CAGE codes serve as unique five-character identifiers assigned by the Defense Logistics Agency to federal contractors. They function as digital fingerprints vital for procurement readiness and are required for bidding on government contracts. Contractors must register in the System for Award Management (SAM) to obtain a CAGE code, providing a physical address and supporting documentation. Regular maintenance through SAM updates guarantees continued compliance with Federal Acquisition Regulations. Proper CAGE code management directly impacts a company’s eligibility for federal opportunities.
CAGE Code Essentials for Government Contractors
Every federal contractor must understand the critical role of the Commercial and Government Entity (CAGE) Code in the procurement process. This unique five-character identifier, assigned by the Defense Logistics Agency, serves as the contractor’s digital fingerprint within federal systems.
To obtain a CAGE Code, businesses must first register in the System for Award Management (SAM) with a physical address—P.O. boxes are not accepted. The process requires no fees but demands supporting documentation for verification. CAGE Public provides a unified search solution for locating and verifying CAGE codes. The CAGE code replaced the Federal Supply Code for Manufacturers and is essential for federal procurement readiness. Streamlined communication between contractors and government agencies is a key benefit of maintaining an active CAGE Code.
Registration in SAM with a physical address is mandatory—never a P.O. box—to secure your CAGE Code, though the process is free of charge.
Each separate business location performing contract work needs its own CAGE Code. Without a valid CAGE Code, contractors cannot bid on or receive federal awards.
The code must be renewed every five years through SAM updates, though codes issued before August 26, 2016, have no expiration date.
How CAGE Codes Impact Your Federal Bidding Process
Maneuvering the federal bidding process requires contractors to understand how CAGE codes function as critical identifiers throughout the procurement cycle. Without a valid CAGE code, companies cannot bid on or be awarded federal contracts. SAM registration process typically takes several days to weeks for initial approval.
When submitting proposals, contractors must guarantee their CAGE code matches the entity name in SAM registration. Though codes should be obtained before award, this requirement should not delay offer submission.
For companies undergoing structural changes, continuing to use the former entity name and CAGE code until DCMA recognizes the changes is essential. Companies that convert from a corporation to an LLC can maintain their legal status unchanged for bidding purposes while updating their registration information. As demonstrated in the CACI case, contractors can submit proposals after entity changes even without DCMA approval while name change agreements are still pending.
Subcontractor CAGE codes must be included when classified information access is needed, with each performance location requiring a unique identifier. Proposals containing incorrect CAGE codes risk costly discrepancies since the government considers contracts held by the entity associated with the registered code.
Maintaining CAGE Code Compliance: Best Practices
While securing a valid CAGE code marks an important milestone in federal contracting, successful contractors recognize that compliance requires ongoing attention.
Companies must regularly update their information in the SAM database, promptly reporting any changes to business structure or address. The CAGE code acts as a critical identifier that streamlines procurement processes between contractors and government agencies. System for Award Management serves as the central registration platform for all federal contractors.
Maintaining an active SAM registration is mandatory, with renewals typically required annually. Contractors should implement scheduled internal reviews and utilize the SAM Status Tracker to verify registration status. This proactive approach prevents lapses that could jeopardize contract eligibility.
Communication with authorities remains essential for compliance. Direct written change requests to the appropriate DLA branch or National Codification Bureau for non-U.S. contractors.
Additionally, maintaining organized records of all correspondence helps substantiate compliance during audits and guarantees adherence to FAR and DFARS requirements.
Frequently Asked Questions
Can Foreign Companies Obtain CAGE Codes for U.S. Government Contracts?
Foreign companies cannot obtain CAGE codes, but must instead secure NCAGE (NATO Commercial and Government Entity) codes for U.S. government contracts.
These five-character identifiers are specifically designated for non-U.S. entities. Foreign businesses must obtain an NCAGE code before registering in the System for Award Management (SAM).
Both the NCAGE code and SAM registration are mandatory prerequisites for foreign companies to become eligible for federal contract awards from U.S. government agencies.
How Do CAGE Codes Differ From NATO Commercial and Government Entity Codes?
CAGE codes and NATO Commercial and Government Entity (NCAGE) codes differ primarily in their geographic assignment.
CAGE codes are issued by the Defense Logistics Agency for entities located within the United States and its outlying areas.
NCAGE codes are assigned to entities outside the U.S. by either NATO member nations or the NATO Support and Procurement Agency.
Despite this geographical distinction, both codes serve the same purpose: providing unique identifiers for facilities at specific locations within government contracting systems.
Are CAGE Codes Transferable During Company Mergers or Acquisitions?
CAGE codes are not transferable during company mergers or acquisitions.
When a business undergoes structural changes, the transferability depends on whether the legal entity itself changes:
- If only the business name changes but the legal entity remains the same, the CAGE code can stay active.
- If the legal entity changes through merger or acquisition, a new CAGE code is required.
- Business owners must update information in SAM.gov when changes occur.
How Do Small Businesses With Multiple Locations Handle CAGE Code Assignments?
Small businesses with multiple locations must obtain separate CAGE codes for each physical location where distinct business operations occur.
Each site requires its own registration with a verifiable physical address, consistent business documentation, and appropriate tax identification information.
Companies should implement tracking systems to monitor which contracts associate with specific location codes.
Maintaining updated registration information is essential when location details change, ensuring compliance with federal contracting regulations across all business sites.
What Happens to a CAGE Code When a Business Relocates?
When a business relocates, its CAGE code information must be updated to reflect the new physical address.
Since CAGE codes are assigned to specific physical locations, a move necessitates updating this information in the CAGE system.
The business must provide documentation verifying the new physical address where operations are conducted.
This update is mandatory, as CAGE codes must accurately match the business name and location to maintain eligibility for federal contracts and procurement processes.