Why Do We Need to Obtain a CAGE code?
The U.S. military is an organization that produces nearly $41 billion in revenue, has 8 supply chains, and 5 million items. It would make economical sense therefore, for a manufacturer of aerospace and military parts to want to do business with the U.S. military. To do business with the U.S. military however, you must obtain a Commercial and Government Entity Code obtained through the Defense Logistics Agency. Every manufacturer who does business with the military has a CAGE code,a unique 5-digit alphanumeric code. CAGE codes are free and are relatively straight-forward to acquire. Though issued by the U.S. DLA, manufacturers in other countries can be assigned a NATO Commercial and Government Entity Code (NCAGE), which are legitimate under the NATO Codification System (NCS).
U.S. based businesses must first obtain a data universal number through the data universal numbering system (DUNS). The application can be completed online or over the phone. Businesses should expect a wait time of 30 business days or so, but there is an option to expedite the process if you want to do business with the military as quickly as possible.
Next, a business must have an active registration in the System for Award Management (SAM) database to do business with the Department of Defense. You can register on the SAME website, but be prepared to have all the necessary information, which includes: DUNS Number, legal business name, physical address matching the registration, taxpayer identification number, and taxpayer name. Additionally you will need your banking details to hand such as your bank routing number, bank account number, and bank account type.
Once you have a DUNS and are registered on the SAM database, you can move forward with your request for a CAGE code through the Defense Logistics Agency. The Department of Defense’s Central Contractor Registration is one of the most important steps to getting a CAGE code. Once the application is filled out, the DLA will verify your application and then ask for additional verification needed before processing the application. Be on the look out for this request, as you a response is required from you within five business days. Finally, the DLA will update your record in SAM and notify your business if it is eligible for contracts of grants issued by the government. If you business includes more than one facility, then you will need to obtain multiple CAGE codes; each location needs its own CAGE code. Once you have completed all the necessary steps and obtained your CAGE code, you may be wondering when you will have to repeat the process. CAGE codes usually have an expiration period of 5 years. If your business information hasn’t changed in that time, the application process should be straight-forward and relatively painless. If you applied for a CAGE code prior to August 26, 2016 however, the good news is that your CAGE code has no expiration date. It is always useful to stay up to date with the latest DLA rules and regulations.
CAGE codes are an essential way to boost your business and win lucrative government contracts. At ASAP Aerospace Hub, owned and operated by ASAP Semiconductor, we have a wide-ranging list of CAGE codes for you source parts from. Our helpful search engine lets you type in the exact CAGE code you need. As a premier supplier of parts for the aerospace and defense industries, we’re always available and ready to help you find all the parts you need. For a quick and competitive quote, email us at sales@asapaerospacehub.com or call us at +1-714-705-4780.
- charles price
- Posted on September 24, 2019 aviation
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