What is the purpose of a Contractor and Government Entity (CAGE) Code?

A Contractor and Government Entity (CAGE) Code serves the primary purpose of uniquely identifying contractors and entities that are doing business with the federal government. This identification is crucial for various reasons, including ensuring that there is a standardized method to track and manage all government contracts and contracts involving federal funds. The CAGE Code helps the government maintain accurate and up-to-date data on contractors, which contributes to effective contract management, enhances accountability, and facilitates procurement processes.

Additionally, having a CAGE Code is often a requirement for contractors wishing to enter into government contracts, as it helps ensure compliance with federal regulations and allows for efficient reporting and auditing. The unique nature of the CAGE Code means that no two entities have the same code, thereby preventing confusion or errors in government contracting systems.

The other options don't accurately reflect the intended use of the CAGE Code. It is not limited to a specific state or simply to collect statistical data on contracts, nor is it primarily intended for creating vendor profiles for audit purposes. The overall focus is on maintaining a clear and systematic identification of all contractors involved in federal engagements.