What is SAM? Episode 2

What is SAM, the System for Award Management?  It is your first step toward becoming a federal contractor.

Welcome to our podcast FedBiz 5, where you get informed, get connected and get results.  In our last episode we discussed some of the fundamentals of federal contracting, evaluating your finances, and preparing your business. Now you are ready for your first step - registration in the System for Award Management, commonly referred to as SAM.

SAM is a federal registration that is required if you are going to participate in the federal market.  It is sometimes called your “accounting record” and is used as the primary database of vendors doing business with the federal government.  

A business can self-certify in SAM, but because of the complexity of the registration process many businesses are better suited to use a professional service to complete their registration.  This may be considered in the same way that many businesses use a professional accountant to file their tax returns to ensure they are complete and compliant.

One of the registration areas that is important to properly identify is your industry classification using NAICS and PSC codes. NAICS codes are the North American Industry Classification System, and PSC are Product (and/or) Service Codes. Simply put, NAICS codes are for your business function or commercial activity, and PSC describe your products or services themselves.  These codes let the federal government, or the federal buyers know what it is you do and makes it easier for them to identify you for award opportunities based on your industry and your products or services offered.

Additionally, businesses must conform to the Federal Acquisition Regulations, referred to as the FAR.  The FAR are the overriding set of regulations for federal procurement and agreement to adherence to the FAR is required to be registered in SAM.  Having a clear understanding of the FAR as you are completing your SAM registration is very critical. A misrepresentation or wrong answer could not only get you in trouble but could bar you from federal work.

Businesses also register their business size and socio-economic status while completing the required solicitation clauses and certification. By completing the required solicitation clauses and certifications you certify that the information provided about your company and its business activities are correct. 

SAM is also a marketing tool for businesses. SAM allows government agencies and contractors to search for your company based on your ability, size, location, experience, ownership and more. SAM also informs searchers of firms certified by the SBA under the 8(a) Development and HUBZone Programs, as well as veteran-owned, women-owned, and minority-owned small businesses.  In addition, it is very important that your SBA registration in the Dynamic Small Business Search or DSBS be properly aligned with your SAM for marketing purposes.

This podcast is sponsored by FedBiz Access - https://fedbizaccess.com.  For government contracting made simple, call (888) 299-4498.

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Transcript

What is SAM? – FedBiz5_Episode 2

Miles Mnich  0:05  

You are listening to FedBiz 5. I'm Miles Mnich, and I do marketing for small businesses. My name is Anthony D'Attore, and I am a federal contracting consultant. And in today's discussion, we will be talking about SAM registration.

Hello and welcome to our podcast FedBiz 5, where you get informed, get connected and get results.  We are going to jump straight into our topic. So we went over in the last episode about the fundamentals of federal contracting and preparing your business. So now you have investigated your market, you've evaluated your finances, and now you're able to move forward. So Anthony, what's the next step?

Anthony D'Attore  0:48  

I would say your next step is the System for Award Management or SAM as it is more commonly referred to.

Miles Mnich  0:54  

Okay, so the question is, "What is SAM?"

Anthony D'Attore  0:58  

SAM is the System for Award Management. It is a federal registration that is required if you are going to participate in the federal market. It is multi-tiered. It is a conglomeration of several other registrations, where they pull them all together to create SAM.  It is a little challenging.  It has many, many facets to it. And I should say this too, that the SAM registration is absolutely free to do on your own and the federal government encourages you to do it on your own. However, my advice is that it is well suited for a company to have that SAM done professionally, the same way the business may have their taxes done professionally. Yes, you can do it on your own.  But in order to get a clear understanding of all the regulations that are embedded in there, and you know, just a good understanding of the questions, it very often is key for a small business to have that done professionally. 

That being said, there are many facets to it.  One of the things that is very important is to identify your industry. And that is done through what are called NAICS codes. That is N A I C S codes, "NAICS," it stands for North American Industry Classification System, and P S C codes, which are Product (and/or) Service Codes. These two coding systems are numeric or alphanumeric depending.  They are used to determine your industry.  This alerts the federal government or the federal buyers as to what it is you do.  The NAICS system is pretty comprehensive.  It can have a tendency to be broad, and it really does help to get some assistance with that. 

PSC codes, well not talked about nearly as much as NAICS codes, are vital. Federal work, and when I say work I mean goods and services, can happen very often without a NAICS code. It cannot go out without a PSC code or at least part of a PSC code. So one of the things that people tend to neglect is that PSC registration, because it is not talked about enough. It is not bandied about the same way NAICS codes are. So having some assistance with that is crucial. 

Additionally, once one gets into the FAR Regulations, the FAR is the Federal Acquisition Regulations and they are kind of the overriding law body that oversees federal procurement. Having a clear understanding of those FAR Regulations as you are filling SAM out becomes very, very critical as well. A missed answer there and you could not only be getting yourself in trouble, but you could certainly be barring yourself from federal work.

Miles Mnich  4:12  

Solid information! And with that being said, that is today's episode. Thank you for listening to today's podcast, and our next episode we will be further discussing NAICS and PSC codes. 

This podcast is sponsored by FedBiz Access - Government Contracting Made Simple. For more information, visit www.FedBizAccess.com. That is F E D B I Z Access.com. Our phone number is 877-376-4249. The extension code is 407. Thank you guys for listening, and we will see you in the next episode.