What is a SAM/CAGE Code?

What is a SAM Code?

A System for Award Management (SAM) consolidates several federal procurement systems and is used for managing federal procurement, contracts, grants, and loans.

Key Points:

1. Registration: Involves providing detailed entity information, similar to setting up an online business profile.
2. Simplification: SAM replaces older databases like CCR, FedReg, ORCA, and EPLS.
3. Confirmation: After registration, you receive a SAM number confirming your eligibility to do business with the government.
4. Renewal: Annual renewal is required to maintain active status.

What is a CAGE Code?

A Commercial and Government Entity code (CAGE code) is a unique identifier for entities doing business with the federal government and is assigned during the SAM registration process. Your CAGE code is designed to be publicly accessible. It’s used in various government systems to identify and track businesses.

Key Points:

1. Identification: Publicly accessible, unlike sensitive numbers like SSN or EIN.
2. Eligibility: Required for federal contracts and grants, ensuring businesses are vetted and tracked in government databases.
3. Renewal: U.S.-based entities' CAGE codes must be renewed every five years if obtained after August 26, 2016.

Who Needs a SAM/CAGE Code?

Entities that do business with the U.S. federal government must have an active SAM registration and a CAGE code. If you fall into any of the following categories, you should consider obtaining these codes:

1. Large Corporations and Small Businesses: Any company, whether multinational or local, needs these codes to bid on federal contracts or grants.
2. Nonprofit Organizations: Essential for accessing federal funds and participating in government programs.
3. Educational Institutions: Universities and colleges seeking federal funding for research or other programs.
4. Government Agencies: Required for compliance with federal regulations and standardized identification.
5. Individual Business Owners: Necessary for eligibility in federal contracting opportunities.

Requirements for Applying for a SAM/CAGE Code

To apply for a SAM/CAGE code, you'll need to provide the following:

1. Legal Business Name
2. Physical Address: Must meet specific criteria and be verifiable see documents here.
3. Taxpayer Identification Number (TIN) and Taxpayer Name
4. Banking Information: Routing and account numbers.
5. Entity Information: Including type, structure, business classifications, and NAICS code.
6. Notarized Letter: Identifying an Entity Administrator and confirming registration information.

Physical Address Rules and Requirements

To successfully register or renew in SAM.gov, the Defense Logistics Agency (DLA) must assign your entity a Commercial and Government Entity (CAGE) code. The CAGE code rules require a "physical address," not just a mailing address. Previously, DLA accepted co-working or virtual office addresses without stringent checks. However, recent changes have tightened these requirements and has strengthened requirements for physical address validation. For a virtual office to be valid, you must have an exclusive office or desk number clearly stated on your lease agreement.

When registering for SAM and CAGE codes, see examples of acceptable and unacceptable physical address examples:

1. Accepted: Residential addresses, commercial office addresses, business incubators, co-working spaces with a dedicated desk, storefronts, warehouses, and industrial sites.
2. Not Accepted: PO boxes, virtual mailbox addresses, temporary housing, shared residential addresses, and registered agent/incorporator services addresses.

Avoid Skirting the Rules

Do not attempt to bypass these requirements. Even if you manage to get through once, DLA will review your CAGE information annually during renewal. Issues with your address can delay your renewal and have severe consequences. When registering for SAM and CAGE codes, your physical address must meet certain criteria with required documents to ensure legitimacy and proper identification.