All entities seeking federal contracts or grants must obtain a CAGE Code during SAM registration, including corporations, educational institutions, nonprofits, and foreign vendors. This 5-character alphanumeric identifier, assigned by the Defense Logistics Agency, is mandatory per FAR 4.1800 since 2014 and directly links to SAM.gov registration. Organizations receive their CAGE Code automatically 2-5 business days after completing SAM registration. Further sections explore the registration process and compliance requirements.
Understanding CAGE Codes and Their Importance in Government Contracting
The Commercial and Government Entity (CAGE) Code serves as the backbone of federal procurement identification systems. This 5-character alphanumeric identifier, assigned by the Defense Logistics Agency (DLA), provides standardized identification for entities doing business with the government. Since 2014, CAGE Codes have been mandatory per FAR 4.1800 for all federal contractors.
CAGE Code significance extends beyond simple identification. These codes link directly to SAM.gov registration, establishing contract eligibility and enabling cross-agency data sharing between DoD, GSA, and other federal entities. The process of obtaining a CAGE Code is initiated through SAM.gov registration for all businesses seeking government contracts. Maintaining an active CAGE Code is crucial for ongoing eligibility and successful partnerships in government procurement opportunities.
Government contracting essentials include understanding that CAGE Codes are geographically tied to physical addresses, unique per legal business entity, and non-transferable between organizations. They remain valid for five years unless entity status changes, creating an essential framework for regulatory compliance and procurement tracking. CAGE codes replaced the Federal Supply Code for Manufacturers and serve as a publicly visible identifier for all government contractors.
Key Entities Required to Obtain a CAGE Code
Diverse organizations across multiple sectors must secure CAGE Codes when pursuing federal business opportunities.
CAGE code eligibility extends to corporations of all sizes, from large defense contractors to small veteran-owned businesses seeking set-aside contracts. Educational institutions and nonprofits require these codes for federal grants and research funding. Business owners pursuing government opportunities must complete the SAM registration to obtain their CAGE code.
Defense-related entities face strict requirements, with aerospace manufacturers needing codes for ITAR compliance, while foreign vendors must obtain NCAGE codes. These codes play a vital role in ensuring compliance with international security and trade regulations. Entities experiencing CAGE validation failures will receive notification via email with contact information provided for resolution assistance.
Government grant recipients, including research institutions and tribal organizations, demonstrate CAGE code benefits through expanded access to federal funding programs.
Specialized sectors also fall under these requirements, with IT service providers needing codes for GSA Schedule contracts and construction firms requiring them for Army Corps of Engineers projects.
How to Secure Your CAGE Code Through the SAM Registration Process
Securing a CAGE Code requires maneuvering the System for Award Management (SAM) registration process with careful attention to detail.
Before beginning the CAGE code application, entities must complete business formation, obtain an EIN, and establish a bank account.
The SAM registration steps involve preparing tax verification documents (for U.S. entities) or obtaining NCAGE codes (for non-U.S. entities).
During registration, applicants receive a government-assigned UEI, which replaces the legacy DUNS number system.
Access to more than $500 billion in federal government contracts is available to entities with a valid CAGE code.
Once SAM registration is submitted, the Defense Logistics Agency automatically processes the CAGE code assignment, typically notifying applicants via email within 2-5 business days.
The assigned code appears in the entity’s SAM.gov profile under “Entity Management” after approval, requiring no separate application process.
To avoid potential delays in the approval process, ensure all application information is accurate and complete as verification procedures may extend the timeline based on current application volumes.
Frequently Asked Questions
Do International Entities Need a Different Code Than CAGE?
International entities do not need a different code than CAGE. The same CAGE Code system applies globally for all organizations doing business with the U.S. government, regardless of their geographic location.
Can I Update My CAGE Code if My Business Location Changes?
Yes, businesses must update CAGE code records when locations change. This is accomplished by first modifying the address in SAM.gov registration, which automatically initiates CAGE code updates through DLA within approximately 48 hours.
How Long Does It Take to Receive a CAGE Code?
CAGE code processing typically occurs immediately upon SAM registration approval. The timeline varies from 10-15 business days for standard registrations to several weeks if manual verification is required due to documentation discrepancies or foreign entity status.
Are CAGE Codes Transferable During Business Acquisitions or Mergers?
CAGE codes are not directly transferable during business acquisitions or mergers. A novation agreement is mandatory to validate the successor entity’s assumption of contractual obligations, with government contracting officer confirmation required for CAGE code updates.
Can Subcontractors Use Prime Contractors’ CAGE Codes?
No, subcontractors cannot use prime contractors’ CAGE codes. Subcontractor eligibility requires obtaining their own unique identifier. Prime contractor responsibilities include maintaining separate identification from subcontractors for proper tracking and payment processing within government systems.