Georgia Tech Procurement Assistance Center

You’d better ‘feed’ SAM regularly — especially before you submit a bid

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Effective October 26, 2018, the Federal Acquisition Regulation (FAR) requires businesses who are pursuing federal contracts to be registered in the System for Award Management (SAM) prior to their submission of a bid, proposal, or quote to a federal agency.

Think of this as the need to “feed” information about your company into the SAM database, including updates to that information, on a regular basis.

There are only a few exceptions to this new policy (exceptions may be found at FAR 4.1102).

In the context of federal contracting, SAM is essentially the federal government’s vendor database.  By registering in SAM, businesses indicate their compliance and agreement with the federal government’s standard “representations and certifications” requirements.  Updating your SAM record must be done at least annually for a vendor to maintain “active” status is SAM.

The new rule clarifies what had been ambiguity as to when vendors must be registered in SAM in order to be eligible to receive contract awards.  (See details in our earlier article on this subject here.)  With the FAR change, it’s now clear that registration must be accomplished before a vendor submits a response to an Invitation for Bid (IFB), a Request for Proposal (RFP), or a Request for a Quotation (RFQ).

If you need help with your company’s SAM registration, feel free to contact a Procurement Counselor with the Georgia Tech Procurement Assistance Center (GTPAC).  All of our contact information is listed by location at: https://gtpac.org/team-directory.

If you are located outside of the state of Georgia, you can find the procurement technical assistance center (PTAC) nearest you at: http://www.aptac-us.org/contracting-assistance.

Remember: There is never a fee to register in SAM as a government contractor. PTACs are available to provide you with no-cost help to get you through the process.

 

Effective Oct. 26, you must be registered in SAM before you submit a federal bid, proposal or quote

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It’s official: If you intend to pursue a federal contract, your business must be registered in the System for Award Management (SAM) before you submit a bid, proposal, or quotation.  The new rule that makes this clear goes into effect on October 26, 2018.

Any wiggle room that may have existed in the past has been eliminated.  SAM registration is now imperative if you are interested in federal contracting.

It used to be that SAM registration was required before a contract could be awarded. The Federal Acquisition Regulation (FAR) at Subpart 4.1102(a) made that clear.  But that requirement was always a bit ambiguous since another provision of the FAR (Subpart 52.204-8(d)) said that bidders and proponents had to complete the representations and certifications in SAM as a condition of making their offer.  As a matter of practical interpretation, most federal contracting officers simply made sure that an offeror’s SAM registration was complete before awarding the offeror a contract.

That latitude goes away on October 26, 2018.  On that date, FAR Subpart 4.1102 is officially amended to require all entities (i.e., vendors, including joint ventures) to be registered in SAM at the time they submit an offer (a bid or proposal) or submit a quotation to a federal agency.  In essence, vendors who are not registered in SAM are ineligible to submit offers or quotes – effective October 26, 2018.

Keep in mind that the SAM registration process can take time to complete.  If you’re planning to compete for a federal contract in the future, you should complete your SAM registration as far in advance as possible.  And, if you are already registered in SAM, remember that your SAM registration must be renewed at least annually – and renewed whenever any part of your registration needs to be updated.

If you need help with your company’s SAM registration, feel free to contact a Procurement Counselor with the Georgia Tech Procurement Assistance Center (GTPAC).  All of our contact information is listed by location at: https://gtpac.org/team-directory.

If you are located outside of the state of Georgia, you can find the procurement technical assistance center (PTAC) nearest you at: http://www.aptac-us.org/contracting-assistance.

Remember: There is never a fee to register in SAM as a government contractor. PTACs are available with no-cost help to get you through the process.

