Georgia Tech Procurement Assistance Center

New login required for SAM

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To do business with the federal government, you need an account in the System for Award Management (SAM).

Whether you already have a SAM account or need to set one up, you need to know there is a new login procedure.

All users attempting to login to SAM are now automatically re-directed to first create a Login.gov user account.  If you already have a SAM username and password they no longer work, and you will be unable to access your SAM account until you have created a Login.gov account.

Creating a Login.gov Account
In order to create a Login.gov account, you will need each of the following:
  1. The email address and password associated with your SAM account.
  2. Access to the same email account to receive all confirmation emails.
  3. A working telephone number through which you can receive the security code that will be sent to you from Login.gov.
Need help with any step of the SAM registration process?

Never fear!  The Georgia Tech Procurement Assistance Center (GTPAC) will provide you with help at no charge.  Simply contact the GTPAC counselor located nearest you; our staff directory is at: http://gtpac.org/team-directory.  (Businesses located outside the state of Georgia can obtain free help from their nearest procurement technical assistance center.  Consult the national contact list at: http://www.aptac-us.org/find-a-ptac.)

Other recent changes to SAM

Each business must mail an original, signed notarized letter to GSA’s Federal Service Desk within thirty (30) days of their SAM activation or risk having their SAM registration deactivated.

Because of recent fraudulent activity associated with the SAM database, the General Services Administration (GSA) issued a rule in late March 2018 that requires all SAM registrants (“entities”) to provide an original, signed notarized letter identifying your company’s “authorized Entity Administrator.”   The notarized letter must follow a strict format.  GSA’s notarized letter template is available here: SAM_Notary_Letter_Template_4.12.18_GSA_version

In instances where businesses have federal contract awards or contract payments pending, GTPAC — and the other PTACs across the country — can offer special assistance to expedite the processing of their notarized letters.  When contacting your PTAC counselor, be sure to let us know if you are facing either of those two circumstances.

Don’t get stuck with an expired SAM registration — be alert to changes in the renewal process

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If your business is registered in the federal government’s System for Award Management (SAM), you must renew your registration annually.

Be alert: Change is coming!

Whether you are familiar with the SAM renewal process or a newcomer to the process, things are about to change on June 29th.

Beginning June 29, 2018, two changes take place:

  • A new login process for SAM takes effect.  As a result of the new process, all users attempting to log in to SAM will be automatically be re-directed to create a Login.gov user account.  Your current SAM username and password will no longer work beginning on June 29th, and you will be unable to access your SAM account until you have created a Login.gov account.  (See “Creating a Login.gov Account” below.)
  • You’ll have more time to submit a notarized letter.  Businesses who create or update their registration in SAM also will no longer need to have an approved Entity Administrator notarized letter on file before their registration is activated or renewed.  Once your SAM account is activated, you’ll have 30 days to submit the notarized letter.  (See “Creating a Notarized Letter” below.)
Creating a Login.gov Account
In order to create a Login.gov account, you will need each of the following:
  1. The email address and password associated with your SAM account.
  2. Access to the same email account to receive all confirmation emails.
  3. A working telephone number through which you can receive the security code that will be sent to you from Login.gov.

Remember, once June 29, 2018 arrives, your SAM username and password will be deactivated, and you will no longer be able to access your SAM account with those credentials.

Creating a Notarized Letter

Each business must mail an original, signed notarized letter to GSA’s Federal Service Desk within thirty (30) days of their SAM activation or risk having their SAM registration deactivated.

Because of recent fraudulent activity associated with the SAM database, the General Services Administration (GSA) issued a rule in late March 2018 that requires all SAM registrants (“entities”) to provide an original, signed notarized letter identifying your company’s “authorized Entity Administrator.”   The notarized letter must follow a strict format.  GSA’s notarized letter template is available here: SAM_Notary_Letter_Template_4.12.18_GSA_version

Need help with any step of the SAM registration or renewal process?

