When a SAM registration expires, contractors face immediate ineligibility for new federal awards, proposal submission, and contract eligibility. The lapse causes revenue losses, payment delays, and compliance issues for organizations dependent on government work. To restore active status, contractors must log into SAM.gov, update registration information, and wait 10-12 business days for processing. Setting renewal reminders helps prevent future expirations. The following steps provide a clear path to quickly resolving registration lapses and minimizing business disruptions.
Immediate Consequences of an Expired SAM Registration
Allowing a System for Award Management (SAM) registration to expire triggers a cascade of significant business consequences for federal contractors.
The most immediate registration consequences include complete ineligibility for new federal contract awards, regardless of a company’s qualifications or past performance.
Organizations with expired registrations cannot submit proposals or bids on government solicitations, effectively halting their federal business development.
An expired SAM registration freezes your ability to bid on federal contracts, bringing government business acquisition to a standstill.
Contract eligibility is immediately revoked, preventing participation in the federal marketplace.
As highlighted in the recent GAO decision regarding TLS Joint Venture, even a temporary lapse in SAM registration during the evaluation period can lead to bid protests and contract termination.
Even existing contracts may face disruption if the registration expires during performance, potentially causing financial and operational setbacks.
Access to federal grants and assistance programs will also be denied, further limiting an organization’s funding opportunities and growth potential.
These consequences affect businesses of all sizes, from small enterprises to major corporations, making SAM renewal a critical compliance requirement for maintaining access to federal contracting opportunities.
Companies can seek assistance from customer service representatives and online resources provided by SAM.gov to ensure timely renewal and avoid these negative outcomes.
Financial and Operational Impact on Your Federal Contracting Business
When a company’s SAM registration expires, the financial and operational consequences extend far beyond simple administrative headaches.
Businesses immediately become ineligible for federal contracts, leading to substantial revenue losses that can threaten organizational stability. Recent GAO decisions have emphasized strict compliance with all SAM registration requirements, rejecting arguments about minor lapses. Companies reliant on government work may face sudden budget shortfalls or even layoffs without this critical income stream. As stipulated in FAR 52.204-7, contractors must maintain active SAM status throughout the entire contract lifecycle, not just at the bidding stage.
Operationally, expired registrations create significant compliance issues that ripple throughout the organization. Ongoing projects may be interrupted, payment processing delayed, and future bidding opportunities blocked. The System for Award Management serves as the federal government’s primary database for validating and storing contractor information.
The administrative burden of reinstating an expired registration often requires additional resources and staff time that could be directed elsewhere. In addition, contractors risk damaging relationships with federal agencies and prime contractors, potentially jeopardizing years of carefully built professional connections and reputation within the industry.
Steps to Quickly Restore Your SAM.gov Active Status
Restoring an inactive SAM registration requires prompt action through a series of straightforward but essential procedures. Contractors must first log into their SAM account using valid login.gov credentials and identify the specific cause of inactivity displayed in the system.
The reactivation process begins by clicking the option to update the registration and following the on-screen prompts. Users must review and verify all entity information, making necessary updates to guarantee compliance. Remember that a successful reactivation will grant you active status for a period of 365 days from the resubmission date. Expect the reactivation process to take approximately 10 to 12 business days for full activation once all documentation is submitted.
The system will request required documents, typically including tax identification documentation, proof of physical address, and possibly a Certificate of Good Standing. Contractors should prepare these materials in advance to expedite the review.
After submission, monitor email communications from SAM administrators and respond promptly to any requests for additional information to complete the reactivation. To avoid future expirations and the need for reactivation, consider setting reminders for renewals well before your registration’s expiration date.
Frequently Asked Questions
Can a Pending Proposal Be Awarded if SAM Expires During Evaluation?
No, a proposal cannot be awarded if SAM registration expires during evaluation. Contract awards require active SAM registration throughout the entire proposal evaluation process per FAR requirements, regardless of renewal status.
Does SAM Lapse Affect Already-Awarded IDIQ Task Order Issuance?
Task orders on existing IDIQs cannot be issued if SAM registration lapses. Contracting officers must verify active SAM status specifically at the time of each individual IDIQ task order issuance to proceed with award.
How Does SAM Expiration Impact Joint Venture Eligibility?
SAM expiration immediately disqualifies joint venture qualifications for federal contracts. Joint ventures require independent SAM registration, and lapses invalidate eligibility for new awards regardless of individual member status or prior relationships.
Will SAM Expiration Trigger Immediate Security Clearance Reviews?
SAM expiration does not trigger immediate security clearance reviews. Security clearance review processes operate independently from SAM registration status, as they are separate systems with different administrative requirements and evaluation timelines.
Can Agencies Grant Temporary Waivers for Mission-Critical Contractors During Lapses?
Agencies cannot grant temporary waivers for mission-critical contractors during SAM registration lapses. Federal regulations provide no exceptions, as FAR 52.204-7 mandates active SAM enrollment for all contractors regardless of operational importance.