In Part 1 of this blog, I talked about a couple of things you need to do before you can be awarded a contract. You need to do both of those things before you do the last thing that is absolutely required before you can get awarded a federal contract. Once you’ve got them done, here’s what you do:
The government has established the System for Award Management (SAM) website as the single point where all government vendors must be registered in order prior to receiving a contract award. There are of course exceptions to this rule, such as foreign corporations and for purchases made with a government issued credit card, but for the most part even if you are a sole proprietor, a huge international corporation, a university or a nonprofit organization, you must be registered in the SAM database before you can be awarded a government contract. This is a pretty detailed database that you will be filling out, so get yourself a cup of coffee, turn off the phone for a couple of hours, and get ready to have to look up and provide a bunch of information. This portal is used by the federal government to pay its suppliers, so it will even require your business checking account information. It is a secure website, and only the General Services Administration (GSA), who runs this website will have access to your banking information. However, some information will be available to anyone who looks (yes, free of charge, so don’t let anyone sell you this information either!). You’ll have the opportunity to block access to all of your information, but we strongly recommend that you not block access to your public information (basically anything not banking related). Why? Because Contracting Officers do use it to search for potential suppliers, large prime contractors use it to search for potential small businesses for subcontracts, and small businesses (even you) can use it to search for potential teammates to pursue larger business opportunities with the government.
So, fill out everything completely and accurately. The system is “editable” meaning that you can leave the website and log back in later to complete your application. Two notes:
- The system will give you an “MPIN” when you first log in – write it down. You’ll need this number to access your SAM account while you are completing your registration and it will remain your access code for maintaining your registration current throughout your business’s government contracting life.
- The company name and address you enter into SAM must match identically (right down to the comma and spacing) with your Dun & Bradstreet registration, which must match identically with your IRS information. Everything is linked together these days, and this database is no exception.
Once you’ve successfully completed the application, it will take a couple of days for the database to verify your information and complete the registration. It will notify you automatically when that has occurred, and it will give you yet another identification code called a Commercial and Government Entity Code (CAGE). Within the government, only DoD will care about this code, but you’ll need it for DoD Capabilities Statements, proposals and contracts.
So that’s it as far as required steps you must take in order to do business with the government. Winning government contracts takes a lot more than just this, of course, but at least you’ll have all of the required “checkmarks” ready to go once you do!