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Zidane

CAGE Codes for individual Subject Matter Experts

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HI. I work for a small DoD prime contractor. We would like to hire an individual subject matter expert (not a company) to do some work on our contract. I am trying to determine if he absolutely has to have a CAGE code and be set up in SAM in order for me to subcontract with him (after approval of the Request for Consent, etc). I am finding conflicting information. The DAU Ask the Professor says "no" but I realize they are not always accurate over there.

Anything definitive would be helpful. Thanks in advance.

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You want an independent contractor to perform services for your company as a consultant. Nobody can stop you.

You want to know if you can subcontract work from your DoD prime contract with this consultant, and if so, what conditions apply. Presumably, you want to know this information so you can get reimbursed by the DoD or so you can avoid violating a clause of your DoD contract. A separate matter.

What does your contract with the DoD say?

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The contract contains 52.244-2 Subcontracts and clause 252.244-7001 Contract Purchasing System Administration. Neither clause specifically mentions a requirement for a subcontractor to have a cage code, so I am inclined to say it is not required but I know my former employer (also a DoD prime contractor) required all subs to have a CAGE code as a matter of policy. I am trying to determine if I will be out of compliance if the SME /consultant does not have a CAGE code and sam.gov entry.

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16 minutes ago, Zidane said:

The contract contains 52.244-2 Subcontracts and clause 252.244-7001 Contract Purchasing System Administration. Neither clause specifically mentions a requirement for a subcontractor to have a cage code, so I am inclined to say it is not required

Well, it sounds like you made a conclusion based on an analysis of your contract.

16 minutes ago, Zidane said:

but I know my former employer (also a DoD prime contractor) required all subs to have a CAGE code as a matter of policy.

Does the corporate, internal policy of one DoD contractor somehow apply to contracts between DoD and other, different contractors?

16 minutes ago, Zidane said:

I am trying to determine if I will be out of compliance if the SME /consultant does not have a CAGE code and sam.gov entry.

It sounds like you will be "out of compliance" with the corporate, internal policy of your former employer. They might be very disappointed with you, but probably not.

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15 hours ago, Zidane said:

HI. I work for a small DoD prime contractor. We would like to hire an individual subject matter expert (not a company) to do some work on our contract. I am trying to determine if he absolutely has to have a CAGE code and be set up in SAM in order for me to subcontract with him (after approval of the Request for Consent, etc). I am finding conflicting information. The DAU Ask the Professor says "no" but I realize they are not always accurate over there.

Anything definitive would be helpful. Thanks in advance.

Zindane, do you read the FAR? If not, or if not in this case, why not try it now? Read FAR Subpart 4.11, "System for Award Management." It's not long. Look for the words "subcontract" and "subcontractor." Do the same with FAR Subpart 4.18, "Commercial and Government Entity Code."

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The general rule appears to be that subcontractors need not possess CAGE codes: https://www.federalregister.gov/documents/2014/05/30/2014-12387/federal-acquisition-regulation-commercial-and-government-entity-code.

Quote

I. Background

DoD, GSA, and NASA published a proposed rule in the Federal Register at 78 FR 23194 on April 18, 2013, soliciting public comments on the proposed rule and received one response.

DoD, GSA, and NASA are revising the FAR to require that offerors provide their CAGE codes to contracting officers and that, if owned by another entity, offerors will provide, in a new provision with their representations and certifications, the CAGE codes and names of such entity or entities. For those offerors located in the United States or its outlying areas that register in the System for Award Management (SAM), 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 (DLA) Contractor and Government Entity (CAGE) Branch. 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 DoD or NASA. Offerors located outside the United States will obtain an NCAGE from their NATO Codification Bureau or, if not a NATO member or sponsored nation, from the NATO Support Agency (NSPA).

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Comment: The respondent indicated that the proposed rule is unclear on the treatment of commercial entities. Will purely commercial companies be required to have CAGEs? How will primes deal with commercial companies that do not wish to obtain a CAGE? How will primes address hierarchy issues associated with commercial companies that have a CAGE? How will additional costs be addressed? 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. All entities reported as an immediate owner or highest-level owner of the offeror under the rule must have CAGE Codes. This final rule does not require subcontractors to have CAGE codes.

However, agencies may sometimes require a subcontractor CAGE code (e.g. for security clearance or preaward survey or small business participation plan). See here for examples.

http://www.gao.gov/assets/680/670041.pdf

http://www.gao.gov/assets/670/669420.pdf

http://www.gao.gov/assets/680/679880.pdf

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Thanks all for the feedback. I didn't think a sub had to have a CAGE code. However, the uncertainty came from the fact that my former employer, who was a LARGE DoD contractor, always required it, so I thought that perhaps I was missing something as surely such a large DoD contractor would be knowledgeable about these things. 

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