Never fear!  The Georgia Tech Procurement Assistance Center (GTPAC) will provide you with help at no charge.  Simply contact the GTPAC counselor located nearest you; our staff directory is at: http://gtpac.org/team-directory.  (Businesses located outside the state of Georgia can obtain free help from their nearest procurement technical assistance center.  Consult the national contact list at: http://www.aptac-us.org/find-a-ptac.)

In instances where businesses have federal contract awards or contract payments pending, GTPAC — and the other PTACs across the country — can offer special assistance to expedite the processing of their notarized letters.  When contacting your PTAC counselor, be sure to let us know if you are facing either of those two circumstances.

Free help available to aid businesses with new SAM registration and renewal requirements

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If your business needs assistance in either establishing or renewing your registration in the federal government’s vendor database known as the System for Award Management (SAM), you can get free help.

Whether you are seeking SAM registration for the first time or you need to accomplish your annual renewal in SAM, the Georgia Tech Procurement Assistance Center (GTPAC) will provide you with help at no charge.  (Businesses located outside the state of Georgia can obtain free help from their nearest procurement technical assistance center.  Consult the contact list at: http://www.aptac-us.org/find-a-ptac.)

New SAM Registration Requirements

There are new registration and renewal procedures that are now in place.  Because of recent fraudulent activity associated with the SAM database, the General Services Administration (GSA) issued a rule in late March 2018 that requires all registrants (“entities”) to provide an original, signed notarized letter identifying your company’s “authorized Entity Administrator.”   The notarized letter must be submitted and approved before your registration will be activated.

The notarized letter template is available here: SAM_Notary_Letter_Template_4.12.18_GSA_version

An update to the notarized letter rule was issued by GSA on June 11, 2018.  The update is in two parts:

  1. Effective June 11, 2018, entities who create or update their registration in SAM to apply only for federal assistance opportunities such as grants, loans, and other financial assistance programs  no longer need to have an approved Entity Administrator notarized letter on file before their registration is activated.  (Note that this does not include entities competing for federal contracts.)
  2. Effective June 29, 2018, all non-Federal entities who create or update their registration in SAM also will no longer need to have an approved Entity Administrator notarized letter on file before their registration is activated.  This rule includes businesses that are competing for, or that currently have, federal contracts.

It is important to note that all entities must mail the original, signed notarized letter to GSA’s Federal Service Desk within thirty (30) days of activation or risk having their SAM registration deactivated. 

New SAM Log-In Requirements Take Effect June 29, 2018
GSA is also implementing a new login process for SAM which takes effect on June 29, 2018.  As a result of the new process, all users attempting to log in to SAM on or after June 29, 2018 will be automatically directed to create a Login.gov user account.  Your current SAM username and password will no longer work beginning on June 29th, and you will be unable to access your SAM account until you have created a Login.gov account.
In order to create a Login.gov account, you will need each of the following:
  1. The email address and password associated with your SAM account.
  2. Access to the same email account to receive all confirmation emails.
  3. A working telephone number through which you can receive the security code that will be sent to you from Login.gov.

Remember, once June 29, 2018 arrives, your SAM username and password will be deactivated, and you will no longer be able to access your SAM account with those credentials.

Free Help Is Available!

As mentioned in the second paragraph of this article, GTPAC (or, if you’re located outside Georgia, your local PTAC) will help you with all aspects of the SAM registration and renewal processes.  Simply contact the GTPAC counselor located nearest you; our staff directory is at: http://gtpac.org/team-directory.

In instances where businesses have federal contract awards or contract payments pending, GTPAC and the other PTACs across the country can offer special assistance to expedite the processing of their notarized letters.  When contacting your PTAC counselor, be sure to let us know if you are facing either of those two circumstances.

Further Details

For more help with the SAM registration process, including how to protect your company’s interests, please read:

 

 

Schemes targeting small business contractors proliferate

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Small businesses are reporting alarming new tactics being used by some for-profit firms trying to get them to sign up for services.

