A recent amendment to the Federal Acquisition Regulation (FAR) brings welcome clarity to System for Award Management (SAM) registration requirements, especially for businesses seeking to participate in federal contracts. This interim rule stipulates that offerors need to be registered in SAM at two critical points—when submitting an offer and at contract award—but removes the requirement for continuous registration in the intervening period. This clarification addresses longstanding confusion stemming from a 2018 rule, which inadvertently created the impression that an uninterrupted registration was required throughout the entire pre-award process. For many contractors, especially small businesses, the continuous registration requirement led to unexpected challenges, with some facing bid protests, delays, or even ineligibility due to temporary registration lapses.

The rule change was driven in part by recent bid protests and court rulings that highlighted the inconsistencies in how agencies interpreted SAM registration timing. In some cases, brief registration lapses, often for minor technical reasons, resulted in the rejection of otherwise qualifying bids. The updated FAR rule specifically notes that registration must be active only at offer submission and at the time of award, removing the ambiguity that led to unnecessary protests and litigation. This change intends to simplify compliance, reducing the risk of losing contract opportunities due to brief, often unintentional, gaps in registration status.

From a procedural standpoint, the clarified rule means that contracting officers will confirm registration at the point of offer submission and then again at contract award. In the past, some agencies interpreted the prior rule as requiring contractors to maintain an active registration continuously, which placed an undue burden on offerors to monitor their SAM status without lapses. With the new rule, contractors have a clear understanding of when their registration must be current, easing administrative demands and allowing more focus on meeting the substantive requirements of their offers.

This change particularly benefits small businesses, which make up a significant portion of federal contractors. These companies often face resource constraints that make it challenging to address administrative technicalities quickly. By limiting registration checks to critical points in the procurement process, the FAR amendment seeks to ensure that small businesses are not disqualified over minor, correctable issues. Additionally, the amendment reduces the risk of contract delays and missed opportunities caused by registration disputes, providing a smoother procurement process for both contractors and federal agencies.

This blog post is a general summary of recent regulatory updates and is not guaranteed to be accurate. It does not constitute legal advice.