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Response: Obtaining a CAGE code is already a requirement for an active registration in SAM and for its predecessors the Online Representations and Certifications (ORCA) and the Central Contractor Registration (CCR) database.
This final rule does not impose any new burden in that regard. registrants are assigned a CAGE code upon registration. Comment: The respondent stated that the proposed rule is unclear on the treatment of foreign Governments.
Will purely commercial companies be required to have CAGEs?
How will primes deal with commercial companies that do not wish to obtain a CAGE?
Burden for registration in SAM was re-assessed as part of the rulemaking in the FAR case (FAR Case 2011-021) that established that requirement. It is true that it may take some time for larger organizations to update all contractor SAM registrations to include the immediate and highest-level owner CAGE information (if the contractor has hundreds of SAM records and if it updates them centrally and at the same time). Response: Foreign governments, if receiving contracts from the U. Government, are required to have an NCAGE code as a result of this rule.
Additionally, this final rule does not require the use of SAM to obtain the CAGE code(s) for the immediate owner or highest-level owner, although registration in SAM could be accomplished for U. However, including the data on an individual registration or on a renewal basis should not result in any significant additional time. Response: Foreign entities would not be exempted from this requirement. In all practicality, if they are registered in SAM as they should be, they already do have an NCAGE code.
All entities reported as an immediate owner or highest-level owner of the offeror under the rule must have CAGE Codes.
Also the definitions of owner, immediate owner and highest- level owner need to be clarified.
If SAM registration is not required, the offeror must request and obtain a CAGE code from the Defense Logistics Agency (DLA) Contractor and Government Entity (CAGE) Branch. To further the desired increases in traceability and transparency, this rule uses the unique identification that a CAGE code provides, coupled with vendor representation of ownership and owner CAGE code.
A CAGE code is not required when a condition described at FAR 4.605(c)(2) applies and the acquisition is funded by an agency other than Do D or NASA. The CAGE code is a five-character alpha-numeric identifier used extensively within the Federal Government and will provide for standardization across the Federal Government.
How will primes address hierarchy issues associated with commercial companies that have a CAGE? Are primes responsible for the currency of their commercial company subcontractor reporting?
Response: The rule applies to contractors with commercial contracts based upon the Councils' determination that applying this requirement to commercial contracts is necessary to fulfill the purpose of the rule.