The Association of Procurement Technical Assistance Centers (APTAC) reports that, in one case, a company “cloned” a Small Business Administration (SBA) webpage, to make it appear that the SBA was recommending registration in a specific subcontractor database.  In another example, a firm has been reaching out to “potential subcontractors” claiming to be working on a specific DoD project.  Further investigation showed this to be false and fraudulent.

Small contractors continue to be flooded with official sounding emails, texts, phone calls and even faxes that are part of sophisticated marketing campaigns designed to entice them to sign up for services that they may not want or need.  The so-called “services” involve hefty fees, of course.  The Georgia Tech Procurement Assistance Center (GTPAC) regularly hear from business owners who – thinking they are responding to a government official – mistakenly commit to a sales contract they don’t understand and can’t get out of.  Worst of all, many of the sales pitches are for substandard services that GTPAC – and PTACs in other states – provide in a superior fashion at no cost.

Knowledge Is the Best Defense

Below are details of some recent campaigns that have come to APTAC’s attention.  Be alert to any such communications you receive – or anything similar – and think carefully before responding.  If you have questions or suspicions, feel free to reach out to GTPAC or your local PTAC to discuss. As with any business decision, thorough research into qualifications, costs, realistic expectations, and clearly articulated deliverables is the key to determining the right solution for your business. Never let yourself be pressured into a hasty decision or enticed by an “easy fix” or opportunity. Careful due diligence is always the best investment you can make.

Recent campaigns APTAC has been alerted to include:

  • “FedBiz Directory”: An email informs recipients that “a new Directory has been created to help federal contracting officers conduct small business market research in accordance with Federal Acquisition Regulation (FAR) Part 10.”  The email recipient is informed that “in order to migrate Dynamic Small Business Search (DSBS) small business marketing information into the FedBizDirectory, we need to receive verbal confirmation.”  Callers to the phone number in the email are informed that must pay a fee to be listed in the “directory.”  There are at least a couple problems with this pitch: 1) federal contracting officers don’t need a directory because they already have access to the SAM and DSBS databases, and 2) since these databases are public, if someone wanted to create a directory, they wouldn’t need your permission to include you.
  • Subcontractor “Phishing”: Very convincing emails come from a firm that purports to be a prime contractor looking for subs for potential set-aside subcontracts.  After some preliminary questions, the small business is told that the agency contracting officer is concerned about past performance – because the business does not have a profile in a particular database.  Be advised: DoD, Homeland Security, FEMA, and other agency officials do not rely on private databases for past performance information. They use SAM, the SBA’s Dynamic Small Business Search (DSBS) and the federal Past Performance Information Retrieval System (PPIRS) for their work, none of which entail a fee.
  • “Profile Processing”: Have you just registered (or renewed) in SAM (the government’s System for Award Management)?  You may receive a notice that says, “Your SAM registration for your CAGE Code has been received and is in processing. The next step is to assign your company a Senior Case Manager whose function is to manually process all of your profile details in the various federal databases as required per Federal Acquisition Regulations. For this, a $599 registration fee is immediately due and payable with any major credit card,” or “Your Profile Information has been received and is processing. . . . Call us via our helpline at (xxx) xxx-xxxx to find out your company’s eligibility and compliance requirements,” or a similar message.  These messages do NOT come from the government!  They come from one of several private firms that want you to pay them big bucks (up to $3,500 or more) to handle your profile. They monitor SAM registration activity closely – and then send emails like these (or even text messages) that may seem like a government confirmation or follow-up.  Offers to “manually enter profile details,” “review eligibility,” or “find out what needs attention” come from private firms – not SAM or any other federal agency – and will include a significant – and unnecessary – price tag.
  • SAM “Renewal” notices: You may receve a message exhorting you to renew your SAM registration and “Click here to continue to receive federal payments” or call a designated number to “renew over the phone.“  In actuality, SAM renewals are to be accomplished – by you – online.  There is no capability to renew “over the phone” unless you are paying someone else to do it online for you.  And SAM registration allows the government to pay vendors electronically without the need for an intermediary.  This notice also incorrectly states:“Fail to renew your Registration, and the government will place your business on the federal watch list.”  There is no such thing!  Renewing a SAM registration is a simple task that business owners can accomplish easily, on their own.  For those with questions, or for those who need help making changes, PTACs stand ready to help – at no cost to the business owner.  Never give your SAM user name and password to anyone else!
  • “Vendor Listings”: PTAC clients have been reporting contacts from “US Army Contracting officers” who request their Capability Statement and then urge them to register with a private firm (which also offers consulting services) to include their company on its vendor listing (for a substantial fee).  One client dug deeper to discover that the “contracting officer” listed in the email had no knowledge of the firm and that the email address it came from (with a spoofed “.mil” address) was not a valid email. Consulting a private “vendor listing” for agency purchasing runs counter to Federal Acquisition Regulation (FAR), and any claim to the contrary should be viewed with skepticism.
  • Easy sole-source promises: We’ve just become aware of a newer firm that promises “to connect qualified applicants to sole and sub source contracts with the United Nations and government agencies domestically and abroad.”   Their very personalized and targeted marketing campaign is forthright about being a company and not an agency — but the company implies that they can offer immediate, concrete and assured opportunities, including the statement “Sit back, relax, and watch the orders come to you. Be ready to fill them!”  Beware of promises like these that are too good to be true. Success in government contracting requires a carefully-considered, long-term strategy and hard work.  There are no short cuts.

