Why New Businesses Should Register With SAM

Working With The Government Is Fantastic For New Businesses

The United States Government has a lot of demand but it goes out of its way to make sure all competition is open and fair. It will work with almost any new business for products and services, as long as the prices are competitive.

The United States government is known for running with high levels of precision and accuracy. Making sure the government contracts are fulfilled is a great way for a new small business to streamline its process and delivery methods.

The Government Can Really Increase The Standing Of A New Business

The government is one of the most powerful consumers in the world. Being a government contractor is a wonderful way for any new business to grow its reputation in the digital marketplace as well as other forms of advertising. It is a fantastic way to build a strong reputation in a relatively short amount of time.

Government Contracts Offer Security In These Uncertain Times.

Covid-19 has halted a lot of different industries. However, the government must continue to move forward for the health and welfare of its people. Government contracting can be a shining light in the pandemic darkness and provide a lifeline to many new struggling businesses who are trying to survive this unprecedented situation.

Can A New Small Business Really Compete For 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 2019 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.

What Is The Sam Directory?

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 large or small that has not registered in the SAM directory.

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 within the System for Award Management (SAM) will require a DUNS number.

Are There Any Other Advantages For A New Business To Registering For The SAM Directory Besides Government Contracting Opportunities?

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

What Is A Federal Grant?

A grant may be 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 lots of other programs within 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 Grants.gov

What Other Information Does A New Business Need to Register For SAM?

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

• NAICS
• 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.

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.

How Can A New Business Easily Register For SAM Without All the Hassle?

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 sam.directory. 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, sam.directory 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.