2 CFR 25.205 - Effect of noncompliance with a requirement to obtain a unique entity identifier or register in the SAM.
(a) An agency may not make an award to an entity until the entity has complied with the requirements described in § 25.200 to provide a valid unique entity identifier and maintain an active SAM registration with current information (other than any requirement that is not applicable because the entity is exempted under § 25.110).
(b) At the time an agency is ready to make an award, if the intended recipient has not complied with an applicable requirement to provide a unique entity identifier or maintain an active SAM registration with current information, the agency:
(1) May determine that the applicant is not qualified to receive an award; and
(2) May use that determination as a basis for making an award to another applicant.