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Client got a letter saying their CAGE code is being inactivated. Does that kill their open contracts?

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I handle SAM renewals for a few small firms. One client just forwarded a letter from DLA saying their CAGE code is marked for inactivation because the physical address no longer matches what CAGE has on file. Their SAM registration still shows Active, and they have two open federal purchase orders.

The mailing address changed when they moved the shop across town last year. We updated SAM at the time, but nobody touched the CAGE record separately.

Does CAGE inactivation stop payments or block new awards while the address gets fixed? Do they update the address through SAM, or do they have to go through the CAGE process on their own? And once it is corrected, does the same CAGE number come back, or do they get a new one?

Asking because the payment office on one of the POs asked for a current CAGE confirmation before the next invoice. What should we do first?

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asked Darlene S. Bookkeeper for several small contractors · Wichita, KS · 62 rep

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No. CAGE inactivation does not kill your client's open purchase orders. The CAGE code is the location identifier on the award; the contracts stay in force. What stalls is anything that needs a current, matching CAGE confirmation, which is exactly why the payment office is holding the next invoice.

Under FAR 52.204-18(b), a SAM-registered contractor keeps the CAGE maintained for the life of the contract, and the DLA CAGE Branch only changes the CAGE master file from data the contractor pushes through a SAM registration update. Update the physical address in SAM to the shop's current location so it matches what they occupy now. Once DLA accepts that update, the same CAGE number stays on the record. Then tell each contracting officer about the CAGE change within 30 days so they can modify the POs, which is also in 52.204-18(b).

FAR 52.204-13(c) still requires keeping the SAM registration Active through final payment. Do the SAM address update first, get CAGE validation cleared, then send the payment office a fresh CAGE confirmation with the invoice.

I had a VA medical center buyer ask for the same confirmation after we moved our warehouse; fixing SAM first cleared both CAGE and the invoice hold.

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answered Lorena D. Owner, medical supplies distributor · Lakeland, FL · 38 rep
That clears it up. We'll push the physical address update through SAM first, then email each contracting officer about the CAGE change so the PO mods and the payment office's confirmation line up. · Darlene S. ·

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