Maintaining an active profile in the System for Award Management is a requirement for getting paid by the federal government. Every year, you must validate your information. While the process is straightforward in theory, specific errors can cause your submission to be rejected or delayed. By avoiding these five common pitfalls, you ensure that your
SAM renewal is processed quickly and your business remains eligible for contracts. Federal Contracting Center helps businesses optimize this process to avoid downtime.
1. Waiting Until the Last Minute
The most critical mistake is procrastination. The validation process involves multiple agencies, including the IRS and DLA. If any of these agencies flag your data, the resolution can take weeks. If you wait until your expiration date is only a few days away, you will likely experience a lapse in coverage. During this lapse, you cannot be paid. Start the process at least 60 days early to account for potential delays.
2. Inconsistent Business Information
Your Legal Business Name and Physical Address must match exactly across all government systems. A common pitfall is using a nickname or an abbreviation in the portal that differs from your tax documents. For example, using "&" instead of "and" can trigger a rejection. ensure you have your official IRS documents in front of you and type the information exactly as it appears there.
3. Ignoring the CAGE Code Review
After you submit your update, the Defense Logistics Agency (DLA) reviews your record to validate your CAGE code. They may email you requesting additional documentation to prove your business exists at the stated address. A major pitfall is missing this email or failing to respond within the 3-day window. If you do not respond, your registration is returned, and you must start over.
4. Incorrect Banking Data
Your Electronic Funds Transfer (EFT) information determines where your money goes. If you have changed banks or accounts since your last update, you must enter the new numbers carefully. Transposing digits is a frequent error. If the banking info is wrong, the Treasury cannot deposit your funds. Double-check every digit before submitting.
5. Forgetting to Submit
Many users complete the update, save their work, and close the browser, thinking they are finished. However, you must click the final "Submit" button to send the record for processing. A saved draft does not count. Always look for the confirmation email that states your record is "Submitted" or "Processing" to ensure you have actually completed the task.
Call to Action
If you want to ensure your profile is updated correctly without the risk of errors, Federal Contracting Center is ready to assist. Visit https://www.federalcontractingcenter.com/ to see how their services can keep you compliant.
