Accurate identification of prospective and incumbent government contractors (or vendors) facilitates the federal government's procurement process, helping to ensure contractors are paid, supporting contract administration activities, enabling the identification of corporate families (e.g., a corporation and its subsidiaries), and, generally, contributing to the transparency of federal government procurement. To aid in accurately identifying the entities with which it does business, the federal government relies on a proprietary system, Dun & Bradstreet's (D&B's) Data Universal Numbering System (DUNS). Dun & Bradstreet assigns unique identification codes known as "DUNS numbers" to prospective federal government contractors. 109-282 ) and the Digital Accountability and Transparency Act (DATA Act; P.L. 113-101 ). This report focuses on identification numbers for acquisition and acquisition-related purposes that government contractors, generally, are required to have. A company or organization that is required by the federal government to obtain a DUNS number for the purpose of competing for a contract does not pay a fee for its DUNS number. The CAGE Branch of the Defense Logistics Agency (DLA), which is the only authorized source of these codes, assigns CAGE codes to entities located in the United States or its outlying areas. A CAGE code is a five-character alpha-numeric identifier that belongs to a nonproprietary system created by DOD. There is no cost for obtaining a CAGE code. The Government is fully leveraging [the] proprietary commercial product services uniquely offered by D&B to enhance data standards, quality, and reliability in such critical areas as contract award and management (back office Contract Writing Systems), advertising and delivery of solicitation and specifications data (Federal Business Opportunities and Federal Technical Documentation System), management and public reports (Federal Procurement Data System, Federal Funding and Accountability Transparency Act, American Recovery and Reinvestment Act (Recovery.gov and Federalreporting.gov) and USAspending.gov), debarred and suspended bidders (Excluded Parties List System), vendor submissions of subcontracting accomplishments (Electronic Subcontract Reporting System), past performance collection (Past Performance Information Retrieval System), for payment and invoicing (back office Financial Writing Systems and the Grants Community (Grants.Gov) and the Loans Community because the research has shown that D&B is uniquely positioned as the sole source to provide this capability. This process could be complicated by the data restrictions in GSA's contract with Dun & Bradstreet." The discussion of this data element by the Treasury and OMB (1) noted that the federal government continues to use the Data Universal Numbering System; (2) described relevant regulatory changes (i.e., the removal of references to DUNS in Title 2 of the Code of Federal Regulations , which involves grants, and the addition of provisions regarding an existing government-owned nonproprietary identification system to the FAR); (3) alluded to possible challenges if the government opts to implement a new identification system; and (4) confirmed that the federal government is exploring alternatives to DUNS. A final rule, which was issued on September 30, 2016, revised the FAR by removing references to DUNS and DUNS numbers and inserting the term unique entity identifier . The rationale for this change, which was provided in the preface to the proposed rule, is as follows:
[E]limination of regulatory references to a proprietary entity identifier will provide opportunities for future competition that can reduce costs to taxpayers. GSA Explores Alternatives

In February 2017, GSA posted a request for information (RFI) for "government-wide entity identification and validation services" on the federal government's Federal Business Opportunities (FedBizOpps) website. GSA's tentative schedule is to issue a solicitation for identity identification and validation services in summer 2017 and to award a contract prior to June 2018. An entity that is required to be registered in SAM, or to have a DUNS number, must also provide, if applicable, the names and CAGE codes of its immediate owner and its highest-level owner in the applicable solicitation provision (i.e., FAR §52.204-17). 7. " Data Products
8. " 14. " The use of a generic entity identifier helps to mask the identity of a particular contractor while ensuring the accounting of the obligations associated with the contractor.
An essential element of the federal government's acquisition system is the capability to identify the businesses, and other types of entities, that do work for the government. Accurate identification of potential contractors and incumbent contractors facilitates a host of procurement processes while contributing to the transparency of federal government procurement.
The federal government uses a proprietary system, Dun & Bradstreet's (D&B's) Data Universal Numbering System (DUNS), to uniquely identify the entities with which it does business. At no cost to the applicant, D&B assigns a DUNS number—a nine-digit unique identification code—to prospective government contractors. (Businesses that are not would-be government contractors also may apply for a DUNS number.) The federal government's use of DUNS, however, is not limited to the identification numbers. D&B provides, pursuant to its contract with the General Services Administration (GSA), 7 types of software products and 14 data products that enable the government to use DUNS for a variety of acquisition-related functions, such as paying contractors. Furthermore, approximately 80 data systems within the federal government contain DUNS information.
Congress may have concerns regarding the continued use of DUNS numbers and has expressed interest in exploring other options. At the request of a Senate subcommittee, the Government Accountability Office (GAO) examined the costs and data restrictions involved with using a proprietary identification system and studied alternatives for identification numbers for government contractors. The implementation of the Digital Accountability and Transparency Act (DATA Act; P.L. 113-101) is accompanied by similar, significant interest within Congress—and within the agencies charged with implementing the act—for exploring options for a nonproprietary contractor identification system.
One or more possible options might involve using an existing, nonproprietary identification system created and maintained by the federal government: the commercial and government entity (CAGE) code system. CAGE codes could be used as a stand-alone system, or incorporated into a hybrid system (e.g., combine CAGE codes with vendor-provided business products and services). The CAGE Branch of the Defense Logistics Agency (DLA) assigns the five-character alpha-numeric identifiers to entities located in the United States and outlying areas.
Regulatory changes in 2014 and 2016 potentially pave the way for the government to adopt a new system. First, in 2014, a rule was adopted in the Federal Acquisition Regulation (FAR) requiring prospective contractors to obtain CAGE codes. This rule also requires the contractor to provide to the government, if applicable, the name and CAGE codes of its immediate owner and its highest-level owner. Second, a final rule issued in 2016 removed all references to the Data Universal Numbering System and DUNS numbers from the FAR and inserted the terms unique entity identifier. The preface to the proposed rule noted that the government is not ready to eliminate DUNS numbers at this time, but that removing references to a proprietary system and identifier "will provide opportunities for future competition that can reduce costs to taxpayers."
In early 2017, GSA initiated a process for exploring alternatives to DUNS by posting a request for information (RFI) for entity identification and validation services on the Federal Business Opportunities (FedBizOpps) website. GSA's tentative schedule is to issue a solicitation in summer 2017 and award a contract prior to the expiration of its contract with Dun & Bradstreet, which will occur in June 2018.