Of course there are circumstances in which it makes sense for a small business to pay a consultant for specialized legal or financial help or for intensive project development, and there are many qualified professionals to choose from. But it is important to make these decisions based upon your specific needs in the context of your long-term strategy.

Remember: There is NEVER a fee to register as a government contractor. Repeat – there is NEVER a fee to register as a government contractor. And there is free and low-cost help available to get you through the process.

For those who’d like help with registrations, renewals, certification applications, or any other government contracting issue, Procurement Technical Assistance Centers (PTACs) provide and free and low-cost expert assistance with all aspects of government contracting.  PTACs offer classes, one-on-one counseling, bid-matching services, advice on proposal preparation, matchmaking/networking opportunities and much more. Many PTAC counselors have backgrounds in government acquisition offices or prime contractor government contracting departments, so they bring real world experience to help you.

For those companies that need more basic business assistance, Small Business Development Centers (SBDCs) provide similar hands-on, personalized help for general business operation topics. Because small companies must make every dollar count, it’s smart to leverage these services that are provided through non-profit, federal-local partnerships for the specific purpose of supporting small businesses.

To receive assistance with any aspect of vendor registration with any government agency at no cost, please feel free to contact a PTAC near you.

There is no charge to establish a Distribution and Pricing Agreement for sale of medical supplies to DLA

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Once again, the Georgia Tech Procurement Assistance Center (GTPAC) warns our clients to be careful when approached by third parties charging a fee for various government registrations.

There is NEVER a fee to register as a government contractor.  Repeat – there is NEVER a fee to register as a government contractor.  And, there is free help available to get you through the process.

The latest instance of an attempt to charge a fee is in connection with the Defense Logistics Agency (DLA) Medical/Surgical Prime Vendor Program.  If you are interested in supplying pharmaceuticals, medical/surgical supplies, or medical equipment to Department of Defense (DoD) medical treatment facilities, then you should consider enrolling in DLA’s Prime Vendor Program.  Enrollment in this Program is free, and something you can accomplish yourself.

