Category: Uncategorized

With technology changing fast with no end in sight, we can expect AI (or Artificial Intelligence) to play a role in federal contracting very soon. With a very pro-AI administration currently in place, we can expect that AI can soon be making its way through the federal government. The human element involved with federal contracting is still and always be the most important thing. However, AI can be used as a great tool to streamline the process of federal contracting. Today, let’s dive into AI and how it has shaped the world and what the future hold for AI in government contracting?

What is AI?

Twenty years ago if you were to ask someone on the street what AI was, they wouldn’t be able to answer you unless they were some science fiction fan. Today, you cam hardly go 24 hours without hearing about AI through the news or social media. AI stands for artificial intelligence and it is a form of technology that is able to process, reason, think, and act almost like humans. The reason “almost” is emphasized is because while AI is extremely advanced in today’s society, it still needs to be set up and powered by humans.

AI has been growing rapidly over the past few years and is becoming extremely difficult to avoid. With tech companies implementing their own AI programs into their devices (Apple Intelligence, Microsoft Copilot, and Google Gemini), we expect AI to be nearly unavoidable by 2030. The general public has mixed opinions on AI. Most think the fast-growing technology is here to take over their jobs, others see it as beneficial for streamlining a processes.

Federal Contracting & AI

With a new administration in place, it is not very hard to see that a few government officials are very pro-AI and it will not become a shock when AI becomes a new way of streamlining processes in the federal government. With the world changing fast and technology growing with it, we can expect that the federal government could implement AI into a few agencies here in the next few years.

SAM Registration

Every year, this an influx of new federal contractors ready to get to work. One of the most pain staking parts of the federal contracting process is the SAM Registration. This is especially burden-some if you are new to federal contracting and are completing a SAM Registration for the first time. While it was even harder fifteen years ago, people still face issues with the SAM Registration. This is especially true with areas like the legal business name and address. One slip-up and that could set you back on federal contracting by almost a few weeks.

As of right now, once you have submitted a incident number with FSD (Federal Service Desk), you are told that you will hear back within 3-5 business days. With AI on the rise, this could change from just a few to a few hours. Implementing AI to speed-up a processes would be extremely effective for this industry as thousands of SAM Registrations are processed daily and even more incident tickets are submitted to FSD. Additionally, AI could be implemented as a new tool to help you get through the once tedious process of SAM Registrations by having something able to answer questions for you quickly.

I would like to mention that while AI can be an effective tool to speed up the SAM Registration process, it is always important to double and triple check anything that has been processed by AI. ChatGPT is extremely upfront about this, as at the bottom of their search page you can see a note that says “ChatGPT can make mistakes”. AI can make mistakes as easily as humans do, so ensure you are keeping close eye on your information just in case.

Analyzing Federal Contracts

Another extremely helpful way AI could be implemented with federal contracting is through analyzing federal contracts. This could make it easier for agencies to scan and ensure that their contracts are error free, without having to spend hours going through each section. This can be extremely efficient and beneficial to contractors who are looking to begin business with the federal government ASAP.

You could also have AI read through a contract for you, giving you key details that would be important for you to know. This is especially beneficial for those have too much going on to just stop, sit, down, and read a contract. Some AI features might even help you detect any wrong or incorrect information within that contract, making it easily identifiable so you can report it to a contracting officer or agency.

However, this is not suggesting you need to bypass reading the contract. It’s important to still look it over and ensure that you fully understand the contract and what you will be doing. AI CAN MAKE MISTAKES. So it is important to double check everything. AI can merely be used as a tool to give you the rundown of a contract, highlighting important key details. If you want more information on a contract, we would recommend reading through it carefully.

Fraud Detection

AI can be used to detect fraud in many cases as well, especially fraud with government contracting. Algorithms and technology can be used to to detect unusual patterns and analyze large amounts of information. As AI is a fast-paced, machine-learning tool, you can expect to see if used more often to detect fraud like catching abnormal behaviors in bidding, rigging, and other mischievous activities.

Again, like everything else, you want to ensure to that you are staying within compliance. AI can help with this by overviewing anything you have and using its own resources and the internet, ensure that you are staying within compliance.

Like the others, you want to ensure that you are double checking anything checked by AI. It is a useful tool but can be misused and incorrect so you want to make sure that you are double checking AI to ensure that everything is correct and to avoid set-backs within your federal contracting career.

