Item Unique Identification IUID

1
Item Unique Identification (IUID)
Professor Kim Meyer, CDFM Professor of Program
Management 937-781-1040 Kimberly.meyer_at_dau.mil Pr
ofessor Judy Volpe Professor of Contract
Management 937-781-1033 Judith.volpe_at_dau.mil
2
Overview
IUID

• Genesis
• So What is IUID?
• End-2-End Concept
• Implementation of IUID
• Contracting for IUID
• Whats New?
• Reference Sources

3
DoD Maintenance Enterprise Systems Supported
30,000 Combat Vehicles
? 900 Strategic Missiles

• Maintained by
• 659,000 DoD personnel
• Private sector companies

? 280 Ships
? 14,000 Aircraft/Helicopters
Maintenance cost 81 billion per year
300,000 Tactical Vehicles
Communications/Electronics Equipment Support
Equipment Other Systems
National Defense Inventory is valued at ? 700B
gt 100M Candidate Parts
Source LMI analysis of DoD data
4
Scope of DoD Maintenance
DoD Budget
DoD Personnel
81 billion
659,000 maintainers
2.9 million total
503 billion total
23 maintainers
16 spent on maintenance
Sources FY2007FY2011 Presidents Budget and
LMI analysis of Defense Manpower Data Center
FY2005 data
6
5
Materiel Readiness Life Cycle Framework from the
Warfighter View
6
Facing new challenges

• Rapidly moving force on a dynamic battlefield
• Demand for better information on assets
• Need for more effective visibility and management
  of inventory

• Improve business processes now
• Improve confidence
• Influence the direction and cost of technology
  development
• Drive the standards to work for us
• Facilitate the implementation of Unique
  Identification (UID)

7
The Whats in it for Me - Big PicturePerformanc
e Driven Outcomes

• Upon the attainment of IUID/SIM Full Operating
  Capability, DoD weapon system sustainment
  managers will have dramatically improved insight
  into the cause-and-effect relationship between
  resources and readiness.
• Capitalizing on this insight, weapon system
  support decisions will both be more informed and
  take less time.
• Data-driven continuous process improvement
  (CPI) initiatives will be institutionalized,
  enabling the effective management of materiel
  reliability, materiel repair/replacement cycle
  time, and materiel sustainment cost
  performance-to-plan.
• Overall material readiness will be higher, and
  overall weapon system life-cycle cost will be
  lower.
• Fully automated maintenance management
  (unburdens the maintainer)

8
Prime MoversWhat Will Drive DoD to IUID

• Requirements
• JROC approved sustainment KPP Availability
• 2 KSAs Life Cycle Cost, Reliability
• Integrated Policy
• DoDI 5000.2 - Life Cycle Acquistion/Support
• DoDI 4151.19 Serialized Item Management
• DoDD 8320 UID in Net-Centric Operations
• DoDI 8320.xx UID Instruction (coming)
• DAG/Supportability Guide
• Governance/Oversight/Training
• DAB, DAES, MRSSG/MRU, GAO, BTA-IRB, DAU

9
The Genesis of IUID

• GAO concerned with DOD management of its
  inventory of equipment.
• Finding DODs inventory exceeded its war
  reserve or current operating requirements, but
  lacked key spare parts (particularly aviation
  spares) due to a lack of adequate accountability
  over material shipments or effective monitoring
  of defective spare parts.

GAO-02-477G (Mar 02) Executive Guide, Best
Practices in Achieving Consistent, Accurate
Physical Counts of Inventory and Related Property
10
Policy Approach created two IUID PPE
PopulationsNew Tangible Items Legacy Items
USD(ATL) Policy Memo 29 July, 2003
USD(ATL) Policy Memo 23 December, 2004

• New tangible items
• Begin NLT 1 Jan 2004
• commercial purchases
• Begin NLT 1 Jan 2005
• depot manufactured items

• Legacy items in inventory
• IOC Jul 2005
• pilot depots
• Complete NLT Sep 2007
• all existing serialized items
• Complete all items NLT Dec 2010

11
DoD Vision for Item Unique Identification (IUID)

• To implement a policy establishing a strategic
  imperative for uniquely identifying tangible
  items relying to the maximum extent practical on
  international standards and commercial item
  markings and while not imposing unique government
  data requirements.
• Uniquely identified tangible items will
  facilitate item tracking in DoD business systems
  and provide reliable and accurate data for
  management, financial, accountability and asset
  management purposes.

