CAGE Codes and UEIs serve distinct purposes in federal contracting. CAGE Codes, five-character identifiers managed by the Defense Logistics Agency, primarily support defense contracts. UEIs, twelve-character codes managed by SAM, apply across all federal agencies and replaced DUNS in 2022. While CAGE Codes focus on defense vendor identification, UEIs provide broader contractor recognition throughout government systems. Both identifiers remain mandatory for businesses seeking federal contracts, with UEIs required before CAGE Code application. Further exploration reveals critical compliance requirements for contractors.
What Are CAGE Codes and UEIs: Core Definitions and Purposes
Identifiers serve as the foundation of government contracting systems, enabling efficient procurement processes across agencies.
The CAGE codes overview reveals they are five-character alphanumeric identifiers assigned by the Defense Logistics Agency to suppliers engaging with government or defense agencies. These unique codes replaced earlier systems like the Federal Supply Code for Manufacturers, standardizing contractor identification across governmental platforms. CAGE codes have been required since 2014 for all businesses pursuing federal contracts or grants. Complete registration details are essential when applying through the System for Award Management platform.
CAGE codes: five-character alphanumeric identifiers that standardized contractor identification for defense suppliers, replacing older fragmented systems.
UEI significance stems from its role as a distinct identifier for businesses participating in federal contracts. While CAGE codes focus specifically on defense and government suppliers, UEIs serve broader identification purposes.
Both identifiers function as prerequisites for government contracting, supporting procurement tracking and supplier verification processes. CAGE codes can be obtained at no cost through registration with SAM.gov. Businesses must maintain valid registrations throughout their contract life, including subcontracts, to remain eligible for government opportunities.
Primary Distinctions Between CAGE Codes and UEIs in Government Contracting
The fundamental differences between CAGE Codes and UEIs become apparent when examining their specific roles in the government contracting ecosystem.
While UEIs serve as universal identifiers recognized across all federal agencies, CAGE Codes function primarily within defense-related contracting spheres.
The key UEI differences stem from their administration and application.
UEIs are managed by SAM and consist of 12-character alphanumeric codes, replacing the former DUNS system as of April 2022.
In contrast, CAGE Code assignment falls under the Defense Logistics Agency‘s purview, utilizing a simpler five-character format specifically for vendor identification in defense projects.
Businesses maneuvering government contracts must understand that UEIs offer broader application across federal programs, while CAGE Codes remain essential for defense contracts and security clearance verification.
Both identifiers are critical components of the Federal System for Award Management registration process that entities must complete to do business with the government.
The compliance requirements for maintaining both identifiers must be regularly monitored to ensure continued eligibility for federal contracts.
Obtaining a UEI is a prerequisite step before applying for a CAGE code, which is necessary to access over $500 billion in federal government contract opportunities.
Management Systems and Implementation Requirements for Federal Contractors
Federal contractors face a myriad of complex management system requirements that extend well beyond basic identification codes like CAGE and UEI.
These thorough management compliance frameworks guarantee contractors properly handle government information and property while meeting stringent regulatory standards. Regular security audits are essential for maintaining data protection and compliance with federal cybersecurity standards.
Federal contractors must navigate intricate compliance frameworks to ensure proper handling of government assets and meet strict regulations.
Key contractor obligations include:
- Implementing CMMC 2.0 cybersecurity measures, with three distinct compliance levels based on the sensitivity of Federal Contract Information (FCI) and Controlled Unclassified Information (CUI) being handled. Organizations must complete certification by December 2027 to maintain eligibility for DoD contracts. The GSA has announced FedRAMP updates aimed at streamlining authorizations and enhancing security for federal contractors.
- Establishing and maintaining robust Property Management Systems that satisfy criteria outlined in FAR 52.245-1, with consequences including payment withholding for material weaknesses.
- Adhering to NIST SP 800-171 standards for protecting sensitive information, with regular system audits guaranteeing continued compliance and proper security infrastructure.
Frequently Asked Questions
How Long Does It Take to Obtain a CAGE Code?
CAGE code processing time typically ranges from three to five business days after submission through the Defense Logistics Agency (DLA).
However, the CAGE code application may take longer if additional documentation or clarification is needed. In cases requiring follow-up, the process can extend to 2-3 weeks.
The assignment is free of charge, with no processing fee required. Entities receive notification via email once the code is assigned after all validation checks are completed.
Can Foreign Entities Receive Both UEIS and CAGE Codes?
Foreign entities can obtain both UEIs and NCAGE codes, not standard CAGE codes.
The registration process requires foreign entities to first secure an NCAGE code through the NATO Codification System, which serves the same purpose as CAGE codes for non-U.S. organizations.
Once the NCAGE is approved, foreign entity eligibility for SAM.gov registration is established, allowing them to receive their UEI.
Both identifiers are necessary for participating in U.S. government contracts, especially defense-related opportunities.
What Happens if My CAGE Code or UEI Expires?
When a CAGE code expires due to inactivity (typically after five years), a business becomes ineligible for government contracts and may experience payment delays on existing contracts.
Similarly, an expired UEI, which occurs when SAM registration lapses, blocks federal contracting opportunities and halts payments on current contracts.
To address these issues, businesses must promptly update their SAM registration information and complete necessary reactivation steps to restore contracting eligibility.
Are CAGE Codes Required for Subcontractors on Federal Projects?
Subcontractor requirements for CAGE codes on federal projects depend on specific contract terms.
Generally, subcontractors who handle classified information must provide CAGE codes for federal compliance. However, those working solely on unclassified portions may not need one.
Prime contractors are responsible for ensuring their subcontractors maintain proper documentation throughout the contract period.
Subcontractors performing work at government facilities typically use agency location codes instead of CAGE codes for identification purposes.
How Do I Update or Transfer Ownership of My CAGE Code?
CAGE code ownership cannot be transferred between entities. When business ownership changes, the new entity must obtain a new CAGE code through SAM registration.
To update CAGE information, businesses must contact the DLA CAGE Branch via https://cage.dla.mil within 30 days of changes. Required documents include legal business name, address verification, and supporting documentation.
The validation process takes up to 10 business days. Failure to maintain current CAGE information may result in payment delays or contract ineligibility.