Any business seeking federal contracts or grants over $30,000 must obtain a CAGE code through SAM registration. This five-character identifier is automatically assigned to U.S. entities during registration, while international organizations require an NCAGE code. Federal contractors, subcontractors, and grant recipients all need this code for government identification and payment processing. The complete registration process provides access to numerous federal procurement opportunities.
Organizations Required to Have a CAGE Code
When engaging with the federal government as a contractor, organizations must obtain a Commercial and Government Entity (CAGE) code to facilitate identification and payment processing.
All U.S.-based entities seeking federal contracts must have a CAGE code assigned prior to award, which happens automatically during System for Award Management (SAM) registration.
U.S. entities receive CAGE codes automatically via SAM registration, a prerequisite for federal contract awards.
International organizations require a NATO CAGE (NCAGE) code before completing their SAM registration. These codes are obtained through their country’s codification bureau if in a NATO member nation, or through the NSPA ePortal for non-NATO countries.
Even organizations not registering in SAM may need a CAGE code in certain procurement scenarios.
The registration timeline can vary from several days to a few weeks depending on the accuracy of submitted documentation.
These entities can request codes directly from the DLA Contractor and Government Entity Branch, while existing contractors need valid codes for payment processing regardless of initial registration status. It’s important to note that CAGE Codes must be renewed every five years to maintain eligibility for federal contracts and payments.
The CAGE Code Application Process
Before initiating a CAGE Code application, organizations must gather several essential prerequisites and understand the structured process that follows.
Applicants need documentation of their legal business name, physical address validation documents, TIN/EIN numbers, and banking information. A valid DUNS number must be obtained before starting the registration process.
The registration begins in the System for Award Management (SAM), which automatically forwards entity information to the Defense Logistics Agency. There is no need to obtain a CAGE Code separately, as it will be assigned during SAM registration.
The process involves two key validation steps: IRS Consent Validation and DLA verification.
Typical processing time ranges from 2-3 weeks after SAM submission, though this may extend if DLA requires additional documentation.
The entire process is automatic once completed, with no further action needed unless specifically requested by DLA.
A CAGE code is specifically required for businesses seeking to access federal government contracts and opportunities.
Notably, residential addresses are fully acceptable locations for business registration if they serve as the primary place where business operations are conducted.
Benefits and Functions of CAGE Codes in Federal Contracting
CAGE codes provide essential infrastructure for the entire federal procurement ecosystem, serving as the backbone of contractor identification and verification systems. These five-character identifiers streamline procurement workflows across federal agencies, particularly the Department of Defense, by reducing administrative errors and simplifying vendor tracking. System for Award Management registration is required to obtain and maintain an active CAGE code status.
CAGE codes greatly enhance security and fraud prevention by authenticating contractor locations and enabling compliance checks for restricted entities. They grant businesses access to federal procurement opportunities, including GSA Schedules and DoD contracts, while ensuring compliance with Federal Acquisition Regulation requirements. For international businesses, NCAGE Codes are required before completing SAM registration.
The standardized identification system supports data integrity through centralized, up-to-date contractor records. This facilitates transparency in federal spending, improves audit processes, and creates consistent contractor recognition across agencies—ultimately making the entire procurement process more efficient and secure. Since becoming required since 2014, CAGE codes have become a fundamental component for businesses seeking to participate in the federal marketplace.
Frequently Asked Questions
How Long Does a CAGE Code Remain Valid Before Requiring Renewal?
CAGE codes obtained after August 26, 2016, remain valid for five years before requiring renewal for U.S.-based entities.
The expiration date resets whenever an entity renews its SAM registration. Organizations must maintain an active SAM registration, which expires annually, to keep their CAGE code current.
For international entities, NATO CAGE (NCAGE) codes follow similar renewal requirements.
Regular monitoring of expiration dates guarantees continuous compliance with federal contracting requirements.
Can a Business Have Multiple CAGE Codes for Different Locations?
Yes, a business can have multiple CAGE codes for different locations. Each unique physical facility or location of a business requires its own distinct CAGE code.
This system allows the government to track and manage contracts with specific business locations. When a company registers different operational sites in SAM, each location will automatically receive its own CAGE code, enabling location-specific federal contracting, facility clearance processes, and pre-award surveys.
What Happens to My CAGE Code if My Business Relocates?
When a business relocates, the existing CAGE code remains the same, but the entity must update its physical address in SAM.
This change triggers a re-validation process by the Defense Logistics Agency to confirm the new location.
Failure to update address information promptly can result in CAGE code deactivation or suspension, potentially delaying contract awards or interrupting government payments.
Regular maintenance of SAM profile information, including address changes, guarantees continued compliance for federal contracting purposes.
Are Tribal Governments Required to Obtain CAGE Codes?
Yes, Tribal governments are required to obtain CAGE codes when they wish to do business with the federal government.
These codes are necessary for tribal entities to access procurement opportunities, receive federal funding, and participate in government contracting programs.
Tribal governments must complete the CAGE registration process through the SAM system, providing their legal business name, physical address, Taxpayer Identification Number, and banking information as part of the validation requirements.
How Do International Subsidiaries of U.S. Companies Obtain Proper Coding?
International subsidiaries of U.S. companies obtain proper coding through the SAM registration process.
After submitting their registration, the entity information is sent to the Defense Logistics Agency (DLA) for CAGE code assignment.
These international entities must provide documentation proving their relationship to the U.S. parent company and country-specific address validation.
The DLA performs additional verification steps for foreign addresses, and the subsidiary receives its CAGE code only after thorough validation of all submitted information.