A CAGE Code is required for all businesses seeking federal contracts exceeding $30,000 through SAM.gov. This includes corporations, nonprofits, educational institutions, partnerships, and sole proprietorships. The five-character identifier enables government agencies to verify vendor legitimacy and track performance history. Domestic entities receive CAGE Codes automatically during SAM registration, while foreign organizations must first obtain an NCAGE. This critical identifier represents the gateway to government contracting opportunities nationwide.
Understanding CAGE Codes and Their Purpose
When businesses seek to work with the federal government, they must first obtain a CAGE Code, a five-character alphanumeric identifier assigned by the Defense Logistics Agency (DLA). This unique identifier serves as a standardized tracking mechanism across all federal agencies, replacing older systems like FSCM and NSCM.
The CAGE code significance extends beyond simple identification, as it enables thorough vendor tracking, performance monitoring, and eligibility verification during the procurement process. Each legal entity receives a distinct code, ensuring clear identification throughout contracting procedures.
CAGE Codes transform businesses from anonymous entities into trackable, verified partners in the federal procurement ecosystem.
CAGE code benefits include streamlined procurement processes, cross-agency tracking capabilities, and enhanced compliance with Federal Acquisition Regulation requirements. The system facilitates vendor credibility verification during bidding and supports contract reporting for audits. The code also represents a company’s physical address location for government mailings, payments, and important records. CAGE codes have been required since 2014 for all businesses pursuing federal contracts or grants.
For businesses ranging from small enterprises to large corporations, this identifier represents a critical gateway to federal contracting opportunities, particularly for Department of Defense suppliers under DLA oversight. Maintaining SAM compliance is essential as inaccurate or outdated information can cause significant delays in the registration process and potentially limit access to government contracting opportunities.
Eligibility Requirements for CAGE Code Assignment
To obtain a CAGE Code for System for Award Management (SAM), businesses and organizations must meet specific federal requirements designed to verify legitimacy and establish proper identification.
CAGE code eligibility centers on entities seeking to conduct business with the federal government, including small and large businesses, nonprofits, educational institutions, and sole proprietors.
Applicants must provide verifiable documentation including their legal business name, physical address validation (P.O. boxes are not accepted), and a valid Taxpayer Identification Number.
Additionally, banking information with correct routing and account numbers is required for electronic funds transfer processing.
Unlike many registration processes, CAGE codes are automatically assigned after completing SAM registration rather than requiring pre-application.
Entities must maintain compliance through annual SAM renewals to keep their CAGE codes active.
Federal contract requirements stipulate that all businesses bidding on government work must have valid CAGE codes, with no exceptions for entities seeking federal funding.
The physical address must be where business is consistently conducted and align with tax filings and other official documents.
If CAGE validation fails during registration, applicants will receive email notifications with contact information for resolution assistance.
The validation process is crucial as any data discrepancies between provided information and government records can significantly delay or prevent successful SAM registration.
The CAGE Code Registration Process Through SAM
The CAGE Code registration process follows a systematic pathway through the System for Award Management (SAM.gov) platform, which serves as the mandatory portal for all entities seeking federal contracting opportunities.
Businesses must first secure a Unique Entity Identifier (UEI) before a CAGE Code can be assigned, establishing the foundation for federal recognition.
The registration timeline typically spans 3-5 business days after SAM.gov submission, during which the Defense Logistics Agency conducts verification of submitted information.
Processing times for CAGE Code assignments average just 3-5 business days as the DLA verifies your SAM.gov submission details.
Submission accuracy directly impacts processing speed, as errors trigger additional review cycles that can delay assignment.
For domestic entities, CAGE Codes are automatically generated during SAM registration without separate application forms or fees. The codes are five-digit ID numbers assigned specifically to identify unique business locations across the organization.
Foreign organizations, however, must obtain a NATO CAGE (NCAGE) prior to completing their SAM profiles.
Once issued, the code remains valid for five years, provided the entity maintains current SAM.gov registration through annual renewals.
The CAGE code plays a critical role in the government procurement process by ensuring unique entity identification across all federal systems.
Proper preparation of required documentation before beginning the application process significantly increases the likelihood of first-time approval.
Frequently Asked Questions
Can a Business Have Multiple CAGE Codes for Different Locations?
Yes, businesses can have multiple CAGE codes based on physical location.
Since CAGE code uniqueness is tied to specific facilities rather than the overall company, organizations with multiple locations must register each facility separately.
This guarantees that government contracts and communications are directed to the correct physical address.
Companies with multiple manufacturing plants, warehouses, or service locations commonly maintain separate CAGE codes for each facility to support proper identification in federal procurement systems.
How Quickly Are CAGE Codes Typically Assigned After SAM Registration?
For U.S. businesses, CAGE codes are typically assigned during the SAM registration timeline, with processing occurring automatically as part of the registration validation.
Most assignments are completed within 3-5 business days after SAM submission, assuming all information is accurate and complete.
Complex registrations or those requiring additional verification may take longer.
The DLA handles the assignment process without additional action required from the registrant once SAM submission is complete.
Are CAGE Codes Transferable During Business Acquisitions or Mergers?
CAGE codes are not transferable during business acquisitions or mergers.
These codes are specifically assigned to legal entities at particular physical addresses and cannot be transferred between organizations.
When a business acquisition occurs, the acquired company’s CAGE code is typically canceled if the location closes.
The acquiring company must use its own CAGE code for contracts going forward.
A novation agreement is necessary to transfer contract obligations from the seller to the buyer.
Do State and Local Government Contractors Need CAGE Codes?
State and local government contractors typically do not need CAGE codes.
These codes are specifically required for federal procurement processes, not for state contracts or local contracts.
While some state or local governments may implement their own identification systems, there is no federal mandate requiring CAGE codes at these levels.
Contractors working exclusively with state or local entities can generally operate without CAGE codes, unless they also pursue federal opportunities.
What Happens to My CAGE Code if I Change Business Addresses?
When a business changes its address, the CAGE code remains the same.
Business address changes must be promptly updated in the SAM database to maintain accurate records. The company must:
- Log into their SAM account
- Navigate to the entity registration section
- Update the address information
- Submit for verification
This guarantees proper CAGE code updates while preserving the unique identifier, preventing disruptions to government contracting activities.