Have questions? Reach out to the FEDCON Help Desk at 1-855-233-3266 and get connected with an Advisor today. Our team is dedicated to make federal contracting a breeze for you. Do not hesitate to reach out at anytime for questions or a free market research assessment!

This is very important to be documented in order not to miss the opportunities in the federal contracting world. This way, you are guaranteed that all the processes being done are legal and you will also be up to date with the events. In this blog, I am going to talk about what type of documentation is generally required for federal contracting and why it is required.

What is Federal Contracting?

Federal contracting is the act of the federal government buying goods and/or services from a contractor. If the federal government requires something, they will go to the federal contractors to have it done. It can be any sector, from construction, to paper mills, or even a hair salon.

One has to first register their company as a federal contractor in SAM (System for Award Management) which is a registry of federal contracting dollars, where they are spent, whom they are spent on and for what purpose.

Documentation with SAM and CAGE

If you want to make changes to your business name or physical address with SAM, then additional information may be required. In order to make this change you will need to submit the proper documentation. SAM has a list of its acceptable documentation, and something like a bank statement, EIN documentation, or utility bill is usually enough. Additional documentation or information may also be required by CAGE. It is important to read the emails carefully in order to know what documentation is required and sent in response.

Why Documentation is Important in Federal Contracting

You will have to make sure that your SAM Registration numbers are easily retrievable. If you are looking for contracting opportunities or grant awards, you need to have your SAM numbers with you. Applications and prime contractors will request for your UEI and CAGE to confirm that you are in SAM. If you are not, you will not be permitted to engage in the contracting opportunity you are trying to get.

In the event of an audit, it is advisable to have the correct documentation.

With the SAM Registration, there come plenty of benefits that far exceed those with government contracting. This includes items like: grant and cooperative agreements, increased credibility, networking and partnership opportunities, and much more. Let’s dive into some hidden benefits of having a SAM Registration, and why your company may want (or need) one today!

Access to Grants and Other Agreements

With a SAM Registration in your back pocket, you will be able to receive federal grants from the government. As companies that do not make money, non-profits can benefit from federal grants highly by receiving funds to help them kickstart a program or event. Agencies like Department of Health and Human Services (HHS) and the National Science Foundation (NHS) use SAM to verify eligibility for grants from the federal government.

As stated above, non-profits and other institutions will be able to apply for federal grants through Grants.gov. Having a SAM Registration is required for companies to apply for federal grants, and access Grants.gov by extension.

Additionally, cooperative agreements that involve partnerships with and between private organizations and government agencies require a SAM Registration in order to be verified as a US federal government vendor.

Increased Credibility

While not necessary if you are not doing federal contract or grant work, having a SAM Registration can boost credibility by showcasing that you are verified with the federal government. It can also help your business represent that it follows government compliant and regulations as well as becoming a preferred partner for companies that need to subcontract work under federal contractors.

Having your SAM Registration can add a level of trust to companies, leading to new partnerships and cooperations.

Networking and Partnership Opportunities

With a SAM Registration in your back pocket, you will be able to participate in networking and partnership opportunities. This can include programs such as joint ventures with government contractors, teaming agreements, and mentorship opportunities. This is perfect for companies that aren’t ready or fully prepared to become a prime contractor.

Join venture’s typically refer to projects where two companies or contractors team up to bid on the same project, splitting resources and marketing efforts. A good example of a joint venture might be if a real estate agent refers a client to a mortgage broker and vice versa. In this instance for government contracting, an IT firm might form a joint venture with a defense contractor to bid on a cybersecurity contract with the Department of Defense.

Teaming agreements are when prime contractors hire subcontractors to fulfill part of the work that the prime contractor has. This is different than a joint venture as the prime contractor will handle most of the work and both (or all) companies will remain independent during the project. Though you may not be a prime contractor, this is a great opportunity for small businesses to get the recognition from larger companies to win contracts on their own in the future.

Using SAM as a Marketing Tool

If you’re not planning to participate in federal contracting as a prime contractor or other, you can still use your registration as a marketing tool on your website. People love credibility, so what better to show off that credibility than your active SAM status as done through a federal government agency. This can also be beneficial for government agencies and future partnerships who are looking for reliable and credible companies to do business with.

