CAGE Code verification in SAM requires completing several essential steps. First, create a Login.gov account and obtain a Unique Entity ID. Then, register in SAM with accurate business information, particularly physical address and TIN details. The Defense Logistics Agency validates your entity’s legal existence and assigns your CAGE code upon approval. Common verification challenges include address verification issues and system compatibility problems. Regular updates to your SAM profile prevent delays in maintaining an active CAGE registration. Additional verification strategies can streamline this critical process.
The Essential Steps for CAGE Code Verification in SAM
Five essential steps form the backbone of CAGE Code verification in the System for Award Management (SAM). The process begins with initiating SAM registration, where contractors establish a Login.gov account and obtain a Unique Entity ID.
Next, entity validation confirms a business’s legal existence by verifying company details. The federal procurement system requires accurate and complete information during registration to prevent delays. The registration timeline typically extends from this point to the third step, where the Defense Logistics Agency assigns the CAGE code, highlighting its significance for government contracting. Access to over 500 billion dollars in federal government contracts requires a valid CAGE code.
Entity validation serves as the critical gateway to CAGE Code assignment, verifying your business exists before DLA approval.
Step four involves reviewing entity status through SAM.gov’s tracking tools, which contracting officers use to verify eligibility. If CAGE validation issues occur, contractors can reach out to the Defense Logistics Agency via their toll-free number or email for prompt resolution.
Finally, contractors must comply with annual update requirements to maintain CAGE code validity, promptly reporting any business changes that affect registration information.
Common Challenges During the CAGE Verification Process
While traversing the CAGE code verification process, contractors frequently encounter several obstacles that can delay or complicate their SAM registration.
Address verification stands as a common hurdle, with physical location validation now requiring supporting utility bills or similar documentation. Non-commercial addresses and PO boxes typically face rejection during review. The Defense Logistics Agency has implemented stricter validation rules for physical addresses, creating additional barriers for businesses using co-working spaces.
TIN issues represent another significant challenge. The IRS requires exact matching between the taxpayer name and legal business name, and only authorized individuals can resolve EIN-related problems. When discrepancies occur, entities receive email notifications requiring prompt responses. Commercial entities must maintain precise documentation to ensure compliance with both government and business requirements.
System compatibility problems between SAM and DLA platforms can further impede verification, especially following recent updates.
Duplicate entries or inconsistencies between SAM and CAGE registrations often trigger rejections, requiring careful attention to formatting and data entry.
Best Practices for Maintaining an Active CAGE Registration
Several key maintenance activities guarantee contractors maintain an active CAGE registration throughout their government contracting journey.
Regular SAM registration updates, performed at least annually, confirm CAGE code compliance and prevent registration from lapsing into inactive status.
Annual SAM registration updates validate CAGE compliance and maintain active status for continued government contracting eligibility.
Contractors must notify contracting officers of any CAGE code changes within 30 days, especially those affecting physical address or business structure.
While CAGE codes themselves don’t expire, they can become inactive without proper maintenance.
Federal procurement officers rely on CAGE codes as unique identifiers to validate potential contractors during the bidding process.
For effective registration management, companies should:
- Document all changes to legal business structure
- Verify physical address accuracy in all submissions
- Maintain accurate tax identification information
- Follow DLA and SAM guidelines consistently
- Proactively update SAM profile before annual renewal deadlines
These practices help prevent payment delays and maintain eligibility for government contracts.
If issues arise during the verification process, contractors can contact the DLA Customer Interaction Center for specialized assistance with CAGE code validation.
For name changes due to acquisition or merger, entities must submit an executed Novation Agreement along with the change request to ensure proper processing of CAGE code records.
Frequently Asked Questions
Can Foreign Entities Obtain a CAGE Code for U.S. Government Contracts?
Foreign entities cannot obtain a standard CAGE code but must instead secure an NCAGE (NATO CAGE) code for U.S. government contracts.
CAGE code eligibility for international businesses requires this specific designation, which serves as their unique identifier in procurement systems.
Foreign contractor requirements mandate obtaining the NCAGE code before registering in SAM.gov.
This process guarantees proper verification of international suppliers and is mandatory for bidding on any U.S. government opportunities.
What Happens if My CAGE Code Expires During an Active Contract?
When a CAGE Code expires during an active contract, the consequences can be severe.
Contract implications include halted payments and potential disqualification from ongoing work. The business becomes ineligible to receive federal funds until they complete the renewal process through SAM.gov.
This situation can create administrative delays and supply chain disruptions. To prevent these issues, contractors should monitor expiration dates carefully and renew their SAM registration annually, well before the expiration date.
How Do Subcontractors Verify Their CAGE Codes for Prime Contracts?
Subcontractors verify their CAGE codes for prime contracts through a straightforward verification process.
First, they must register in SAM to obtain a valid CAGE code. Once assigned, prime contractors can verify the subcontractor’s CAGE code using the SAM database or DLA search tool.
Subcontractor responsibilities include maintaining current SAM registration and providing accurate facility information.
This verification guarantees proper identification of all entities involved in government contracts and supports regulatory compliance requirements.
Can One Company Have Multiple CAGE Codes for Different Locations?
Yes, one company can have multiple CAGE codes for different locations.
CAGE codes are assigned per physical address rather than per organization. A business with several facilities or divisions operating at separate addresses will receive distinct CAGE codes for each location.
This system allows the government to track specific business units, manage contractual relationships more effectively, and maintain accurate records of where goods and services originate from within larger corporate structures.
Is a CAGE Code Required for Grants and Cooperative Agreements?
Yes, a CAGE code is required for grants and cooperative agreements with the federal government.
Organizations seeking grant eligibility must register in SAM.gov, which automatically assigns a CAGE code as part of the process.
This requirement applies to nonprofits, educational institutions, and businesses accessing federal funds.
The CAGE code serves as a unique identifier that facilitates proper financial disbursements and helps verify organizational legitimacy throughout the grant management process.