A CAGE Code (Commercial and Government Entity Code) is a five-character identifier assigned by the Defense Logistics Agency after SAM registration completion. It’s mandatory for all entities pursuing federal contracts or grants since 2014. The code integrates with the System for Award Management and requires annual renewal to remain active. CAGE Codes establish accountability by documenting ownership hierarchies and ensuring compliance with federal requirements. Proper maintenance prevents potential contract management issues and procurement delays.
The Essential Role of CAGE Codes in Federal Contracting
When businesses seek to enter the federal marketplace, a Commercial and Government Entity (CAGE) Code becomes their essential passport to participation. This five-character identifier serves as a standardized mechanism for tracking contractors across all federal agencies, replacing older systems like the Federal Supply Code for Manufacturers. The procurement credibility gained through CAGE Codes helps businesses establish trust within the competitive federal marketplace.
Since 2014, CAGE Codes have been mandatory for all entities pursuing U.S. federal contracts or grants, as mandated by Federal Acquisition Regulation Part 4.1800. The code integrates with the System for Award Management (SAM) and works alongside other identifiers such as the Unique Entity Identifier (UEI). The Department of Defense’s Defense Logistics Agency (DLA) is responsible for CAGE Code assignment following successful SAM registration.
Without a valid CAGE Code, businesses face disqualification from procurement processes, highlighting its critical importance in establishing legitimacy and enabling participation in government contracting opportunities. Federal buyers regularly use these unique identifiers to research and evaluate a contractor’s procurement readiness before awarding contracts.
How to Obtain and Maintain Your CAGE Code Registration
Every federal contractor must follow a specific, multi-step process to secure and maintain a CAGE Code through the System for Award Management (SAM).
The process begins with obtaining a Unique Entity Identifier (UEI) through SAM.gov, followed by completing a detailed SAM registration with legal and financial information. Upon submission, your information automatically goes to the Defense Logistics Agency for CAGE Code assignment. The initial registration period typically takes several days to a few weeks for processing.
After receiving your CAGE Code, maintain it by:
- Renewing your SAM registration annually
- Updating information promptly when changes occur
- Verifying accuracy through DLA’s CAGE Search & Inquiry page
Remember that CAGE Codes expire after five years and require renewal.
Prompt responses to DLA information requests prevent delays in the application process, ensuring your eligibility for federal contracts remains uninterrupted. Physical address validation is critical as virtual locations or PO boxes are not accepted for CAGE code registration. These five-digit identification numbers are essential for eligibility to federal grants, contracts, and operating clearances for your business.
Understanding CAGE Code Ownership Hierarchy and Reporting Requirements
The ownership hierarchy of CAGE Codes establishes a clear line of accountability in government contracting relationships. This hierarchy consists of two primary classifications: the highest-level owner and the immediate owner. Each entity in this chain may require its own CAGE code for proper identification within the federal procurement system.
Under FAR Subpart 4.18, contractors must disclose ownership information during SAM registration. This includes identifying both immediate and highest-level owners by their respective CAGE codes. Control indicators such as shared facilities, equipment, or employees help determine ownership relationships. The standardized identification process ensures entities are properly recognized across all federal government operations.
When ownership changes occur, businesses must update their CAGE code information through their SAM account with supporting documentation. This may require a CAGE code reassignment, particularly during acquisitions or mergers. Unlike the DUNS number replacement, CAGE codes remain a vital component for defense contractors and suppliers. Failure to maintain current CAGE code information could result in contract management issues and potentially disrupt business operations with GSA.
Maintaining accurate ownership hierarchy information guarantees compliance with federal reporting requirements.
Frequently Asked Questions
Can Foreign Entities Obtain a CAGE Code Equivalent?
Foreign entities can obtain a NATO Commercial and Government Entity (NCAGE) code, which serves as the equivalent to a CAGE code.
These five-character alphanumeric identifiers are managed by NATO or national codification bureaus outside the US.
Foreign organizations must secure an NCAGE code before completing SAM registration to participate in US federal contracts or grants.
The NCAGE application process occurs through the entity’s national codification bureau or the NATO Support and Procurement Agency.
How Long Does a CAGE Code Remain Valid Before Requiring Renewal?
CAGE Codes remain valid for 5 years from the date of their last update with the CAGE program.
Entity owners must renew before expiration to maintain eligibility for federal contracts and assistance programs. The renewal process involves updating information and confirming data accuracy in the SAM.gov system.
While U.S. CAGE Codes require renewal every 5 years, NCAGE Codes for non-U.S. entities currently do not have expiration dates.
No fees are associated with legitimate CAGE Code renewals.
Can Multiple Divisions of a Company Have Separate CAGE Codes?
Yes, multiple divisions of a company can have separate CAGE codes.
Different divisions or locations of a single parent company may receive distinct CAGE codes when they:
- Operate at separate physical addresses
- Function as distinct business entities
- Maintain local business operations
The Defense Logistics Agency assigns these unique five-character identifiers to each qualifying location, allowing large organizations to manage government contracting through decentralized operations with proper identification for each business unit.
What Happens to a CAGE Code During Company Mergers or Acquisitions?
During company mergers or acquisitions, CAGE codes are not automatically transferred between entities.
The surviving or acquiring company typically needs to update CAGE information in SAM to reflect new ownership structures.
If the original entity ceases to exist, its CAGE code may be deactivated.
Companies must notify DLA and SAM administrators about structural changes, as outdated information can delay contract awards and payments or impact existing government contracts.
Are CAGE Codes Publicly Accessible or Considered Proprietary Information?
CAGE codes are publicly accessible information, not proprietary. These five-character identifiers are stored in the SAM database where anyone can view them.
Government agencies routinely disclose CAGE codes in procurement documentation and contract awards. The codes contain no inherently confidential information, as they simply identify physical business locations rather than revealing sensitive data.
Like other business registration numbers, CAGE codes function as official public identifiers within the federal procurement system.