CAGE Codes serve as essential identifiers in federal contracting, enabling vendors to bid on government opportunities. Assigned by the Defense Logistics Agency, these five-character codes verify contractor eligibility and facilitate procurement operations. Registration must be completed early in the contracting process through SAM to avoid delays. Contractors must maintain accurate CAGE information, as non-compliance can result in proposal rejection or contract suspension. Understanding proper CAGE Code management provides a competitive advantage in securing federal contracts.
Understanding CAGE Code Requirements and Compliance
When traversing the complex world of federal contracting, understanding Commercial and Government Entity (CAGE) codes becomes essential for successful business operations. These unique five-character identifiers, assigned by the Defense Logistics Agency, serve as critical components in the federal procurement process.
CAGE codes are essential identifiers in federal contracting, forming the backbone of successful procurement operations with government agencies.
CAGE code registration must be completed early in the contracting process, as delays can greatly impact contract awards. Contractors must provide detailed business information during registration, which is often integrated with System for Award Management (SAM) enrollment. The registration process offers valuable benefits including eligibility for federal contracts and grants.
Throughout the contract lifecycle, businesses must maintain accurate CAGE codes for each performance location, including subcontractor sites. CAGE code updates are required whenever business information changes, ensuring compliance with Federal Acquisition Regulations. SAM registration is mandatory for access to federal contracts, grants, or loans.
Non-compliance with CAGE code requirements can result in serious consequences, including contract issues or suspension. Contractors can use CAGE Public features to search for existing codes and submit requests for new or updated CAGE codes.
Foreign entities must work through their respective National Codification Bureaus for proper CAGE code management, adding another layer to compliance requirements.
How CAGE Codes Impact Your Federal Contracting Eligibility
Obtaining a Commercial and Government Entity (CAGE) code represents a fundamental gateway to federal contracting eligibility, functioning as both identifier and validation mechanism for businesses seeking government contracts.
The CAGE code importance cannot be overstated, as federal agencies reject solicitation responses from vendors without valid codes, regardless of proposal quality.
The eligibility verification process requires several prerequisites: an active SAM registration, verifiable physical address, and UEI number from Dun & Bradstreet.
Federal Acquisition Regulation 52.204-16 explicitly mandates CAGE code provision before contract award can occur.
For multi-location operations, each performance site requires a unique CAGE code, while subcontractors performing classified work must secure their own codes as specified on DD Form 254.
Organizations benefit from expedited bidding processes, as existing CAGE code holders bypass the standard 30-day registration delays that often prevent participation in time-sensitive solicitations.
The application process for obtaining a CAGE code is completely free of charge and can be completed through various convenient methods including online submission.
Similar to how SAM registration is mandatory for government sales, maintaining a valid CAGE code is essential for continued eligibility to participate in federal contracting opportunities.
This unique five-character identifier serves as a critical requirement for any business looking to secure contracts or grants with the U.S. government.
Best Practices for CAGE Code Management and Maintenance
Effective CAGE code management represents a cornerstone of successful federal contracting operations beyond the initial acquisition process. Contractors must maintain an active SAM account to guarantee CAGE code validity throughout the contract lifecycle.
Regular CAGE code updates are essential, requiring contractors to submit formal change requests through the Defense Logistics Agency when company information changes. The verification process involves systematic checks between SAM database information and DLA records, making accuracy paramount. CAGE codes are five-character alphanumeric identifiers that must remain current to maintain eligibility for government contracts.
Contractors should:
- Review SAM profile information quarterly
- Document all communications regarding CAGE code modifications
- Ascertain subcontractors maintain valid CAGE codes when security clauses apply
Foreign entities must work through their national bureaus or NATO Support and Procurement Agency for CAGE code maintenance. Compliance with FAR regulations remains non-negotiable, as non-compliance can jeopardize contract eligibility.
Companies handling classified work must be particularly vigilant about CAGE code verification to maintain security clearance requirements.
New applicants should be prepared for the application timeline when obtaining a CAGE code through the System for Award Management, as this process includes multiple verification stages.
Frequently Asked Questions
Can a Business Have Multiple CAGE Codes for Different Locations?
Yes, businesses can maintain multiple CAGE codes for different physical locations.
Companies with separate facilities must complete individual SAM.gov registrations for each site, as CAGE code applications are location-specific. This practice enables organizations to differentiate between branches, track contracts by facility, and target regional government opportunities.
Each location requires its own documentation, including address verification through the Defense Logistics Information Service, and follows separate renewal processes for ongoing compliance.
What Happens to My CAGE Code During a Company Merger?
During a company merger, CAGE code transfer typically occurs through a novation agreement that documents the transfer of assets and contracts.
The acquiring company must maintain the original CAGE code until the novation process completes.
These merger implications include:
- Continuing to use pre-merger CAGE codes on proposals until approval
- Submitting proper documentation to DLA with contracting officer verification
- Facing potential payment delays or proposal disqualification if codes are improperly managed
Are CAGE Codes Transferable When Selling a Business?
CAGE code transferability during business acquisitions is strictly regulated.
These codes are not automatically transferred when selling a business, as they are entity-specific. The purchasing company must undergo a formal novation process with government approval to transfer any contracts and associated CAGE codes.
Without novation, the acquiring business must obtain a new CAGE code. Even with approval, if the physical location changes, a new code is required regardless of ownership continuity.
How Do CAGE Codes Differ From DUNS Numbers and UEI?
CAGE code differences center on their government-specific purpose. They are 5-character alphanumeric identifiers assigned by the Defense Logistics Agency for federal contracting.
DUNS number significance lies in their broader application; these 9-digit numbers are issued by Dun & Bradstreet for business credit reporting across industries.
UEIs, now replacing DUNS in government systems, are issued by the GSA as part of efforts to streamline entity identification in federal procurement.
Can Foreign Companies Obtain Regular CAGE Codes Instead of NCAGE?
No, foreign companies cannot obtain regular CAGE codes. The CAGE code system is exclusively for U.S.-based entities registered in SAM.gov.
Foreign contractors must instead obtain NCAGE codes through the NATO Support and Procurement Agency. This requirement is mandatory and non-negotiable for international businesses seeking U.S. government contracts.
NCAGE codes serve the same function as CAGE codes but are specifically designated for non-U.S. companies participating in defense procurement systems.