What Are The Benefits of CAGE Codes?

A CAGE code, or Commercial and Government Entity code, is a unique 5 character alphanumeric code that can be given to a business as a unique identifier. CAGE codes are important as they are the way that an entity is able to do business with the United States government and identify themselves. In this blog, we will discuss the various facets of CAGE codes and why they are important for an entity to have.

As stated before, if an entity wishes to conduct business with the United States government, they need to have a valid CAGE code. Government contracts can be very lucrative for small to large businesses, and the only way to be able to bid on and undertake them is by having active CAGE code status. With a code, an entity can sell to the government, which is extremely beneficial to any business as the United States government is the largest single customer in the world.

Receiving a Commercial and Government Entity code is not a very difficult process, but it does require some steps and time to fully complete and receive a code. The first step to obtain a CAGE code is to get a Data Universal Numbering System (DUNS) number. Once that is complete, an entity can then enroll in the System for Award Management (SAM) database in which you register your business information. This requires a DUNS number, legal entity name, physical address, and tax and banking information. After your SAM registration is complete, all an entity has left to do is to request a CAGE code from the Defense Logistics Agency (DLA), which can be done on their website. After a small waiting period, your CAGE code will be given if you are approved.

Even if your business is not planning on directly working and dealing with the government, having a valid CAGE code status can still be very beneficial. Sometimes, contractors will not even subcontract to a business unless they have a CAGE code as well. Codes also help businesses search for different entities and consumers to work with. Lastly, CAGE codes can also be used to receive grants, gain facility clearance, and provide other benefits that make them great to have.

As of August 26, 2016, new CAGE codes have been assigned an expiration date of five years. This is done by the DLA as an effort to preserve up-to-date and valid information of entities on the SAM database for the benefit of everyone conducting business. Luckily, all one has to do for the CAGE code renewal process is to update their SAM registration before the expiration date. For businesses that had their CAGE code assigned prior to the August 26, 2016 date, there is no assigned expiration date currently.

When looking for NSN parts from a certain manufacturer, Aerospace Aces can make your search simple with our CAGE Code Lookup service that can help you find everything you need with ease. Our robust supply chain stretches across the United States, Canada, and the United Kingdom, allowing us to provide next day shipping on select components. At Aerospace Aces, owned and operated by ASAP Semiconductor, we can help you find NSN parts and other aviation components you need, new or obsolete.


January 10, 2024

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