Do you have questions about DUNS Numbers, SAM, GSA, or other government contracting topics? Please check out our answers below.
Is government contracting difficult?
The U.S. government is the largest single purchaser of goods and services in the world, buying everything from paper clips to armored tanks. Every year the federal government awards more than $500 billion in contracts with a significant share of those contracts allotted to small businesses.
Although the needs are similar, the methods of selling to government agencies can be quite different from the private marketplace. There are multiple – and sometimes – overlapping regulations, laws, and rules that are applied. How involved your business becomes in using or understanding the processes really depends on how well you understand and use the established systems.
To receive funding from the government either through a grant or contract, there are two basic steps: obtaining a DUNS Number and enrolling in the System for Award Management (SAM). It is required for a business or nonprofit to first obtain a DUNS Number and then register in the System for Award Management because the systems are linked and SAM will use the DUNS information.
What are the differences between government contracting and commercial contracting?
|Government Contracting||Commercial Contracting|
|Federal policy establishes a rigid, formal competition criteria||Company initiating contract determines competition criteria|
|Congress appropriates all contract funds||Funds come from a variety of private & commercial sources (banks, investors, etc.)|
|Laws, directives, policies, executive orders, & regulations define procurement actions||Company determines procurement actions within established legal boundaries|
|Federal contracts are heavily regulated & contain extensive number of detailed clauses, many of which are “take-it-or-leave-it”||Standard commercial code & those clauses agreed to by the parties regulate performance|
|Government may terminate a contract for a variety of reasons, including default or its own convenience||Commercial regulations and established contract law from court decisions ensure adequate performance, & convenience not an option|
|Federal contract procedures incorporate numerous social & economic policies of the government||Social pressures typically dictate company policies; however, some policies are required by law|
|The government regularly uses social & economic incentives to “level the playing field” and insure participation by various social groups||Commercial contractors rarely use incentive contracts & base their contracting decisions on profit rather than social policy.|
|Federal law prohibits gratuities||Company policy determines gratuities|
|The government may assess liquidated damages, costs of recompeting, & assess other penalties on contractors for non-compliance or default||Courts generally look down on penalties in contracts, & even if there’s a liquidated damages provision the court will not enforce it against the breaching party if it’s deemed unreasonable|
At what stage of business development would be best to begin government contracting?
It is important to have an operational, stable business established before you begin government contracting. Government contractors will want a business to be a minimum of a year old with an ability to sustain the longer times it takes the government to pay for services and goods.
What is SAM?
SAM is the acronym for System for Award Management and is the basic database used for doing business with the United States government.
How do I register in SAM?
To register with SAM, go to www.SAM.gov, create a User ID and Password to begin, or enter your existing User ID and Password.
Is there a fee for using SAM?
No. There is no fee. If a business tells you there is a charge for registering in SAM or updating it, the business is not providing accurate information.
Because information in SAM is usually publicly visible, businesses need to be very careful of any entity offering services either through email or over the phone. Any correspondence from SAM will have a “.gov” in the email address and there are no fees for obtaining or renewing a SAM registration.
What kind of information will I need to provide?
It is a good idea to have your basic business information handy including your business address, business license, banking information, tax identification, and NAICS code or codes.
What is a NAICS Code?
The North American Industry Classification System (NAICS) is an industry classification system used by the statistical agencies of the United States for classifying business establishments. For more information about NAICS Codes visit Census.gov.
How are Small Business Administration and Veterans Business Administration Certifications different?
There are a number of programs designed to assist small businesses owned by designated socially and economically disadvantaged groups compete in the federal marketplace. The 8(a), Woman Owned Small Business, Economically Disadvantaged Woman Owned Small Business, Veteran Owned Business, Service Disabled Veteran Owned Small Business, and HUBZone certification programs assist businesses by setting aside a percentage of federal contracts specifically for enrolled businesses.
These programs require formal enrollment and processing and can be beneficial to the groups for which they are designed. To find out more, visit The Small Business Administration.
Where can I get more detailed SAM information?
For detailed answers about SAM, go to the Federal Help Desk.
Are DUNS numbers still being issued for SAM.gov registrations?
No. On April 4, 2022, the federal government stopped using the DUNS Number. Now, entities doing business with the federal government use the Unique Entity Identifier (UEI) automatically assigned in SAM.gov. They no longer have to go to a third-party website to obtain their identifier.
What is a GSA Schedule?
A General Services Administration Schedule allows the government to buy ongoing supplies and services from qualified companies without having to put a contract out for a bid.
How do I become a GSA supplier?
There are a series of steps and guidelines to qualify as a GSA supplier. To find out more go to the GSA Vendor Support Center.