Federal contractors require both UEI and CAGE codes for complete SAM registration. The UEI, a 12-character alphanumeric identifier, replaced DUNS numbers in April 2022 and serves as the universal identifier across all federal agencies. CAGE codes, five-character alphanumeric identifiers assigned by the Defense Logistics Agency, are specifically required for defense contracts. UEI registration through SAM.gov is free, while DUNS numbers are now obsolete. The differences between these codes affect compliance requirements.
The Evolution of Entity Identification: From DUNS to UEI
When the federal government completed its conversion from DUNS to UEI on April 4, 2022, it marked the culmination of a significant shift in entity identification systems. This alteration followed a 16-month extension from the original 2020 deadline, reflecting the complexity of implementation challenges across federal systems.
The shift required substantial regulatory updates, including revisions to the Code of Federal Regulations (2 CFR 25) that now mandate UEI use for all federal grants.
Unlike the previous DUNS system managed by Dun & Bradstreet, UEIs are generated at no cost exclusively through SAM.gov registration. After the transition, DUNS Numbers will no longer be searchable or viewable in SAM.
This change eliminated third-party dependency for federal entity identification and improved data accuracy through enhanced validation checks. The UEI is a 12-character alphanumeric identifier that replaces the 9-digit DUNS number for all federal activities. The change addresses common concerns regarding how entities can obtain their UEI and the impact on existing SAM registrations. The new alphanumeric format avoids ambiguous characters and supports interoperability through API integration, allowing for seamless connection with various government systems.
CAGE Codes: Purpose and Application in Defense Contracting
Commercial entities working with the Department of Defense rely on Commercial and Government Entity (CAGE) codes, five-character alphanumeric identifiers that serve as unique business fingerprints in defense contracting. These codes replaced older identification systems like the Federal Supply Code for Manufacturers, streamlining supplier recognition across government platforms.
CAGE Code Importance
CAGE codes provide standardized identification that enables efficient supplier tracking, contract management, and compliance verification. Contractors must maintain their codes throughout the contract duration and notify contracting officers of any changes within 30 days. CAGE codes are essential identifiers for small businesses pursuing federal contracts, facilitating data synchronization across government procurement databases. Organizations seeking to conduct business with the federal government must obtain these codes as part of their SAM registration process.
CAGE Code Assignment
The Defense Logistics Agency (DLA) oversees CAGE code assignment through a formal registration process required for federal contracting. The CAGE Public platform provides a unified search solution for locating and verifying CAGE codes across government systems.
International suppliers receive NATO Commercial and Government Entity (NCAGE) codes through NATO or the NATO Support and Procurement Agency.
All assigned codes are maintained in a master file by the DLA for consistent record-keeping and updates.
Essential Differences Between UEI, DUNS, and CAGE for Federal Contractors
Today’s contractors need both UEI and CAGE codes for complete SAM registration, while DUNS numbers are no longer required. The UEI, a 12-character alphanumeric code issued by SAM, serves as the universal identifier across all federal agencies. The UEI system effectively eliminated confusion between businesses with similar names across government contracting.
Federal contractors must secure both UEI and CAGE codes for SAM registration, as the UEI has officially replaced the legacy DUNS number system.
In contrast, the five-character CAGE code, assigned by the Defense Logistics Agency, is particularly critical for defense contracts. UEI registration through SAM.gov is completely free for all entities seeking to do business with the federal government. This transition from DUNS to UEI represents a significant step toward greater efficiency in the federal grant application process.
The format differences are significant: UEI (12 characters), DUNS (9 digits, now obsolete), and CAGE (5 characters). Each identifier follows different issuance processes—UEI through SAM, CAGE through DLA—creating a tiered identification system that guarantees proper entity tracking throughout the procurement lifecycle.
Frequently Asked Questions
How Long Does It Take to Receive a UEI After Applying?
The UEI application timeline varies based on registration accuracy.
While the UEI is issued immediately upon successful SAM.gov registration, the activation process can take up to 10 business days after approval.
UEI processing speed depends on whether the application contains errors, which may cause delays.
Applicants receive confirmation once their UEI becomes active.
For time-sensitive situations, entities should plan their SAM registration well in advance of any federal funding deadlines.
Can Foreign Entities Obtain CAGE Codes for US Government Contracts?
Foreign entities cannot obtain CAGE codes for US government contracts. Instead, they must acquire NCAGE codes through NATO codification bureaus or the NATO Support and Procurement Agency (NSPA).
This requirement applies to all non-US entities, including foreign subsidiaries of US companies.
Foreign entity requirements mandate that NCAGE codes must be obtained before SAM registration, as the system blocks foreign registrants without valid NCAGE codes.
Are UEI Numbers Transferable During Company Mergers or Acquisitions?
UEI numbers are not explicitly transferable during company mergers or acquisitions.
The UEI system, unlike its DUNS predecessor, lacks specific merger/acquisition procedures. When companies merge or are acquired, SAM.gov requires updating legal business name information, but no automatic UEI transferability exists.
The acquired entity’s UEI generally remains with its original registration, and successor entities may need to address UEI implications through manual SAM.gov updates rather than through a formal transfer process.
What Happens if My CAGE Code Expires or Becomes Inactive?
When a CAGE code becomes inactive, companies cannot bid on federal contracts or receive grants. This dormancy affects payment processing for existing contracts and disrupts relationships with prime contractors.
CAGE Code Reactivation
To reactivate an expired CAGE code, companies must update their information in SAM. This process may involve administrative delays, potentially impacting deadlines for federal opportunities.
Regular monitoring of SAM registration status prevents inadvertent inactivity and maintains contracting eligibility.
Do Small Businesses Need Both UEI and CAGE for All Grants?
Small businesses need a UEI for all federal grant eligibility, as this 12-character identifier is mandatory for any entity seeking federal funding.
However, CAGE codes are only required for specific grants, particularly those related to defense or involving substantial federal funding.
Registration requirements vary by grant program, but SAM registration (which provides the UEI) is universal.
For maximum opportunity access, small businesses benefit from having both identifiers, though the UEI alone suffices for many grant applications.