Unique Identification (UID) of Items Defense Acquisition University March 2004

Agenda Overview of UID Program Contracting for UID The UID Mark Marking Items Capturing and Using UID Data Bottom Line Resources This brief will provide an overview of the UID Program, that includes marking items and more. There is first a need to understand what needs to be marked, what constitutes a UID, what information about an item needs to be reported, and why. And as the above Agenda indicates, all of those subjects will be covered in some detail. But the brief will also present why DoD has undertaken this effort and the benefits to acquisition community, financial community, and particularly to the operational and logistic commanders when we have each item uniquely identified. This is an information brief and will not provide the level of detail that some of you will need on specific aspects of the UID program – for those needs we do provide pointers to resources during and at the end of the brief and you are encouraged to use those resources. Quote is from Michael Wynne, Acting under Secretary of Defense (AT&L) in an interview with DAU Defense AT&L Jan/Feb 04 issue “Unique identification is the ability to physically distinguish one item from another…We view a unique identifier as a set of data for assets that: is globally unique and unambiguous ensures data integrity and data quality throughout life supports multi-faceted business applications and users” 2

Enterprise UID Digital Data Flow Potential Financial Management Property, Logistics, and Transportation Enterprise UID Digital Data Flow Potential DoD Budget Submission 0001AA Bolt, Restraining, Rotorhead 4 ea $158.55 NSN 6625-99-617-9491 Line Item Need Requisition Appropriations Requirement Shipping Notice 2132020.00000 5X-6X20 123456.00000 662G 25POLI P68EY78945J123 POLI25 123456 Lines of Accounting 2132020.00000 5X-6X20 123456.00000 662G 25POLI P68EY78945J145 POLI25 123456 Contract Transportation Commitment Delivered Item Receiving Another opportunity to explain the big picture vision for the UID program – what it will enable. The UID program will provide the ability to discretely identify the acquisition, issuance, maintenance, storage, transfer, expenditure and/or disposal of tangible items. This is essential to the DoD Financial Management Enterprise Architecture because such events trigger financial feeder (business) and financial systems. Similarly, a universal identifier code for tangible items will facilitate the discrete recordation of such events. ( all from the 16 Aug 2002 initiation memo) Obligation Inspection Acceptance Expenditure Property Log Acquisition 3

DoD Vision for Item Marking 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 (UID) tangible items will facilitate item tracking in DoD business systems and provide reliable and accurate data for management, financial, accountability and asset management purposes. As noted, USD (AT&L) Memo of Jul 29, 2003 announced a policy that Unique identification is mandatory for all solicitations issued on or after Jan 1, 2004 and also encourages component acquisition executives of services and agencies to incorporate the policy into ongoing contracts where it makes business sense to do so. As will be explained later in the brief, the memorandum provides an algorithm to determine what items need to be marked and also states “existing government furnished property provided to contractors is exempt from this policy until Jan 1, 2005 when the policy becomes mandatory for all GFE incorporated into an end item”. #2 Bullet DoD worked with industry to develop the policy and has established the Joint Implementation Requirements Board that will focus on business rules for enabling Automated Information Systems (AIS) to use the UID as a primary or alternate key to achieve a globally interoperable network centric architecture for the integrated management of tangible items. (VISION) A UID Program Office has been established to manage UID implementation and there is a UID IPT that continues to work issues. Effective 1 January 04 Mandatory for Solicitations 4

Unique IDentification (UID) 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. UID is . . . This is the definition of unique identification. A DoD Unique Identifier (UID) permanently identifies an individual item distinctly from all other individual items that DoD buys and owns. What does it mean to “do” UID? UID means that a qualifying item has a machine-readable label affixed to it, or a direct part mark inscribed on it, that contains the required UID data elements in a data carrier with the proper semantics and syntax formats. UID also requires that AIT technology be available with associated UID business rules to read the machine-readable label/mark to derive the UID for processing in Automated Information Systems. The graphic shows what a UID might look like on an item. With the UID, the DoD can associate valuable business intelligence with an item throughout its life cycle and accurately capture and maintain data for valuation and tracking of items. We’ll have more details later in the briefing on how the UID is constructed.   EID (12V)194532636 Orig. Part No. (1P)1234 Serial No. (S)786950 5