Effective 1 January 04 Mandatory for Solicitations
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A DoD Strategic Imperative

• IUID is strategically critical to enable property
  management processes throughout the DoD
  enterprise to engage with precision and speed to
  
• Always know what property the DoD owns
• Always be able to account for it
• Know where it is
• Know who has custody of it
• Know who is accountable for it
• Know how it has been used maintained
• Know what it cost
• Know its value
• And use this information to
• Enable capability-based readiness
• Support planning, forecasting, and budgeting
• Identify gaps in capabilities
• Improve reliability and warranty management
• Improve processes
• Reduce cycle time

13
IUID Policy Overview

• Policy memorandum released on July 29th 2003
  (with subsequent updates) established IUID as a
  mandatory DoD requirement on all solicitations
  issued on or after January 1, 2004.
• IUID is required for all property items delivered
  to the Government if
• Acquisition cost is more than 5,000
• Items with an acquisition cost below 5,000, when
  identified by the requiring activity as DoD
  serially managed, mission essential, or
  controlled inventory
• Items with an acquisition cost below 5,000 as
  determined by the requiring activity
• Regardless of value, any DoD serially managed
  subassembly, component or part embedded within an
  item and the parent item in which it is
  embedded
• Wide Area Workflow (WAWF) is the preferred method
  for capturing IUID data and became a mandatory
  payment requirement on January 1, 2005

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USD (ATL) Memorandum 12 May 2005

• Guidance for review of IUID implementation at
  milestone reviews
• Establishes requirements for applying IUID to DoD
  property in the possession of contractors (PIPC)
• Property should only be accountable in one
  property accountability system at a time
• Acquisition value will be recorded and updated in
  the IUID Registry
• Eliminate DD form 1662 DoD Property in the
  Custody of Contractors
• IUID Registry will
• Not be a property accountability system but
  provide audit trail of property in current and
  previous accountability systems.
• Maintain master IUID data
• Be updated with key transaction events but not
  maintain detailed transactional data
• Develop interfaces between IUID Registry and
  component specific property systems
• Add IUID to logistics policies and integration
  with serialized item tracking.

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Key Direction from IUID Policy Updates

• Apply IUID to legacy items in inventory and
  operational use
• All program and item managers plan for and
  implement IUID
• - ACAT 1D programs submitted plans by June 2005
• - All others to MDAs by January 2006
• Government Furnished Property (GFP) must meet
  IUID
• policy requirement effective 1 Jan 2006
• Plans targeted FY2007 as the point by which
• - All existing serialized assets will be entered
  in IUID registry
• - UII marking capabilities established
  such that marking can commence when equipment is
  returned for maintenance

16
Key Direction from IUID Policy Updates (Continued)

• DUSD (Logistics and Material Readiness) develop
  IUID implementation plan for organic depot
  maintenance operations
• Jan 2007 OUSD Materiel Readiness Maintenance
  Policy released Implementing Item-Unique
  Identification in DoD Maintenance (dated 31 Jan
  07)
• The Concept of Operations IUID-Enabled
  Maintenance in Support of DoD Materiel Readiness
• Feb 07 Policy Update for Item Unique
  Identification (IUID) of Tangible Personal
  Property
• DoD Directive 8320.03, dated 23 Mar 07, Unique
  Identification (UID) Standards for a Net-Centric
  Department of Defense

17
Overview
IUID

• Genesis
• So What is IUID?
• End-2-End Concept
• Implementation of IUID
• Contracting for IUID
• Whats New?
• Reference Sources

18
Déjà vu All Over Again ?...
Marshs Supermarket
Troy, Ohio
June 26, 1974
67
Bar Codes Transformed Retail Sales and Inventory
Management
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Unique Item Identifier (UII) is.
. . . the set of data for tangible assets that is
globally unique and unambiguous, ensures data
integrity and data quality throughout life, and
supports multi-faceted business applications and
users.
UII is . . .
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UID What makes it so Special?

• UID
• Provides The Key to discovery and correlation
  of item, real
• property and human resource information so
• DoD can consistently locate, control and value
  assets
• anywhere and anytime
• Enables globally accessible and secure
  enterprise data
• Registries enable creation of UID mission
  critical services to
• Translate legacy data for existing DoD systems
• Enable access for operational support
• Enable joint paperless management

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In todays world, many items we buy have
identification on them that indicate the
manufacturer or distributor of the product and
the product type.---Two identical cans of Coke
from the same bottling plant will show the same
data on the Universal Product Code (UPC)Some
items also have a serial number that
differentiates one item from another identical
item (e.g., the 24th engine off the assembly line
is different from the 1024th)---Serial numbers
are unique, but not outside of their enterprise
the serial number assigned by XYZ Manufacturer
could be the same as one assigned by ABC Company.
By combining enterprise identification, item
class and serialization, a globally unique item
identifier is created that differentiates each
item from other items---Each item has its own
globally unique identifier (UII)
UII What Is It?
22
Create and Generate the UII
The components that make up the UII are
identified in the table below. Each enterprise
has two options for creating the UII.
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Overview
IUID

• Genesis
• So What is IUID?
• End-2-End Concept
• Implementation of IUID
• Contracting for IUID
• Whats New?
• Reference Sources

