--- title: Department of Energy Issues Class Deviation on System of Award Management (SAM) description: DOE issued a Class Deviation on maintaining SAM registration up to contract award. Hopefully, other agencies follow. image: https://info.redstonegci.com/hubfs/RGCI%20-Department%20of%20Energy%20Issues%20Class%20Deviation%20on%20System%20of%20Award%20Management%20%28SAM%29.png --- [ PAY INVOICE](https://redstonegci.com/invoice-payment/) [Call Us Today 256-704-9800](tel:2567049800) [info@redstonegci.com](Mailto:info@redstonegci.com) [![Redstone_Logo](https://info.redstonegci.com/hubfs/redstone%20logo%20version%201%20-%20rgb-1.png)](https://www.redstonegci.com/) # Department of Energy Issues Class Deviation on System of Award Management (SAM) [Posted by Lynne Nalley, CPA on Mon, Nov 20, 2023 @ 14:11 PM](https://info.redstonegci.com/blog/author/lynne-nalley) - [Tweet](https://twitter.com/share) ![RGCI -Department of Energy Issues Class Deviation on System of Award Management (SAM)](https://info.redstonegci.com/hs-fs/hubfs/RGCI%20-Department%20of%20Energy%20Issues%20Class%20Deviation%20on%20System%20of%20Award%20Management%20(SAM).png?width=1000&height=571&name=RGCI%20-Department%20of%20Energy%20Issues%20Class%20Deviation%20on%20System%20of%20Award%20Management%20(SAM).png) Contractors are required to keep their System of Award Management (SAM) registration up to date. [FAR 52.204-7(b)(1)](https://www.acquisition.gov/far/52.204-7) requires an offeror to be registered in the System of Award Management (SAM) when submitting an offer/quote, registered until the time of award, during performance, and through final payment. Sounds pretty easy. However, contractors are not always registering or updating their registration, resulting in ineligible awards, as noted in recent court cases (See our blog: [SAM Registrations: Check Often and Never Let it Lapse!](https://info.redstonegci.com/blog/sam-registrations-check-often-and-never-let-it-lapse)). ## Is There a DOE Class Deviation? On September 6, 2023, DOE issued a [Class Deviation](https://www.energy.gov/sites/default/files/2023-09/FAR%2052.204-7%20-%20Class%20Deviation%20-%20Final%20JRB%2008312023.pdf) removing the FAR 52.204-7 requirement that a contractor maintain its SAM registration for the entire time from proposal submission until contract award, without any lapse. The DOE deviation is effective immediately for all DOE procurements: - Removes the “shall continue to be registered until” time of award language; and - Adds the following language: “A failure to register in SAM or a lapse in SAMs registration may be treated by the Contracting Officer as a correctable matter of responsibility.” The Contracting Officer will have the authority to make a reasonable determination in documenting the validity of SAM registrations at the time of offer or quotation submission and at the time of award. This is great, but this class deviation applies only to DOE procurements. Other Federal agencies are still holding contractors to FAR 52.204-7 requirements. ## Where Did This Class Deviation Come From? We aren’t sure, but GAO made decisions in two protests ([Vietnam-Australia Environment Joint Stock Co.](https://www.gao.gov/assets/730/721679.pdf) and [Master Pavement Line Corporation](https://www.gao.gov/products/b-419111)) that a lack of a current SAM registration constitutes an immaterial defect and can be corrected. GAO’s decision in both sealed bid cases was based on the provisions of [FAR 14.405](https://www.acquisition.gov/far/14.405), which provide that if a bid contains a minor informality or irregularity, the contracting officer shall either give the bidder an opportunity to cure the deficiency or waive the deficiency, whichever is to the advantage of the Government.  GAO states a defect is immaterial when it has a negligible effect on price, quantity, quality, or delivery. While FAR subpart 14 doesn’t apply to all procurements, DOE’s class deviation appears to be using the same thought process – that it is a correctable deficiency. ## Takeaways Companies must maintain active SAM registrations and update existing registrations well before expiration. There may be changes to banking information, employee contacts, or representations and certifications. Redstone recommends contractors set up reminders and designate an individual to track the registration expiration date. Renewing your [SAM.gov](https://sam.gov/content/home) account requires review and approval, so that the process may take up to 60 days. Don’t get caught investing time and resources in putting together and submitting an offer that is determined ineligible because the SAM registration wasn’t completed or expired during the process. Although the two contractors that submitted sealed bids won the protest, they incurred significant internal and legal costs. Redstone is hopeful that other agencies will follow DOE and issue similar deviations, but until then, contractors should keep their SAM