The Importance of CAGE Codes
A CAGE Code, or Commercial and Government Entity Code, is an important five-character identification number used to support mechanized systems throughout the government and provide a standardized method of identifying a given entity and their specific location. CAGE codes are assigned by the Defense Logistics Agency (DLA) and are recognized by such organizations as the United States Department of Defense, NASA, and many NATO countries. Prior to doing business with the U.S. government or NATO, companies and corporations must first acquire a unique CAGE Code. In this blog, we will take a deeper look at CAGE Codes, their value, and where they fit in relation to other unique identifiers involved in government contracting.
For a business owner, a CAGE code is one of four key identifiers related to your business. The other three are your personal social security number (SSN), the company’s Employer Identification Number (EIN), and the company’s Data Universal Numbering Systems (DUNS) Number. Your SSN is assigned to you by the Social Security Administration for social security benefits, but it is also used by the Internal Revenue Service (IRS) as your taxpayer identification number. The SSN serves as the unique identifier for the business owner. Second, the EIN is also assigned by the IRS for tax purposes, but to companies rather than individuals. An EIN could be thought of as the SSN for your business.
Third is your company’s DUNS number. This number is assigned by Dun & Bradstreet, a commercial company that was contracted by the government to provide unique identifiers like these. Unlike your SSN and EIN, which should remain private, a company’s DUNS number is intended to be publicly shared. This brings us back to the fourth identifier, CAGE Code. As stated, these are assigned by the CAGE Program Office of the DLA. Like a DUNS number, CAGE Codes are designed to be public.
CAGE Codes are a relatively new identifier, having only been introduced in 2014 as replacement for the Federal Supply Code for Manufacturers (FSCM) and National Supply Code for Manufacturers (NSCM). According to the Federal Acquisition Regulations, CAGE Codes serve three primary uses: to exchange data with another contracting activity (including contract administration activities and contract payment activities), to exchange data with another system that requires the unique identification of a contractor entity, and to identify when offerors are owned or controlled by another entity.
Unlike your SSN, CAGE Codes do not last forever. They must be renewed every five years based on the last time you updated your entity registered in the System for Award Management (SAM) tool. However, when you update your SAM profile, you will also automatically renew your CAGE Code. That said, if your company received its CAGE Code prior to August 26, 2016, your CAGE Code does not have an expiration date.
To apply and receive a CAGE Code is free, as the DLA does not charge for entry into the system. Any company wishing to sell products or services to the federal government can easily obtain a CAGE Code when the company is registered in the System for Award Management. Even if you do not already have one, registry in the SAM will automatically trigger the process of CAGE Code assignment.
At ASAP Aviation Stock, owned and operated by ASAP Semiconductor, we can help you find all types of CAGE Code parts as well as many other parts for the aerospace, civil aviation, and defense, electronics, and IT hardware markets. Dedicated account managers are always available and ready to help you find all the parts and equipment you need, 24/7-365. For a quick and competitive quote, email us at sales@asapaviationstock.com or call us at 1-763-401-8616.
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