A Prime Vendor is a distributor of brand-specific pharmaceuticals and medical supplies typically for next-day delivery to DoD medical treatment facilities (and other federally-funded facilities) who are customers of DLA’s Medical/Surgical Prime Vendor Program.  In the Program, DLA provides item prices permitted to be charged to customers.  The Prime Vendors are compensated via the payment of a distribution fee, which is a contracted percentage of the item price delivered.  Prices are set, independent of the Prime Vendors. directly with manufacturers and suppliers via a pricing instrument known as a DAPA – a Distribution and Pricing Agreement.  For details on DAPA, download DLA’s publication entitled “DAPAs Made Easy” by clicking here: DAPAs Made Easy.

To apply for a DAPA, you must visit www.medical.dla.mil and agree to the terms and conditions of the site.  From there, follow the registration instructions on pages 2 and 3 of the “DAPAs Made Easy” publication mentioned at the end of the previous paragraph.   For general information about selling to the DLA medical supply chain, visit:    https://www.medical.dla.mil/Portal/Supplier/HowDoISell.aspx.

While obtaining a DAPA is a requirement for manufacturers and suppliers to provide their medical-related products through DLA’s Medical/Surgical Prime Vendor Program, it is only the first step in the process.  All DAPA-holders are also required to sign a distribution agreement, obtain product liability coverage, and market their products.  Again, each of these steps are described in detail in the “DAPAs Made Easy” publication.

If you need help with any of these steps, don’t hesitate to contact one of GTPAC’s Procurement Counselors.  You can find all of our contact information here: http://gtpac.org/team-directory.   GTPAC assists any Georgia business with any government contracting matter free of charge.  (If your company is located outside Georgia, you can find a Procurement Technical Assistance Center – PTAC – that will provide free or low-cost assistance at: http://www.aptac-us.org/find-a-ptac.)

Once again, please be careful when responding to emails, letters, faxes, and phone calls from organizations that charge fees for any form of government contract-related registrations.  There is NEVER a fee to register as a government contractor.  In addition, when viewing websites that offer vendor registration, make sure the URL (the web address) ends in .gov (federal, state, or local governments) or .mil (U.S. military).   Earlier this year, the owner of a government contract registration firm was convicted of fraud for tricking at least 1,200 businesses into believing they needed to employ his services in order to qualify for contracts issued by the Federal Emergency Management Agency (FEMA).

SBA publishes contact information for disaster response contracts

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The Small Business Administration (SBA) has identified officials responsible for the agency’s contracting in support of emergency recovery efforts in the wake of Hurricanes Harvey and Irma.  The information available here lists SBA points of contact (POCs) for disaster contracts nationwide, 8(a) program waivers nationwide, protests and eligibility matters, and regional contacts.

The SBA is reiterating the importance of the government’s Disaster Response Registry for firms wishing to be identified by government contracting officials as potential contractors in activity categories such as debris removal, distribution of supplies, reconstruction, and other disaster or emergency relief supplies and/or services.  Government agencies search the Disaster Response Registry of the System for Award Management (SAM) to find contractors that can help respond to disasters. The Registry within SAM lists contractors that offer services that support disaster recovery contracting efforts.  Local firms affected by a Presidential major disaster or emergency declaration may be given contracting preferences under the terms of the Stafford Act.

Businesses must register in SAM to be eligible for disaster relief contracting opportunities. On average, it takes 2-3 days to complete the registration process. Once your registration is active, your firm will be added to the Disaster Response Registry.  During registration, you must indicate you want to participate in the Disaster Response Registry and provide the required information on the Disaster Response Information page within the Assertions module.

Contact the Federal Service Desk (FSD) to get help registering. If you’re located in the U.S. and its outlying areas, you can get free support from your local Procurement Technical Assistance Center (PTAC), an official resource for government contracting assistance.   In Georgia, the PTAC is operated by Georgia Tech.  The Georgia Tech Procurement Assistance Center (GTPAC) advises businesses to seek its no-cost assistance before paying for any registration services.  GTPAC also warns vendors to be cautious in selecting outside help, noting a recent fraud conviction involving a company misrepresenting itself as a vendor registration list for FEMA.

