What is the primary purpose of CAGE codes?

CAGE codes, or Commercial and Government Entity codes, serve the primary purpose of identifying companies that do business with the federal government. These codes act as unique identifiers for contractors, suppliers, and subcontractors, allowing for efficient tracking and management of contractual and procurement processes. By assigning a specific code to each entity, the government can streamline communications and transactions, ensuring that all parties involved in defense contracts or other governmental procurement activities are correctly recognized and accounted for.

This functionality is crucial in maintaining an organized and accountable supply chain, especially in the context of defense and logistics where numerous entities may be involved in providing products and services. The use of CAGE codes enhances transparency and helps facilitate verification of business credentials, making it easier to ensure compliance with government regulations and standards.