24
What is the IUID Lifecycle?
Require DoD contracts reflect the requirement
for part marks to include UII data elements for
all items which require unique identification
Dispose DoD/GSA records the termination of
the UII at time of item disposal
Use Functional stakeholders use UII as a
primary or alternate key in the AIS to access or
update item information based on its UII
Create/Generate Industry suppliers/manufacturers
throughout supply chain assign and apply UII
data elements and ensure the uniqueness of the
component data elements
UII
Capture DoD establishes the birth record of
the UII by capturing the machine/human readable
component data elements to create the UII in the
AIT/AIS
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Applying the UII

• Vendor-Applied-at-Source Marking applied when
  item is manufactured
• Opportunity-Based Item Application Can be done
  in the field or factory, wherever it is
  convenient to gain access to items either on an
  end item or available in a storage facility
  (phase maintenance, scheduled servicing, depot
  rebuild or overhaul processes, and work-order
  processes during modification)
• Seek-and-Apply Used for particular items held
  within service, either at the end item or in
  storage. This strategy is dependent on
  establishing the location and availability of
  items before deployment of application equipment
  and teams. This approach is dependent upon good
  legacy data, and will demand greater overhead of
  coordinated effort to effect access to the
  assets.
• Gated The interception of items as they transit
  specific gates within the supply chain. After
  identification, the situation can be resolved by
  diverting the item back to the vendor for
  application, provision of an application
  capability at the specific supply gate, or
  diversion of the item to a centralized
  application facility.

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Use of Commercial Identifiers

• Commercial identifiers can be considered for use
  as a DoD IUID equivalent if it meets these
  criteria
• Must contain an enterprise identifier
• Must uniquely identify an individual item within
  an enterprise identifier, product or part number
• Must have an existing Data Identifier (DI) or
  Application Identifier (AI) listed in ANSI
  MH10.8.2, Data Identifier and Application
  Identifier Standard
• Some examples of commercial unique identifiers
  meeting these criteria are
• Global Individual Asset Identifier (GIAI) for
  serially-managed assets
• Global Returnable Asset Identifier (GRAI) for
  returnable assets
• ISO Vehicle Identification Number (VIN) for
  vehicles
• Electronic Serial Number (ESN) for cellular
  telephones only.
• Commercial identifiers must be approved by the
  UID Program Office in order to be accepted as
  IUID Equivalents

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UII Marking by DoD

• It may be desirable for the DOD-requiring
  activity to mark items when received rather than
  require the vendor to mark until the vendors
  internal capabilities are established. The
  requiring activity must ensure that DOD
  activities can guarantee that the UII information
  they use is unambiguous and globally unique
  through life.
• There will be non-recurring costs to make the
  appropriate changes to drawings and marking
  instructions for legacy items, in accordance with
  MIL-STD-130 requirements, as well as costs for
  marking equipment and readers
• 11 May 05 Directed programs to include
  requirements in budgeting documents (FY07-12) to
  ensure implementation visibility within the
  Planning, Programming, Budgeting, and Execution
  (PPBE) process
• Budget exhibits for RDTE, procurement,
  operations maintenance funds
• Capital and operations budgets in Working Capital
  Funds (included in customer rates)
• Needs to be an on-going process as requirements
  are identified

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29
Overview
IUID

• Genesis
• So What is IUID?
• End-2-End Concept
• Implementation of IUID
• Contracting for IUID
• Whats New?
• Reference Sources

30
Implementation Pathway

• DO SOMETHING WITH THE DATA!

UID Plan
SIM Plan

Requirements
UID Budget

Responsibilities
Develop
Materiel

Business Rules
Marking
UID Resources
Readiness
Capability
Budget
Resources
?
Decide Where
Select Items
to Mark and
Do Something
Mark Items
to be
Marking
with the Mark
Marked
Technology
Document
Transact
I
UID Registry
Engineering
D
Data
Decisions
E
Service/
DLA AISs
31
Planning Implementation What Activities Need to
be Involved (IPT/IPPD)

• Program Management Engineering
• Logistics/Customer Support Manufacturing
• Process Engineering Procurement
• Finance Configuration Management
• Data Management Contracts
• Supply Chain Management Information Technology
• Business Area Leads Audit
• Communications International Liaison
• Legal Supply Chain Management
• Training Wide Area Workflow (WAWF)
• Customer Liaisons Subcontract Liaison
• DCMA
• DCAA

Representative Listing from Corporate
Implementation Briefs
32
Key Responsibilities for IUID Implementation

• Program Managers will identify items that require
  unique identification, including embedded
  subassemblies, components and parts. These
  embedded items will be identified in a Contract
  Data Requirements List (CDRL) or Exhibit.
• Contracting Officers shall include the clause at
  252.211-7003, Item Identification and Valuation,
  in all solicitations and contracts that require
  delivery of items.
• All items delivered to the Department will be
  delivered under a contract line item and the
  Departments acquisition cost of each item will
  be identified under a contract line item or
  sub-line item
• Contractors are required to provide item unique
  identification, or a DoD recognized IUID
  Equivalent, for all items delivered with an
  acquisition cost of 5,000 or more and as
  designated by the requiring activity for items
  less than 5,000.
• Under the clause at 252.211-7003, marking of
  items shall be in accordance with MIL-STD-130,
  Identification Marking of U.S. Military Property.

