Companies must register with the government before bidding on contracts, not just before getting paid
What happened
The US government now requires companies to register in its System for Award Management (SAM) before they can even submit a bid for a contract. Previously, companies only needed to be registered by the time the contract was awarded. This change means that unregistered companies will be automatically disqualified from the bidding process.
Why it matters
This rule change is small but significant for companies wanting to do business with the US government. It shifts the administrative burden of registration earlier in the procurement process, making it a gatekeeper for even submitting a proposal. Companies that miss this detail will find their bids rejected before they are even considered.
The signal
Watch for a potential increase in disqualified bids from smaller or less experienced contractors in the first few months after this rule takes effect.