Uncle Sam Wants You…or does He?
System for Award Management, otherwise known as SAM, is the online website to register your business entity to bid upon Federal Government Contracts. We have not found it easy to navigate.
For past national drafts for military service, the posters of a patriotic ‘Uncle Sam’ pointing at the viewer with the saying ‘I Want You’ is a poster many of us have seen. Perhaps, branches of military service still use him for their recruiting efforts. One would think the process might be simple to register your firm, particularly if you are a women, minority, or other certified entity. That has not been our experience.
Recently, our firm received an invitation to register for FEMA disaster work with small businesses but the email noted our SAM registration had lapsed. Illuminate is now going on over a month trying to effectuate our SAM registration with the correct business address. We are far past the frustration phase.
One of the key elements of any government effort where small businesses are concerned seems to be annual registration or reaffirmation. You are a Women Owned firm, prove it, every single year. The National certification Illuminate has costs $350 a year and a renewal application every single year. How is any of that small business friendly?
Annual renewals and annual membership fees make sense if you are a larger firm and your company brings in millions of dollars a year in sales. But many certified businesses are solopreneurs and sole proprietors or stand alone professionals. The effort of recertification annually and the fee are really not efficient ways of spending our time and money. It will make sense if you are awarded government contracts or it helps you secure projects from a team where you are required to have a women/minority/veteran/disadvantaged owned certification. So, despite Uncle SAM saying he wants you, it is not an easy administrative path.
For most business owners, your business incorporation address is likely your home address. Only after your legal name is approved and an EIN assigned, can you search for commercial office space and sign a lease with your company name and not your personal name.
For liability reasons alone, this was our case. Now, trying to have our legal address changed to the new address three (3) years later has come front and center to reapply for an updated SAM ID and then apply to FEMA as a consultant for small businesses impacted by natural disasters, such as Hurricane IAN. To say it is a process is a true understatement.
Our takeaways for you include updating your entity’s legal address as soon as you have office space. Your state of incorporation or business usually has a form, found on the State Website, that must be submitted. And, once you are assigned a SAM ID or a WBENC Certification, never EVER let it expire. It could be the greatest regret of your business career!
Be well.