Having a SAM Registration also shows that your business meets compliance and eligibility regulations set forth by the United States federal government. What better way to let other businesses know you meet requirements than showing off your SAM Registration.

Conclusion

In the end, there are many ways that you can benefit from a SAM Registration beyond the reason of competing for government contracts. Some of the best benefits are having access to grant opportunities from the federal government, increased credibility as a company that meets federal regulations, teaming and joint venture opportunities, using your SAM as a marketing tool, and so much more.

If you have a SAM Registration and want to spruce it up or optimize it but you’re not sure where to start, reach out to our help desk at 1-855-233-3266 and a trusted FEDCON Advisor will be able to help you, guiding you in the right direction that is beneficial for both you and your business.

Imagine you are ready to hit the road after getting your first car. You have all the essentials, know all the safety tips, but you are missing the absolute most important thing you will need to actually drive. Your license! Without your license, you will not be able to do much out on the road, and you’re screwed if you get pulled over. Having a SAM Registration for your business is the number one most important part for federal contracting. Before you can get certifications and before you can get a capabilities statement, you need a SAM Registration.

What is SAM and Why Is It Important?

The SAM Registration is your license to federal government contracting. It is managed by the government’s System for Award Management (SAM) portal, where all businesses and federal agencies go to update and renew their SAM. The webpage SAM.gov is home to thousands of SAM Registration, even harboring its own list of federal contracts up for bidding. This is where prime contractors and agencies will go to ensure that your SAM is active. If your SAM is not active (i.e. expired), then you will not be able to participate in any federal contracting and you are at risk of not receiving payments on current contracts. 

In simpler terms, SAM is to ensure that your business is allowed to work with and receive payments from the federal government and/or its prime contractor (if you plan to be a  subcontractor). When you are going through the SAM Registration, you are asked lots of questions that answers are required for. A majority of them will be FAR (Federal Acquisition Regulations) questions, which is a list of regulations set forth by the joint efforts of the DoD Department of Defense), GSA (General Services Administration), and NASA (National Air and Space Association). 

To ensure that you are able to do business with the federal government, your registration will go through two validations once submitted. The first being the IRS (Internal Revenue Services), which will match and approve your EIN and taxpayer name and address. This lets the federal government know that you are a company that does (or does not) pay taxes and has received your EIN or TIN (SSN, if you are sole proprietor). Next, the registration will enter the CAGE/DLA review, where it is revived by the CAGE department of the DLA (Defense Logistics Agency). Here, they will look for any discrepancies and may have additional questions based on your registration provided.

Maintaining and Renewing Your Registration

If your SAM Registration were to expire, you would not be able to participate in any federal contracting until the registration is renewed. The reason the registration expires is so you can ensure that your business information within SAM is up-to-date, as it gives you a chance to change any necessary fields. Most companies will not have much to change in their registration. However, if you do, this is the time to do so!

Expired registrations that are currently involved in a contract either as a prime or subcontractor will not receive payments on work until the registration is renewed. As SAM’s purpose also serves as federal contracting dollar review (tracking where it’s going, to who, and for what purpose), this is extremely important and can cause issues especially if you are in the middle of OR getting prepared for contract work. Additionally, if you do not renew in time, you are at risk of contract termination all together.

You also will want to check when your SAM Registration expires to avoid losing your competitive edge in the federal marketplace. If you lose track of your expiration date and are getting ready to bid on a highly competitive contract, you do NOT want to miss out on it because you allowed the registration lapse or expire.

Common Mistakes with SAM Registrations

Information in the Secretary of State

When registering in SAM, a lot of businesses make the same mistakes when going through the process. Making minor mistakes will cause the registration (both new and renewal) times to. take longer for review. You want to ensure that any documents and information with the IRS and your Secretary of State are correct and/or updated. During entity validation, SAM will pull information from the Secretary of State. This can cause issues during that entity validation process, especially if there is a difference in company address or the name itself. If there is a difference that needs to be corrected, you will be asked to upload applicable documentation to correct it in SAM before being able to proceed. You may need to update the information in the Secretary of State in order to make. changes in SAM, so do your due diligence with the the SoS.

