Before you do business with Uncle Sam, you must learn to think like a government contracting official. Your first step is to crack the government’s codes–such as NAICS codes and CAGE codes–of numbers and dashes to figure out where your company fits into the federal government classification systems.
Numbers and ID codes are as important for government contractors as social security numbers and birth dates are for individuals. Defining your business in the government’s terms will allow you to identify potential buyers for your products and services, sign up for buyer-vendor matching services and submit government bids and proposals.
The Department of Defense, which spends 75 cents of every federal government contracting dollar, has its own government contractor classification system. The Commercial And Government Entity, or CAGE, code is a five-character ID number that identifies government contractors. Although originated by the Department of Defense, CAGE codes are now also used by the Department of Transportation and NASA, among other federal government agencies. CAGE codes are an important part of winning federal government contracts.
To get a CAGE code, you must complete the Department of Defense’s Central Contractor Registration. Managed by the Defense Logistics Information Service in Battle Creek, Michigan, CCR applications are available at http://www.ccr.gov/Start.aspx. (Note: You must have a DUNS number before you apply for a CAGE code.) By filling out CAGE code form, you’ll not only receive a CAGE code, but you’ll also become part of an extensive database of federal government contractors. The CCR was created to simplify the Department of Defense’s government contractor registration process by allowing government contractors to fill out one form rather than one at every government procurement office. CAGE codes simplify doing business with the federal government, so you can concentrate on winning federal government contracts.
NAICS is a system for classifying business establishments. It is the first economic classification system to be built based on a solitary economic concept. Economic units that use like processes to produce goods or services are grouped together.
The North American Industry Classification System, NAICS, is an ID method created by the United States, Canada, and Mexico to simplify trade. NAICS codes replaced the U.S. Standard Industrial Classification (SIC) system on April 9, 1997. The Office of Management and Budget (OMB) announced the decision to adopt NAICS codes as the industry classification system used by the statistical agencies of the United States.
NAICS was developed jointly by the U.S., Canada, and Mexico to provide new comparability in statistics about business activity across North America. NAICS codes also provide for increased comparability with the International Standard Industrial Classification System (ISIC, Revision 3), developed and maintained by the United Nations. You can research these NAICS codes at http://www.census.gov/epcd/www/naicstab.htm. For additional information about NAICS codes, call the Census Bureau’s resident expert on industry classification at (888) 75NAICS.
DUNS number: Dun & Bradstreet’s nine-digit DUNS code has become a standard business identifier worldwide. Short for Data Universal Numbering System, DUNS numbers are required for government contractors of many federal government agencies. For details, visit the D&B website at http://www.dnb.com.
More Information from Government Contracting Best Practices
Now that you’ve mastered the basics of CAGE codes and NAICS codes, read Government Marketing with CAGE Codes and NAICS Codes to learn some advanced tactics. For more government certification information, read ORCA: Online Representations and Certifications Application.
Thanks so much for the simple straight foward explanation. Doing biz with the government is very confusing unless you understand the lingo and the system.
I have NAICS codes for my company ( ND Holdings Inc.) since 2005 are they still in a affect. Can I still use them today ?
Sincerely,
Robert Nolt Jr.
ND Holdings Inc.
The NAICS was updated in 2007. You should double-check to make sure that your company’s NAICS codes were not eliminated in the update - otherwise, they don’t expire and you should still be able to use them.
The organization is Achievinbg House is a service organziaiton that teaches young children, provides housing for homeless families, and provides job training for the adults of the family.
I would like to know the correct CAGE number for this organizaiton.
Hi James,
You’ll need to complete the Central Contractor Registration to be assigned your CAGE Code. For more information, visit http://www.ccr.gov.
Why does the government need a source of payment for “Electronic Funds Transfer (EFT) Information” to apply for a CAGE code?
Hi C. Boddiger-
As you might know, the CAGE code request process is now incorporated in the CCR registration. The CCR is a database designed to hold information relevant to procurement and financial transactions. It allows for fast electronic payment of your invoices since the Federal Government only uses Electronic Fund Transfer (EFT) to pay suppliers.
Hope this helps.
RSS feed for comments on this post
![]() |
Samuel Raby said,
April 1, 2009 @ 7:04 amThe info on NAICS was very helpful. That is the first time i have seen that contact number. Thanks!