Understanding the Transition from DUNS Numbers to UEIs
When clients form Delaware companies with Harvard Business Services, Inc. (HBS), one question that comes up during the formation process is how to obtain a DUNS (Data Universal Numbering System) number. A DUNS Number is a nine-digit identification number that globally verifies the existence of a business. Starting April 2022, the federal government eliminated the use of the DUNS number and is now utilizing the Unique Entity Identifier (UEI) to serve as its replacement. Simply put, for clients applying for government contracts or grants, the DUNS Number is no longer valid for federal award identification.
Here is an example of how this works. Let’s say a business owner goes through the steps of forming a new Delaware LLC, obtaining the EIN for the LLC, and foreign qualifying the Delaware LLC in the state in which he physically operates the company. An owner of a road general construction company, this client aims to submit a bid on a government contract to repave a stretch of road in his jurisdiction. He also plans to bid on a government contract to repair a bridge. Now that the government has eliminated the use of the DUNS number, this client must secure a UEI number for the company to apply for these government contracts.
In the past, clients needed a DUNS number if their business provided contract work for a government organization. Now, the federal government requires this new identifier for organizations. This new process is streamlined, as clients can obtain their UEI numbers from SAM.gov (System for Award Management) instead of consulting with a third-party supplier. The UEI number is a 12-character alphanumeric ID that can be assigned to public/private companies, individuals, non-profit entities, governments and other organizations planning to conduct business activities with the federal government.
According to the U.S. General Services Administration website, all of the Integrated Award Environment (IAE) systems such as SAM.gov, eSRS, FSRS, FPDS, FAPIIS, and CPARS (as well as all other GSA systems) are now only using the Unique Entity ID to identify entities. When conducting a search, you will no longer find the DUNS number in any SAM.gov searches, views, or records. Of note, if your company has already registered with SAM.gov, the UEI number has already been issued to the organization and the number can be accessed via the registration record. If new to this process, the UEI number will be issued once you complete your registration via SAM.gov.
If your company seeks a UEI number, and if you have specific questions regarding this process, we suggest you consult with the provider directly, as obtaining a DUNS number is outside our scope of services.
If you plan on forming a new Delaware company or if you have any questions regarding the formation process, we can be reached at 1-302-645-7400 or 1-800-345-2677 ext. 6900 or via email at info@delawareinc.com. We can also be reached via skype at delawareinc.
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