For small businesses that wish to do business with the Federal government, they would require a unique identifier number for their business. This is known as the UEI. The government provides this number, which is similar to the tax ID number. This is of tremendous use in identifying the businesses that are eligible for receiving federal grants, awards, and contracts. The UEI number is optional for businesses that work exclusively with individual consumers and private companies. However, if the business plans to pursue contracts with the federal government, then the UEI will be required.
Introduction of the UEI number for Federal contracts
Businesses are required to obtain the UEI number to be eligible to access federal awards and grants. In April 2022, the federal government replaced its old identifier, namely the Data Universal Numbering System number or the DUNS, with the UEI. At present, all of the Integrated Award Environment Systems from the Federal government make use of the UEI numbers instead of the DUNS number. Thus, all the businesses and entities that wish to perform business with the federal government must register for their UEI.
Difference Between the UEI and the DUNS Number
The UEI is completely different from the DUNS number, though both of them serve as unique business IDs. There are many differences between these numbers. While the DUNS numbers are created and distributed by the analytics company Dun and Bradstreet, the UEIs are generated and distributed by the Federal government. The potential lenders will be able to make use of the DUNS number of the business to pull out its credit report in order to decide whether to extend the loan or not. As the Federal government generates the UEIs, they are not linked directly to the credit ecosystem of the business the way DUNS is.
How can Businesses Get their UEI Number?
Businesses that are generally listed and registered at the SAM.gov database should already have their UEI number; they can simply log on to the website and access it. For businesses that need to register for the UEI, they can visit the website and do the required steps to receive their UEI. There is also a button known as the check entity status, where the businesses can find out if they are enrolled in the database of the website.
To get the new UEI number, businesses must fill out a unique application with all the required information about their business, including the legal business name and the physical address. Businesses might also be required to enter the taxpayer identification number and the banking information. They might also be required to submit additional documentation details if they intend to pursue additional government contracts.
The Application Process for Obtaining New UEI Numbers for Businesses
To obtain the UEI number, businesses should visit the SAM.gov website and create their user account. The registration process is purely for the Federal financial assistance award only. The following are the step-by-step measures to be taken to avail of the Federal government UEI number.
Login to the SAM.gov Website
After accessing the website, the user might choose the sign-in button, and they will be taken directly to the login account page to create their account. The website allows its users to create login credentials, such as email, password, and 2-factor authentication, that they can use to sign into multiple US government websites, such as the Federal Service Desk and SAM.gov.
The next step is to complete the profile needs. The person who will behave as the Entity administrator must create the login credentials. These steps must be completed before proceeding with the registration.
Completing the Registration Process
Completing the profile on the website is important before proceeding with the registration process. However, it is only possible to request a Unique Entity ID after completing the entire SAM.gov registration. The EXIM applicants and participants are expected to complete the entire registration.
They have to choose the ‘Get Started’ option from the home page and select the Create New Entity option from the next page. To answer the question ‘What is your goal?’ the application can choose his answer as ‘ To do business directly with the US Federal Government. It is important to select the answer that best fits one’s intentions and to apply for Federal financial assistance.
If your business intends to bid on federal government contracts to offer goods and services, it is pertinent to select ‘All Awards’. Since the registration involves many different screens and multiple steps, it is mandatory to save the work as you progress. You may also choose to come back and complete the registration process in a different session. The registration process will be completed as users click on the submit button.
Annual Recertification
The administration of the business will be solely responsible for ensuring the accuracy of the entity registration in the SAM registry. It is mandatory to perform the entity registration once every 365 days, so as to ensure that the account remains active. Otherwise, if the account doesn’t get updated in a timely manner, it might expire. The expired registration will affect the ability of the firm to do business with the Federal government.
Finding the Entity Status in the SAM.gov Website
Finally, the entity administrator can select a workspace from the menubar and can view the different UEI registration statuses. These are generally shoes as bubbles and widgets and the number 1 indicates the status of the entity. If the registration is active, then it means that the UEI has been assigned and the registration process has been completed. The expiration date of this registration is one year from the date of submission of the registration. Other possible status remarks on the registration process are as follows.
- ID Assigned: This means that the business’s UEI has been assigned, but the registration process has yet to start.
- Inactive registration: This means that the UEI has been assigned, and there has been an active registration, but it has expired and must be renewed.
- Pending ID assignment: This status remark shows that the entity lies in the Entity validation process and the federal service desk incident or the FSD is being reviewed.
- Work in progress registration: This remark means that the registration process has been started but the business is expected to furnish additional information.
- Submitted registration: This means that all the required registration information has been entered, and the final validations have been completed.
What Happens After the Business Registers for the UEI Number?
After the registration process for the UEI number is submitted, the SAM.gov system will perform two additional validations. It will validate the account for IRS verification and the CAGE Code validation. After completing all these validations, the SAM registration will be activated. It has to be noted that it might take up to ten business days from the submission for activation of the company’s registration. In order to check the registration status, users have to log into the SAM.gov account or click on the ‘ Check Entity Status’ menu available on the home page of the website.
In cases of IRS discrepancy, the validation would check to ensure that the taxpayer’s EIN, the company name, and the address given in the IRS consent section of the registration page match with the taxpayer’s EIN, the company name, and the address given in the recent tax returns. In cases of CAGE code discrepancies, the system will verify the company name and the address against the SAM registration and ensure that it matches the address listed with the DLA or the Department of Defence Logistics Agency.
Expiry of the UEI Number
The UEI number that has been assigned for the business will not expire. The registration process will be valid for a year after the submission of the registration date. The UEI without an active SAM.gov registration will not be accepted to perform business with the EXIM. The business can view the registration activation and expiration dates through the SAM website. The administrator will receive emails 60, 30, and 15 days prior to the expiration date of the account, reminding them to renew the registration process. Renewal can be performed by following the steps on the website and by submitting the renewal request.
Platforms like MySetAside can help businesses with the registration process for receiving their UEI number. They have a very effective and user-friendly web portal that offers new contract opportunities for small businesses to perform business with the Federal and State governments. Its experts will perform the complete registration process and allow businesses to get their UEI number to start performing business with the Federal government. They will also help with the UEI number renewal process as well. The website will also alert the business on the different contracting opportunities from the Federal and state governments from their database that are tailored specifically for the needs of small businesses.