As a business owner, registering with the System for Award Management (SAM) is a crucial step in pursuing government contracts. SAM is a free-to-use online tool that allows businesses to apply for grants and contracts offered by the federal government. So, before bidding on government contracts, all you need to do is first register with SAM.
SAM registration is mandatory for any businesses that want to sell their products or services to the federal government. The basic eligibility criteria for SAM registration are as follows:
To be eligible for SAM registration, your business must have a DUNS number. It is a unique identifier assigned by the Dun & Bradstreet to quickly identify your company.
Your business must have a legal address, physical location, and mailing address.
You should carry a business's taxpayer identification number (TIN) or Employer Identification Number (EIN).
Banking information details for Electronic Fund Transfer payments.
Parent or Subsidiary company details (if applicable)
Business’s NAICS code
However, navigating the SAM registration process is quite complicated. If you are new to government contracting, there is a huge chance of doing mistakes. There are so many common mistakes that businesses make that results in delays or sometimes reject the application.
So, to avoid this situation, we have explored the 9 most common SAM registration mistakes that you need to be aware of. Let’s go through the blog.
Providing Inaccurate Information:
One of the most common mistakes that businesses make when registering with SAM is providing incomplete or inaccurate contact details. Always remember that your phone number, email address, and mailing address should be correct. If any of this information is incorrect, you will miss the opportunity for government contracting. So, it is suggested to double-check all your details before submitting your SAM registration application.
Not Having a DUNS Number:
A DUNS number is a unique nine-digit identifier for your business and it is essential for bidding on government contracts. Make sure you verify your DUNS number before submitting your SAM registration application. Most importantly, you need to ensure that it is accurate.
Using An Incorrect Legal Business Name:
While opting for SAM registration, you need to mention your legal business name. Make sure it matches your Article of Incorporation, your tax return details, and your DUNS registration. If it does not match, your SAM registration will be rejected and you will have to start over.
Not Verifying Your Tax Payer Identification Number:
The Taxpayer Identification Number or TIN is the nine-digit number, that you used to file your taxes. When you register for SAM, you need to verify your TIN by submitting a tax return. If you fail to verify it, your application will be rejected.
Choosing the Wrong NAICS Code:
During the SAM registration process, choosing the wrong NAICS or North American Industry Classification System code can limit your opportunities for government contracting. So, always try to make sure that you select the right code that accurately reflects your business capabilities.
Misunderstanding Your Entity Type:
SAM registration requires you to select your entity type precisely. This is very much essential because each entity type has different requirements and eligibility criteria for SAM registration.
Not Understanding SAM’s Security Protocols:
The System of Award Management is a secure system that requires you to follow some specific security protocols. Not understanding these protocols can result in your application being delayed or rejected.
Failing to Respond to the CAGE Code Office:
The Commercial and Government Entity (CAGE) Code office may send an email in response to a number of SAM.gov registration problems. The headline of the email will begin with "Reaction REQUIRED" and incorporate your DUNS number.
It's possible that a previous building tenant has a registration with a physical address that matches yours. Or it might be possible that there is another business that has a name similar to yours. Whatever the circumstance, you have just three business days to follow the CAGE office email's exact instructions.
Not Following Up with the Authorized Administrator Letter:
Notarized physical letters are now one of the crucial parts of the SAM registration process. One of the most common SAM.gov registration issues is failing to send the letter, despite the fact that this requirement has only been in place since March 2018.
The letter must be sent to the Federal Service Desk (FSD) by a partner, officer, executive, or other individuals with signatory authority. The person who will be the SAM authorized administrator is named in the letter. The FSD must receive this letter within 60 days of your active registration.
Conclusion
SAM registration is a critical step for government contractors. If you want to build a strong relationship with the federal government and secure contracts and grants, you should maintain an accurate SAM registration. By avoiding these above-mentioned 9 most common mistakes, you can ensure your application is submitted accurately and promptly. This will be giving your business the best chance for success in government contracting.
Unfortunately, completing the registration process on your own often results in mistakes. So, it will be wise to hire us to make the process correct.
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