How Can Small Businesses Enter The Lucrative World of Federal Contacting-Part 1 

How Can Small Businesses Enter The Lucrative World of Federal Contacting 


Can a Small Business really hope to compete for federal government contracts?

The Federal Government is required to reward a certain amount of its contract to small businesses. In fact, last year the Federal government awarded 25% of its contracts to small businesses.

In 2018 the U.S. Small Business Administration announced that the Federal government awarded a total of $105.7 Billion worth of contracts for goods and services to small businesses. This marks the first time that more than $100 billion dollars have been awarded to small businesses and marks a 5 million dollar increase from the previous year.

The following facts are also very enlightening:

  • In FY18, the federal government exceeded the service-disabled-veteran-owned small business and small disadvantaged business goals and the prime contract dollar awards in all small business categories increased from previous years.
  • The federal government also exceeded its subcontract goals for awards to small businesses and women-owned small businesses and awarded more than $79 billion in subcontracts to all small businesses.

Register For SAM

SAM stands for System Award Management.

In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory.

We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process.

As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this important first step to become a government contractor.

What do I need to register for the Sam Directory?

You will need the following :

  • A Data Universal Numbering System or DUNS from Dun and Bradstreet
  • Your Tax Identification Number or TIN
  • A Social Security Number if you are a Sole Proprietor.

What is a DUNS Number?

The Data Universal Numbering System—or D-U-N-S number—was created and copyrighted in 1962 by Dun & Bradstreet. It is a unique nine-digit identifier that has become the standard numbering system to identify businesses across the globe. You can compare the DUNS number as a social security number for your business.

Any contracting opportunity in the System for Award Management (SAM) will require a DUNS number to apply.

What is the difference between a DUNS number and a Federal Tax ID number?

A DUNS number is used for business credit reporting purposes, whereas an EIN is issued by the IRS and used for tax identification purposes.

Are there any other advantages to registering for the SAM Directory besides government contracting opportunities?

A business has to be registered with SAM before it can begin to apply for valuable federal grants.

What is a Federal Grant?

A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA).

The following are the steps to apply for a grant:

  • Step 1: Obtain a DUNS Number
  • Step 2: Register with SAM
  • Step 3: Register with

Is there any other information that I should be aware of to take full advantage of what is offered by registering for the SAM Directory?

It is important that a business understands the government classification system which includes the following codes:

  • PSC
  • FSC

What is a NAICS number?

NAICS is a six-digit code that stands for the North American Industry Classification System. Many federal agencies post contracting opportunities using the NAICS codes. The NAICS is used as an internal reference that quickly describes what a business does. You want to make sure you have the correct NAICS number to qualify for as many contracting opportunities as possible.

What is the PSC number?

PSC stands for Product Service Code and is primarily used by the Federal Procurement Data System (FPDS) and the General Services Administration (GSA).  They are used to describe the types of products, services, and research and development purchased by the federal government.

What is an FSC Code?

Federal Supply Class (FSC) codes are four-digit codes that are used to group products into logical families for supply management purposes. These codes are also used to classify government standards documents into categories, to help manage them more easily. FSC codes are grouped by Federal Supply Group (FSG) numbers.

Make Sure You Have Your CAGE Code (Commercial and Government Entity)

This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM.

What can I do to make registering for the SAM directory as easy as possible?

All this information can at first seem quite daunting at first. We understand that as a small business owner, you have a million things to accomplish on any given day. However, you also do not want to miss out on the honey hole of opportunities provided by the federal government. It is important that you get registered into the SAM directory as quickly and efficiently as possible.

That is why it is a great idea to go to They understand the importance of proper SAM registration and take this confusing process off your hands completely. This website can make sure you are registered in as little as two days.

If you still have questions, will be more than happy to guide you through this often bewildering maze of registration. The consultation is free and you really have nothing to lose.

Remember, registering for the SAM directory gives automatic entry into the extremely lucrative marketplace of the federal government. It is also a crucial step for applying for rewarding government grants that can help your business reach its full potential. Let the professionals at make sure that you do all that is needed to not miss out on this important opportunity. They will make sure that your application is processed quickly and efficiently so you can start being a federal contractor as soon as possible. They remove the hassle so you can go about the important mission of running your company.