CAGE Codes are five-character identifiers required for government contracting through SAM.gov. Companies must obtain these free codes to bid on federal contracts, verify legitimacy, and streamline procurement processes. U.S. businesses receive CAGE codes automatically after completing SAM registration, while foreign entities need NCAGE codes. Annual renewal maintains active status, with updates required for address or contact changes. The following guide outlines application steps, maintenance requirements, and compliance considerations for successful registration.
What Is a CAGE Code and Why Your Business Needs One
Maneuvering government contracting requires specific identifiers that validate a company’s eligibility to work with federal agencies. A CAGE (Commercial and Government Entity) code serves as this essential five-character alphanumeric identifier, issued by the Defense Logistics Agency (DLA) to businesses, organizations, and government entities.
CAGE Code Significance
The significance of CAGE codes in government contracting cannot be overstated. Since becoming mandatory in 2014, these codes have replaced previous identifiers like FSCM and NSCM. They provide several key benefits:
- Enable registration in the System for Award Management (SAM)
- Establish eligibility to bid on federal contracts
- Verify a company’s legitimacy to government agencies
- Streamline procurement processes
- Facilitate efficient verification during contracting
Obtaining a CAGE code is free but requires application through the DLA. The code must be renewed periodically to maintain eligibility for government contracts. Any entity seeking federal grants or contracts with the U.S. government must obtain this unique identifier. CAGE codes also represent your company’s physical address for various government communications and payments. For international entities working with NATO, a similar NCAGE Code system exists with specific application procedures.
Step-by-Step CAGE Code Application Through SAM.gov
Maneuvering the CAGE code application process through SAM.gov requires careful preparation and attention to detail. Businesses must first gather essential documentation, including their legal business name, physical address validation documents, TIN/EIN, and banking information for EFT payments.
The application process begins by creating or logging into a SAM.gov account. Applicants then complete the entity registration by entering business details, validating their physical address, and submitting banking information. A CAGE code is needed to access federal government contracts.
One of the key CAGE code benefits is that U.S.-based entities don’t need a separate application—the Defense Logistics Agency automatically assigns a code after SAM submission. The approval timeline typically varies based on the accuracy of your submitted information and current processing volumes.
Following submission, applicants should track their registration status through the Entity Status Tracker to monitor progress throughout the process. If issues arise, such as mismatched entity data between SAM and IRS records, businesses should promptly address these to avoid delays in their CAGE code application.
Maintaining and Renewing Your CAGE Code: Best Practices
Once a CAGE code is assigned, organizations must establish reliable maintenance protocols to guarantee continued validity and compliance with federal regulations.
SAM registration renewal must occur annually to maintain an active CAGE code status, with the system sending email reminders 60-30 days before expiration.
Organizations should implement quarterly SAM audits to verify information accuracy. Compliance with industry-specific standards is required to maintain eligibility for government contracts. Understanding the CAGE code differences between domestic and international entities is crucial when managing multiple business locations. Entities must complete SAM validation processes to ensure their registration information remains accurate and up-to-date.
Key maintenance requirements include:
- Updating physical address information within 30 days of any change
- Verifying legal business name and entity structure during annual renewal
- Immediately updating banking details or points of contact when changes occur
- Ensuring subcontractor CAGE codes meet equivalent maintenance standards
For foreign entities, maintaining valid NCAGE codes through NATO registries is essential.
Companies undergoing mergers or acquisitions must trigger immediate SAM deregistration/re-registration procedures.
Failure to update registration within 12 months results in CAGE code deactivation, requiring a formal reactivation request through the Customer Interaction Center.
Frequently Asked Questions
Can I Use My CAGE Code When Bidding on State-Level Contracts?
CAGE codes may be used when bidding on state contracts, though requirements vary by jurisdiction.
While federal contracts universally require CAGE codes, state bidding processes often accept them but don’t always mandate them.
Some state agencies mirror federal procurement practices, while others accept alternative identifiers like tax IDs.
Contractors should verify specific requirements through state procurement portals or bid solicitation documents before submitting proposals to guarantee compliance with local regulations.
How Do Mergers or Acquisitions Affect Existing CAGE Codes?
During mergers or acquisitions, CAGE codes typically require formal updates. The acquisition process necessitates documentation, primarily a Novation Agreement executed by both entities and the government contracting officer.
Without this agreement, DLA cannot process CAGE code changes.
Small business CAGE codes may be cancelled when merged with larger firms. Existing codes can be retained only if business locations remain unchanged.
Companies must wait for DCMA recognition before updating SAM registrations with new information.
Can Multiple Businesses Share the Same Physical Address With Different Codes?
Yes, multiple businesses can share the same physical address while maintaining different CAGE codes.
Address sharing is permissible because CAGE codes are assigned to distinct legal entities, not locations. Each business seeking registration must have its own unique legal identity with separate DUNS numbers.
During SAM registration, businesses at shared locations may need to provide documentation proving they are independent entities, such as separate leases or tax identification numbers, when the system flags matching addresses.
What Happens if My CAGE Code Application Is Rejected?
CAGE code rejection results in several significant consequences.
During the application process, rejections occur for specific reasons, including incorrect documentation, address verification issues, or mismatched business information.
If rejected, the business becomes ineligible for federal contracts, cannot update SAM registrations, and risks payment holds on existing contracts.
The company must address the rejection reasons specified by the government and resubmit the application with corrected information to proceed.
Are CAGE Codes Required for Subcontractors Working Under Prime Contractors?
CAGE codes are not universally required for subcontractors under federal contracts.
However, subcontractor requirements change when classified information access is needed, making CAGE codes mandatory per FAR 52.204-16.
Prime contractors must document subcontractor CAGE codes on DD Form 254 for classified work.
Each subcontractor performance location needs a unique CAGE code unless operating at a government facility.
The CAGE code significance increases with security clearance requirements, as codes must match the exact business name and address used in proposals.