Interim Rule Addresses SAM Registration Lapses
In 2018, the provision at Federal Acquisition Regulation (FAR) 52.204-7, System for Award Management (SAM), was updated to provide consistent language regarding SAM registration from proposal submission through award. However, this clarifying text inadvertently disqualified contractors whose registration lapsed, even briefly, between these stages. To address this issue, the government has issued an interim rule, effective November 12, 2024.
The registration lapses from the clarifying text in 2018 were frustrating not only to prospective contractors but to the government as well. “The view that such a lapse makes an offeror ineligible has resulted in loss of resources for otherwise successful small business offerors (e.g., time and costs of litigation, lost income) and the Government (e.g., loss of best-value provider, delays in mission execution via intended contract solution).”1
Amendment to FAR 52.204-7(b)(1)
The interim rule amends FAR 52.204-7(b)(1) to state: “An Offeror is required to be registered in SAM when submitting an offer or quotation and at time of award” (emphasis added). The FAR clause 52.204-13, System for Award Management Maintenance, addresses the requirement to maintain SAM registration during performance and through final payment.
The Federal Register announcement provides for a 60-day comment period for interested parties, after which a final rule will be reviewed by the House and the Senate, as well as the U.S. Comptroller General. The FAR Council fully anticipates that this update will eventually be adopted as written.
SAM Registration Update – Clarification & Anticipated Benefits
It is important to note that this interim rule does not change the requirements for entities to maintain an active SAM registration from the point of award through contract performance and payment. Instead, the interim rule addresses only the eligibility for award of businesses whose SAM registration lapses between proposal submission and award.
Ultimately, the anticipated impacts of this update include fewer bid protests stemming from registration lapses, increased eligibility of otherwise successful contractors, and reduced delays in executing mission-critical contracts.
For questions, contact a member of the Government Contracting team at Forvis Mazars.
- 1 FAC 2025-01, FAR Case 2023-018, Federal Acquisition Regulation: Clarification of System for Award Management Preaward Registration Requirements.