SAM is located at: https://sam.gov.  But before beginning the SAM registration process, you must first take care of the following:

  1. Obtain a DUNS Number by registering your Legal Business Name and Physical Address with Dun & Bradstreet (D&B).  If you don’t already have a DUNS Number, you can request a DUNS Number for FREE from D&B at: http://fedgov.dnb.com/webform
  2. Make sure you have a Taxpayer Identification Number (TIN) associated with the Legal Business Name registered with D&B.  To obtain information from the IRS on how to obtain a TIN, visit: https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin
  3. Have your bank’s routing number handy, including your bank account number and your bank account type (i.e., checking or savings).  You’ll need this information to set up Electronic Funds Transfer (EFT) in SAM.  The federal government makes virtually all contract payments via EFT.
  4. The first time you log in to SAM.gov, you’ll be asked to create a login.gov user account (if you don’t already have one). Going forward, you will use your login.gov username and password every time you log in to SAM.gov. Existing SAM.gov usernames and passwords no longer work.

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:

 

 

SAM.gov hackers used spearphishing, spoofing, credential theft

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Cybercrooks who stole federal payments by hacking contractor accounts on a General Services Administration (GSA) website used sophisticated spearphishing techniques to steal login credentials and then diverted payments to bank accounts they controlled, an executive of a contractor targeted in the scam told FedScoop.

It’s unclear how much the scammers have netted through their scheme, which is being investigated by the GSA inspector general and federal law enforcement.

The inspector general’s office declined to comment, but sources familiar with the investigation told FedScoop that the cyberattacks that facilitated the fraud had been identified last year and were ongoing as
recently as last week.

Keep reading this article at: https://www.fedscoop.com/sam-gov-hackers-used-spearphishing-spoofing-credential-theft/

Also see Tips for Surviving Compromise of Government’s Vendor Database: http://gtpac.org/2018/03/26/tips-for-surviving-compromise-of-governments-vendor-database/

Tips for surviving compromise of government’s vendor database

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If your business is registered in the System for Award Management (SAM) – or you plan to register – there are some things you need to do NOW to protect your data security.

On March 22, 2018, the General Services Administration (GSA), the federal agency that oversees SAM’s operation, reported an “active investigation” is being conducted into alleged, third party fraudulent activity involving SAM.  GSA says it is in the process of notifying those that may have been impacted and has indicated that it will deactivate “any entity registrations that appeared to have been affected.”  GSA further stated that the deactivated “entities are being advised to validate their registration information in SAM, particularly their financial information and points of contact.”

GSA’s recent statements may have implications for all businesses, institutions, and individuals registered in SAM.  The Georgia Tech Procurement Assistance Center (GTPAC) is providing the following advice to all clients.

What To Do If You Are Already Registered in SAM

The Georgia Tech Procurement Assistance Center recommends that if your business is registered in SAM, you take the following actions:

  1. With your User Name and Password, log into your SAM account at https://www.sam.gov and navigate to the Financial Information page. There, you will find your Electronic Funds Transfer (EFT) information.  This is where you inserted your bank Routing Number and your bank Account Number as a part of the SAM registration process.  Check these numbers to make sure they are correct and have not been changed.  If you discover banking information other than your own, it is possible that federal contract payments have been or will be made to a bank other than yours.  If these numbers have been changed, this is evidence that your account has been compromised, and you should report this immediately to the Federal Service Desk at www.fsd.gov, or by telephone at 866-606-8220 (toll free) or 334-206-7828 (internationally).

    Screenshot of Financial Information page in SAM database.
  2. While you are logged-in to SAM, you also should check your Taxpayer Identification Number (TIN). Your TIN is a 9-digit Employer Identification Number (EIN) that SAM uses to uniquely identify your business, and it is validated by the Internal Revenue Service (IRS) as a part of your initial registration in SAM.  If you discover that your TIN/EIN has been changed, you should report this immediately to the Federal Service Desk at www.fsd.gov, or by telephone at 866-606-8220 (toll free) or 334-206-7828 (internationally).