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Key Responsibilities for IUID Implementation

• Defense Contract Management Agency will inspect
  and accept IUID items, provide oversight of
  government-furnished property, provide oversight
  of initial IUID-enabled SIM information
  requirements per contract clauses, and provide
  program and technical support using IUID
  associated data for analyzing the
  cost/schedule/technical performance of contractor
  programs and systems
• IUID Registry will establish interfaces with Wide
  Area Work Flow and property systems maintain the
  IUID Registry and establish interfaces with item
  history, maintenance, system configuration, and
  other pertinent technical databases
• Maintenance Activities will incorporate IUID
  processes into all relevant transactions, mark
  legacy items as required, associate maintenance
  events to IUID items, coordinate the development
  of IUID processes and SIM requirements with the
  appropriate information systems

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IUID Implementation Plan

• Provide references including service IUID CONOPs,
  Instructions, Relevant Service IUID Policy
  documents (Most recent draft for those documents
  in development) and prime contractor(s) Single
  Process Initiatives if available
• Describe the overall IUID Implementation Strategy
  to include
• Marking
• Current and future contracts
• Legacy items
• Depot Manufactured items and plant equipment
• IUID Planning/Budgeting
• Technical documentation strategy to minimize the
  non-recurring costs for marking,
• Describe the business strategy for implementing
  IUID
• Identify IUID-related opportunities to improve or
  enhance business processes.
• List Metrics
• Exit Criteria
• Measures of Success

Template on UID Home Page
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IUID Implementation Plan
Establish priorities for application of IUID and
associated data transfer insert priority
number 1 (high), 2 (med), 3 (low), 4 (not
applicable) _____New solicitations Post Jan
2004. _____On-going Contracts Post Jan
2005. _____Operational Fleet Post Jan
2005. _____Assets in inventory Post Jan
2005. _____Assets in Depot Maintenance Post Jan
2005 _____GFP in possession of contractors
Post Jan 2006.   Exemptions or exclusions to the
IUID policy require approval by
________________ .   Identify Key Program
trigger events (physical IUID marking of items)
no more than 8 ___________________________________
__________________________ _______________________
__________________________________ etc.
36
Implementing Guidance for Depots

• Concept of Operations for IUID-Enabled
  Maintenance in Support of DoD Materiel Readiness
  (dated 1 Jan 07)
• Fundamental formula I T M
• I represents identification, T represents
  tracking, M represents management
• Three key transformation enablers
• Accurate asset visibility
• Common standardized data
• Standardized IUID
• Envisioned end-state for four scenarios
• Field-level operations
• Sustainment-level operations
• Life-cycle management
• Performance based agreements, contractor
  logistics support, and foreign military sales

37
Implementing Guidance for Depots

• Roles and responsibilities
• Program managers, contracting officers,
  supporting contractors, Defense Contract
  Management Agency, UID Registry administrations,
  supply systems, transportation systems, top-level
  accountability systems, maintenance activities,
  Defense Utilizations and Marketing activities,
  component headquarters
• IUID Implementation Template for DoD Maintenance
  Depots
• Phase I Conduct preliminary research and
  planning efforts
• Phase II Determine the new business environment
  and develop a marking plan for initial IUID items
• Phase III Execute marking plan and develop a
  full implementation plan for remaining IUID items
• Special considerations and measuring progress

http//www.acq.osd.mil/log/mrmp/UID_maintenance.
htm
38
Implementation Pathway

• DO SOMETHING WITH THE DATA!

UID Plan
SIM Plan

Requirements
UID Budget

Responsibilities
Develop
Materiel

Business Rules
Marking
UID Resources
Readiness
Capability
Budget
Resources
?
Decide Where
Select Items
to Mark and
Do Something
Mark Items
to be
Marking
with the Mark
Marked
Technology
Document
Transact
I
UID Registry
Engineering
D
Data
Decisions
E
Service/
DLA AISs
39
Capture IUID Registry

• IUID Registry is the central repository for IUID
  information and serves as an acquisition gateway
  to identify
• What the item is
• How and when it was acquired
• The initial value of the item
• Current custody (government or contractor)
• How it is marked
• Supports full lifecycle visibility for tangible
  items, integrating financial, maintenance, and
  accountability systems.
• Maintained by the Defense Logistics Information
  Service (DLIS), Battle Creek.

