DOE Class Deviation Softens FAR Requirement for Continuous SAM Registration
Client Alert | 2 min read | 09.19.23
On September 6, 2023, the Department of Energy (DOE) issued a Class Deviation removing the FAR 52.204-7 requirement that a contractor maintain its System for Award Management (SAM) registration for the entire time from proposal submission until contract award, without any lapse. As background, FAR 52.204-7 has since 2018 provided that “[a]n Offeror is required to be registered in SAM when submitting an offer or quotation and shall continue to be registered until time of award . . . .” As we discussed here, the Court of Federal Claims has strictly enforced this language, holding that it unambiguously requires a contractor to maintain its SAM registration throughout the entire proposal and evaluation process, and that an agency lacks the authority to waive that requirement.
The DOE Class Deviation, effective immediately for all DOE procurements, makes the flowing changes:
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- 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 [sic] registration may be treated by the Contracting Officer as a correctable matter of responsibility.”
While this class deviation applies only to DOE procurements, companies should watch for whether other federal agencies follow suit and issue similar class deviations. Companies also should begin proactively updating existing registrations well in advance of expiration. Even though the SAM initial registration and update processes have improved over the past year since the original change to the Unique Entity Identifier (UEI) assignment and accompanying entity validation steps, potential delays in the entity validation and Defense Logistics Agency CAGE Code processing steps still caution early registrations and early updates to ensure registration timeliness and continuity.
Insights
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On July 25, 2025, the Eleventh Circuit Court of Appeals issued its decision in United States ex. rel. Sedona Partners LLC v. Able Moving & Storage Inc. et al., holding that a district court cannot ignore new factual allegations included in an amended complaint filed by a False Claims Act qui tam relator based on the fact that those additional facts were learned in discovery, even while a motion to dismiss for failure to comply with the heightened pleading standard under Federal Rule of Civil Procedure 9(b) is pending. Under Rule 9(b), allegations of fraud typically must include factual support showing the who, what, where, why, and how of the fraud to survive a defendant’s motion to dismiss. And while that standard has not changed, Sedona gives room for a relator to file first and seek out discovery in order to amend an otherwise deficient complaint and survive a motion to dismiss, at least in the Eleventh Circuit. Importantly, however, the Eleventh Circuit clarified that a district court retains the discretion to dismiss a relator’s complaint before or after discovery has begun, meaning that district courts are not required to permit discovery at the pleading stage. Nevertheless, the Sedona decision is an about-face from precedent in the Eleventh Circuit, and many other circuits, where, historically, facts learned during discovery could not be used to circumvent Rule 9(b) by bolstering a relator’s factual allegations while a motion to dismiss was pending. While the long-term effects of the decision remain to be seen, in the short term the decision may encourage relators to engage in early discovery in hopes of learning facts that they can use to survive otherwise meritorious motions to dismiss.
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