As we have previously noted, businesses that contract with the United States government must maintain System of Award Management registration – at SAM.gov – to be eligible for contract awards. We also discussed the requirement that SAM registration be maintained, without lapse, from the time an offer is made through the award.

Last year, the Department of Defense, General Services Administration, and NASA implemented an interim rule that changed this requirement and only requires a contractor to have a current, active SAM registration at the time of offer and award. A lapse in registration between offer and award will not preclude the contractor from being awarded a contract. The interim rule has now been adopted as a final rule without significant changes.

The revised regulation, located at 48 CFR part 52.204-7(b)(1) (also known as FAR 52.204-7), states that: “An Offeror is required to be registered in SAM when submitting an offer or quotation and at time of award.”

This final rule and regulatory change is effective immediately. Businesses are now explicitly only required to be registered at the time of offer submission and at the time of contract award. A lapse in registration between submission and award will no longer disqualify an entity so long as the lapse is corrected before the contract is awarded.

Previously, courts and agencies treated a SAM registration lapse as disqualifying even if the lapse occurred after offer submission and was fixed prior to award. This approach caused significant resource losses for otherwise successful small businesses, including lost contract opportunities, legal expenses, and delays. It also hindered government efficiency by disqualifying best-value entities and prolonging procurement timelines due to administrative lapses in SAM registration. Agencies identified this as an “unintended interpretation.”

By clarifying the requirement, the final rule—like the earlier interim rule—aims to reduce unnecessary litigation, prevent mission delays, and improve acquisition efficiency

Although registration lapses will no longer result in automatic disqualification, businesses should continue to maintain uninterrupted, active SAM registration. As noted in the final rule, this remains the “anticipated normal state.”

This article summarizes aspects of the law and opinions that are solely those of the authors. This article does not constitute legal advice. For legal advice for your situation, you should contact an attorney.