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Capture What Data is Included in IUID Registry

• Pedigree
• Acquisition Contract Information
• Original Part Number
• Serial Number
• Valuation
• Initial Acquisition Value
• Changes in Valuation

• Accountability
• Contractor Custody Information
• Acceptance Data
• Contract Data
• Configuration
• Embedded Items
• Item Markings
• Part Number Changes

• Registry is located on the internet at
  https//www.bpn.gov/iuid.
• Users must register to obtain login credentials
  and access rights to controlled access portion
• Must be a government employee or a U.S.
  Government Contractor with approval from a
• DoD Program Manager or equivalent.
• Prior to registering in IUID Registry,
  commercial manufacturers and government
• manufacturing activities must be registered
  with the Central Contractor Registration
• (CCR) system at https//www.bpn.gov/ccr/scripts
  /index.html

41
Overview
IUID

• Genesis
• So What is IUID?
• End-2-End Concept
• Implementation of IUID
• Contracting for IUID
• Whats New?
• Reference Sources

42
Contracting for IUID Chronology

• DoD policy memorandum dated July 29, 2003
  mandated the use of UID
• Policy to be effective for new solicitations
  beginning January 1, 2004
• DFARS Case 2003-D081
• First Interim Rule, 10 Oct 2003
• Second Interim Rule, 30 Dec 2003
• Final Rule, 22 Apr 2005

IUID Mandatory for Solicitations Issued after
January 1, 2004
43
Contracting for IUID

• DFARS 211.274-1 Unique item identification and
  valuation is a system of marking and valuing
  items delivered to DoD that will enhance
  logistics, contracting, and financial business
  transactions supporting the United States and
  coalition troops.
• Through unique item identification policy, DoD
  can
• Achieve lower life cycle cost of item management
• Improve operational readiness
• Provide reliable accountability of property and
  asset visibility
• Reduce the burden on the workforce

44
Contracting for IUID (Contd) Policy and Clauses

• DFARS 211.274-2 Policy for Item Unique
  Identification (IUID)
• Exceptions and approval levels identified
• DFARS 211.274-3 Policy for Valuation
• Discusses how to value depending on contract type
• 252.211-7003, Item Identification and Valuation

45
Contracting for IUID (Contd)

• DFARS 211.274-2 Policy for Item Unique
  Identification (IUID) Exceptions. The contractor
  will not be required to provide DoD unique item
  identification if
• The items, as determined by the head of the
  agency, are to be used to support a contingency
  operation or to facilitate defense against or
  recovery from NBC or radiological attack or
• A determination and finding is executed
  concluding that it is more cost effective for the
  requiring activity to assign, mark and register
  the unique item identification after delivery of
  an item acquired from a small business concern or
  a commercial item acquired under FAR Part 12 or
  Part 8.
• DF by Component Acquisition Executive for ACAT I
• HCA for all other programs
• DoD UII Program Office must receive a copy of the
  DF (ACAT I)

46
Contracting for IUID (Contd)

• DFARS 211.274-3 Policy for Valuation
• It is DoD policy that contractors shall be
  required to identify the Governments unit
  acquisition cost for all items delivered, even if
  none of the criteria for placing a unique item
  identification mark applies
• The Governments unit acquisition cost is
• For fixed price type CLINs, SLINs or ELINs, the
  unit price identified in the contract at time of
  delivery
• For cost type or undefinitized CLINs, SLINs or
  ELINs, the contractors estimated fully burdened
  unit cost at time of delivery to the Government
  and
• For items delivered under a time and materials
  contract, the contractors estimated fully
  burdened unit cost to the Government at the time
  of delivery
• The Governments unit acquisition cost of
  subassemblies, components and parts embedded in
  delivered items need not be separately identified

47
Contracting for IUID (Contd)

• DFARS 211.274-4 Contract Clause
• Use the clause at 252.211-7003, Item
  Identification and Valuation, in solicitations
  and contracts that require item identification or
  valuation, or both, in accordance with 211.274-2
  and 211.274-3.
• The Contractor shall provide DoD unique item
  identification, or a DoD recognized unique item
  identification equivalent, for
• All delivered items for which the Governments
  unit acquisition cost is 5,000 or more and
• The following items for which the Governments
  unit acquisition cost is less than 5,000
• Subassemblies, components, and parts embedded
  within delivered items as specified in Attachment
  Number _____
• The Contractor shall include this clause in all
  subcontracts issued under this contract.

48
Contracting for IUID (Contd)

• DFARS 211.274-4 Contract Clause Alternate I
• If marking is not required
• For each item delivered under a contract line,
  subline, or exhibit line, in addition to
  information to be provided per Material
  Inspection and Receiving Report (DD250) the
  Contractor shall report Governments Unit
  Acquisition cost
• The Contractor shall submit the information in
  accordance with data submission procedures at
  http//www.acq.osd.mil/dpap/UID/datasubmission.htm
  

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IUID Solicitation Prep/Contract Award

• Solicitations for Service Contracts - IUID
  requirements do not apply unless the service
  requirement involves delivery of an item.
• Equipment involved in performance of the service
  may have a UII assigned. (Beginning in 2006 GFP
  provided to contractors will need to be
  appropriately marked and have a UII assigned.)
• RD hardware that never sees operational service
  nor requires logistical support might be treated
  as an expense for accounting purposes and would
  not require a value be assigned to its UII. The
  Program Manager makes that determination.
• Operating lease items would not normally require
  UII marking or associated valuation, unless they
  are subsequently be purchased or supported by
  DOD.

