5 Mistakes to Avoid When Registering with SAM
The System for Award Management (SAM) is a US federal government portal that allows contractors and vendors to register to do business with the government. With a SAM registration , the government validates the vendor’s information and facilitates secure electronic payment.
Therefore, the information you provide must be accurate. Failing to do so may result in delays and rejection of contracts.
Here, we give you a low-down of the five most common mistakes people make when registering with SAM.
Registering the Wrong Business Name
A contract is framed and registered with the league name of your business. But most people make the mistake of registering with SAM under their trade name or fictitious name. It happens more often with sole proprietors than with any other business.
The problem arises when SAM verifies your business name with DUNS (Data Universal Numbering System) and finds a mismatch. So you will have to correct it before you can register with SAM. Corrections can take up to 2 working days before they reflect in the system, leading to further delays.
Registering with the Wrong Intent
During the registration process, there are two options:
- The first option allows you to apply for grants, loans, and other financial assistance programs and bid for federal contracts.
- In the second option, you can only opt for grants and assistance programs.
Most business owners make the mistake of choosing the second option as it offers a more straightforward registration process. It precludes you from the ability to apply for federal contracts.
Not Including Affiliated Companies
If you are a small business, you won’t face the problem of including affiliated companies. But if you are a large business, you can have various affiliates through ownership, management, or other relationships. If you don’t mention them during the SAM registration process, you may have to face legal ramifications for this oversight.
Self-Certifying as a Small Disadvantaged Business (SBD)
An SDB must be majorly owned ( More than 51%) by socially and economically disadvantaged people. The federal government has provisions for awarding at least 5% of federal contracting dollars to SDB. It is an elementary mistake but can have repercussions in the form of severe penalties.
Not Submitting Entity Administrator Authorization Letter
Most people feel that once they have filled the registration form, their job is complete. After 2018, you need to send a physical letter to the Federal Service Desk that identifies your entity’s authorized administrator in SAM. If you fail to send this letter within 60 days of your online registration, the authorities can deactivate your registration.
About Government Acquisition Services
If you are looking for an organization to help you with government registration and certifications, Government Acquisition Services should be your one-stop destination. We have highly qualified consultants with more than ten years of experience.
Our services include SAM registration, MBE certification, DOT certification, FEMA certification , and more. To know more about our services, you can reach out to us at (727) 318-9150. You can also fill our online registration form.
