Deciding whether or not you should perform your own System for Award Management (SAM) registration can be a tough pill to swallow. Making the attempt to conduct the process on your own as a brand new user can lead to big mistakes for your business.
The biggest problem with individuals filing their own SAM registration or CCR to SAM Migration is that they input incorrect information, leave simple errors and are subject to possible fines.
According to the civil penalty stated in the FAR 31 1352-(C). if your business files the SAM registration and files incorrect financial information (located in the the Reps & Certs section) the business can receive a fine between $10,000 to $100,000 depending on the severity of the error.
The government fines companies for the incorrect data filing of the Reps & Certs section because it appears like the business is lying about their financial information.
Another sad fact is that our government will not tell you what specific thing you did wrong in your SAM registration. The Federal Government has no required obligation to point out to you where you made your error. In fact, they won't even tell you how to fix it either.
Ask yourself, is this honestly a risk I am willing to take?
Ask yourself these 9 questions before you attempt to conduct your own SAM registration :
1) Do you have an in-house attorney?
2) Do you hire an accountant to professionally file your taxes?
3) Have you read the current updated FAR Manual?
4) Do you employ someone at your business to track all your accounts?
5) Are you or any of your employees free of felonies?
6) Are you familiar with the federal government’s acquisition process and/or FedBizOpps?
7) Do you have a dedicated marketing person on staff?
8) Has your businesses registered for a Dun & Bradstreet number?
9) Have you looked into small business federal set-asides for added procurement funding and opportunities?
If you have said no to four or more of the questions, we highly recommended that your business uses a third party registration firm to conduct your SAM registration.
If you said yes to eight or more of the questions above there is a good chance that you might be able to conduct the SAM registration on your own without the professional assistance.
The Georgia Tech PTAC estimates that “around 600,000 firms presently registered in SAM.gov have errors in their records. The mistakes range from misspelled words to empty data fields, to incomplete entries, to selection of incorrect procurement codes, and other flaws. As a result, these vendors miss-out on government contract opportunities either because they are screened out for not exhibiting attention to detail or because of incomplete information they cannot be identified by government buyers.”
Remember: Scientists, lawyers, engineers, scholars, medical professionals and accountants have all hired third party registration firms due to their lack of knowledge in the field of government acquisition.
Businesses that hire third party registration firms are not put at any risk during the government registration process due to the experience and validation of services. Most businesses not only look at it as a safe investment but a guarantee of approval. Why put your business at risk of fines or unresolved issues? Businesses that are not properly registered in the SAM registration usually are given a federal fine, neglected by procurement officers and/or left idle in the massive database.