WASHINGTON, DC--(Marketwired - September 09, 2016) - The Defense Logistics Agency (DLA) has decided that CAGE Codes -- which have remained largely unchanged since their introduction 44 years ago -- will expire if a federal contractor lets his or her System for Award Management (SAM) Registration expire.
This decision was to help the agency improve "data quality," according to Wyoma Smith, CAGE program manager in DLA Information Operations. Companies with an expired CAGE Code cannot be paid by the government, even if in the middle of fulfilling a previously awarded contract.
"Requiring customers to renew their business information through an update to their CAGE record on a regular basis is good business for all," Smith said in a press release. "Ultimately, the goal is to provide current and correct information to everyone using this data."
Companies who keep their SAM Registration complete, accurate, and valid -- and that renew the Registration each year -- will continue to have a CAGE Code. Companies will lose their CAGE Code only if they let their SAM Registration lapse. Once a company renews a lapsed SAM Registration, the CAGE Code is automatically reactivated.
This change took affect on August 26, and the DLA plans to roll it out in phases. In the first phase, only CAGE Codes assigned or updated after August 25 will have an expiration date. In the planned second phase, CAGE Codes will be assigned an expiration date at the time a contract renews his or her SAM Registration.
The DLA will make CAGE Code expiration dates available to be viewed in CAGE Search & Inquiry, a search tool that the DLA built into its newly launched CAGE Public Website.
The DLA plans to send automatic email notices to contractors as their SAM Registration expiration date approaches, reminding them that if their SAM Registration expires, then their CAGE Code will also expire. The DLA currently plans to send out four reminder emails.
CAGE Codes are five-character identifiers (usually, but can be different for companies based outside the U.S.) and company-specific. The government uses it to identify a facility at a specific location, and also uses it when awarding contracts and issuing payments. Prime contractors looking to subcontract also often require subcontractors to have a CAGE Code.
US Federal Contractor Registration -- the world's largest third-party government registration firm -- completes and maintains the SAM Registration for its clients, and also makes sure that companies without a CAGE Code have one, and that it does not expire.
For more information, call US Federal Contractor Registration at 877-252-2700, ext. 1.