Rule Requiring CAGE Reporting Goes into Effect

The FAR Case 2012-024 final rule issued in May with Federal Acquisition Circular 2005-74 goes into effect November 1. The rule amended the FAR to require the use of Commercial and Government Entity codes, including North Atlantic Treaty Organization CAGE codes for foreign entities, for awards valued at greater than the micro-purchase threshold. The CAGE code is a five-character alpha-numeric identifier used extensively within the government.

The rule requires offerors to provide their CAGE codes to contracting officers and, if owned by another entity, provide, with their representations and certifications, the CAGE codes and names of the entity or entities. For offerors located in the United States that register in the System for Award Management, a CAGE code is assigned as part of the registration process. If SAM registration is not required, the offeror must request and obtain a CAGE code from the Defense Logistics Agency CAGE Branch. Offerors located outside the U.S. will obtain an NCAGE from their NATO Codification Bureau or, if not a NATO member or sponsored nation, from the NATO Support Agency. The rule is intended to support successful implementation of business tools that provide insight into:

  • federal spending patterns across corporations;
  • traceability in tracking performance issues across corporations;
  • contractor personnel outside the U.S.; and
  • supply chain traceability and integrity efforts.

The rule added a new FAR Subpart 4.18, Commercial and Government Entity Code; two new solicitation provisions, FAR 52.204-16, Commercial and Government Entity Code Reporting, and FAR 52.204-17, Ownership or Control of Offeror; as well as a new contract clause, FAR 52.204-18, Commercial and Government Entity Code Maintenance. These two new provisions and the new contract clause are covered in detail in Wolters Kluwer’s FAR Matrix Tool. Additional guidance for establishing and maintaining CAGE codes is available at http://www.dlis.dla.mil/cage_welcome.asp.

About George Gullo

George Gullo is an attorney editor in the Government Contracts group at Wolters Kluwer Law and Business. George serves as the principal editor of Cost Accounting Standards Guide and supports all of the group’s print and electronic publications, as well as legal research tools, including the Government Contracts Reporter, Board of Contract Appeals Decisions, and the FAR and DFARS Matrix Smart Charts. With more than 20 years experience in the legal publishing industry, including over 10 years in the government contracts area, George also has a background in legal and business transactions. He is a graduate of DePaul University College of Law and a licensed Illinois attorney.
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