FAR 52.204-7—System for Award Management.
Plain-English Summary
FAR 52.204-7, System for Award Management, is the core solicitation provision that tells offerors when and how they must be registered in SAM to be eligible for award. It covers the definitions of key registration terms, including the unique entity identifier, the EFT indicator, and what it means to be "registered in SAM"; the requirement to be registered when submitting an offer or quotation and again at the time of award; the requirement to enter the unique entity identifier and, if applicable, the EFT indicator on the offer cover page; what to do if an offeror does not yet have a unique entity identifier; and the need to account for registration processing time. The provision also ties SAM registration to the broader federal data ecosystem by requiring completion of the Core, Assertions, Representations and Certifications, and Points of Contact sections, IRS validation of the TIN, and activation of the record. In practice, this provision is a gatekeeper for award eligibility: if an offeror is not properly registered, the contracting officer may not be able to make award, and the offeror may lose time or even the opportunity to compete. The alternate version relaxes the timing rule in limited circumstances by allowing award if registration was not possible at offer submission, so long as the awardee registers as soon as possible and complies with the maintenance requirements in FAR 52.204-13. For contractors, this section is a compliance and timing requirement; for contracting officers, it is a verification and award-administration checkpoint.
Key Rules
SAM registration is mandatory
An offeror must be registered in SAM when submitting an offer or quotation and must also be registered at the time of award. This makes SAM registration a condition of eligibility, not just a post-award administrative step.
Offer must show UEI
The offeror must enter the unique entity identifier in the name-and-address block on the offer cover page exactly as the entity name and address appear in the offer. The contracting officer uses this identifier to confirm the offeror’s SAM registration.
EFT indicator may be required
If applicable, the offeror must also provide the EFT indicator, which is a four-character suffix tied to the unique entity identifier. It is used to support additional SAM records for alternative electronic funds transfer accounts.
SAM registration has specific components
To be considered registered, the offeror must complete mandatory data fields, the Core, Assertions, and Representations and Certifications, and Points of Contact sections, and the Government must validate the data, including TIN validation with IRS consent, before the record is marked Active.
No UEI means obtain one first
If the offeror does not have a unique entity identifier, it must contact the designated entity at SAM.gov to obtain one before registration can be completed. The provision lists the information the offeror should be ready to provide.
Processing time matters
Offerors should account for registration lead time and apply immediately upon receipt of the solicitation if they are not already registered. Delays in obtaining or validating SAM registration can prevent award.
Alternate I allows limited flexibility
Under Alternate I, if registration is not possible when submitting the offer or quotation, the awardee must be registered in SAM as soon as possible and in accordance with FAR 52.204-13. This alternate changes the timing rule but does not eliminate the registration obligation.
Responsibilities
Offeror
Maintain an active SAM registration when submitting an offer or quotation and at award; enter the unique entity identifier and, if applicable, the EFT indicator on the offer; ensure the offer information matches the SAM record exactly; obtain a UEI if one has not yet been assigned; and begin registration early enough to account for processing time.
Contracting Officer
Use the unique entity identifier to verify that the offeror is registered in SAM; ensure the awardee meets the registration requirement at the time of award; and, where applicable, apply the Alternate I timing rule consistently with the solicitation and FAR 52.204-13.
Government/SAM validation process
Validate mandatory registration data, including TIN validation with IRS consent, and mark the SAM record Active only after the required information is complete and verified.
Entity designated at SAM.gov
Establish or assign the unique entity identifier for the commercial, nonprofit, or Government entity and provide the mechanism for the offeror to obtain that identifier.
Practical Implications
Offerors should not wait until the last minute to register in SAM; registration can take time because of data entry, IRS TIN validation, and government review.
A mismatch between the legal name/address in the offer and the SAM record can create award problems even if the entity is otherwise registered.
The UEI is now the key identifier, so contractors should make sure they are using the correct number and, if relevant, the correct EFT indicator for the specific record being offered.
If registration is not active at the time of award, the contracting officer may be unable to proceed, which can delay or jeopardize award.
Under Alternate I, an offeror may still be eligible even if registration was not possible at submission, but the awardee must complete SAM registration promptly and continue to maintain it during performance and through final payment under FAR 52.204-13.
Official Regulatory Text
As prescribed in 4.1105 (a)(1) , use the following provision: System for Award Management (Nov 2024) (a) Definitions. As used in this provision— "Electronic Funds Transfer (EFT) indicator means a four-character suffix to the unique entity identifier. The suffix is assigned at the discretion of the commercial, nonprofit, or Government entity to establish additional System for Award Management records for identifying alternative EFT accounts (see subpart 32.11 ) for the same entity. Registered in the System for Award Management (SAM) means that– (1) The Offeror has entered all mandatory information, including the unique entity identifier and the EFT indicator, if applicable, the Commercial and Government Entity (CAGE) code, as well as data required by the Federal Funding Accountability and Transparency Act of 2006 (see subpart 4.14 ) into SAM (2) The offeror has completed the Core, Assertions, and Representations and Certifications, and Points of Contact sections of the registration in SAM; (3) The Government has validated all mandatory data fields, to include validation of the Taxpayer Identification Number (TIN) with the Internal Revenue Service (IRS). The offeror will be required to provide consent for TIN validation to the Government as a part of the SAM registration process; and (4) The Government has marked the record "Active". Unique entity identifier means a number or other identifier used to identify a specific commercial, nonprofit, or Government entity. See www.sam.gov for the designated entity for establishing unique entity identifiers. (b) (1) 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). (2) The Offeror shall enter, in the block with its name and address on the cover page of its offer, the annotation "Unique Entity Identifier" followed by the unique entity identifier that identifies the Offeror's name and address exactly as stated in the offer. The Offeror also shall enter its EFT indicator, if applicable. The unique entity identifier will be used by the Contracting Officer to verify that the Offeror is registered in the SAM. (c) If the Offeror does not have a unique entity identifier, it should contact the entity designated at www.sam.gov for establishment of the unique entity identifier directly to obtain one. The Offeror should be prepared to provide the following information: (1) Company legal business name. (2) Tradestyle, doing business, or other name by which your entity is commonly recognized. (3) Company physical street address, city, state, and Zip Code. (4) Company mailing address, city, state and Zip Code (if separate from physical). (5) Company telephone number. (6) Date the company was started. (7) Number of employees at your location. (8) Chief executive officer/key manager. (9) Line of business (industry). (10) Company headquarters name and address (reporting relationship within your entity). (d) Processing time should be taken into consideration when registering. Offerors who are not registered in SAM should consider applying for registration immediately upon receipt of this solicitation. See https://ww.sam.gov for information on registration. (End of provision) Alternate I (Oct 2018) . As prescribed in 4.1105 (a)(2) , substitute the following paragraph (b)(1) for paragraph (b)(1) of the basic provision: (b)(1) An Offeror is required to be registered in SAM as soon as possible. If registration is not possible when submitting an offer or quotation, the awardee shall be registered in SAM in accordance with the requirements of clause 52.204-13 , System for Award Management Maintenance.