New Rules Require Government Contractors to Obtain and Disclose CAGE Codes of Immediate and Highest-Level Owners
The new rules require a contractor to disclose its own CAGE code and also the CAGE codes of its immediate and highest-level owners (if applicable) both in the System for Award Management (SAM) and also to the Contracting Officer before award for contract actions exceeding the micro purchase threshold. The terms "immediate owner" and "highest-level owner" are defined in the new rules as follows:
Immediate owner means an entity, other than the offeror, that has direct control of the offeror. Indicators of direct control include, but are not limited to, one or more of the following: Ownership or interlocking management, identity of interests among family members, shared facilities and equipment, and the common use of employees.
Highest-level owner means the entity that owns or controls an immediate owner of the offeror, or that owns or controls one or more entities that control an immediate owner of the offeror. No entity owns or exercises control of the highest-level owner.
For companies impacted by this regulatory development, the new rules provide guidance on how to obtain a CAGE code through SAM registration and other methods.
New GSA Sales Reporting Rule Eliminates Onerous Price Reductions Clause and Commercial Sales Practices Disclosure Requirements for Participating Contractors
On June 23, 2016, GSA published a much anticipated final rule that amends the General Services Administration Acquisition Regulation (GSAR) to implement new transactional data reporting...24 June 2016
Stacy Hadeka and Allison Bender also contributed to this report.19 May 2016