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IUID Solicitation Prep/Contract Award

• Software cost will generally be associated with
  the hardware on which it operates and becomes
  part of the capitalized value of that asset.
• The CLIN structure must be organized to identify
  all end-items, either at the CLIN level, or with
  Sub CLINs, for more complex situations where
  different end-items are to be delivered within a
  lot.
• It is not intended that IUID and valuation
  information become certified cost and pricing
  data, unless it would normally be used by the
  contractor to estimate the contract or required
  payment.
• If IUID is required on a new contract, major
  modification, or reprocurement of equipment (such
  as spare parts), the RFP must include
• The DFARS clause 252.211-7003, Item
  Identification and Valuation
• Reference to MIL-STD-130 (current version)
• Include the new/revised DID

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Concerns/Challenges/Strategies

• General Contract Quality Observations
• Line item structures make it difficult to
  identify the deliverable/delivery
• Lot line items and misleading kit
  descriptions complicate payments UID compliance
• Unclear Options and ordering provisions
• FAR Part 12 contracts w/o UID clause
• UID requirements not getting into contracts
• Clause placement varies -- Sections D, F, H, I
• Clause included in full text and by reference
• WAWF-RA deployment
• Inaccurate or incomplete payment information
• Not payable as written without extensive manual
  intervention
• Procurement/Contracting professionals who
  actually do the work are not attending the UID
  Forums

52
Strategies Section B

• Begin with Section B, Supplies and Services and
  Prices and Costs (CLIN structure)
• Items must be separately identifiable
• Items must have a separate delivery schedule or
  period of performance per item

53
Strategies Subline Items

• Two types
• Information Only (numeric suffix)
• Separately Identified (alpha suffix)
• Identical Items with Different Funds
• Identical Items with Different Sizes or Prices
• Segregate Individually Payable Items (different
  packaging or ship to requirements)
• Individual Delivery Dates or Destinations
• Kits or Parts with Separate Prices
• Exhibits can substitute for large numbers of
  subline items (subassemblies, components or
  parts)
• Reference in Section B attach in Section J
• Consistency in CLIN, SLIN and ELIN structures

54
Strategies Section C

• Reference lengthy work statements in Section C
  attach at Section J
• Cross-reference applicable paragraph of work
  statement under appropriate line item
• Clearly delineate which parts belong to which
  line item

55
Strategies Section E

• Identify where inspection and acceptance will
  occur
• Identify who has the authority to accept
• Explain how we will inspect and accept
• List Inspection/Acceptance DoDAAC for each
  delivery point (used in WAWF to route
  electronically)
• Reference CDRLs if appropriate
• Inspection and acceptance of these items will be
  made at the contractors plant
• Inspection and acceptance of these items shall be
  made at the contractors plant by the cognizant
  DCMA office (Sxxxx) in accordance with the
  acceptance test procedure in Attachment A,
  Statement of Work, section 7.7
• Inspection and Acceptance of these items shall be
  at the contractors plan by the cognizant DCMA
  office (Sxxxx) in accordance with the acceptance
  test procedure to be submitted and approved under
  CDRL G00F

56
Strategies Section G

• Specify codes for offices involved in handling
  acceptance and payments
• Issuing Office
• Administrative Office
• Inspector DoDAAC
• Ship To DoDAAC
• Acceptance
• DCAA Office
• DoDAAC search https//www.daas.dla.mil/daasinq/

57
Strategies Consistency in Line Item Structure

• Issue
• Lot pricing a variety of items and quantities
  delivered over time
• Problem
• DFAS has no mechanism to pay for partial
  deliveries if no mechanism to report a partial
  acceptance only reconciled at close out
• Valuation is problematic for IUID registry
• Strategy
• Limited use of lot items
• Use subline items or exhibits to denote the
  actual deliverables and schedule
• Note no NSNs with a unit of issue of lot

58
Strategies Consistency in Line Item Structure

• CLIN Kit
• Kit includes multiple, usually dissimilar items
• Items are not separately priced
• Varying quantities
• Multiple shipments
• Kit is not considered received until all
  shipments are received

59
How NOT to Structure CLINs for Lots or Kits
ITEM SUPPLIES/SERVICES
QTY/UNIT UNIT PRICE AMOUNT

• 001 Processing Module/Qty 8
• FFP
• Model No. 234-56-7890 FOB Destination
• 0001AA Funding for Processing Module 1
  LOT 8,044.00 8,044.00
• FFP
• Model No 234-56-7890 FOB Destination
• Purchase Request No xxxxxxxxxx
• ACRN AA
• 0001AB Funding for Processing Module 1
  LOT 6,033.00 6,033.00
• FFP
• Model No 234-56-7890 FOB Destination
• Purchase Request No yyyyyyyyyy
• ACRN AB
• 0001AC Funding for Processing Module 1
  LOT 2,011.00 2,011.00
• FFP
• Model No 234-56-7890 FOB Destination
• Purchase Request No zzzzzzzzzz
• ACRN AC

