It is not uncommon for government contractors to have one or more related companies (e.g., parent/subsidiary companies) involved in the industry. One way the government keeps track of such related entities is to utilize Commercial and Government Entity (CAGE) codes. These codes are used for a variety of purposes, including facility clearances. As a recent Government Accountability Office (GAO) decision reminds contractors, CAGE codes are material and play an important role in establishing the precise legal identity of an offeror which, when examining a protest, will not to be taken lightly.
In this particular case, the United States Transportation Command (Agency) issued a request for quotations (RFQ) that required offerors to (among other requirements): (1) identify their CAGE code and (2) have and maintain a valid facilities clearance (FLC) at the secret or higher level. In response to the RFQ, the one offeror (the Protester) timely submitted its offer, identified CAGE code 6YTU0, and indicated it possessed a secret FCL. After several inquiries by the Agency and responses from the Protester, it was discovered the CAGE code the Protester provided belonged to the Protester’s wholly-owned subsidiary. It was the CAGE code assigned to the subsidiary (and not the Protester) that was linked to the secret FCL. Based on this, the Agency advised the Protester it was ineligible for consideration for award. Continue Reading GAO Upholds Agency’s Rejection Of Protestor’s CAGE-Y Proposal