The federal government replaced DUNS with the UEI in April 2022 to eliminate third-party dependencies and reduce costs. The shift created a free registration process directly through SAM.gov, eliminating fees previously required with Dun & Bradstreet. This change modernized federal entity identification with enhanced security protocols while streamlining the procurement process. Government contractors benefited from improved data integrity and centralized management. The following sections explore how this shift impacts federal contractors and grant recipients.
Eliminating Third-Party Dependencies and Reducing Costs
The change from DUNS numbers to the Unique Entity Identifier (UEI) marks a significant alteration in federal registration requirements, eliminating the government’s long-standing reliance on Dun & Bradstreet.
This transformation created a streamlined process where entities now register directly through SAM.gov rather than through an external commercial provider.
The shift delivers substantial cost savings for both the government and registering entities.
Previously, organizations needed to obtain DUNS numbers from Dun & Bradstreet, often involving fees and additional administrative steps.
With UEI, registration is completely free through SAM.gov, reducing financial barriers to participation in federal procurement opportunities.
Users should be wary of third-party services that claim to charge fees for SAM.gov registration, as the official process has no associated costs.
This internal management approach also allows for more efficient resource allocation, as entities can redirect funds previously spent on third-party services toward operational improvements and compliance activities. As outlined in a recent publication by government contracts professionals, the change from DUNS to UEI represents a major shift in entity identification standards. Federal agencies like the European Commission and United Nations that once required DUNS numbers for verification now recognize the UEI system.
Modernizing Federal Entity Registration With Enhanced Security
Modernizing federal entity identification, the UEI system represents a significant enhancement to security protocols within government procurement systems.
The shift eliminates third-party vulnerabilities by centralizing management entirely within SAM.gov, where standardized security protocols are consistently maintained and updated.
Centralized UEI management within SAM.gov eliminates external vulnerabilities through standardized, continuously updated security protocols.
This government-controlled approach protects sensitive entity information while reducing exposure to external security risks.
The streamlined registration process not only simplifies procedures for applicants but strengthens data integrity through automated validation tools that verify information accuracy.
Entities benefit from reduced administrative burden while the government gains improved auditing capabilities.
The system’s continuous updates guarantee robust security measures remain current against evolving threats.
The UEI number serves as the mandatory unique identifier requirement for all organizations that wish to engage in federal contracts or grants.
Transition Timeline and Implications for Government Contractors
When federal agencies implemented the UEI shift in early 2022, government contractors faced a structured but time-sensitive change away from DUNS numbers. The transformation began with pre-April 2022 groundwork, allowing entities to request UEIs while still using DUNS, and culminated on April 4, 2022, with the complete system switch.
Prime contractors encountered several transition challenges, including updating internal systems, verifying data accuracy, and adapting procurement processes. Organizations already registered in SAM.gov were automatically assigned Unique Entity IDs visible within their accounts. This transition was designed to streamline verification processes and improve data management efficiency across federal systems.
Compliance requirements mandated that contractors use UEIs for all subcontractor reporting after April 4, with no exceptions for new federal contracts.
Subrecipients needed to obtain UEIs even without full SAM.gov registration, working closely with prime contractors to meet deadlines and maintain reporting continuity during the crossover period.
Frequently Asked Questions
How Do I Check if My UEI Is Active?
Individuals can verify UEI status through SAM.gov’s Entity Status Tracker by inputting their UEI number. Active UEI resources include the Entity Registration Summary page, which displays color-coded status indicators after logging into their SAM.gov account.
Can Entities Outside the US Obtain a UEI Number?
Yes, international entities can obtain UEI numbers. Global UEI eligibility extends to organizations outside the US that engage with federal awards, though foreign cooperators may request waivers for small grants under $25,000.
What Happens if My Entity Information Changes After UEI Assignment?
Entity information changes require updates through the SAM.gov registration process. While the UEI remains permanent, entities must modify their profiles within 30 days to maintain compliance and avoid potential violations of federal regulations.
Are UEI Numbers Transferable During Company Acquisitions or Mergers?
UEI numbers are generally not transferable during business transfers. Companies involved in acquisitions or mergers typically need to update their SAM.gov registrations to reflect the new entity structure, potentially requiring new UEI assignment.
How Do State and Local Government Procurement Systems Handle the UEI Transition?
State procurement and local government procurement systems adapt to UEI change at varying paces. Many integrate UEI gradually alongside legacy systems, facing technical challenges while implementing new validation processes and staff training requirements.