60
A Better Way to Structure CLINs for Lots or Kits
ITEM SUPPLIES/SERVICES
QTY/UNIT UNIT PRICE AMOUNT

• 001 Processing Module/Qty 8
• FFP
• Model No. 234-56-7890 FOB Destination
• 0001AA Funding for Processing Module 4 EA
  2,011.00 8,044.00
• FFP
• Model No 234-56-7890 FOB Destination
• Purchase Request No xxxxxxxxxx
• ACRN AA
• 0001AB Funding for Processing Module 3 EA
  2,011.00 6,033.00
• FFP
• Model No 234-56-7890 FOB Destination
• Purchase Request No yyyyyyyyyy
• ACRN AB
• 0001AC Funding for Processing Module 1 EA
  2,011.00 2,011.00
• FFP
• Model No 234-56-7890 FOB Destination
• Purchase Request No zzzzzzzzzz
• ACRN AC

61
Line Item Structure -- 10 Basic Questions

• What do we expect the Contractor to deliver (list
  hardware, software, service, and data)
• Do we have a line item, subline item or exhibit
  line item for each? Do we have ACRNs assigned to
  each in Section B? Do the totals by ACRN, CLIN
  and line of accounting match?
• When is each item due to be delivered?
• How much will the Contractor get paid?
• Are there interim payments before delivery? If
  so, on what basis?
• When will the Contractor get paid? What
  documentation will be required to effect payment?
• How is the timing of contract payments related to
  deliveries?
• Is it clear in the line item structure and
  Sections F through I how payments relate to
  delivery?
• What constitutes acceptable performance? How is
  it measured?
• How do the inspection and acceptance criteria in
  Section E relate to the answers to Question 9?

62
Final Thoughts

• Do
• Include the UID clause
• Specify to which line items the clause applies
• Identify any embedded components to be valued and
  marked
• Include language requiring use of WAWF
• Ensure that each deliverable has a separate CLIN,
  SLIN, or ELIN and a defined delivery schedule
• Ensure inspection and acceptance criteria address
  UID
• Include the current version of MIL-STD- 130
• Do Not
• Lump dissimilar items together as a lot or a
  kit
• Specify which UID construct is to be used
• Require that the Contractor use government
  assigned identifiers for enterprise, part, or
  serial number
• Impose unusual payment or acceptance procedures

63
More Final Thoughts

• Make the contract easy to understand and manage
  for everyone
• Use common procurement language
• Be consistent in CLIN, SLIN and ELIN structures
• Be consistent Period!

64
Overview
IUID

• Genesis
• So What is IUID?
• End-2-End Concept
• Implementation of IUID
• Contracting for IUID
• Whats New?
• Reference Sources

65
DAU IUID Training

• Updating existing UID Continuous Learning Module
  (CLM 200) focuses on new items
• Developing new UID CLM for Legacy Items
• Based on End-2-End concept and DoD Maintenance
  CONOPS
• Lessons
• Overview of CONOPs
• Program Management and Integrated Product Team
  Responsibilities
• Implementation Template for DoD Maintenance
  Depots
• IUID Registry
• IUID Data Usage in Current and Future
  Applications
• Availability Targeting end of year completion
  waiting on Program Management Plan from contractor

66
End-2-End Concept Workshops
Contractor Physical/Contractual Compliance
New Items Mods
Establish IUID Program Plan
IPTs PM/FM Contracting Engineer
Property to be provided under contract
Military Equipment Valuation (Id for initial
valuation)

• Contract Clauses
• CLINs/SLINs
• Mil Std 130
• Etc

Inspection Acceptance Govt QA
WAWF
WAWF
Contractor Physical/Contractual Compliance
Legacy Items
Establish Depot UID Team (IPTs) PM/FM Contracting
Engineer Item Mgrs Equip Spec
Depot Maintenance Activities
Inspection Acceptance Govt QA
Establish marking plan
IUID Registry
DOD Organic Depot Physical Compliance
Warfighter

• Contracting for UID, Property in Possession of
  the Contractor (PIPC), Military Equipment
  Valuation, Depot CONOPs
• Practical cases and examples attendees to
  include all members of UID Team
• Presented to TACOM in Nov 2007 can be tailored
  to any organization

67
Item Unique IdentificationReference Sources
68
(No Transcript)
69
May 2006 UID e-newsletter
70
(No Transcript)
71
(No Transcript)
72
(No Transcript)
73
(No Transcript)
74
Other Information Tools

• DoD Guide to Uniquely Identifying Items
  Outlines the UID process, business rules, and UID
  constructs
• UID 101 This guide explores all aspects of this
  initiative and is intended to provide an
  understanding of how DoD program offices and
  commercial businesses can successfully implement
  the Unique Identification (UID) policy
• Guidelines for the Virtual Unique Item Identifier
  (UII) This document describes the virtual unique
  item identifier (UII) concept, the processes for
  assigning and registering virtual UIIs, and the
  prospective marking of items that have virtual
  UIIs.
• Guidelines for Engineering, Manufacturing, and
  Maintenance Documentation Requirements for UID
  implementation Provides suggested methods for
  minimizing the non-recurring engineering costs
  associated with incorporating marking
  requirements for DoD unique identification into
  engineering drawings, manufacturing instructions,
  and maintenance work records.