What is the UID Lifecycle? Dispose – DoD/GSA records the “termination” of the UID at time of item disposal Require – DoD contracts reflect the requirement for part marks to include UID data elements for all items which require unique identification Use – Functional stakeholders use UID as a primary or alternate key in the AIS to access or update item information based on its UID Create/Generate – Industry suppliers/manufacturers throughout supply chain assign and apply UID data elements and ensure the uniqueness of the component data elements UID This chart illustrates the UID lifecycle. The business rules associated with each “phase” are highlighted in this section. Business rules are also presented. Capture – DoD establishes the “birth” record of the UID by capturing the machine/human readable component data elements to create the UID in the AIT/AIS 6

UID Lifecycle & Interface Flow Require Create & Generate Capture Use Powerful Vu-graph REQUIRE The origin of the requirement for UID and what must be marked can be traced to a variety of disciplines (Comptroller, Engineering, Logistics) that support systems (budget, provisioning) and entities (technical data, facilities) that will benefit from UID. CREATE & GENERATE Original Equipment Manufacturer (and eventually Custodian) marks items iaw standards CAPTURE Reporting UIDs enables incorporation in data bases USE Locating equipment for a variety of purposes made significantly easier with UID in data bases; industry benefits from unique marking across their enterprise Lockheed Martin on the F-35 JSF currently has a part marking system that is approximately 75 percent common with UID – and will add the other 25 percent when UID becomes part of the JSF contract. The Army Cargo Helicopter Program Office has marked the first selected aircraft components (CH-47), at a Reno, Nevada National Guard unit, using a contractor provided parts marking facility which included Web connectivity to register and document their data. 7

Who Does What – When? Acquisition Process Procuring or Administrative Contracting Officer Procuring Contracting Officer Requiring Activity Contractor Contractor DCMA QAR Acquisition Process Determine Need for Unique Identifier Issue Solicitation and Award Contract with DFARS Clause 252.211-7003, UID/Valuation Requirement Contracting Officer issues any necessary modifications (e.g., definitization) Contractor Places UID Marking on the Item and Prepares Material Inspection & Receiving Report (MIRR) Contractor Includes UID/Valuation Information on MIRR and submits to UID Registry via WAWF* Government QAR Inspects & Accepts This vu-graph compliments previous two vu-graphs: They showed the UID Life Cycle This vu-graph shows who is responsible for various parts of the UID Life Cycle and what they must do to make it happen Valuation. Such information will be included in the Material Inspection and Receiving Report provided at the time of delivery. Fixed Price Contracts. The acquisition cost for items to be delivered is the fixed price paid by the Government. Cost Contracts. Government's unit acquisition cost is the contractor's estimated fully burdened unit cost to the Government for each item at the time of delivery. Delivery. The contractor is required to provide the unique identification and the acquisition cost at the time of delivery. Dates. Shipment/Acceptance dates are included as part of the core UID data. Effective date. The rule applies to new solicitations issued on or after January 1, 2004. The UID policy strongly encourages Component Acquisition Executives to incorporate UID requirements into ongoing contracts where it makes business sense to do so. Ref: Federal Register: December 30, 2003 which contains changes resulting from comments received in response to an interim rule published in the Federal Register on October 10, 2003. *Contractor May Submit UID/Valuation Information to UID Registry via Other Electronic Means After Government Inspection and Acceptance http://www.acq.osd.mil/uid/data_submission.html 8

UID Role - Business Enterprise Architecture Enhance the Business Enterprise Architecture Enhance Total Asset Visibility This shows the integrating role of UID in the Business Enterprise Architecture. UID will enable the achievement a globally interoperable network-centric architecture for the integrated management and valuation of items. Technical interfaces are achieved because UID complies with: - DoDi 5000.64 Defense Property Accountability - DoD 4140.1-R DoD supply Chain Technical Management Reg - MIL STD 130(L) Documentation - UID component data elements are readable by an Automated Information Technology (AIT) media device. Enhance the Business Enterprise Architecture. UID will contribute to building a cost estimating data base for “bottoms up” cost estimating of weapon systems. This would support cost estimates prepared by contractors, PMOs, Service Cost Estimating Offices, and OSD PA&E. Total Asset Visibility: As UIDs become pervasive, AIS will better support queries regardless of source and location of item Improve LC Management & Accountability. With common data set read across variety of systems enables. Audit – accounting of items, including location and value, enabled by UID. Improve Life-Cycle Item Management and Accountability Clean Audit Opinions on Property, Plant and Equipment & Operating Materials and Supplies 9