Information from the IRS

SAM also will send the registration over to the IRS for review, ensuring your EIN and taxpayer name and address are labeled correctly. If they are not, you will need to reference your tax statement or documents from the IRS to double check your EIN and taxpayer name and address. If something is wrong or incorrect, you will need to take the time and fix it with the IRS first before proceeding with the registration in SAM.

NAICS Codes

You also want to ensure that you have the correct NAICS Codes listed on SAM. Your NAICS codes tell prime contractors and agencies what your companies provides as a good or service. Having the correct NAICS codes listed in SAM will ensure a fast procurement process for federal contracts.

General Information and FAR Questions

Ensuring that general information like your name, bank information, size metrics, and other fields are extremely important to ensuring an easy procurement process. If your bank information is wrong, you will not be properly paid by the government for the. contracting work. There is no validation process for the banking information so you will need to make sure you put the correct number, as the only the last four digits of the account and routing are available to see. Changing it or fixing the bank information can cause a major delay in the registration, possibly ending in needed to deactivate and delete the current registration and creating a whole new one.

With the FAR questions, answering honestly and correctly will ensure no issues with the registration, Any information that is incorrectly received may result in consequences and the registration may have to be renewed OR you may have to start the registration from the beginning all over again.

Getting Help with SAM

If you need assistance with your SAM Registration or have any questions about the process, do not hesitate to reach out to the FEDCON Help Desk at 1-855-233-3266. Our team is dedicated to ensuring that you get the contracts that you deserve and that you are well on your way to becoming a federal contractor. The SAM Registration process can be extremely tedious and time consuming, but so is the rest of the federal marketplace. Having a team by your side to help you may be what you need.

What is the Foreign Corrupt Practices Act (FCPA)?

The Foreign Corrupt Practices Act is a U.S. law that was enacted in 1977 to prevent United States businesses to bribe foreign officials to gain business advantages. This is ensures that U.S. businesses cannot offer, pay, or promise to pay money or anything of value to foreign government officials (this includes political parties or candidates) for the purpose of influencing decisions to assist the business financially.

What does FCPA have to do with Federal Contracting?

The Foreign Corrupt Practices Act (FCPA) directly impacts federal contracting by prohibiting U.S. companies, including federal contractors, from bribing foreign officials to secure an business competitive advantages. International contractors must make sure that they are in compliance with the FCPA in order to avoid criminal and civil penalties that could end in the debarment from federal contracts. The government often requires contractors to develop anti-corruption compliance programs and perform due diligence on foreign partners to avoid violations.

FCPA and Federal Contracting: Staying Compliant

The Foreign Corrupt Practices Act (FCPA) plays a very important role in making sure that businesses that are involved in federal contracting are running their operations in a honorable and open manner especially when dealing with foreign officials. It is therefore important for contractors and vendors who are working with the U.S. government to have strict compliance measures in order to avoid violations that may have severe legal and financial consequences.

Key Compliance Strategies for Contractors and Vendors

Implement a Strong Compliance Program Establish

• Promote clear company policies and procedures that are in conformity with the FCPA.
• Ensure that compliance programs are checked regularly to reflect changes in laws and practices.

Conduct Due Diligence on Third Parties Check

• Ensure that subcontractors, vendors, and consultants also adhere and review that they are and remain compliant with FCPA.
• Make sure any and all agreements are in writing and include anti-corruption clauses.

Provide Employee Training

• Provide frequent training on FCPA compliance and ethical standards.
• Ensure your employees know the consequences of bribery and improper payments with federal contracting.

Monitor and Report Transactions

• Preserve the records and documentation of all the payments made, putting in place internal measures to prevent and detect all forms of suspicious activities.

Avoid Improper Payments and Gifts

• It is prohibited to offer or give a bribe, a kickback or a facilitation payment.
• To avoid such things, define strict policies for the provision or receipt of gifts, entertainment or hospitality.

Self-Reporting and Cooperation

• Allow for anonymous reporting of concerns by the employees. If you have any violations, you should investigate and prosecute and if there is anything to be raised to the authorities, raise it.

If the above compliance strategies are put into practice federal contractors and vendors will be well positioned to avoid legal pitfalls, act with ethical integrity and thus remain qualified to receive government contracts.

You want to guarantee that your business remains in FCPA compliance so you do not lose out on any federal contracting. If compliance is not met, the company will be barred from receiving and participating in future federal contracting, losing any access to current federal contracts.