75
Other Information Tools
Added to Conference Website
76
Other Resources

• www.dau.mil
• Continuous Learning Modules
• CLC 033 Contract Format and Structure for the DoD
  e-Business Environment
• CLM 200 Item Unique Identification
• NEW! CLM to be deployed by 30 Sep 07 IUID for
  Legacy Items
• http//www.iuidtoolkit.com/ UID Toolkit
• http//www.acq.osd.mil/dpap/UID/ Official UID
  Website

77
QUESTIONS?
78
USD (ATL) Memorandum 11 May 2005 Budget
Instructions for UID Implementation FY 2007-2012

• Identify UID support in applicable budget exhibit
  submissions in the existing budget lines in
  FY07-FY12 budget
• R-2 for RDTE
• P-Series for Procurement
• OPPB-Series for Operations and Maintenance
• ATL coordinate with PAE to examine need to
  update current Financial Management Regulations
  (FMR) for increased visibility
• UID implementation and Program Implementation
  Plans will address marking and data capture
  aspects by
• Modernizing infrastructure
• Reengineering business processes
• Revising Automated Information Systems (AIS)

79
What you see 

• Can contain 100 times the data as the same space
  in a barcode
• Can be read omni-directionally
• Can be damaged but still return accurate data
• Can be scaled up or down to fit within available
  marking space

 What the Reader sees )gtRS12GSMFR 0CVA5 GSSER
786950 RS EoT
80
IUID Implementation Plan

• Top of the Plan
• Program Name
• Program Element
• Program Manager
• PEO
• Date of Plan
• ACAT
• POC
• System Description
• Description/Mission/Position in Acquisition Cycle
• References
• Service IUID CONOPs/Instructions/Relevant Service
  Policy Documents/Contractor
• 3. Exemption and Approval Source
• Phase out and/or per DFARS 211.274.2

Template Sample Plan on UID Home Page
81
IUID Implementation Plan (continued)

• 4. Overall IUID Implementation Strategy
• Marking
• Current and future contracts
• Legacy Items
• Depot Manufactured Items and Plant Equipment
• Process for entry of UII and pedigree data into
  IUID Registry
• Technical documentation strategy to minimize NRE
• Property in Possession of Contractors
• Sustainment Strategy how IUID is being utilized
• 5. Identify UII related opportunities to
  improve or enhance business processes.
• 6. List Metrics
• Exit Criteria
• Measures of Success
• Provide Schedule by Completing Form
• Establish Priorities for Application of IUID and
  Associated Data Transfer
• Identify Key Program Trigger Points for Physical
  Marking
• Show Program IUID Related Budget Information

Template Sample Plan on UID Home Page
82
Why Electronic Invoicing?

• Its the Law
• The 2001 Defense Authorization act requires DoD
  to receive and process invoices electronically
• Its in the Regulations
• DFARS 252.232-7003 Electronic Submission of
  payment requests requires electronic invoicing
• It makes good sense
• Electronic invoices are paid sooner and more
  reliably then paper invoices

83
Why WAWF ? - The DFARS Clauses

• 252.232-7003 Electronic Submission of Payment
  Requests.
• (b) Except as provided in paragraph (c) of this
  clause, the Contractor shall submit payment
  requests using one of the following electronic
  forms
• (1) Wide Area WorkFlow-Receipt and
  Acceptance (WAWF-RA).
• 252.246-7000 Material Inspection and Receiving
  Report.
• (b) Contractor submission of the material
  inspection and receiving information required by
  Appendix F of the Defense FAR Supplement by using
  the Wide Area WorkFlow-Receipt and Acceptance
  (WAWF-RA) electronic form (see paragraph (b)(1)
  of the clause at 252.232-7003) fulfills the
  requirement for a material inspection and
  receiving report (DD Form 250).

84
Why WAWF ? - Benefits

• Takes Less Time to Get Paid
• 99.99995 on time payments
• Interest paid
• Without WAWF 289 per million paid
• With WAWF lt2 cents per million paid
• Lost Documents
• Paper 35,000
• WAWF - 1
• 60 reduction in invoice cycle times
• Currently 1M savings monthly
• - Reduced DFAS costs billed to customers
• - Interest avoidance
• - Labor savings

PAPER
WAWF