UEI and CAGE Codes serve different purposes in federal contracting. The UEI (12-character) replaced DUNS numbers in 2022 and identifies entities across all federal agencies. CAGE Codes (5-character) primarily support Department of Defense contracts and logistics. Both identifiers are obtained during SAM.gov registration at no cost. UEI functions universally for federal transactions, while CAGE Codes focus on defense-related supply chain management and NATO compatibility. Further exploration reveals their complementary roles in procurement.
Understanding the Purpose and Origin of UEI and CAGE Codes
While government contractors navigate federal procurement systems, they must understand the distinct roles of CAGE Codes and Unique Entity Identifiers (UEI).
The CAGE Code history dates back to the 1950s when the Defense Logistics Agency established this 5-character identifier to standardize military supply chains. Originally replacing FSCM/NSCM codes, CAGE Codes became mandatory for defense contractors in 2014 under FAR 4.1800. The guide explains that CAGE Codes are essential requirements for businesses seeking eligibility for federal contracts.
In contrast, the UEI introduction occurred in 2022 as part of the SAM.gov modernization initiative. This 12-character identifier replaced the proprietary DUNS number system, eliminating associated contractor costs. CAGE codes facilitate international supplier identification through the NATO Codification System used by defense agencies worldwide.
The General Services Administration designed the UEI to centralize entity validation across all federal agencies, streamlining pre-award checks and post-award reporting. Unlike CAGE Codes, which focus on physical locations and supplier capabilities, UEIs serve as the primary tracking mechanism for all federal procurements. CAGE codes are especially valuable as they aid in standardizing identification processes across government and defense suppliers.
Critical Differences in Format and Registration Requirements
The format and registration requirements for CAGE Codes and UEIs highlight fundamental differences between these two identification systems. CAGE Codes feature a 5-character alphanumeric format, with the first four characters being alphanumeric and the final character typically numeric. In contrast, UEIs consist of 12 alphanumeric characters randomly generated by SAM.gov.
The registration processes also differ considerably. UEIs are automatically assigned during SAM.gov registration through the Entity Validation Service, which confirms an entity’s legitimacy. CAGE Codes, managed by the Defense Logistics Agency, are automatically generated for U.S. entities during SAM.gov registration but may require additional DLA validation in special cases. Entities outside the United States must first obtain a NATO CAGE code before completing their SAM registration.
These format variations impact how entities interact with federal systems. While UEIs serve as the universal identifier across all federal agencies since April 2022, CAGE Codes remain primarily focused on defense contracts and supply chain management. The transition to UEI has reduced duplication in the federal identification system, making it more efficient for contractors. Unlike EINs, the UEI is a permanent identifier that never expires and is essential for all federal transactions.
How UEI and CAGE Codes Function in Federal Contracting Systems
Federal contracting systems rely on both UEI and CAGE Codes to operate effectively, but each identifier serves distinct functions within the procurement ecosystem.
The UEI functionality extends across all federal agencies, enabling entity identification for contracts, grants, and loans through SAM.gov integration. When contractors submit bids or receive payments, their UEI serves as the universal reference point across platforms like Grants.gov and FedConnect. This transition to UEI has created a more unified system for entities seeking federal funding opportunities.
CAGE Code tracking, meanwhile, operates primarily within Department of Defense systems, focusing on physical location verification and supply chain management. DoD procurement officers use CAGE Codes to monitor vendor performance, manage logistics, and guarantee regulatory compliance. CAGE Codes are specifically assigned by the Defense Logistics Agency to maintain consistency in supplier identification. Obtaining both codes is a free process when registering through the SAM.gov system.
International defense contracts often require CAGE Codes for NATO system compatibility.
While UEI standardizes identification across all federal transactions, CAGE Codes provide the specialized tracking capabilities needed for defense-specific contracting requirements, creating a complementary system that enhances procurement efficiency and security.
Frequently Asked Questions
Can I Transfer My CAGE Code to a New Business Location?
CAGE code transfer to a new business location is possible but requires specific procedures.
Contractors must maintain a valid physical address, as CAGE codes are location-specific.
When relocating, businesses must update their SAM registration within 30 days of the move. The process requires documentation of the address change and may involve validation of the new location.
Virtual addresses or PO boxes are not eligible for CAGE code assignment.
How Do International Joint Ventures Handle UEI and CAGE Requirements?
International joint ventures must navigate specific compliance requirements for UEI and CAGE/NCAGE registration.
Foreign-based joint ventures receive NCAGE codes through NATO codification, while US-based ventures obtain CAGE codes.
All entities require UEI assignment through SAM.gov registration, with no legitimate fees for either service.
Joint venture regulations mandate disclosure of ownership structures and physical address validation.
International compliance includes providing business registration documentation and maintaining annual SAM renewals to preserve active status.
What Happens to My UEI During a Company Merger?
During a company merger, UEI changes are typically required to reflect the new business identification structure.
Companies must update their SAM registration process to reflect new legal names, addresses, and ownership details. The acquiring company’s UEI usually remains active, while the acquired company’s identifier may become inactive.
Merger implications for federal contractors include potential disruptions in contract eligibility if updates aren’t properly completed.
Entities should initiate UEI updates immediately after merger completion to maintain compliance.
Are CAGE Codes Required for All Federal Grant Applications?
CAGE codes are not typically required for federal grants applications.
While applicants must have a valid UEI and active SAM registration, CAGE codes become necessary only in specific circumstances. These include when grants involve contractual components, classified information access, or physical supply delivery to agencies.
Universities and research institutions applying for standard federal grants generally need only their UEI and SAM registration to complete application requirements, unless the grant includes procurement contracts.
Can Subcontractors Use Prime Contractor’s UEI for Defense Projects?
No, subcontractors cannot use a prime contractor’s UEI for defense projects. Each entity must maintain its own unique identifier for federal contracts.
Prime contractor responsibilities include overseeing project compliance, while subcontractors retain independent liability for their work.
Using another company’s UEI violates federal regulations and creates significant legal risks.
Department of Defense contracts specifically require each participating business to register independently in SAM and obtain their own UEI for proper tracking and accountability.