SOC 2 Type 1 vs Type 2: which one a customer will accept
Type 1 says the controls were designed properly on one day. Type 2 says they worked for months. Enterprise buyers ask for the second and accept the first only as a step towards it.
Registration costs nothing and lapses on a date nobody diarises. An expired entity cannot be awarded a contract or paid on an existing one.
SAM registration is the entry a business makes in the United States government’s System for Award Management in order to be eligible for federal contracts and grants. It establishes the entity, assigns identifiers, records the certifications and representations the government relies on, and holds the banking details payments are made to.
Two facts about it are worth stating plainly because so many businesses get them wrong. It is free — the government charges nothing, and companies that appear in search results offering to do it charge for something you can do yourself. And it expires annually, without the world stopping to tell you, at which point the entity becomes ineligible for award and can have payments held on contracts it already has.
The single biggest delay is entity validation, where the legal name and address you enter must match the documentation the validation service holds. Mismatches arise from ordinary things — a suite number formatted differently, a trading name used where the legal name belongs, an address updated with the state but not elsewhere. Prepare the formation document and a current utility bill or lease before starting, use the legal name exactly as registered, and expect the process to take real time rather than an afternoon.
Diarise the renewal ninety days out, not on the expiry date. Renewal can require re-validation, and an entity that lapses mid-contract creates a payment problem that is far more disruptive than the paperwork that would have prevented it.
The certifications section is long, arrives at the end when attention has faded, and is treated by the government as representations you have made. Size standards, socio-economic status, tax matters, debarment status — each is answered under penalty, and each can be relied on in an award decision. Answer them with the same care as a contract signature, and re-check them at renewal, because the answers that were true at registration may not be true a year later after growth or a change in ownership.
What is worth holding outside the system is the file that lets you rebuild or defend the registration: the identifiers, the classification codes, the certifications as submitted, the renewal dates and the validation documents. Ettex Records holds that with the renewal date visible, Ettex Sheets tracks the codes and set-aside eligibility, and the marketing document that carries the same identifiers is covered in capability statement.
Being direct: this is a records file, not a registration service, and none of it is legal advice. Registration is done directly with the government at no cost, and the certifications have legal weight — where an answer is genuinely unclear, ask a government contracts adviser rather than guessing.
No. It is free through the government system. Businesses charging for it are selling assistance with a process you can complete yourself.
Annually. An expired registration makes the entity ineligible for award and can hold payments on existing contracts.
Entity validation, where the legal name and address must match authoritative records exactly. Prepare formation and address documents before starting.
Yes. They are binding representations relied on in award decisions, covering size, socio-economic status, tax and debarment matters.
Type 1 says the controls were designed properly on one day. Type 2 says they worked for months. Enterprise buyers ask for the second and accept the first only as a step towards it.
Setting an option strike price too low is not a company problem — the tax consequences land on the employees who accepted the grant.
A rent roll is a snapshot of income, and every reader of it is checking the same things — term expiries, arrears and whether the numbers tie to the leases.