New SAM.Gov Rule: Highest-level Owner – Immediate Owner
If you’ve updated your SAM.gov registration recently, you may have seen a new ownership page. A final rule recently amended the Federal Acquisition Regulations to require all SAM registrants, if owned by another entity, to identify that entity by name, CAGE code, and type of ownership. This SAM.gov rule will provide government insight into 1) Federal spending patterns across corporations, 2) Traceability in tracking performance issues across corporations, 3) Contractor personnel outside the United States, and 4) Supply chain traceability and integrity efforts. As the final rule noted, “Increased transparency and accuracy of procurement data broaden the Government’s ability to implement fraud detection technologies restricting opportunities for mitigating occurrences of fraud, waste, and abuse of taxpayer dollars.”
Ownership is defined as a “Highest-level Owner” and “Immediate Owner”. Ownership is defined as an Entity having ownership or control. And an “Entity” is defined as an Individual, Partnership, Corporation, Joint Venturer, or an Agent. To help respond correctly to this new requirement, we’ve outlined the ownership definitions below.
Highest-level Owner: No entity owns or exercises control of the highest level owner. A highest level owner owns or controls an immediate owner of an entity, or owns or controls one or more entities that control an immediate owner of those specific entities.
Immediate Owner: An immediate owner has at most one highest-level owner. An immediate owner is an entity, other than the offeror, that has direct control of the entity.
Indicators of control can be as follows:
• Ownership or Interlocking Management
• Identity of Interests among Family Members
• Shared Facilities and Equipment
• Common Use of Employees
If you have an owner that fits within the above definitions, they will be required to obtain a DUNS number (from Dun & Bradstreet) and a CAGE Code (from SAM.gov or DLA), and you will need to enter their information within your SAM registration. If you have an international owner, they will need to acquire a NCAGE code. The deadline for this new requirement will be November 1st, 2014.
It is extremely important that your SAM.gov data is accurate, and you don’t make a false misrepresentation and risk corporate exposure for fraud. Should you have any questions, please contact Winvale for assistance.