Why “Submitted” Does Not Mean “Approved”

In the world of database management, status codes are everything. For a business owner logging into the federal portal, seeing a green checkmark next to “Submission” can feel like a victory. However, in the nuance of federal validation, there is a massive chasm between “Submitted” and “Active.” This misunderstanding is a frequent cause of anxiety. A business might bid on a contract thinking they are ready, only to be rejected because their profile was technically still in a processing queue.
The journey of your data does not end when you click send. It begins a journey through several external systems—the IRS for tax validation, the DLA for CAGE code assignment, and potentially others. Understanding the lifecycle of your application helps manage expectations and allows you to intervene if the process stalls. This is where a SAM registration service proves its worth; specialists monitor these status codes daily and know exactly when a “Work in Progress” has turned into a “Validation Error” that requires immediate action.
The IRS Match Phase
The first stop for your data is the IRS. The system takes your Taxpayer Identification Number (TIN) and your business name and pings the IRS database. This is usually a rapid process, taking 24 to 48 hours. However, if the system returns a “TIN Match Failed,” your application stops dead. It does not move forward to the next phase. This often happens because of punctuation differences (e.g., “Corp” vs “Corp.”) or because a new EIN takes a few weeks to propagate through the IRS system. You must resolve this mismatch before anything else can happen.
The CAGE Code Assignment Lag
Once the IRS and address validation are clear, the file is sent to the Defense Logistics Agency (DLA) for a CAGE code. If you already have one, they validate it. If you need a new one, they assign it. This is the longest part of the wait. The DLA may manually review your file to ensure you are not a security risk or a shell company. This phase can take anywhere from three days to two weeks. During this time, your status will remain “Work in Progress.” There is nothing you can do but wait, or respond immediately if they email you for clarification.
The Final Activation
Only after the CAGE code is fully processed does the system flip your switch to “Active.” This is the only status that allows you to be paid. It is important to note that it can take an additional 24 hours after activation for your profile to propagate to other systems like Grants.gov or FedBizOpps. If you are racing against a deadline, this propagation delay matters. Getting the “Active” email is the goal, but smart vendors verify it by searching for themselves in the public search tool to confirm visibility.
Dealing with “ID Assigned” vs “Registered”
A new point of confusion is the difference between getting a Unique Entity ID (UEI) assigned and being fully registered. You can get a UEI (the ID number) without completing the full registration. This allows you to report as a sub-grantee but does not allow you to bid on prime contracts. Many businesses get their ID and think they are done. They are not. You must proceed to complete the “Entity Registration” module to be fully eligible for federal business. Confusing the ID assignment with the full registration is a critical error.
Conclusion
Transparency reduces anxiety. By understanding the mechanical steps your data must travel through, you can stop guessing and start planning. It reinforces the importance of starting early and monitoring the process closely. A status of “Submitted” is a good start, but in federal contracting, “Active” is the only thing that counts.
Call to Action
Stop guessing about your status and ensure your application crosses the finish line with our help.
Visit: https://www.federalcontractingcenter.com/