Identifying the businesses and other types of entities that work for the government is essential to the success of GSA Advantage or any government procurement system. In addition to facilitating a host of procurement processes, accurate identification of potential contractors can enhance the transparency of federal government procurement.
The CAGE Code is a five-digit number assigned by the federal government as a means to identify vendors. Commercial and government entities are referred to as "CAGE."
In 2014 and 2016, there were changes to regulations that might lead the government to adopt a new system. 2014 marked the first time that the Federal Acquisition Regulation (FAR) mandated the acquisition of GSA Advantage Cage Code by prospective contractors. In addition, the rule requires the contractor to provide to the government, if applicable, the name and CAGE code of its immediate owner as well as its highest-level owner.
It is mandatory to have a CAGE code
A CAGE Code must be obtained before engaging in business with the United States government through the GSA Advantage program, the GSA Schedule program, or any other federal contract.
What is the purpose of CAGE codes?
The CAGE Code is used to facilitate the use of a variety of automated systems throughout the government and is a standardized method for identifying certain facilities. In the government, CAGE codes serve as a means of identifying entities through automation. An assigned CAGE code is required for any company that wants to sell to the federal government. This includes selling through the GSA Schedule. GSA Advantage Cage Code are issued through the government from time to time for-
The payment of invoices more quickly
Following facility clearance
Prior to awarding contracts,
The use of automated bidder lists,
Exclusion of barred bidders, etc.
The CAGE Code can be obtained at sam.gov
Register at SAM.gov to receive your CAGE code. DUNS numbers are the only credentials required for this registration, not CAGE codes. DLA will receive the information about your entity after your System for Award Management registration has been completed. A CAGE code will be assigned to your organization then. You do not need to take any further action at that time. GSA Advantage Cage Code is free of charge, and they can be obtained in a couple of clicks.
Remember, just because your business has been assigned a CAGE code does not guarantee that it will be awarded GSA contracts in the future. You still have to find a door and open it with a CAGE code, just like you have a key.
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