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Unique Identity: The U.S. government uses CAGE (Commercial and Government Entity) codes as unique identifiers for entities that conduct business with them. A lookup tool enables you to identify these entities quickly and with maximum accuracy.
Standardized System: Through CAGE codes, organizations can be easily identified across government agencies and systems, avoiding misidentification and making sure all parties are aligned.
2. Efficient Information Retrieval:
Data Centralization: Most CAGE code lookup tools give users access to extensive details about an entity which includes the entity's name, address, contact information, business type and more.
Time Savings: A lookup tool gives you quick access to the information you need without the need to search manually through disparate databases or contact multiple agencies.
3. Enhanced Due Diligence:
Verification: A CAGE code lookup tool enables you to authenticate the name and credibility of an entity before establishing contractual relationships. The tool confirms if the organization has government registration and required credentials.
Risk Mitigation: The platform offers access to historical information along with certification documents and compliance records of an entity which enables you to determine potential dangers and make better decisions.
4. Simplified Procurement Processes:
Accurate Bidding: Preparing government contract bids demands accurate information about the contracting agency along with other involved parties. A CAGE code lookup tool helps you to prevent errors which could cause delays.
Contract Management: Contract management systems track performance and payment information by using CAGE codes to identify and organize essential data. Government contracts are managed more efficiently through lookup tools.
5. Improved Communication:
Clear Communication: The use of CAGE codes in communication with both government agencies and other contractors fosters clear communication by avoiding confusion about the party involved.
Interoperability: The use of CAGE codes allows systems and databases to communicate with one another without any hassles which enhances data sharing and cooperation.
The main intention was to create a system which could store and maintain information about numerous items including their part numbers, National Stock Numbers (NSNs) and engineering drawings.
Expanding Role: The initial application of the CAGE system developed well beyond its foundation. The system developed into an essential identification system for vendors and organizations that provided goods and services to the DoD. Through this standardization, procurement processes became more efficient and agencies could better communicate with one another.
Standardized Identification: CAGE codes established a unique and consistent method to identify all entities regardless of their size or type. This became especially significant in defense contracting since multiple organizations took part in multiple projects.
NATO Codification System: The CAGE system was taken up by NATO during their implementation of the Codification System (NCS).
Allies could now work together in defense procurement and logistics because of this interoperability.