The UEI replaced DUNS in SAM registration to eliminate dependency on third-party vendors like Dun & Bradstreet, reducing associated fees and improving efficiency. The centralized system through SAM.gov enhances control over entity identifiers, streamlines registration procedures, and improves data accuracy across federal systems. This government-managed approach simplifies the registration process, automatically assigns UEIs to entities with existing DUNS numbers, and guarantees regulatory compliance through annual recertification requirements. The sections below explore additional benefits for contractors and grantees.
The Government’s Case for a Centralized Identifier System
As federal procurement systems evolved, the government recognized that a centralized identifier system would provide significant advantages over the previously outsourced DUNS number approach.
The reliance on Dun & Bradstreet as a third-party issuer created unnecessary dependencies and complications in the entity identification process.
Third-party entity identification systems burdened federal procurement with avoidable dependencies and procedural complications.
With centralized management through SAM.gov, the federal government gained direct control over the issuance and maintenance of entity identifiers.
This shift eliminated external touchpoints, streamlined registration procedures, and enhanced data accuracy across federal systems including FPDS, eSRS, and FAPIIS.
The alteration to UEI aligns with broader policy goals for digital integration and transparency.
By consolidating identifier management within government infrastructure, agencies can maintain consistent validation processes, reduce redundancy, and minimize potential security vulnerabilities.
The centralized approach also supports cost efficiency by removing third-party fees previously associated with obtaining and maintaining DUNS numbers.
The transition happening in April 2022 ensures existing entities with DUNS numbers will automatically receive a UEI, simplifying the conversion process.
The new system provides troubleshooting tips for users experiencing difficulties during the registration process, ensuring compliance with updated requirements.
Key Benefits of the UEI Over the DUNS Number
The Universal Entity Identifier (UEI) delivers substantial improvements over the previous DUNS number system, creating a more efficient identification process for government contractors.
This streamlined registration approach eliminates the dependency on third-party vendors and removes associated fees previously required with the DUNS system.
Organizations can now obtain their UEI directly through SAM.gov without needing a separate DUNS registration, resulting in significant cost savings for businesses.
The simplified process automatically assigns UEIs to entities with existing DUNS numbers, guaranteeing continuity while eliminating redundant steps.
The UEI system enhances federal integration through universal identifier adoption across all agencies since April 2022.
This centralized approach improves data accuracy through government-controlled validation and eliminates commercial scoring implications that were tied to DUNS numbers.
Additionally, the annual recertification requirement guarantees regulatory compliance and keeps entity information current within the federal procurement ecosystem.
The transition to UEI represents a significant improvement in the System for Award Management by creating a unified identification framework that facilitates seamless interactions with federal government systems.
How the Transition Affects Federal Contractors and Grantees
Federal contractors and grantees faced significant operational changes when the UEI replaced the DUNS number on April 4, 2022. This shift eliminated third-party dependencies on Dun & Bradstreet, creating new procedures for entity identification in federal systems.
Organizations experienced alteration challenges when updating documentation, training staff on new SAM.gov retrieval processes, and ensuring subcontractors obtained valid UEIs. Maintaining active registration status is crucial for continued eligibility to participate in government contracts in 2025 and beyond.
The compliance implications were substantial, as applications missing UEIs became ineligible for federal funding. Despite the UEI’s permanence (unlike DUNS which required renewal), organizations must still maintain annual SAM registrations. The NSF required that all SAM Legal Business Name and Physical Address updates be made in SAM.gov directly, not in their systems.
Additionally, all collaborative grant partners and subawardees now must supply valid UEIs to remain compliant.
System changes necessitated adjustments to internal procedures, with federal databases modified to accept the new 12-character format.
Organizations needed to retain proper UEI documentation for future audits while ensuring their financial and grant management systems properly incorporated the new identifier.
Frequently Asked Questions
How Do International Entities Obtain UEIS for U.S. Federal Contracts?
International entities obtain Unique Entity Identifiers (UEIs) through the SAM.gov registration process.
To meet federal compliance requirements, foreign organizations must create a SAM.gov account and complete the entity registration, providing their legal business name, physical address, and governmental status.
The system automatically assigns a UEI upon validation of submitted documentation, which may include translated business registrations, tax identification numbers, and notarized affidavits.
No third-party involvement or separate DUNS number is required for international registration.
Can Entities Retrieve Lost UEI Information Without Contacting SAM.Gov Support?
Lost UEI retrieval can be performed without contacting SAM.gov support in several ways.
Entities can log into their SAM.gov profile and navigate to the entity registration section where their UEI is displayed.
For UEI recovery methods, organizations can use the “Get Unique Entity ID” tool on SAM.gov by entering their legal business name and address.
The system will display matching records with associated UEI information, allowing entities to verify and retrieve their identifier independently.
Are UEIS Required for Subcontractors Who Don’t Directly Receive Federal Funds?
Subcontractor requirements for UEIs depend on their relationship with prime contractors.
Subcontractors who don’t directly receive federal funds may still need UEIs if working under prime contractors with subcontracting reporting requirements.
After April 2022, subcontractors use UEIs instead of DUNS numbers for federal eligibility and compliance reporting.
While prime contractors typically determine if their subcontractors need UEIs, subcontractors can obtain a UEI without completing full SAM registration in some circumstances.
How Do UEI Validation Errors Impact Existing Contract Payment Schedules?
UEI validation errors cause immediate payment suspensions across federal contract billing systems.
When errors occur, disbursements halt automatically, creating severe cash flow disruptions for contractors. Payment issues persist until the contractor resolves all UEI discrepancies in SAM.gov.
Contract delays extend beyond simple payment interruptions, potentially affecting performance evaluations and future award eligibility.
The payment system cannot process invoices with invalid UEI credentials, requiring manual intervention to resume normal payment schedules.
Can Entities Maintain Both DUNS and UEI for Different Business Divisions?
Yes, entities can maintain both DUNS numbers and UEIs for different business divisions.
Despite the DUNS shift to UEI for federal purposes, companies may use DUNS numbers for commercial activities like credit applications while using UEIs for federal contracting divisions.
This dual approach allows businesses to leverage UEI benefits for government work while maintaining established DUNS-based relationships in the private sector.
Each division can operate with the identifier most appropriate to its specific functions.