The FAR Council has finalized, without changes, a 2024 interim rule that adjusted the requirements of FAR 52.204-7. This is the provision that governs an offeror’s registration in the System for Award Management (SAM). The November 2024 version of FAR 52.204-7 replaces an earlier October 2018 version of the provision, which was the subject of multiple bid protests.
The interim and final rule’s key change is elimination of the continuous registration requirement. The old October 2018 provision stated: “An Offeror is required to be registered in SAM when submitting an offer or quotation, and shall continue to be registered until the time of award, during performance, and through final payment of any contract, basic agreement, basic ordering agreement, or blanket purchasing agreement resulting from this solicitation.” (Emphasis added.) The now-finalized November 2024 provision removes the continuous registration requirement, stating only: “An Offeror is required to be registered in SAM when submitting an offer or quotation and at time of award (see FAR clause 52.204–13, System for Award Management Maintenance, for the requirement to maintain SAM registration during performance and through final payment).” The active registration requirement, thus, has changed from a continuous requirement (where a registration lapse of even a day could prove fatal) to a requirement to be registered at defined points in time.
The FAR Council’s prefatory remarks to the interim rule stated that continuous registration during the pendency of proposals continues to be the Government’s expectation, even though a lapse (other than on the days of offer submission and award) is no longer a basis for disqualifying a proposal. This simplifies compliance, but companies should take careful note of a few things:
- The relaxed rules apply only to solicitations that contain the November 2024 version of FAR 52.204-7. If a solicitation contains the October 2018 version of the clause, offerors must comply with the earlier version’s continuous registration mandate.
- Failure to be registered when submitting “an offer” or at time of award continues to be a disqualifying noncompliance, and agencies presumably remain powerless to waive that noncompliance. There is a split between the Government Accountability Office and at least one judge on the Court of Federal Claims as to whether submission of “an offer” means submission of any offer, or only submission of one’s final offer. To eliminate risk, companies should confirm that their SAM registrations are active well in advance of submission of any proposal, as well as any proposal revision.
- The 2024 rule, like the 2018 rule, requires active registration. Part of the SAM activation process involves review by one or more people on the Government’s side of the system and does not occur immediately. Companies should monitor their SAM registration status and submit registration renewals well in advance of any expiration date.
- Companies should ensure not only that their SAM profiles are active, but also that they are accurate. Mistakes and outdated information are often found in the areas pertaining to size status, joint venture status, ownership disclosures, and contact information. It is worth double-checking those areas of one’s profile from time to time.
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