Rule2025-14990
Federal Acquisition Regulation: Clarification of System for Award Management Preaward Registration Requirements
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 7, 2025
Effective
August 7, 2025
Issuing agencies
Management and Budget OfficeFederal Procurement Policy OfficeDefense DepartmentGeneral Services AdministrationNational Aeronautics and Space Administration
Abstract
OFPP, DoD, GSA, and NASA (collectively referred to as the Federal Acquisition Regulatory Council, or FAR Council) have adopted as final, without changes, an interim rule that amended the Federal Acquisition Regulation (FAR) to clarify System for Award Management preaward registration requirements.
Full Text
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<title>Federal Register, Volume 90 Issue 150 (Thursday, August 7, 2025)</title>
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[Federal Register Volume 90, Number 150 (Thursday, August 7, 2025)]
[Rules and Regulations]
[Pages 38206-38208]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-14990]
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OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 52
[FAC 2025-05, FAR Case 2023-018; Item I; Docket No. FAR-2023-0018;
Sequence No. 1]
RIN 9000-AO66
Federal Acquisition Regulation: Clarification of System for Award
Management Preaward Registration Requirements
AGENCY: Office of Federal Procurement Policy (OFPP), Office of
Management and Budget; Department of Defense (DoD); General Services
Administration (GSA); and National Aeronautics and Space Administration
(NASA).
ACTION: Final rule.
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SUMMARY: OFPP, DoD, GSA, and NASA (collectively referred to as the
Federal Acquisition Regulatory Council, or FAR Council) have adopted as
final, without changes, an interim rule that amended the Federal
Acquisition Regulation (FAR) to clarify System for Award Management
preaward registration requirements.
[[Page 38207]]
DATES: Effective August 7, 2025.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
<a href="/cdn-cgi/l/email-protection#1650574466797a7f756f5671657738717960"><span class="__cf_email__" data-cfemail="2e686f7c5e4142474d576e495d4f00494158">[email protected]</span></a> or call 202-969-4075. For information pertaining to
status or publication schedules, contact the Regulatory Secretariat
Division at 202-501-4755 or <a href="/cdn-cgi/l/email-protection#f4b3a7b5a69193a79197b4938795da939b82"><span class="__cf_email__" data-cfemail="fbbca8baa99e9ca89e98bb9c889ad59c948d">[email protected]</span></a>. Please cite FAC 2025-05,
FAR Case 2023-018.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA published an interim rule at 89 FR 89472 on
November 12, 2024, to revise the solicitation provision at FAR 52.204-
7, System for Award Management, to clarify System for Award Management
(SAM) preaward registration requirements in paragraph (b)(1) of the
provision. The interim rule clarified that the offeror must be
registered at time of offer submission and at time of contract award
but would not be required to be registered in between those two points
in time. For further details please see the interim rule. Five
respondents submitted comments on the interim rule.
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (the Councils) reviewed the public comments in the
development of the final rule. A discussion of the comments is provided
as follows; however, no changes were made to the rule because of those
comments.
A. Summary of significant changes: There are no significant changes
from the interim rule.
B. Analysis of public comments:
Comment: A respondent expressed a preference for contractor
registration to only be at the time of award, versus at offer
submission and award. The respondent noted concern for small businesses
and new entrants who may not be aware of the registration requirement
until responding to a specific solicitation and having comparatively
limited time to become registered.
Response: The Councils appreciate and share the respondent's
interest in supporting accessibility to the Federal contracting
marketplace. This rule does not impose a new requirement and does not
introduce any impediment for business. It clarifies that offerors are
not required to be registered continuously between offer submission and
contract award. It decreases burden from current interpretations of the
preaward requirement. A previous final rule published in the Federal
Register at 83 FR 48691 on September 26, 2018, addressed the
requirement for registration at the time of offer submission.
Comment: A respondent expressed opposition to the rule, stating
that if an entity chooses to engage in business with the Government, it
is incumbent upon them to maintain their registration. The respondent
caveated that sentiment with an exception for lapses due to Government
fault.
Response: The Councils appreciate the respondent's perspective and
concur with the general sentiment that it is an entity's responsibility
to manage registration validity. The interim rule published in the
Federal Register at 89 FR 89472 on November 12, 2024, references the
continuous, active registration as being the anticipated normal state
expected of offerors and contractors conducting business with the
Federal Government. However, the Councils found several challenges with
the interpretation of an uninterrupted, continuous registration during
the entirety of the preaward period with failure to do so rendering an
offeror ineligible for award. Those challenges were discussed in the
interim rule published at 89 FR 89472 on November 12, 2024.
