SAM Background Check: The Complete Guide

As a part of a comprehensive background check, healthcare providers and private companies that contract for the federal government must typically perform a System for Award Management (SAM) background check on candidates, subcontractors, and other individuals who play a role in your operations. Not only can doing so help you comply with laws and regulations, but it also allows you to mitigate risks and safeguard your employees, patients, and the general public. Here’s what you need to know about SAM background checks.

The System for Award Management (SAM) is a system operated by the Federal Acquisition Service (FAS) of the General Services Administration that connects prospective and current contractors with the federal government. Before doing business with the US government, private companies must register as government contractors with the GSA. SAM is the official online home of GSA registration.

Private companies can use the SAM to:

• Register to do business with the federal government
• Update or renew federal business SAM registration
• Check the status of a SAM registration
• Search for contract opportunities
• Access contract data reports, wage determinations, and other information
• Perform SAM background checks

A SAM background check determines whether an individual or entity is an excluded party, meaning suspended or barred from receiving contract awards from the federal government. A SAM background check is typically part of a comprehensive background check that employers perform before hiring a new employee or entering into an agreement with a subcontractor.

Benefits of the SAM for employers include gaining access to federal contracts, maintaining eligibility for federal contractors, discovering business opportunities, streamlining the procurement process, and complying with background check requirements. Here’s a look at each of these benefits.

Federal laws and regulations establish eligibility requirements for organizations that conduct business with the federal government. For example, private companies must meet size and cybersecurity requirements. Registering to do business with the federal government is mandatory and ensures organizations are eligible to secure federal contracts.

Initial SAM registration must be renewed every 365 days to retain eligibility for federal contracting. Businesses must also update the information in their SAM registration throughout the year. 

Government agencies are required to post all contract opportunities of $25,000 or more on SAM. As a result, the system makes it easy for registered organizations to learn about potential opportunities to bid on.

SAM makes it simpler for companies to become eligible for federal contracts and bid on them. Because it combines registration management with contract opportunity listings, SAM eliminates the need for organizations to access multiple systems, streamlining the procurement process. 

Federal contractors must perform a SAM background check before hiring prospective employees and subcontractors, which verifies that the individual or entity is not an excluded party.

SAM background checks are important for healthcare employers because they ensure compliance with federal regulations and help promote public safety. Laws and regulations prohibit individuals who have previously engaged in fraud and abuse from participating in Medicare, Medicaid, and other federal healthcare programs. 

Healthcare employers who participate in one of these programs must typically conduct background checks to determine if the candidate is ineligible, and generally a SAM background check is part of the pre-employment background check process. 

The SAM exclusion list identifies individuals and organizations permanently debarred or temporarily suspended from federal contracting. A government agency may exclude an individual or organization for many reasons, including making false statements, fraud, tax delinquency, and patient abuse and neglect.

As an employer participating in certain federal programs or federal contracting, your organization cannot contract or do business with any person or entity debarred, suspended, or deemed ineligible to receive federal funds. To make those determinations, you can conduct a SAM background check to see if they appear on the exclusion list.

If an individual or entity does appear on the SAM exclusion list and you do business with them, hire them, or contract with them in any way, you could face penalties. For example, you may lose your eligibility to participate in federal healthcare programs or have any current contracts terminated.

Two main methods are available for organizations to conduct SAM background checks: manual searches and partnering with a background check provider, like Checkr. 

Performing a background check manually using SAM.gov can be complicated; terminology used to describe suspensions and debarment statuses is complex. Plus, in some cases, the information provided is incomplete, and more research is necessary to understand its implications. Many organizations prefer to work with a background check company, like Checkr. With Checkr, you can complete a SAM background check quickly and efficiently. Our can provide information from additional healthcare sanctions databases, such as:

• Office of Inspector General (OIG) exclusion list
• List of Excluded Individuals and Entities (LEIE)
• Office of Foreign Assets Control (OFAC) exclusion list

When performing a SAM background screening, employers must comply with federal, state, and local background check laws and regulations, such as the Fair Credit Reporting Act (FCRA). If you are unsure what laws apply to your operations, consult with legal counsel.

SAM background checks are often one part of a comprehensive background check for healthcare employers and federal contractors. Conducting additional screenings can help you ensure patient and customer safety, reduce risk, and support compliance with other laws and regulations that apply to your industry. With Checkr, you can perform comprehensive background checks that include many additional background screenings, including criminal history checks, employment verification, education verification, professional license verification and credit background checks.

If you contract with the federal government or operate in the healthcare space, a SAM background check is a critical pre-employment background check for your organization. With Checkr, you can streamline the complex SAM background check process and perform other essential screenings all in one place. Our customizable packages give you the flexibility to choose the types of screenings that you need to make informed hiring decisions. Plus, built-in workflows support compliance and a mobile-first candidate experience helps speed hiring. Get started with Checkr today.

About the author

Hayley Harrison writes about a wide range of business topics and best practices, including background checks, candidate experience, and recruitment and retention. Her work includes educational articles, e-books, and blog posts.