“Active” status in SAM means an entity has completed all required registration steps, maintains current and accurate information, and has renewed registration within the mandatory 12-month period. This status enables businesses to bid on federal contracts above $30,000, receive electronic payments from government agencies, and remain visible to federal procurement officers. Inactive registrations render contractors invisible to government buyers and payment systems, potentially causing disqualification from awards and payment delays. The following sections explore strategies to maintain compliance and avoid costly lapses.
Key Requirements for Achieving and Maintaining SAM Active Status
Several critical steps must be completed to achieve and maintain active status in the System for Award Management (SAM).
The registration process begins with creating a Unique Entity ID and providing accurate entity information on SAM.gov, which can take up to 10 business days for validation. This registration is provided at no cost to entities.
Securing a Unique Entity ID through SAM.gov takes up to 10 business days and is always free of charge.
Once registered, maintaining active status requires adherence to a strict renewal frequency of at least every 12 months. Entities must:
- Update registration information whenever changes occur
- Guarantee continuous compliance with all SAM.gov requirements
- Conduct regular checks of entity information for accuracy
- Complete renewals on time to prevent status changes
Federal regulations, including 2 CFR Part 25, mandate active SAM registration for contract awards and payments.
This status is essential for submitting offers and qualifying for federal funding opportunities through systems like JustGrants and ASAP. Active status facilitates automatic updates from SAM.gov to other government systems, eliminating manual information updates for award recipients. Successful registration results in active status that remains valid for exactly 365 days from the date of submission. The webpage offers practical tips for navigating common challenges that users may encounter during the renewal process.
Why Active Status Is Critical for Federal Contractors
The foundation of successful federal contracting rests upon maintaining an active status in the System for Award Management (SAM). Federal agencies exclusively search SAM.gov to identify qualified contractors, making active status essential for contractor visibility in the procurement marketplace.
Without an active registration, businesses become invisible to government buyers and payment systems.
Active SAM status directly impacts operational capabilities through:
- Enabling receipt of payments via Electronic Funds Transfer, as inactive status disrupts payment workflows
- Allowing participation in opportunities valued at $30,000 or more, as mandated by FAR 52.204-7
- Providing access to subcontracting opportunities, which require SAM verification by prime contractors
Beyond financial considerations, federal compliance requirements make active status non-negotiable. Registration requires annual updates to maintain active status and prevent exclusion from federal procurement opportunities.
Contractors with inactive registrations face potential False Claims Act violations if they continue bidding activities, and may encounter bid protests that scrutinize SAM validity during the award process.
An inactive SAM status can result in missed opportunities for businesses that would otherwise qualify for lucrative federal contracts.
How to Avoid Common Registration Lapses and Penalties
Numerous federal contractors lose contract opportunities each year due to preventable SAM registration lapses. Implementing proactive registration strategies can safeguard against costly compliance failures and maintain eligibility for federal awards.
Effective renewal timelines begin with initiating the SAM renewal process 90 days before expiration, allowing buffer time for government review periods that typically take 10-15 business days. Companies should establish automated reminder systems at 120-, 90-, and 30-day intervals before expiration dates. The annual renewal requirement is mandated by federal regulations to ensure entities maintain accurate and up-to-date information in the system.
The consequences of registration lapses are severe, including:
- Disqualification from contract awards
- Vulnerability to bid protests under GAO precedents
- Payment delays for existing contracts
- Damaged past performance ratings
To mitigate these risks, contractors should align SAM expiration dates with other critical registrations, validate banking information regularly, and consider utilizing third-party compliance specialists for renewal monitoring. The loss of federal opportunities due to expired SAM registration can significantly impact a company’s growth potential and reputation in the marketplace.
Recent GAO decisions emphasize that strict compliance with FAR 52.204-7 requires registration at the time of proposal submission and continuous registration until award.
Archiving confirmation emails provides additional protection during potential disputes.
Frequently Asked Questions
Can I Transfer My Active Status to Another Entity?
Entity transfer of an “Active” SAM status is not possible.
Each organization must complete its own registration process to obtain an active status in the System for Award Management.
The SAM registration, including the Unique Entity Identifier, belongs exclusively to the registered entity and cannot be transferred to another organization.
New entities must register independently and complete all validation steps to achieve their own “Active” status.
How Quickly Does SAM Reflect Status Changes After Updates?
SAM database refresh typically occurs in real-time for most status updates. Once information is submitted and verified, the system reflects changes immediately.
However, status update frequency may vary depending on submission volume and verification requirements. Some updates requiring additional review might experience delays of 24-48 hours.
Entities should monitor their SAM profile after submitting changes to confirm successful processing, especially when updates are critical for contract eligibility or compliance requirements.
Does International Registration Affect Active Status Requirements?
International registration implications do not alter active status criteria in SAM.
Foreign entities must meet identical annual renewal requirements as domestic registrants. All organizations, regardless of location, must maintain current registration details, complete the same certifications, and revalidate every 365 days.
While international registrants may face practical challenges like documentation translation or time zone differences, these do not modify the fundamental requirements for maintaining active status in the SAM database.
Can Suspended Entities Regain Active Status Without Completing a New Registration?
Suspended entities can regain active status without completing a new registration.
The registration process allows entities to update their existing profile rather than starting over, provided they address the root cause of suspension and resolve all validation errors in SAM.gov‘s system.
Entities must submit corrected information through their original SAM.gov account, update documentation as needed, and validate taxpayer identification numbers.
After successful submission, SAM.gov typically processes reactivation requests within 10-15 business days.
Are State/Local Government Contracts Affected by SAM Active Status?
State contracts and local contracts are not universally affected by SAM active status.
While federal contracts require active SAM registration, most state and local governments maintain their own vendor systems.
However, certain scenarios create exceptions: when state/local contracts involve federal funding, when jurisdictions voluntarily reference SAM for vendor vetting, or when they utilize federal cooperative purchasing vehicles.
Entities pursuing diverse government contracts should monitor both SAM and relevant state/local registration requirements.