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Commercial And Government Entity Codes, or CAGE Codes as they are more commonly known as, are a standardized identifier that was created by the DLA in order to establish suppliers that are authorized to work with government and defense agencies. For many years, this code was permanent to an organization for their unique identification, but this has changed in recent years. Now, in an effort to improve the quality of data, the DLA has updated their assignment of CAGE Codes to expire after a set amount of time.
Luckily for contractors, all one has to do to keep a CAGE Code valid is ensure that their SAM registration is current and active. SAM, or the System for Award Management, is a database that suppliers can register with that allows for a collaboration between federal officials and business owners. With SAM, business owners are able to both receive grants, as well as bid on official government contracts. Registering with the SAM is a required step in the path of obtaining a CAGE Code, and now keeping records of your business up to date with SAM is the only required step to keep your CAGE Code active as well.
If a business keeps their SAM up to date and active, the CAGE Code will automatically renew alongside it. If a business fails to do this, their CAGE Code will expire and they will be unable to be paid even if they are currently working on a contract. According to the DLA, this change in policy is an effort to improve data quality for the benefit of all users through keeping data current for every business. Starting August 26, 2016, CAGE Codes established after the date have a set expiration of five years. Although expiration dates may add steps to the process of maintaining validity for government contracts, the DLA ensures that the process is as simple as possible for contractors while maintaining the quality of information on SAM.
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