registrations current. [Redstone GCI](https://redstonegci.com/) assists contractors throughout the U.S. and internationally with understanding the Government’s requirements and implementing adequate systems, including the necessary policies and procedures. We can assist companies in setting up or updating their [System of Award Management Registration](https://redstonegci.com/consulting/operational-support-services/contracts-administration/). We would be happy to be part of your team. [![Learn More About Our Contracts & Subcontracts Administration & Support](https://no-cache.hubspot.com/cta/default/203971/interactive-168873885727.png) ](https://info.redstonegci.com/hs/cta/wi/redirect?encryptedPayload=AVxigLLXfXw8ydSBFlp7BXs6H1vJEyRC28bFY2ud%2BotSzwxQ6sAMo98Ip61fkwi49nktWCgwF%2BHhvY%2FuwE7jjbL0ClRQqqF2XoVRq6ZQEWq1ZbGHNhWl1Uaq7q6bUwWxhHavob9uqhIcYAyTpttitvQ%2FS2Upc5BsaeiCbQN5z5wO1mRx3WpevpAHUHwaNQB3TAKqVkeSn2bbasyGo8x6GEEZG2KRcI0NvoBvB8Jo9BmFfHhM8IAr9KGqErVhAlEK&webInteractiveContentId=168873885727&portalId=203971) ### Written by [Lynne Nalley, CPA](https://info.redstonegci.com/blog/author/lynne-nalley) ![Lynne Nalley, CPA](https://info.redstonegci.com/hubfs/images/Staff_/Lynne-Nalley.png) Lynne is a Director with Redstone Government Consulting, Inc. providing government contract consulting services to our clients primarily related to Commercial Item Determinations and support, Cost Accounting Standards, DFARS Business System Audits, Proposals, and Incurred Cost. Prior to joining Redstone Government Consulting, Lynne served in several capacities with DCAA and DCMA for over 35 years. Professional Experience Lynne began her career working with DCAA in the Honeywell Resident Office, Clearwater, FL in 1984. Lynne’s experience included various positions which involved conducting or reviewing forward proposals or rate audits, financial capability audits, progress payments, accounting and estimating systems, cost accounting standards, claims and disclosure statement reviews. She is an expert in FAR, DFARS, CAS and testified as an expert witness. Lynne assisted in drafting the commercial item guidance for DCAA Headquarters. Lynne was assigned as a Regional Technical Specialist where she provided guidance to 20 field offices on highly complex or technical issues relative to forward pricing, financial capability or progress payment issues. As an Assistant for Quality, she was involved in reviewing and ensuring audit reports were in compliance with policy and GAGAS as well as made NASBA certified presentations to the staff including but not limited to billing reviews, CAS, unallowable cost and progress payments. To enhance her experience in government contracting, Lynne accepted a position with DCMA in 2015 as part of the newly organized DCMA Cadre of Experts in the Commercial Item Group. This included performing reviews of prime contractor’s assertions and/or commercial item determinations as well as performing price analyses. Lynne was a project lead and later became a lead analyst where she engaged with the buying commands on requests and reviewed price analysis reviews performed by a team of 5 analysts. She also assisted the DCMA CPSR team relative to commercial items and co-instructed the Commercial Item Training presented to DCMA. Education Lynne earned a Bachelor of Science Degree in Accounting from the University of Central Florida. Certifications State of Florida Certified Public Accountant State of Alabama Certified Public Accountant Defense Acquisition Workforce Improvement Act (DAWIA) Level III- Auditing DAWIA Level III – Contracting ## About Redstone GCI Redstone GCI is a consulting firm focused on fulfilling the needs of government contractors in all areas of compliance. With a singular mission to help contractors through the multiple layers of “red tape,” we allow contractors to focus on what they do best – support their mission with the U.S. Government. We are home to a group of consultants made up of GovCon industry professionals, CPAs, attorneys, and retired government audit and acquisition professionals. Our focus and knowledge of audit and compliance functions administered by DCAA and DCMA will always be at the heart of what we do. However, for the past decade, we’ve strategically grown to support other areas of the government contractor back-office with that same level of focus and expertise. We’ve added expertise in contracts management, subcontract administration, proposal pricing, various software systems, HR and employment law, property administration, manufacturing, data analytics/reporting, Grant specialists, M&A, and many other areas. When we see a trend in the needs of contractors, we act to ensure we can provide the best expertise in the market to fulfill those needs. One thing our clients can be certain of is that with the Redstone GCI Team in your corner, there is no problem too big and no issue too technical for our team to tackle. 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