A CAGE (Commercial and Government Entity) Code is a unique five-character identifier required for federal procurement systems. Companies must have this code to sell products or services to the government, particularly the Department of Defense. The code is automatically assigned during SAM.gov registration at no cost, linking to your UEI number and verifying business legitimacy. This identifier remains valid for five years with proper SAM maintenance. The following sections explore essential registration requirements and common pitfalls.
Understanding the CAGE Code System and Its Purpose
While many businesses seeking government contracts encounter the term “CAGE code” during registration, few fully grasp its essential role in federal procurement systems. The Commercial and Government Entity code serves as a unique 5-character alphanumeric identifier that standardizes identification across government agencies and their contractors.
The CAGE code significance becomes apparent when examining its evolution in procurement history. In 2014, this system replaced the Federal Supply Code for Manufacturers (FSCM) and National Supply Code for Manufacturer (NSCM), creating a unified identification method. NATO subsequently adopted the system, extending its utility to international defense operations.
Beyond identification, the CAGE code functions as a verification tool for business legitimacy during the bidding process. It enables efficient procurement by linking to other business identifiers like DUNS/UEI numbers and creating a consistent tracking mechanism across multiple government systems. The CAGE code is particularly important now that the UEI has replaced the traditional DUNS number as the primary identifier within the System for Award Management. The code is required for selling to any government agency and comes at no cost to businesses. These codes, assigned by the Defense Logistics Agency, should be maintained through regular updates to your SAM registration to ensure continued eligibility for government contracting opportunities.
How to Obtain and Maintain Your CAGE Code Through SAM
With a firm understanding of the CAGE code’s purpose and significance, businesses must next focus on the practical process of obtaining and maintaining this essential identifier.
The CAGE Code registration occurs automatically during the SAM registration process. To begin, entities must obtain a Unique Entity ID (UEI) through SAM.gov and complete a thorough registration with all required information, including:
- Physical business address
- Employer Identification Number (EIN)
- Banking information
- At least one NAICS code
- Legal and financial documentation
Once submitted, the Defense Logistics Agency (DLA) assigns the CAGE Code without additional action required from the applicant. The CAGE code is needed to access federal government contracts and remains valid for five years but requires maintenance through annual SAM registration renewals. Organizations should be aware that active SAM Registration ensures there are no concerns about CAGE Code renewals.
The registration is mandatory for federal contractors who wish to do business with the U.S. government through contracts, grants, or other financial assistance programs.
Common issues include incomplete registrations or outdated information. Businesses should verify their entity information regularly on the CAGE Search & Inquiry page and promptly address any information requests from the DLA.
Benefits of Having an Active CAGE Code for Federal Contractors
Maintaining an active Commercial and Government Entity (CAGE) code delivers substantial advantages for businesses seeking to participate in the federal marketplace. This five-character identifier serves as a mandatory requirement for submitting offers to federal agencies, effectively granting access to valuable contract opportunities on SAM.gov that specifically require CAGE codes for consideration.
For contractors pursuing Department of Defense work, the CAGE code functions as an essential prerequisite, particularly for subcontractors handling classified information. This standardized business identifier eliminates naming conflicts and centralizes entity data across procurement platforms, creating significant contractor advantages through streamlined processes.
From a compliance requirements perspective, an active CAGE code helps businesses avoid contractual penalties for non-compliant bidding while supporting audit trails for federal acquisition regulations. The CAGE Workbench system provides additional support for government suppliers managing their identification data.
The code accelerates vendor validation, reduces administrative delays during contract finalization, and ultimately prevents bid rejection due to missing contractor identification requirements. In conjunction with the Unique Entity Identifier, the CAGE code forms a complete identification profile necessary for all federal award opportunities.
Frequently Asked Questions
Can a Company Have Multiple CAGE Codes for Different Divisions?
Yes, a company can maintain multiple CAGE codes for different divisions.
This arrangement offers CAGE code benefits including precise facility tracking, separate security clearances, and distinct government contract management.
The CAGE code application process allows different physical locations or legally distinct divisions within a company to receive unique identifiers.
However, each division must be recognized as a separate entity by the Defense Logistics Agency to qualify for its own CAGE code.
What Happens if My Company Is Acquired During a Contract Period?
When a company is acquired during an active contract period, several critical actions must occur.
The acquisition impact requires updating SAM.gov within 30 days to reflect new ownership. A formal novation agreement is typically needed for contract transfer to the acquiring company.
Without proper documentation, the government may delay payments or terminate contracts. The acquired company should maintain its CAGE code during conversion until the contracting officer approves all changes.
How Do I Update My CAGE Code After Relocating My Business?
To update a CAGE code after relocating a business, the company must update their address in SAM.gov rather than updating the CAGE code directly.
The process involves:
- Logging into SAM.gov with administrator credentials
- Selecting “Update Entity” and editing the physical address
- Uploading supporting documentation (lease, utility bills)
- Submitting for review
DLA automatically validates the new location and updates the CAGE code accordingly, typically within 3-5 business days.
Are CAGE Codes Searchable in Public Government Databases?
Yes, CAGE codes are fully searchable in public government databases.
The Defense Logistics Agency maintains a dedicated CAGE Search & Inquiry tool that anyone can access online. Additionally, these codes appear in SAM.gov profiles, visible to both government agencies and contractors.
Unlike sensitive identifiers such as EINs, CAGE codes pose no privacy risks and are designed specifically for transparency in government procurement and contractor identification.
Do State and Local Government Contracts Require CAGE Codes?
CAGE codes are not typically required for state contracts or local contracts.
Unlike federal procurement, state and local governments often use their own identification systems for vendors and contractors. Each jurisdiction maintains independent procurement practices with unique registration requirements.
While some state or local entities might recognize CAGE codes as useful identifiers, they generally implement alternative vendor identification systems tailored to their specific procurement processes and regulations.