The CAGE Code assignment process follows SAM.gov registration, typically taking 15-20 business days total. First, SAM validates your entity information (3-10 days), then DLA processes the CAGE application (5-10 additional days). Common delays stem from TIN validation errors, address discrepancies, and using PO boxes. Successful registration requires consistent entity information across systems and proper documentation. The full process requires planning 45-60 days before pursuing federal contracts.
The Critical Relationship Between UEI and CAGE Code Validation
While maneuvering through federal contracting systems, businesses must understand that Unique Entity IDs (UEIs) and Commercial and Government Entity (CAGE) codes function as distinct but complementary identifiers within the federal procurement ecosystem.
The UEI significance lies in its role as the primary 12-character identifier for all federal systems, automatically assigned during SAM.gov registration. Meanwhile, CAGE verification follows a separate process managed by the Defense Logistics Agency.
UEIs serve as the essential 12-character federal identifier, while CAGE codes undergo separate validation through Defense Logistics Agency channels.
During registration, entities undergo validation through the Entity Validation Service for UEI assignment, while CAGE verification requires additional information specific to DoD requirements. Entities should collect all required documents before beginning the registration process to ensure smooth validation.
Though separate, both identifiers appear in the entity’s SAM.gov profile. These identifiers are essential for data accuracy in government procurement records, helping to maintain compliance throughout the contracting process. Businesses seeking DoD contracts must complete both processes—UEI validation for general federal contracting and CAGE verification for defense-specific work.
This dual identification system guarantees proper entity recognition across all federal procurement channels.
Timeline and Key Milestones in the CAGE Assignment Workflow
Once an entity begins the CAGE code application process, understanding the expected timeline becomes essential for effective contract planning. The CAGE code timelines vary considerably depending on several factors, including business complexity, location, and documentation accuracy. Typically, domestic businesses can expect the entire process to take between 3-6 weeks, while international organizations may experience longer wait times.
The process unfolds through several distinct phases:
- SAM registration validation (3-10 business days), which confirms legal and banking information.
- IRS verification (part of the SAM process), ensuring tax information accuracy.
- CAGE code assignment by DLA (5-10 business days after SAM validation).
- Final notification and verification, completing the process.
Registration complexities such as multi-location structures, international status, or incomplete documentation can extend these timelines considerably. Entities should begin the registration process 45-60 days before pursuing any federal contracting opportunities to account for potential delays. After assignment, users should verify their information through the SAM database to ensure all details are accurate and up-to-date for government contracting purposes.
Proper preparation and accurate information entry remain critical for minimizing delays in obtaining this essential government contracting credential. The CAGE code is necessary for businesses seeking to access federal government contracts and should be verified before proceeding with further registration steps.
Preventing Common Pitfalls During CAGE Code Processing
Steering through the CAGE code assignment process requires careful attention to detail, as several common mistakes can delay or derail the application entirely.
TIN validation errors frequently occur when taxpayer information doesn’t match IRS records or when entity names are inconsistently formatted across systems.
Address discrepancies represent another significant stumbling block. When physical locations match existing registrations, DLA flags potential duplications that require manual resolution. Entities sharing buildings must guarantee distinct identification in their submissions to avoid conflicts. PO Boxes are explicitly rejected during the registration process, requiring businesses to provide legitimate physical addresses.
Business structure changes demand immediate updates to both SAM and DLA records. Converting from an LLC to a corporation, for example, invalidates existing codes without automatic notification to registrants. Accuracy and timeliness in documentation submission is critical for avoiding unnecessary processing delays.
Proactive monitoring through both SAM.gov status trackers and the DLA database helps prevent expiration issues. Failed CAGE validations receive detailed notification emails with contact information for resolution support. Maintaining separate CAGE codes for each physical location in parent-subsidiary relationships also prevents validation failures during critical registration periods.
Frequently Asked Questions
Can a Single Entity Maintain Multiple CAGE Codes Simultaneously?
A single entity can maintain multiple CAGE codes simultaneously when operating separate business units or maintaining distinct physical locations.
CAGE code consolidation efforts may be necessary for organizations with redundant registrations. Multiple registrations are permitted and often beneficial for companies with diverse operational divisions, as they allow independent federal contracting processes.
Each location requires its own SAM registration and respective CAGE code, enabling the government to track contract performance and accountability across different organizational segments.
Are CAGE Codes Transferable During Mergers or Acquisitions?
CAGE codes are transferable during mergers or acquisitions, but require a formal novation process.
When companies combine, the successor entity must submit documentation to the Defense Logistics Agency, including novation agreements, bills of sale, or merger certificates.
The M&A implications include potential changes to contract obligations and required updates to SAM registration.
Companies must provide a list of affected classified contracts and may need to cancel one CAGE code if operations consolidate.
How Do Name Changes Affect Existing CAGE Code Validity?
Name changes don’t invalidate existing CAGE codes, but name discrepancies between legal documentation and SAM records can suspend code functionality.
Entities must complete registration updates in SAM before CAGE code modifications occur. The process involves:
- Updating legal documentation first
- Modifying SAM registration with proof of name change
- Waiting for DLA validation (typically 7-12 business days)
Until these steps are completed, the CAGE code remains valid but may encounter operational limitations in federal contracting systems.
Can Subcontractors Use Prime Contractors’ CAGE Codes for Federal Projects?
No, subcontractors cannot use prime contractors’ CAGE codes for federal projects.
Federal compliance requires each business entity to obtain its own unique CAGE code through SAM registration. Subcontractor agreements must specify that each party maintains separate identification in government systems.
This requirement guarantees proper tracking, payment processing, and accountability throughout the contract lifecycle. Attempting to share CAGE codes violates federal procurement regulations and can result in contract issues or disqualification from government work.
Are Expired CAGE Codes Recyclable for New Entity Registrations?
Expired CAGE codes are not immediately recyclable for new entity registrations.
These codes become available for reassignment only after remaining inactive for five or more years following expired registrations.
New entities must obtain their own CAGE codes through the SAM registration process rather than using expired codes.
CAGE code renewal occurs through annual SAM registration updates, which keeps the code active and prevents it from entering the potential recycling pool.