    Screenshot of Taxpayer Identification page in SAM database.
  3. Important note: If you used your Social Security Number (SSN) as your EIN when you set up your account, now is a good time to obtain an EIN and insert it into SAM instead of your SSN. You can apply for and obtain an EIN on-line at: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.
  4. Remember, as a SAM registrant, you are required to change your password every 180 days. In addition, you must update and renew your SAM registration annually.  You are responsible for ensuring that your information is current and correct in SAM at all times.
What To Do If You Are Not Yet Registered in SAM
  1. Both current and potential government vendors are required to register in SAM — located at https://www.sam.gov — in order to be awarded contracts by the federal government and receive contract payments. Vendors are required to complete a registration to provide basic information relevant to procurement and financial transactions. Vendors must update or renew their registration annually to maintain an active status.
  2. SAM is a public database that allows federal agencies and other contractors to search for your company based on your ability, size, location, experience, ownership, and more. (Banking information is not available in public searches.)  In addition, SAM now incorporates the Online Representations and Certifications Application (ORCA) system where the vendor provides required information about the firm (e.g., accounting procedures, travel policies, etc.) and verifies that the firm meets certain federal requirements (e.g., complies with equal employment opportunity legislation).
  3. SAM validates the vendor’s information and electronically shares encrypted data with the federal agencies’ finance offices to facilitate contract payments.
  4. Because of suspected fraudulent activity, GSA has added a step to the registration process for new SAM enrollees. You must now mail an original, signed notarized letter identifying the authorized Entity Administrator for the entity associated with your company’s DUNS number before a new SAM entity registration will be activated.
  5. This notarized letter needs to:
  • Be on your company/organization letterhead
  • Be signed by your company President, CEO, or other authorized signature authority
  • Contain your company/organization DUNS Number
  • Contain your company/organization Legal Business Name (as associated with the DUNS Number)
  • Contain your company/organization physical address (as associated with the DUNS Number)
  • Contain the new Entity Administrator’s name, phone number, address, and email address
  • Contain the following statement above the signature block of your letter with the appropriate information inserted where noted:

“The purpose of this notarized letter is to designate [insert name of Entity Administrator] as Entity Administrator for [insert Legal Business Name]. I, [insert Name and Title of signatory], hereby confirm that [insert name of Entity Administrator] is an authorized officer, agent, or representative of [insert entity Legal Business Name, or, for individuals representing themselves, say him/herself]. This letter will authorize [insert name of Entity Administrator] to have access to the System for Award Management (SAM). SAM is a computer system managed by the U.S. Government, and it is only accessible by individuals who are either authorized to represent a particular entity, or by individuals representing themselves. Accessing or using SAM, or information contained therein, for any unauthorized or illegal purposes, may have civil and criminal penalties, and may negatively impact the status of the SAM registration maintained on this entity. I, the below-signed, attest to the accuracy of all information contained in this letter.”

  1. To help you comply with the notarized letter requirement, GTPAC has created a template for new SAM registrants to use. It is available at: http://gtpac.org/wp-content/uploads/2018/03/SAM_Notary_Letter_Template_v1_GTPAC_03.23.2018.docx.

Update: GSA has prepared a template for preparation of the notarized letter.  The template is available here: SAM_Notary_Letter_Template_4.12.18_GSA_version

7. You must mail the original letter signed by the Notary to:

FEDERAL SERVICE DESK

ATTN: SAM.GOV REGISTRATION PROCESSING

100 CAPITOL COMMERCE BLVD STE 309

MONTGOMERY, AL 36117-4260

Address Update:

FEDERAL SERVICE DESK

ATTN: ​SAM.GOV​ REGISTRATION PROCESSING

460 INDUSTRIAL BLVD

LONDON, KY 40741-7285

UNITED STATES OF AMERICA

Final Words of Advice

Remember, there is no cost to register in SAM — it is free.  If your business is located in Georgia, assistance with the SAM registration process is available at no cost.  To locate a GTPAC counselor, see our team’s directory at: http://gtpac.org/team-directory.

Businesses located outside the state of Georgia may contact the Procurement Technical Assistance Center (PTAC) in their state.  A directory is at: http://www.aptac-us.org/find-a-ptac.

For more tips about the SAM registration process, read: http://gtpac.org/sam-gov-registration-is-free-and-help-with-sam-is-free-too.

 

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).

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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