Federal procurement
Before onboarding a federal contractor or subcontractor, procurement and compliance teams need to verify SAM registration, check exclusion status, confirm identifiers, and screen for carrier compliance. This page covers the full process.
Federal contractor due diligence is the process of verifying a vendor's eligibility and compliance status before awarding a federal contract or subcontract. It differs from general vendor screening because federal rules create specific legal obligations on prime contractors: under FAR 52.209-6, primes must confirm that all subcontractors are not on the SAM excluded parties list before award.
Beyond legal requirements, due diligence protects your organization from performance risk, reputational exposure, and potential audit findings. A contractor with a prior exclusion history, an active out-of-service order, or lapsed SAM registration may present risks that are not visible from a name search alone.
Confirm SAM.gov registration
Any vendor seeking a federal contract must be registered in the System for Award Management. Confirm that the vendor holds a current UEI and that their SAM registration is active. An inactive registration is a procurement disqualifier before any risk check is needed.
Check the SAM exclusion list
Search the Excluded Parties List System using the vendor's UEI. An excluded vendor cannot receive federal contracts, subcontracts, or assistance awards. Under FAR 52.209-6, prime contractors must verify subcontractors are not excluded before award.
Verify the UEI and CAGE code
The Unique Entity Identifier (UEI) is the primary federal vendor identifier since April 2022. The CAGE code is a NATO/DoD identifier that often appears alongside UEI on exclusion records. Confirm both match the legal entity you are onboarding.
Check FMCSA compliance for transportation vendors
If the vendor operates motor carriers, confirm their FMCSA compliance status using their USDOT number. An active out-of-service order means the carrier cannot legally operate. This check is required for any logistics or transportation subcontracting.
Review federal contracting activity
USAspending.gov shows a vendor's award history across federal agencies. This is not a risk signal — a vendor with awards is not inherently safe and a vendor without them is not inherently risky — but it provides context on procurement experience and agency relationships.
Document the checks
Keep a timestamped record of every check performed, what was found, and how records were linked to the legal entity. Use a consistent methodology across all vendor onboardings so your procurement process is auditable.
Name-based exclusion searches produce false positives. “National Construction LLC” or “American Services Inc” may appear hundreds of times across different states and legal structures. An exclusion record for one entity with a similar name is not an exclusion for your vendor.
Deterministic due diligence uses the vendor's UEI or CAGE code to resolve identity before linking any risk record. KnowVendor only confirms an exclusion link when a verified identifier match exists at confidence 0.99 or above. A name-only candidate match is flagged as unresolved, not surfaced as confirmed risk.
UEI
Unique Entity Identifier
Primary federal vendor identifier since 2022. Issued by SAM.gov. Required for all federal contracts.
CAGE
Commercial and Government Entity Code
NATO/DoD identifier. Used alongside UEI. Often the only identifier on older exclusion records.
USDOT
US DOT Number
FMCSA identifier for motor carriers. Required for any transportation or logistics compliance check.
The SAM.gov exclusion list is the single most important check in federal contractor due diligence. An excluded vendor is legally barred from receiving any federal award. The exclusion applies across all agencies and all programs for the duration of the exclusion period.
Exclusions are issued for: prior contract fraud, bribery, willful failure to perform, tax delinquency, suspension pending investigation, and other causes. Some exclusions are permanent; others expire after a defined period. An exclusion that has expired is still visible in the historical record and should be noted in your documentation.
Important limitation
The SAM exclusion list is historical. Many excluded entities have not re-registered with SAM after exclusion and do not have a current UEI. KnowVendor's identifier-based match rate for exclusion records is approximately 1%. This is expected and correct: not all excluded parties can be confirmed against a legal entity. A no-match result does not mean the vendor is clear — it may mean the record predates UEI registration.
KnowVendor searches SAM.gov registration, exclusion records, FMCSA carrier data, and federal contracting activity in a single lookup. Search by UEI, CAGE code, USDOT number, or company name. Paid reports include the full risk event detail, source evidence, match confidence score, and a printable record for procurement documentation.
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The information on this page is for general informational purposes only and does not constitute legal advice. Federal procurement rules and FAR requirements should be reviewed with qualified legal counsel. KnowVendor reports are not a substitute for your organization's compliance process.