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FAR ClauseLabor & Compliance

FAR 52.204-7System for Award Management

Requires offerors and contractors to be registered and active in SAM.gov to receive an award and to be paid under a federal contract.

When This Clause Applies

Required in all federal contracts except micro-purchases and a few specific exceptions (e.g., contracts with foreign vendors performed entirely outside the U.S.).

What This Means for Contractors

Contractors must complete and maintain a current SAM.gov registration including annual representations and certifications. Lapsed registrations prevent payment and disqualify from new awards. Registration takes 7-10 business days for new entities; renewals are faster.

Common Pitfalls

  • 1Letting SAM registration lapse — invoice payments halt immediately
  • 2Submitting offers without active SAM registration (proposal can be rejected)
  • 3Not updating SAM after a merger, acquisition, or change in NAICS
  • 4Misunderstanding that SAM registration is required at offer AND award

Related Topics

FAR 52.204-7SAM.gov registrationSystem for Award ManagementSAM active status

Need help complying with FAR 52.204-7?

Aliff helps GovCon firms map clause requirements to deliverables, build compliance evidence, and respond to CO inquiries with confidence.