What is a CAGE Code (Commercial and Government Entity Code)?
A CAGE Code, or Commercial and Government Entity Code, is a unique identifier assigned to suppliers, vendors, and contractors doing business with the United States government. Managed by the Defense Logistics Agency (DLA), this five-character alphanumeric code is crucial for identifying entities in the federal procurement system. It plays a significant role in streamlining the government contracting process and ensuring that businesses are recognized and verified by federal agencies.
Key Features of the CAGE Code
Unique Identification
The CAGE Code serves as a unique identifier for businesses within the federal procurement system. It helps distinguish one entity from another, ensuring accurate tracking and management of contracts and vendor information.
Registration Requirement
Obtaining a CAGE Code is a mandatory step for businesses that wish to participate in government contracting. It is required for registration in the System for Award Management (SAM), which is the primary database used by the U.S. government to manage vendor information.
Global Recognition
While primarily used in the United States, the CAGE Code is recognized internationally. It is part of the NATO Codification System, which facilitates international procurement and logistics operations among NATO allies.
Verification and Compliance
The CAGE Code helps verify the legitimacy and eligibility of businesses seeking to enter into contracts with the government. It ensures compliance with federal regulations and standards, providing an additional layer of security and trust in the procurement process.
Importance in Government Contracting
The CAGE Code is critical in government contracting for several reasons:
- Vendor Verification: Ensures that businesses are legitimate and eligible to receive government contracts.
- Streamlined Procurement: Facilitates efficient and organized procurement processes by providing a standardized method for identifying and tracking vendors.
- International Operations: Supports global procurement and logistics operations through its recognition in the NATO Codification System.
