What is the System for Award Management (SAM)?

The System for Award Management (SAM) located at www.sam.gov is the data repository necessary for doing business with the federal government.  The website is free to the public and users of SAM include contracting officials, contractors, and the public. 

To be awarded a contract by the federal government, contractors are required to register in SAM.  The one-time registration provides basic information for both procurement and financial transactions.  The information must be validated annually by updating and renewing the entity registration. 

SAM allows government agencies, contracting officials, and other contractors to search for your company based on your ability, size, location, experience, ownership, and more. SAM allows users to search for firms certified by the Small Business Administration (SBA) under the 8(a) Development and HUBZone Programs. SAM also incorporates the Online Representations and Certifications Application (ORCA) system.  ORCA is a web-based system where the contractor provides required information about the company (e.g., accounting procedures; travel policies).  ORCA verifies that the firm meets certain Federal requirements (e.g., complies with equal opportunity legislation).

SAM validates the contractor’s information and electronically shares the secure and encrypted data with the Federal agencies' finance offices to facilitate paperless payments through Electronic Funds Transfer (EFT). Additionally, SAM shares the data with Government procurement and electronic business systems. A contractor only needs to input business information in one database), which will then automatically populate the SBA Dynamic Small Business Search (DSBS) database.

As a contractor to register in SAM you need to have the following:

• Dun & Bradstreet Data Universal Numbering System (D-U-N-S®).  See my previous blog Dun & Bradstreet (A Necessary Evil)
• Taxpayer Identification Number (TPIN) is an identification number used by the Internal Revenue Service (IRS).  The TPIN will be verified by the IRS so it must be entered EXACTLY like the paperwork from the IRS.  The TPIN will be either the Employer Identification Number (EIN) for the contractor company or in the case of a Sole Proprietor the number will be the Social Security Number (SSN).  Keep in mind activating a new EIN with the IRS takes 2-5 weeks.
• Bank Account information for EFT
• North American Industry Classification System (NAICS).  The NAICS codes will inform the public what kind of industry work you can perform.

Once your registration is submitted for processing, information from SAM is routed to Defense Logistics Information Service (DLIS) in Battle Creek, Michigan for Commercial and Government Entity (CAGE) Code assignment.  Once the CAGE code is approved it will be sent to SAM to update the registration.  Government contracting requires a CAGE code.   The code may be used for a Facility Clearance, a Pre-Award survey, automated Bidders Lists, pay processes, source of supply, etc. In some cases, prime contractors may require their sub-contractors to have a CAGE Code also.

For further information please visit the DGE web site.

Dun & Bradstreet (A Necessary Evil)

A necessary evil is defined in the Cambridge Dictionary as “something unpleasant that must be accepted to achieve a particular result.”  Yes, a Data Universal Numbering System (D-U-N-S®) number is just that, unpleasant.  You must have one to do business with the federal government.

From the D&B website:

“Created in 1962, the Data Universal Numbering System or D-U-N-S® Number is D&B's copyrighted, proprietary means of identifying business entities on a location-specific basis.  Assigned and maintained solely by D&B, this unique nine-digit identification number has been assigned to over 100 million businesses worldwide.”

“The D-U-N-S® Number is widely used by both commercial and federal entities and was adopted as the standard business identifier for federal electronic commerce in October 1994.  The D-U-N-S Number® was also incorporated into the Federal Acquisition Regulation (FAR) in April 1998 as the Federal Government's contractor identification code for all procurement-related activities.”

A real mix of commercial and federal government usage is what this appears to be.  To do business with the federal government, you have to register with a commercial company first to obtain an identification number.  This process has never made sense to me and every time I have had to register either a joint venture or new company it is painful. 

It used to be worse.  Back in the day it could take three weeks to get a D-U-N-S®.  If you had any trouble, it amounted to talking to about ten different people before you got to the department.  Then you were placed on their sales list for them to try and sell their products and services to you. 

According to this article, “Is GSA stuck with proprietary numbering system?” the current contract for D-U-N-S® numbers is an eight-year, sole-source contract awarded to Dun & Bradstreet in 2010. The contract now totals up to $154 million, according to GAO.

Noted in this 2012 letter sent to Senator Ben Nelson (D–NE) the Government Accountability Office (GAO) identified challenges.  I believe D&B has a monopoly on the numbering system for the federal government.  Regardless you will need a D-U-N-S before you can register your business in sam.gov to obtain your Commercial and Government Entity (CAGE) code.  The link to establish a D-U-N-S® number for the federal government is http://fedgov.dnb.com/webform, and you will need the following:

• Personal Point of Contact Information (Name, Email, Address, Phone)
• Business Information (Legal Name, Address, Structure, Date Started, Ownership Demographic

The last time I got a D-U-N-S® I was in a hurry.  They do not notify you that you have received a number.  You will need to call them.  It took four days.  Once you have the number, you can proceed to register your business in sam.gov.  It is part of the process to start doing government contracting.  Yes, a necessary evil but in government contracting you must get used to doing exactly what is needed to obtain work.