Remember, it is FREE to register and maintain your registration in SAM. If you get an email from any address that does not end in .gov or .mil, be cautious. If you get an email, text message, or phone call asking for money or payment of any amount, be very cautious. These parties do not represent the U.S. government. You engage third party vendors at your own risk.

In Georgia, you can contact a PTAC counselor at the Georgia Tech Procurement Assistance Center at: http://gtpac.org/team-directory.  If your business is located outside Georgia, you can identify the PTAC serving your state at: http://www.aptac-us.org/find-a-ptac.

See GTPAC’s other articles on disaster recovery contracting by clicking on these links:

Tips for disaster recovery contracting

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If you are seeking to do business with the Federal Emergency Management Agency (FEMA) in support of a disaster recovery effort, please be aware that in accordance with the Robert T. Stafford Act, FEMA seeks out local companies to perform contract work within the disaster area for goods and services related to a specific disaster.

The Army Corps of Engineers, and its contractors, actually do a lot of disaster response and recovery work such as debris removal. Use this link to access more information on contracting with the Corps in emergency situations: http://www.usace.army.mil/Missions/Emergency-Operations/Contracting-in-Disasters.

You can use this link — www.moveit.gsa.gov — for access to the General Services Administration (GSA) Transportation Management Services Solution (TMSS).   FEMA procures many of its transportation needs through GSA including: truckload services, air charter, barges, air freight, air ambulance, heavy hauler, rail, vehicle rental, truck rental, travel trailers, and mobile homes.

Please Note: There are companies that mimic services of Federal agencies, and these companies typically charge fees for services that your business can typically accomplish yourself.  Be aware that most, if not all, Federal Government services are free of charge.  If you are approached by letter, email or phone to buy access to federal contracting opportunities, always make it a practice to reach out to the appropriate Federal agency first to inquire about the validity of the service, specifically if a fee is associated with it.  An excellent source of no-cost assistance associated with navigating the government contracting process is the Georgia Tech Procurement Assistance Center (GTPAC).  You may contact GTPAC via email at: gtpacatl@innovate.gatech.edu.  If your business is located outside the state of Georgia, you can find similar no- or low-cost help at: http://www.aptac-us.org/find-a-ptac.

Helpful Tips For Contractors:
  • Get to know the Federal Business Opportunities website www.fbo.gov (known as FedBizOpps or FBO). FedBizOpps is the single point-of-entry to search, monitor, and retrieve Federal procurement opportunities. You will also find subcontractor, supplier and teaming opportunities here.
  • Monitor the Department of Homeland Security’s planned contract opportunities on the DHS Acquisition Planning Forecast System (APFS) located at: http://apfs.dhs.gov/.
  • Accept the government purchase card or credit card. The government buys more than $5 billion in goods and services annually using purchase cards.  In emergency contracting situations, a great many government purchases are micro-purchases less than $3,500.  (Note: Effective Aug. 29, 2017, the micro-purchase threshold for disaster recovery contracting was raised to $20,000.  See details at: http://contractingacademy.gatech.edu/2017/09/05/micro-purchase-and-simplified-acquisition-thresholds-raised-for-hurricane-harvey-response.)
  • Promote your business in electronic catalogs. If you are a GSA Schedule contractor, GSA Advantage and other electronic commerce initiatives will allow you to list your products or services for government browsing.
  • Publish your catalog listings on your company website. Having a website allows interested buyers to access additional information regarding your company (experience, past performance record, financial stability) after reviewing product descriptions.
  • See other helpful information at: http://gtpac.org/2017/08/31/register-free-if-you-want-to-provide-debris-removal-supplies-reconstruction-and-other-disaster-or-emergency-relief.

Register — free — if you want to provide debris removal, supplies, reconstruction, and other disaster or emergency relief

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When national emergencies or disasters such as floods and hurricanes occur, supplies and services need to be procured by the federal government and rushed to the affected area.  To expedite this process, the System for Award Management (SAM) contains a Disaster Response Registry in accordance with FAR Subpart 4.11 and FAR Subpart 26.2 listing those contractors who are willing to provide debris removal, distribution of supplies, reconstruction, and other disaster or emergency relief supplies and/or services.

