Keep Your SAM Info Up-To-Date or Learn a Valuable and Costly Lesson.
Keep Your SAM Info Up-To-Date or Learn a Valuable and Costly Lesson.
(Based on an article published by the MA APEX newsletter.)
Federal government contractors, listen up! Keeping your System for Award Management (SAM) information accurate and current is crucial. A recent case shows how costly neglecting this can be.
The Case of Red Orange LLC
The U.S. Small Business Administration (SBA) decided to involve Red Orange LLC. The U.S. Army Corps of Engineers (USACE) issued a solicitation as a small business set-aside. After evaluating proposals, they identified Red Orange LLC as the top choice. However, there were doubts about whether Red Orange qualified as a small business.
The USACE referred the matter to the SBA. The SBA contacted Red Orange using the email listed in its SAM profile, asking for tax returns and other information to verify their small business status. When Red Orange didn’t respond to the initial or follow-up emails, the SBA applied an “adverse inference.” They assumed the missing info would show Red Orange wasn’t a small business. As a result, Red Orange was deemed ineligible for the contract.
Red Orange's Appeal
Red Orange appealed, saying the listed email wasn’t monitored by management but was used for accounts receivable. They argued that they never got a fair chance to respond to the size challenge.
The SBA’s Office of Hearings and Appeals (OHA) rejected this argument. The judge noted that Red Orange listed the email as their primary point-of-contact (POC) in SAM, making it their responsibility to monitor it. The appeal was denied, and Red Orange lost the contract.
The Lesson? Keep Your SAM Info Accurate!
This case highlights the importance of regularly reviewing and updating your SAM profile. Make sure all information is current and accurate to avoid costly mistakes.