Comment: A couple of respondents provided comments with no clear
relationship to the rule.
Response: These comments are outside the scope of this FAR rule.
Comment: A respondent included an excerpt of text from the interim
rule published in the Federal Register at 89 FR 89472 on November 12,
2024, but did not include a recommendation or question.
Response: No response necessary.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Products (Including Commercially
Available Off-the-Shelf (COTS) Items) or for Commercial Services
This rule amends the provision at FAR 52.204-7, System for Award
Management. However, this rule does not impose any new requirements on
contracts at or below the SAT, for commercial products (including COTS
items), or for commercial services. The provision continues to apply to
acquisitions at or below the SAT, acquisitions for commercial products
(including COTS items), and commercial services.
IV. Expected Impact of the Rule
This rule is expected to benefit both the Government and industry
by clarifying preaward registration requirements. The clarification is
expected to mitigate the risk of litigation and mission delays.
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993.
VI. Executive Order 14192
This rule is neither a regulatory nor a deregulatory action for
purposes of E.O. 14192, Unleashing Prosperity Through Deregulation.
This final rule finalizes the interim rule without change and,
therefore, neither increases nor decreases the cost of the interim
rule.
VII. Congressional Review Act
Pursuant to the Congressional Review Act, the FAR Council will send
this rule to each House of the Congress and to the Comptroller General
of the United States. The Office of Information and Regulatory Affairs
(OIRA) in the Office of Management and Budget has determined that this
rule does not meet the definition in 5 U.S.C. 804(2).
VIII. Regulatory Flexibility Act
The FAR Council has prepared a Final Regulatory Flexibility
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5
U.S.C. 601-612.
1. Statement of the need for, and the objectives of, the rule.
The Office of Federal Procurement Policy (OFPP), the Department
of Defense (DoD), the General Services Administration (GSA), and the
National Aeronautics and Space Administration (NASA) (collectively
referred to as the Federal Acquisition Regulatory Council, or FAR
Council) are amending the Federal Acquisition Regulation (FAR) to
clarify System for Award Management (SAM) preaward registration
requirements. The interim rule changed the provision at FAR 52.204-
7, System for Award Management, to clarify that an offeror must be
registered at time of offer submission and at time of contract award
but would not be required to be registered in between those two
points in time. The current language has led to interpretations that
have disrupted Government procurements and resulted in
[[Page 38208]]
lost business opportunities for some companies, including small
businesses.
2. Statement of the significant issues raised by the public
comments in response to the initial regulatory flexibility analysis,
a statement of the assessment of the agency of such issues, and a
statement of any changes made to the rules as a result of such
comments.
There were no significant issues raised by the public in
response to the Initial Regulatory Flexibility Analysis provided in
the interim rule.
3. Description of and an estimate of the number of small
entities to which the rule will apply.
This final rule impacts all entities that do business with the
Federal Government, including the approximately 400,000 small
business registrants in the System for Award Management.
4. Description of projected reporting, recordkeeping, and other
compliance requirements of the rule.
The final rule does not impose any new reporting, recordkeeping,
or other compliance requirements for small entities.
5. Description of the steps the agency has taken to minimize the
significant economic impact on small entities consistent with the
stated objectives of applicable statutes.
There are no known significant alternative approaches to the
final rule, and no further steps available to minimize impact on
small entities--there is no significant economic impact on them.
Interested parties may obtain a copy of the FRFA from the
Regulatory Secretariat Division. The Regulatory Secretariat Division
has submitted a copy of the FRFA to the Chief Counsel for Advocacy of
the Small Business Administration.
IX. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. 3501-3521) applies to the
information collection described in this rule; however, these changes
to the FAR do not impose additional information collection requirements
to the paperwork burden previously approved under Office of Management
Budget Control Number 9000-0189, Certain Federal Acquisition Regulation
Part 4 Requirements.
List of Subjects in 48 CFR Part 52
Government procurement.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Interim Rule Adopted as Final Without Change
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
Accordingly, the interim rule amending 48 CFR part 52, which published
in the Federal Register at 89 FR 89472 on November 12, 2024, is adopted
as a final rule without change.
[FR Doc. 2025-14990 Filed 8-6-25; 8:45 am]
BILLING CODE 6820-EP-P
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