A company must be registered in the System for Award Management (SAM) at https://www.sam.gov for federal contracts and other procurement opportunities in accordance with FAR Subpart 4.11, to be included in the Disaster Response Registry.  On average, it takes 2-3 days to properly register and have a company’s registration become active in SAM.  It may take longer.

During the registration process, companies must indicate that they want to participate in the Disaster Response Registry and provide the required information on the Disaster Response Information page within the “Assertions” module.  Once a company’s registration is activated, it will be added to the Disaster Response Registry, and federal contracting officers will be able to locate the company through the search function within the Disaster Response Registry.

You can get FREE help with your registration by contacting the supporting Federal Service Desk (FSD).  In addition, if you are located in the U.S. and its outlying areas, you can get FREE support from your local Procurement Technical Assistance Center (PTAC), an official resource for government contracting assistance.  Check the PTAC website at http://www.aptac-us.org/find-a-ptac to locate your closest PTAC.

Remember, it is FREE to register and maintain your registration in SAM. If you get an email from any address that does not end in .gov or .mil, be cautious. If you get an email, text message, or phone call asking for money or payment of any amount, be very cautious. These parties do not represent the U.S. government. You engage third party vendors at your own risk.

In Georgia, you can contact a PTAC counselor at the Georgia Tech Procurement Assistance Center at: http://gtpac.org/team-directory.

Owner of fraudulent government contract registration firm sentenced to prison for tricking 1,200 vendors

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In April of this year, the Georgia Tech Procurement Assistance Center (GTPAC) reported on the guilty plea entered by the operator of a phony government contract registration firm charged with wire fraud for his part in tricking at least 1,200 businesses into believing they needed to employ his services in order to qualify for contracts issued by the Federal Emergency Management Agency (FEMA), a unit of the U.S. Dept. of Homeland Security.

On Friday, August 11, 2017, he was sentenced to four years and two months in federal prison, along with a $594,000 judgment against him, for his role in these fraudulent activities.

In Tampa, Florida, U.S. District Judge Charlene E. Honeywell imposed the sentencing terms on Michael Pirolo who earlier pled guilty to the charges against him.  According to court documents, Pirolo served as the president of Government Contract Registry, Inc. (GCR), doing business as FEMA Contract Registration. He employed telemarketers who, during communications with victim-companies, falsely claimed that — for a fee — GCR would “register” the companies with FEMA to enable them to receive preference in obtaining contracts from FEMA.  The GCR telemarketers’ communications were based on instructions and scripts that they received from Pirolo.

Specifically, the telemarketers falsely and fraudulently stated that for a one-time fee of $500, the customer would be registered with FEMA, and that this registration would place the customer on a list of “preferred” vendors.  When the need for a vendor arose, GCR telemarketers falsely stated that FEMA would bypass the standard contract acquisition process, contact the registered victim-company, and then offer a no-bid contract.  At times, Pirolo also instructed GCR telemarketers to go back to victim-companies that had already paid the $500 one-time fee and seek renewal and payment of another fraudulent $500 fee.

To further the scheme, the GCR telemarketers provided victim-companies with an online GCR form that requested the same information as a form on FEMA’s public website.  In fact, FEMA does not charge a fee to companies to complete its vendor information form.  The purpose of FEMA’s form is to assist the agency with market research in identifying viable possible vendors.  FEMA’s form does not “register” companies.  In actuality, registration in the federal government’s System for Award Management (SAM) is the government-wide vendor registration system.  Vendors can register in SAM at no cost.  

Once GCR telemarketers received the victim-companies’ information, GCR completed and submitted the online FEMA form that then enabled emails to be sent from FEMA to the victim-companies, giving the appearance that the companies had been “registered.”  The FEMA emails gave GCR the appearance of legitimacy.

