Acquisition Alert 24-19 - Class Deviation - Temporary SAM.gov Registration Exception for Work Being Performed Overseas (SPE sign.pdf

Acquisition Alert 24-19

TO: All Domestic and Overseas Contracting Activities

FROM: Michael W. Derrios Senior Procurement Executive U.S. Department of State

SUBJECT: Class Deviation - Temporary SAM.gov Registration Exception for Work Being Performed Overseas

1. Introduction: The purpose of this Acquisition Alert is to issue a Class Deviation to Federal Acquisition Regulation (FAR) 4.1102(a)(6), to provide an exception to System for Award Management (SAM) registration for any actions awarded to a foreign vendor for work performed outside the United States, regardless of the dollar value, at the end of Fiscal Year (FY) 2024.

2. Background: FAR subpart 4.11 discusses the policies and procedures for contractor registration in SAM. Low familiarity with U.S. Government terms and conditions, time zones, and cultural barriers can have a negative impact on overseas vendors at the end of a fiscal year. As a result, SAM compliance overseas can become impractical to obtain through the end of FY24 (September 30, 2024). The Department of State is issuing a Class Deviation from the requirements under FAR subpart 4.11 to mitigate the delays in SAM registration due to changes in entity validation processes and a significant increase in entities requesting a unique entity identifier at SAM.

3. Acquisition Impact: FAR 4.1102(a) lists general exemptions for obtaining SAM registrations. This class deviation provides an additional exception to FAR 4.1102(a)(6) for all awards, regardless of dollar value, through the end of FY24, provided all of the additional conditions below have been met:

a. Award is to a foreign vendor for work performed outside of the United States;

b. It is impractical to obtain SAM registration;

https://www.acquisition.gov/far/subpart-4.11#FAR_4_1102__d271e10 https://www.acquisition.gov/far/subpart-4.11 https://www.acquisition.gov/far/subpart-4.11 https://www.acquisition.gov/far/subpart-4.11#FAR_4_1102__d271e10 https://www.acquisition.gov/far/subpart-4.11#FAR_4_1102__d271e81 https://www.acquisition.gov/far/subpart-4.11#FAR_4_1102__d271e81

- 2 -

c. The apparent successful offeror does not show up on the excluded parties list in SAM.gov when searching by Unique Entity Identifier (UEI) and/or business name;

d. The apparent successful offeror under the terms and conditions of the solicitation is determined to be a responsible prospective contractor in accordance with FAR 9.104-1;

e. The apparent successful offeror has provided evidence of a good faith-effort to establish SAM registration. Evidence may include General Services Administration (GSA) Federal Service Desk (FSD) Incident Ticket number and date and/or proof of the acquisition of a UEI, documentation of communication with GSA or for SAM registration; and

f. The award is for an FY24 funded contract action.

4. Action Required:

a. The Contracting Officer must:

1. Use caution to apply this deviation thoughtfully on a case-by-case basis due to the potential negative effects that can result in contract performance and administration processes due to lack of an active SAM registration.

2. Ensure all the conditions listed in section 3 above are met and documented in the file prior to utilizing this deviation.

3. Include FAR provision 52.204-7 with its Alternate I in new solicitations when award is expected by September 30, 2024. Existing solicitations must be amended to include 52.204-7 Alternate 1 when award is expected by September 30, 2024. The following solicitation amendment language may be used:

https://www.acquisition.gov/far/part-9#FAR_9_104_1 https://www.acquisition.gov/far/52.204-7

- 3 -

4. Include in the contract file a copy of the entity validation ticket (with ticket number and date) the offeror submitted as proof of its initiation or attempt to start the SAM registration process.

5. Ensure the offeror has provided responses for the required FAR provisions for the solicitation that would normally be captured in the annual representations and certifications section of a SAM registration (see FAR 4.1202 and/or FAR 12.301(b)(2) if using commercial procedures).

6. Monitor the contractor’s completion of registration as soon as possible after award to ensure contract performance, administration, receipt, and invoicing processes are not impacted. Vendors may have issues receiving payments if they do not have active SAM registrations.

7. Delay reporting the award to the Federal Procurement Data System

(FPDS) until the contractor is actively registered in SAM so the contract action report will not fail processing. The FPDS Contract Action Report (CAR) must be finalized after SAM.gov Entity Registration is active.

8. Submit a report using the SAM Registration Deviation Reporting

Template to the designated desk officer. In the event there is no assigned desk officer, reports must be submitted to AcquisitionPolicy@state.gov. Reports must be submitted within 15 days of using the deviation and when SAM registration is ultimately achieved.

b. If the contract action is being awarded in accordance with this deviation, the contractor is required to be registered in SAM within 30 days after contract award, or at least three days prior to submission of the first invoice, whichever occurs first.

5. Effective Date: This Acquisition Alert is effective upon issuance.

6. Expiration Date: This Acquisition Alert expires on October 1, 2024.

https://www.acquisition.gov/far/4.1202 https://www.acquisition.gov/far/12.301#FAR_12_301__d726e53 https://usdos.sharepoint.com/sites/A-OPE/Lists/Checklists%20Guides%20and%20Templates/DispForm.aspx?ID=82&e=FaYqlF https://usdos.sharepoint.com/sites/A-OPE/Lists/Checklists%20Guides%20and%20Templates/DispForm.aspx?ID=82&e=FaYqlF https://usdos.sharepoint.com/sites/A-OPE/GAM/SitePages/Desk-Officers.aspx?xsdata=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%3D%3D&sdata=ZERQTFJVRlVVQldNUDU3ZHhHbkpYazJjNW9lTWxRK1VzZURMUGdOUS9jTT0%3D&ovuser=66cf5074-5afe-48d1-a691-a12b2121f44b%2CSchroederHR%40state.gov&OR=Teams-HL&CT=1705600220495&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzExMzAyNjIwMiIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D mailto:AcquisitionPolicy@state.gov

- 4 -

7. Additional Information: Questions regarding this Acquisition Alert may be directed to AcquisitionPolicy@state.gov.

8. Attachments: None. Any checklists, guides or templates referenced herein are linked below and are also available at Checklists, Guides and Templates (sharepoint.com).

9. Referenced Documents, Checklists, Guides and Templates:

SAM Registration Deviation Reporting Template mailto:AcquisitionPolicy@state.gov https://usdos.sharepoint.com/sites/A-OPE/Lists/Checklists%20Guides%20and%20Templates/DispForm.aspx?ID=82&e=FaYqlF