Government procurement is a dynamic field of business that so many small businesses are getting into. They are really trying their best to find their niche in the procurement field. Every state has myriads of small companies who have registered themselves in the CCR, hoping to be considered in federal procurement projects. Indeed hard work pays off because many companies have already been considered as government procurement contractors because they have successfully provided products and services to the government.

There has been review made on the number of federal contractors that have been registered already. These contractors all have active CAGE codes. According to BidLink.net, the percentage of contractors in each state was reviewed against the existing population of eighteen years and above. More than 1.6 M companies in the US have active CAGE codes and are also active in the federal database. Every business that wants to enter into business with the government agencies, namely the Navy, Army, Department of Defense, Marines, and Air Force are provided with CAGE codes.

CAGE Codes

An assigned CAGE code is a 5-digit alphanumeric series that is used for the identification of the companies that manufacture, control, or provide items and services to the US Federal Military Agencies. This is the code that is vital in the catalogue system of the military. The CAGE code is shared with many ADP (Automated Data Processing) systems in the military.

FAR (Federal Acquisition Regulation) and the DFAR (Defense Federal Acquisition Regulation) say that companies that aim to engage in business with the government which involves a purchasing agreement or a contract award should have a CAGE code that is actively registered in the CCR (Central Control Registry). The said registration should be annually updated so that the company remains in the federal database.

Two main CAGE code types are those for non-manufacturers (89 percent) and manufacturers (11 percent including those who are classified). The CAGE code contains the address, NSN (National Stock Number), sources, manufacturers, procurement history, contract numbers, and contact information of the company.

States with the Highest Percentage of Government Contractors

According to the recent review on the active CAGE codes, it’s the District of Colombia that holds the number one slot in the list of states that have the highest percentage of government contractors. Here are the states and the percentage of registered government contractors:

  1. District of Colombia –17 %
  2. Alaska –15%
  3. Montana –12%
  4. Hawaii, Maryland, New Mexico, South Dakota, Virginia, Wyoming –8%

 

With the help of BidLink.net, all the vital information needed to know the exact percentage of federal contractors nationwide was made possible. Federal procurement continues to inspire small companies into honing their products and services to meet the government standards. This way, the military agencies may be able to notice what they have to offer and possibly make them part of the government project at hand.

Engaging in business with the government is a serious matter. Every striving entrepreneur seems to know about this that’s why small businesses only register in the CCR when they know that they are ready. It is really good to know that there are more companies that qualify to be in federal procurement projects. This only shows that small businesses are already making large improvements in their specific fields. Improvements that are good enough for them to be of service to the US government.

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