While both are government entity identifiers, UEI is a 12-character alphanumeric code required for all federal contracting through SAM.gov, replacing the former DUNS number in 2022. CAGE Codes, consisting of five characters, focus specifically on defense-related contracts and business locations, particularly for classified projects requiring security clearance. Domestic entities typically receive CAGE Codes automatically during SAM registration, while UEIs must be obtained first. These identifiers serve complementary roles in the federal procurement ecosystem.
Core Differences Between CAGE Code and UEI
Government contractors maneuvering federal procurement systems must understand the distinction between CAGE Codes and UEIs, as both serve critical yet different functions.
The UEI is a 12-character alphanumeric identifier managed by SAM.gov that replaced the DUNS number in April 2022, creating a universal identifier for all federal contracting. In contrast, the CAGE Code is a five-character alphanumeric code issued by the Defense Logistics Agency, primarily for defense-related contracts. Streamlined verification between contractors and government agencies is a key benefit of maintaining these identifiers.
Understanding the identifiers: UEI serves all federal contracting needs while CAGE Codes focus specifically on defense procurement operations.
While UEIs identify entities conducting business with any federal agency, CAGE Codes specifically track business locations worldwide for defense purposes. CAGE Codes provide a standardized method of identifying facilities at specific physical locations. Entities must register annually to maintain compliance and ensure their information remains current in the SAM system.
Both identifiers remain necessary for government contractors, with UEI serving broader identification purposes across all agencies and CAGE Codes maintaining their specialized function within the Department of Defense procurement system.
How to Obtain and Maintain Your CAGE Code and UEI
Securing both a CAGE Code and UEI requires careful navigation through the federal registration process, with each identifier serving as a crucial element for government contractors. Entities must first obtain a UEI through SAM.gov before pursuing a CAGE Code assignment.
For domestic entities, CAGE Codes are automatically assigned during SAM registration. International organizations must request an NCAGE Code before completing SAM registration. Both identifiers require accurate submission of legal and financial information. Accurate filing is essential to prevent potential delays with your application. The registration timeline typically ranges from several days to a few weeks depending on documentation completeness.
CAGE Codes expire after five years but renew automatically with annual SAM updates. Maintaining an active SAM registration eliminates separate renewal concerns for CAGE Codes. Contractors can verify their status through the Entity Status Tracker on SAM.gov.
Errors in registration can delay federal payments and contract eligibility, making precision essential throughout the application process. During SAM registration, you will need a physical address affiliated with your business, as virtual spaces must be verifiable to avoid application problems.
When and Why You Need Each Identifier for Government Contracting
Understanding when to use CAGE Codes versus UEIs often creates confusion for entities entering the federal marketplace for the first time. The distinction is important for successful government contracting.
Navigating the CAGE Code vs. UEI distinction is critical for newcomers to federal contracting success.
CAGE Codes are specifically required when working with the Department of Defense, particularly for classified projects where security clearance verification is necessary. This five-character identifier is assigned by the Defense Logistics Agency following SAM registration. Maintaining accurate business data in SAM.gov is crucial for keeping your CAGE Code active and valid.
UEIs, on the other hand, are mandatory for all entities seeking to do business with any federal agency. This 12-character code replaced the DUNS number in April 2022 and is essential for contracts, grants, and federal loans.
Both identifiers serve distinct purposes—CAGE Codes streamline defense procurement processes, while UEIs facilitate tracking and management across the entire federal contracting ecosystem. Unlike the EIN issued for tax purposes, the UEI is a permanent identifier that never expires and remains with your entity throughout its lifetime.
Frequently Asked Questions
Can a Foreign Entity Obtain Both a CAGE Code and UEI?
Yes, foreign entities can obtain both a UEI and a CAGE code.
Foreign organizations must complete registration in SAM.gov to receive a UEI, which is mandatory for all entities seeking U.S. federal financial assistance.
While the process differs slightly for businesses outside the U.S., foreign entities can also acquire CAGE codes, which track physical business locations for government contracting purposes.
Both identifiers are necessary for foreign organizations conducting business with the U.S. federal government.
What Happens if My CAGE Code or UEI Information Is Incorrect?
Incorrect CAGE code or UEI information can lead to serious consequences.
Entities may experience registration delays or rejection in SAM.gov, lose eligibility for federal contracts and grants, face compliance issues during government audits, and encounter restrictions on future federal business opportunities.
These discrepancies can trigger administrative reviews, potentially resulting in fines or disqualification.
Immediate correction of any errors is essential to maintain proper standing with federal procurement systems and preserve funding eligibility.
Are CAGE Codes or UEIS Transferable During Company Acquisitions?
CAGE Codes are not transferable during company acquisitions or mergers.
When ownership changes, the acquiring company typically needs to apply for new CAGE Codes, as these identifiers are assigned to specific legal entities at specific physical addresses.
The original CAGE Codes usually become inactive.
For UEIs, while not explicitly stated in regulations, they appear to follow similar non-transferability rules.
Companies undergoing acquisitions should contact their contracting officers and update their information in SAM.gov promptly.
Do Subcontractors Need Their Own CAGE Code and UEI?
Subcontractors typically do not need their own CAGE code and UEI unless they’re directly receiving federal funds or bidding as prime contractors.
Most federal agencies only require the prime contractor to maintain active SAM registration with proper identifiers.
However, exceptions exist in defense contracts or highly regulated industries where all participants may need individual registration.
Subcontractors should review specific solicitation requirements, as some programs mandate complete registration for both primes and subcontractors.
How Quickly Can I Begin Bidding After Receiving These Identifiers?
Organizations cannot begin bidding immediately after receiving UEI and CAGE code identifiers.
Bidding eligibility only starts after the SAM.gov registration status becomes fully active, which may take additional time beyond identifier assignment. Companies must verify their active status in the SAM.gov dashboard before attempting to submit bids.
Responding promptly to any validation inquiries and ensuring all documentation is accurate will help minimize delays in the activation process.