule. In these cases, the contractors lost their eligibility to be awarded contracts due to brief lapses in SAM registration. For instance, Myriddian’s bid protest was based on a lapse in registration that, while corrected, was seen as grounds for disqualification under the continuity rule. These cases exposed how minor administrative oversights could have far-reaching consequences, ultimately prompting the FAR Council to address the issue.

The New Requirements: What Contractors Need to Know

Under the updated clause, FAR 52.204-7(b)(1) now requires that an offeror be registered in SAM only at two specific points:

At the time of submitting an offer or quotation.
At the time of contract award.

This revised clause eliminates the need for continuous registration between offer submission and award, meaning contractors have flexibility to correct any lapses that might occur before the final award decision is made. As a result, a contractor who fails to renew their SAM registration immediately after submitting an offer can now address the issue without fear of disqualification—so long as the registration is valid again by the time of the award.

Potential Benefits of the Updated Rule

Reduced Risk of Disqualification: Contractors are less likely to be disqualified due to technical lapses in SAM registration.
Cost Savings: This update can save contractors significant time and legal costs associated with defending against bid protests due to minor lapses.
Less Administrative Burden: Without the need for continuous monitoring, contractors can focus on meeting other compliance requirements and preparing competitive bids.

Learn More about SAM and DSBS Optimization

Impact on Small Businesses

For small businesses, the elimination of the continuity requirement in SAM registration could be especially beneficial. Smaller contractors often operate with leaner administrative resources, which can make compliance with continuous registration more challenging. The change reduces the burden on these businesses, enabling them to maintain eligibility for awards without facing the risk of disqualification due to minor lapses beyond their control.

The FAR Council’s interim rule also includes other FAR references that remind contractors of the ongoing requirement to maintain SAM registration during contract performance and through final payment. This means that while the pre-award continuity requirement has been removed, contractors must still ensure their SAM profile is active throughout the life of any awarded contract.

How the Change Affects the Government Contracting Landscape

This rule is a positive development for the government contracting ecosystem as a whole. For contracting agencies, it reduces the frequency of bid protests and the associated delays that disrupt mission-critical projects. For the contracting community, it offers clearer expectations and less risk of being deemed ineligible for minor technicalities.

The FAR Council’s decision to implement the rule as an “immediately effective interim rule” reflects its importance and urgency. The rule aligns with a government-wide effort to improve procurement efficiency and reduce administrative hurdles that can hinder competition and delay project delivery.

How to Ensure Compliance with the New Rule

Although the continuity requirement is no longer in place, contractors must still adhere to SAM.gov registration requirements at the specified times. Maintaining an accurate and optimized SAM profile remains critical for maximizing visibility and eligibility. Contractors should take steps to:

Monitor Registration Status: Regularly check SAM registration status to ensure there are no unexpected lapses.
Plan for Renewals: While continuous registration is not mandatory, renewing SAM registration well before expiration dates is a good practice to avoid any last-minute complications.
Optimize SAM Profile: An optimized SAM profile is crucial for standing out in the competitive federal marketplace.

At FedBiz Access, we can assist contractors in navigating these updates by helping align their SAM.gov registrations and Dynamic Small Business Search (DSBS) profiles for optimal visibility. Our expertise can ensure your profile is fully compliant and appealing to contracting officers, especially with these updated rules.

About FedBiz Access

FedBiz Access has been the leading government business development firm assisting businesses of all sizes in the government marketplace for over 23 years. Our clients have secured over $35.8 billion in awards with our support. If you need help with SAM registration, optimizing your DSBS profile, or understanding the impact of regulatory changes, we’re here to guide you every step of the way.

Schedule a Complimentary Consultation

Our specialists are ready to help you succeed in the government marketplace. To learn more about how we can support your business, schedule a complimentary consultation with a FedBiz Specialist today.