UID Strategic Outcomes DoD considers the implementation of unique identification to be a strategic imperative, necessary to efficiently move supplies to warfighters. UID will: Enhance logistics, contracting, and financial business transactions supporting U.S. and coalition troops Enable DoD to consistently capture the value of items it buys, control these items during their use, reduce operating costs and combat counterfeiting of parts Enable DoD to make appropriate entries into its property accountability, inventory, and financial management information systems toward achieving compliance with the Chief Financial Officers Act. Increase business intelligence Achieve clean audit opinion Increase systems/equipment operational availability Lower costs of managing and ownership of assets Lower asset management infrastructure costs “GAO and other auditors have repeatedly found that the federal government lacks complete and reliable information for reported inventory and other property and equipment, and can not determine that all assets are reported, verify the existence of inventory, or substantiate the amount of reported inventory and property. These longstanding problems with visibility and accountability are a major impediment to the federal government achieving the goals of legislation for financial reporting and accountability. Further, the lack of reliable information impairs the government’s ability to (1) know the quantity, location, condition, and value of assets it owns, (2) safeguard its assets from physical deterioration, theft, loss, or mismanagement, (3) prevent unnecessary storage and maintenance costs or purchase of assets already on hand, and (4) determine the full costs of government programs that use these assets. Stakeholder Role Engineering Use UID in the management of product data that describes tangible items throughout useful life. Acquisition Use the UID in tangible item delivery, inspection and acceptance. Logistics Use the UID in inventory acceptance, item accountability, storage, issue, receipt, valuation, maintenance, asset visibility (in storage, transit and use), and disposal. Finance Use the UID to account for the value of Property, Plant and Equipment; Inventory; and Operating Materials and Supplies in DoD financial statements clean audit opinions on DoD financial statements. UID Payoffs 10

UID JRIB & References UID Joint Requirements Implementation Board (JRIB) Collaborative means for communicating, educating, and expediting UID implementation Provides recommendations to Acting USD (AT&L) and the Domain Owners Integration Team for decision making as necessary JRIB Working Groups: ISO Standards, DFARS, Business Rules Integration, UID/Systems Engineering, AIS Technical Interface (TIWG), Inspection & Acceptance, UID/RFID, UID/Performance Based Logistics Others will be established References USD (AT&L) Policy Memoranda of July 29, Nov 26, Dec 22, 2003 Unique Identification (UID) of Tangible Items MIL-STD-130L of 10 October 2003 DFARS Second Interim Rule effective Jan 1, 2004 DoD Guide to Uniquely Identifying Items Latest version at http://www.acq.osd.mil/uid UID JRIB Need to introduce this body this is representing various domains and communities to evolve UID. During the course of the brief JRIB Business rules are presented – more will be developed and it is important that everyone involved in the implementation of UID, Government and Contractor, frequently visit the OSD UID site for the latest rules which are included in the Guidebook, or posted elsewhere on the site. References: 29 July announces it and provides details of what needs to be marked; establishes Joint board to and program Office to implement UID, 26 Nov Clarification of marking policy including criteria for approval of UID equivalents and commercial markings. Also addresses specific implementation issues that are covered in this brief. 22 December. Clarifies the use of CAGE Codes considering there is not now a an Issuing agency code for CAGE MIL-STD-130L – October release incorporates UID and is a source document for UID regarding marking items – needs to be referenced in contracts, available at UID site DFARS – Second Interim is effective Jan 1, 2004 – details what and how for contracts DoD Guide – UID Program Office manual, latest version is 1.3 of Nov 23, 2003 and available at UID site 11

Agenda Overview of UID Program Contracting for UID The UID Mark Marking Items Capturing and Using UID Data Bottom Line Resources “Unique identification is the ability to physically distinguish one item from another…We view a unique identifier as a set of data for assets that: is globally unique and unambiguous ensures data integrity and data quality throughout life supports multi-faceted business applications and users” 12

DFARS INTERIM RULE Title: Item Identification and Valuation Scope: Adds Section 211.274 through 211.274-3 to Part 211 1ST Interim Rule – 10 Oct 03 2ND Interim rule – 30 Dec 03 Incorporate Public Comments Received on 1ST Effective January 1, 2004 Final Rule Projected for June 04 Not much to say – Defense Federal Acquisition Regulation (DFAR) Section B has been expanded to include UID implementation. Other planned changes to increase application of UID include but not limited to Proposed Rule for Legacy Property and GFP Interim by 1 June 2004, effective for 1 January 2005) Proposed Rule for RFID Interim by 1 October 2004, effective 1 January 2005) 13

