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What Legal Obligations Does My Business Have When Registering in SAM?


When your business registers in SAM (System for Award Management), it incurs various legal obligations and responsibilities. These obligations are primarily related to compliance with U.S. federal laws and regulations governing federal procurement and grants. Here are some of the key legal obligations your business may have when registering in SAM:

  1. Accurate and Complete Information:
    • Your business is legally obligated to provide accurate and complete information during the registration process. This includes details about your entity’s legal structure, ownership, financial information, and representations and certifications.
  2. Compliance with Federal Laws and Regulations:
    • Registering in SAM means your business must comply with all applicable federal laws and regulations. This includes adherence to tax laws, employment laws, environmental regulations, and any other federal requirements relevant to your industry and activities.
  3. Representations and Certifications:
    • Your business is required to make certain representations and certifications as part of the SAM registration process. These certifications attest to your compliance with specific federal regulations, such as anti-discrimination laws, equal employment opportunity requirements, and compliance with the Drug-Free Workplace Act.
  4. Maintenance of SAM Registration:
  5. Responsibility for Authorized Users:
    • If your SAM registration designates authorized representatives or users, your business is responsible for the actions and representations made by these individuals on behalf of the entity.
  6. Timely Renewal:
  7. Responsibility for Subawards:
    • If your business receives federal assistance awards and engages in subawards (subcontracts or subgrants), you have legal responsibilities related to reporting and compliance with subaward regulations.
  8. Prompt Reporting of Changes:
  9. Compliance with Federal Procurement Requirements:
  10. Payment Information Accuracy:
    • Your business must ensure the accuracy of payment information provided in SAM, especially if you are receiving electronic funds transfers (EFT) for federal payments.
  11. Honesty and Integrity:
    • Your business is expected to act with honesty and integrity in all interactions related to federal contracts and grants, and to promptly address any issues or concerns that may arise.

Failure to meet these legal obligations can have significant consequences, including the potential for suspension or debarment from federal contracting and grant activities, financial penalties, and damage to your business’s reputation. It is essential to take your SAM registration and associated legal responsibilities seriously and seek legal counsel or compliance expertise as needed to ensure full compliance with federal laws and regulations.


Need Help?

Contact the FPR Help Desk through the following methods:

  • Phone: 1-866-717-5267 (toll-free)
  • Email:¬†

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