The GSA Office of Inspector General (OIG) is actively investigating alleged fraudulent third-party activity in GSA’s System for Award Management (SAM). At this time, a limited number of entities registered in SAM are suspected of being impacted by this illegal activity. GSA has taken proactive steps to address this issue and has notified the affected entities.
GSA Proactive Steps
GSA has taken proactive steps in response to this issue, including requiring an original signed and notarized letter identifying the authorized Entity Administrator for the entity associated with the DUNS number before a new SAM.gov entity registration will be activated. GSA will continue to work with the OIG and law enforcement to take appropriate action if required.
Deactivation Where Necessary
In the interim, GSA expired and deactivated any entity registrations that appeared to have been affected. GSA began notifying these entities on March 22nd, 2018 to validate their registration information in SAM, particularly their financial information and POCs.
What Next
All entities registered in SAM are advised to log into SAM and review their registration information. Entities are responsible for ensuring their information is correct in SAM in accordance with paragraph (b) of FAR clause 52.232-33 and should routinely review such information for accuracy. If an entity suspects a payment due them from a federal agency was paid to a bank account other than their own, or suspects any manner of fraudulent activity, they should contact the Federal Service Desk at www.fsd.gov, or by telephone at 866-606-8820 (toll free) or 334-206-7828 (internationally), Monday through Friday from 8 a.m. to 8 p.m. EDT for free assistance.
Additional Details From GSA
The Redstone team is committed to providing our clients with timely information which may affect government contractors. We offer consulting and training to help your organization manage contracts effectively, protecting your accounting system from fraudulent activity and auditing issues. For more information on the public statement from GSA please see https://www.gsa.gov/about-us/organization/federal-acquisition-service/office-of-systems-management/integrated-award-environment-iae/sam-update
Update From the APTAC Newsletter as of Thursday, April 12, 2018:
"Update on SAM hack: Expanded notarized letter requirement and new template coming GSA has just announced: "Beginning on April 27, 2018, entities renewing or updating their [SAM] registration will be required to submit an original, signed notarized letter confirming the authorized Entity Administrator associated with the DUNS number before the registration is activated." This comes in addition to the current requirement for new SAM registrants to submit such a letter."
Upon renewing or updating your vendor registration in SAM, instructions will be provided to vendors including a template and guidance for mailing the notarized letter to the Federal Service Desk. Do not mail the notarized letter until requested by SAM/FSD.
As Director of Compliance Consulting at Redstone Government Consulting, Jonas Clem leads our compliance team in helping government contractors navigate the complexities of federal compliance requirements. With deep expertise in DFARS business systems, cost proposal compliance, and government audits, Jonas provides strategic guidance to our clients facing DCAA and DCMA audits, ensuring compliance at every stage, from pre-audit preparation to post-audit resolution. Jonas is a recognized expert in government property management and purchasing system compliance, having successfully implemented and refined these systems for contractors of all sizes—each passing rigorous government audits. He also delivers targeted training programs, equipping clients with the knowledge needed to maintain compliance with DFARS business systems, FAR 31 cost principles, indirect rate strategies, and cost proposal requirements. With over 20 years of experience in the government contracting industry, Jonas has held senior leadership roles spanning program finance, contracts, accounting, and operations. A significant portion of his career was spent with a small business contractor that expanded into a $100M+ large business prime contractor, where he progressed through leadership positions to ultimately serve as Business Operations Manager for the NASA and Army Programs Division. Additionally, he has served as a Controller for a large NASA prime contractor, strengthening his expertise in financial management, compliance, and audit readiness. Jonas' comprehensive, hands-on experience across the government contracting lifecycle, including DoD and NASA contracts, makes him an invaluable resource to our clients. His proven expertise spans proposal development and pricing, indirect rate structuring, and DCAA/DCMA audit readiness. With an unparalleled blend of accounting, contracts, operations, and regulatory knowledge, Jonas delivers practical, results-driven compliance strategies that help our clients mitigate risk and succeed in today's highly regulated environment.