DFARS Rule Walkthrough DFARS 211.274-1 Item Identification = What needs a UID Items >/= $5,000 Items < $5,000 as directed by requiring activity Subassemblies, components and embedded items Commonly accepted commercial marks DFARS 211.274-2 Government’s Unit Acquisition Cost Applies to all items delivered regardless of dollar value For fixed price type items – unit price identified at time of delivery For cost type line items – estimated fully burdened unit cost to the Government for each item at the time of delivery Valuation data not required for subassemblies, components and parts embedded DFARS 211.274-3 Contract Clause Hardware Fill-ins These are the changes to DFARS to implement UID DFARS 211.274 – 1 Item Identification Requires WHAT TO MARK DoD unique identification or DoD recognized unique identification equivalent for: - All items > $5000 - For < $5000 when deemed necessary - By Requirements activity for: ** Serially managed items ** Mission Essential ** Controlled Inventory (Repairable Items) ** Consumable Items or Material - Subassemblies, components, parts imbedded within an item as identified on CDRL Next couple of slides talk to what needs marking DFARS 211.274-2 Valuation Instructions VALUATION REPORTING Will be presented later in the brief DFARS 211-274-3 Has the Specific Language CONTRACT CLAUSES Will be presented on a subsequent chart in the brief Clause 252.211-7003 Implements UID Requirement 14

Require the UID Which Items Require a Unique Identifier (UID)? Key Points in making the Mark/No Mark determination >/= $5,000 Current Year Dollars – don’t quibble! DFARS 211.274 and the clause at 252.211-7003 state that all items over $5,000 in value require unique identification. --- Algorithm indicates to me that the default option is to mark – even commercial consumables with values less than $5,000 will be marked, albeit with commercial only mark. --- Think down the road, items stay in the inventory for many years, go through many cycles – small expense upfront enables significant benefits during life cycle. Key Point: For items less than $5,000 PCO identifies those requiring unique identification in paragraph (c)(1)(ii) of the clause; embedded items that require unique identification must be identified in a Contract Data Requirements List or other exhibit that is cited in paragraph (c)(1)(iii) of the clause. 14 15

UID in Systems Acquisition Product Data Supply Chain Unique Items UID ** Enterprise Item Markings UN194532636200H0028003896 EI 194532636 PN 200H0028 SN 003896* Prime PN 200H0028 List of Hardware UIDs Delivery to Govt End Item Specs End Item (Optional) Item Markings EI 040535536 PN 210H0611 SN 006392* UN040535536210H0611006392 Tier 1 PN 210H0611 List of Hardware UIDs Delivery to Govt Subassembly Specs Spares Item Markings (Optional) EI 080907280 PN 216H1439 SN 020890* Tier 2 This chart shows the relationships between product data, the components of the acquisition of systems/supply chain, unique items and the UID. An end item may be composed of subassemblies, components and parts. The prime contractor will build to the end item specifications and will pass down these specs, including the UID marking requirements, to the tiered vendors for the build of subcontracted subassemblies, components and parts. The end item, as well as all the subassemblies, components and parts will have requirement for UIDs in the specs. The various vendors will produce these UID identified items and deliver them to the prime. Spares may be purchased directly from the vendors or through the prime. These UID-qualifying spare items also have to be marked appropriately with the UID components. So, when the prime delivers the end item, that is one UID. The spares are delivered with their own UIDs. The Government has the option of asking the prime to deliver a list of all UIDs for UID-qualifying items in the end item and should or obviously the data will never get to AIS. The capture of the end item and spares UIDs at time of delivery will satisfy the valuation of assets and inventory and property management requirements. (Important note: the chart purposely does not use TEIs, AIs, or Dis – just associative abbreviations) PN 216H1439 UN080907280216H1439020890 Delivery to Govt List of Hardware UIDs Component Specs Spares Item Markings (Optional) EI 083949107 PN 218H2861 SN 105742* Tier 3 PN 218H2861 UN083949107218H2861105742 Delivery to Govt Part Specs **UN = Issuing Agency Code for DUNS * Serialized within the part number using DUNS UID = Unique Identifier; EI = Enterprise Identifier PN = Part Number; SN = Serial Number 16 Spares