The approximate 1,200 victim-companies who were misled by this scheme paid GCR at least $604,500.

This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General, and the General Services Administration, Office of Inspector General.  It was prosecuted by Assistant United States Attorney Adam M. Saltzman.

GTPAC again reminds its clients and all other vendors that government agencies never charge a fee for registration in government databases.  This includes vendor databases maintained by FEMA and the government-wide vendor database known as SAM.

While one scam — the company featured in this article — has been put out of business, there are others still in operation, so beware!   To read more about questionable practices involving the FEMA and SAM vendor registration databases, click on the links below:

For no-cost assistance with registering in SAM — and no-cost help with many other aspects of government contracting — contact GTPAC at http://gtpac.org/contact-us.   If your business is located outside the state of Georgia, feel free to contact the procurement technical assistance center (PTAC) nearest you.  Locate the PTAC offices in your state at http://www.aptac-us.org/find-a-ptac.

Bipartisan Senate bill introduced to protect small businesses from contracting fraud

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U.S. Senators Gary Peters (D-MI) and Susan Collins (R-ME) are introducing bipartisan legislation to help protect small businesses from falling victim to fraud when they register as vendors for federal contracts.

The Procurement Fraud Prevention Act would require small businesses to be notified that free assistance is available for help in procuring federal contracts through federal programs, including Procurement Technical Assistance Centers (PTACs), the Small Business Administration (SBA), and the Minority Business Development Agency (MBDA).  Many business owners are unaware these resources exist and fall victim to scams that mislead them into paying high sums of money for contract procurement assistance.

All small businesses applying for federal contracting opportunities must register in the General Services Administration’s System for Award Management (SAM). Unfortunately, bad actors obtain businesses’ contact information from this public database and then email business owners asking for high sums of money in return for registration and contracting assistance. Some scammers impersonate government officials in order to mislead businesses into paying for these services.  As a result, many small businesses unwittingly sign up for services they were not seeking at the cost of hundreds or thousands of dollars. While various firms provide legitimate contracting assistance, bad actors intentionally use predatory tactics to drain money from small businesses.

The Procurement Fraud Prevention Act will require GSA and the Office of Management and Budget (OMB) to ensure that any direct communication to a small business about its registration in a procurement system, including SAM, contains information about cost-free federal procurement technical assistance services available through PTACs, SBA, MBDA, and other programs. These services — like those offered by the Georgia Tech Procurement Assistance Center (GTPAC) — are readily available to help small businesses succeed.

PTACs across the country, including GTPAC, regularly report small businesses coming to them after these fraudulent encounters, seeking corrective action, with some PTACs reporting up to 10 fraudulent solicitations per week.  The Georgia Tech PTAC serves 2,200 businesses across Georgia through offices in Atlanta, Gainesville, Carrollton, Athens, Augusta, Savannah, Albany, and Warner Robins.

“The nation’s small businesses are being exploited by fraudulent operators who mislead federal contracting newcomers into believing that they must pay exorbitant registration fees in order to be eligible for government contracts,” said Terri Bennett, president of the Association of Procurement Technical Assistance Centers (APTAC).  “The legislation introduced by Senator Gary Peters and Senator Susan Collins will require federal agencies to be proactive in notifying small businesses that the help they need is available at no cost through programs like the nationwide network of Procurement Technical Assistance Centers (PTACs).  This should go a long way to stop the exploitation of small businesses.”

“Small businesses would benefit greatly from the Procurement Fraud Prevention Act,” said John Arensmeyer, Founder & CEO of Small Business Majority. “Many small businesses are falling victim to scams after they register with the System for Award Management to compete for a contract because they do not realize they are entitled to free registration and procurement assistance through existing federal programs. Small business owners have enough to worry about without scammers making them think they need to pay additional fees to compete, and we encourage lawmakers to approve the Procurement Fraud Prevention Act in order to make the federal contract procurement process as painless as possible for small firms.”

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