Item Identification and Valuation Clause DFARS 252.211-7003 All items delivered to the Department will be delivered under a CLIN, SubCLIN, or ELIN. Modifications may have to be issued to add CLINs, SubCLINs, or ELINs if additional deliverables are identified during contract performance. Contractors provide DoD unique item identification, or unique identification equivalent for: All items for which the Government’s unit acquisition cost (valuation) is >= $5,000; Items identified in DFARS 252.211-7003(c)(1)(ii) Subassemblies, components, and parts embedded within items as specified in an Exhibit or CDRL Valuation reporting (Government’s Unit Acquisition Cost) at time of delivery, as part of the Material Inspection and Receiving Report (MIRR), for all items delivered to the Government. Valuation for Fixed Price Items is the unit price identified in the contract at the time of delivery. Valuation for Cost Type Items is the Contractor’s estimated fully burdened unit cost to the Government for each item at the time of delivery Contractors to include Item Marking in subcontracts. The valuation of an item does not need to be updated by the Contractor as a result of changes in the fixed unit price or final settled prices that take place after delivery. The valuation of repair items should be reported in accordance with the Item Identification and Valuation Clause. The solicitation requirement of Jan 1, 2004 does apply to reprocurement and spares/equipment on any system (legacy or not).  GFP/GFE/GFM will not be appropriately marked or valued until January 2005. Item marking and valuation applies to commercial items and classified items For you non-contracting types, 252.211 – 7003 is the Clause that goes into Contracts that implements 211.252 -1 & 252.211-2 and it can be found in 252.211-3. PCOs “cut and paste” the clause from DFARS to Contract 17

Business Rules for Contracts and Administration* Within the same Contract Line Item Number (CLIN), there is no need for a contractor to segregate the same items delivered against different Accounting Classification Reference Numbers (ACRN) For FAR Part 12 contracts and subcontracts: Use existing commercial marking if available, or The Government can mark the item, or The Government can request the contractor mark the item Foreign Military Sales (FMS) contracts are not exempt from UID * Department of Defense Guide to Uniquely Identifying Items Appendix C – Business Rules (Version 3.5a) Appendix C to the UID Guidebook is “Business Rules” and they are now and will continue to be under development by the UID Joint Requirements Implementation Board (JRIB) . The Business rules for UID are divided into categories: Contracts and Administration (3) Accounting and Finance (in draft) UID Construction and Physical Marking (38) Automated Information System (AIS) Technical Interface (0) As the UID implementation progresses the UID Joint Requirements Implementation Board (JRIB) fully anticipates that there will be additions to the Business Rules and possibly slight modifications. Business Rules should be considered a work in progress that may not be finalized until UID is fully implemented 18

Agenda Overview of UID Program Contracting for UID The UID Mark Marking Items Capturing and Using UID Data Bottom Line Resources “Unique identification is the ability to physically distinguish one item from another…We view a unique identifier as a set of data for assets that: is globally unique and unambiguous ensures data integrity and data quality throughout life supports multi-faceted business applications and users” 19

Create and Generate the UID The components that make up the UID are identified in the table below. Each enterprise has two options for creating the UID. These are constructs UID Construct #1 UID Construct #2 Based on current enterprise configurations If items are serialized within the Enterprise If items are serialized within Part Number UID is derived by concatenating the data elements IN ORDER: Issuing Agency Code* Enterprise ID Serial Number Original Part Number Data Identified on Assets Not Part of the UID (Separate Identifier) Current Part Number *The Issuing Agency Code (IAC) represents the registration authority that issued the enterprise identifier (e.g., Dun and Bradstreet, EAN.UCC). The IAC can be derived from the data qualifier for the enterprise identifier and does not need to be marked on the item. This chart represents the two UID constructs. Whether an enterprise uses UID Construct #1 or UID Construct #2 depends on whether they serialize items within the enterprise or within part number. Above is the Contractor’s decision and one to be made in context of all their defense work not the instant contract The chart also illustrates how to handle rolling part numbers under UID Construct #2 and still guarantee that the UID is permanent over the life of the item. (Original Part Number//Current Part Number) In order to ensure permanence over the life of the item, even if UID Construct #2 is used and the part number rolls, the team decided the following: The original part number (assigned at birth) will be used to construct the UID If the part number should roll, the original part number is required to be marked on the item for the entire life of the item in order to reconstruct the UID The current part number may be marked on the item as an additional element 20

Create and Generate the UID Data qualifiers (semantics) will define each machine-readable data element marked on the item. The data qualifier associated with the serial number will identify which UID construct is used to build the UID. Semantics Translation Between Data Identifiers (DI), Application Identifiers (AI), and Text Element Identifiers (TEI)1 For those who are truly interested in the mechanics of marking, this vu-graph introduces two concepts: Semantics (language) and Syntax (order) for actually writing either Construct 1 or 2. Semantics and Syntax enable the AIS reader to understand what otherwise would be gibberish. Semantics, or codes used to describe the data following the code, will be used to define each data element and assist the AIT reader in determining what elements it needs to construct the UID. Automatic Identification Technology (AIT) is used to mark (or write) the UID data elements within the data matrix symbol on an item and to read the UID, using an automated reader. To do this, the data elements have to be described to the AIT device by a prefix used to represent instructions to the device. These “prefixes“ are known as data qualifiers, referred to as semantics. “Data qualifier” means a specified character (or string of characters) that immediately precedes a data field that defines the general category or intended use of the data that follows. Data qualifiers can take one of three forms in commercial use: alphanumeric Data Identifiers (DI), numeric Application Identifiers (AI), or alpha Text Element Identifiers (TEI). Each of these three standards in the collaborative solution have added new codes to accommodate the UID. The semantics translation between the three standards (DI, AI, and TEI) is shown in this table. For example, the code for a EAN.UCC Enterprise ID is 95 for Application Identifiers, and EUC for Text Element Identifiers. Syntax – once the data elements are identified to the AIT device, the AIT device needs instructions on how to put the data element fields together to define the unique identifier. That set of instructions is Syntax EAN/UCC – European Article Numbering/Uniform Code Council DUN – Dun and Bradstreet CAGE – GET THIS ONE; Like to be able to address why some use EAN/UCC, some DUN; some CAGE (Don’t know why; depends on industry practice and the standards they use) 1 Blank boxes indicate the need for updates to the standards. * Usage pending Air Transport Association approval of these TEIs 21

Create and Generate the UID BUSINESS RULES The UID shall be derived from its discrete component data elements. The UID is not required to be marked on the item as a separate data element.* UID Construct #11 UID Construct #21 EID (12V)194532636 Orig. Part No. (1P)1234 Serial No. (S)786950 Item ID (18S)0CVA5786950 (w/o IAC) One of the most important business rules tells the enterprise how to construct the UID, which is illustrated on this slide. Recognizing the need for high data capacity and direct part marking capability, the DoD UID mark, as contained in MIL-STD-130L, is data matrix, a high density 2 dimensional matrix style bar code symbology that can encode up to 3116 characters from the entire 256 byte ASCII character set. The symbol is built on a square grid arranged with a finder pattern around the perimeter of the bar code symbol. A data matrix symbol looks like this (point to data matrix on the chart). Obviously, it is not possible for the human eye to read what has been encoded in the data matrix symbol. The chart shows examples of the data elements and Data Identifiers that are placed on the item within the Data Matrix symbol. The ISO/IEC 15434 syntax encoded in the data matrix, using MH10.2 Data Identifiers. Notice that the UID data elements contained in the Data Matrix symbol can also be included on the item in human readable form. The numbers in parenthesis in the human readable portion of the label are the data qualifiers, i.e., 18S, 12V, 1P, and S. The chart further shows how the AIT devices would output the data elements in a concatenated UID according to the syntax instructions. UID Construct #1 D1 0CVA5786950 CAGE + Serial No. IAC EID Serial No. Orig. Part No. IAC UID Construct #2 UN1945326361234786950 1 This example uses MH10.8.2 Data Identifiers. *If the enterprise chooses to mark the UID as a discrete data element on the item, the component data elements must also be marked on the item as discrete data elements, in addition to the UID. 22

Business Rules UID Construction & Physical Marking (Selected) If UID Construct #2 is used, the enterprise must maintain the original part number on the item for the life of the item The UID will not change over the life of the item. Therefore the component data elements of the UID will not change over the life of the item Where space is available, human readable information for UID data elements shall be marked on the item. The UID string of data must have worldwide uniqueness (non-repeatable) 23

Agenda Overview of UID Program Contracting for UID The UID Mark Marking Items Capturing and Using UID Data Bottom Line Resources “Unique identification is the ability to physically distinguish one item from another…We view a unique identifier as a set of data for assets that: is globally unique and unambiguous ensures data integrity and data quality throughout life supports multi-faceted business applications and users” 24

Marking Items DoD Guide to Uniquely Identifying Items MILSTD 130L Appendix D – The Mechanics of Unique Identification Addresses Constructs 1 & 2 Semantics to be Machine Readable Syntax – instructions to assemble data fields to define unique identifier Multiple examples provided for both constructs MILSTD 130L Department of Defense Standard Practice [for] Identification of U.S. Military Property 10 October 2003 Provides criteria by which product designers develop specific item identification marking requirements Association for Automatic identification (AIM) and Data Capture Technologies Association of Solution Providers http://www.aimglobal.org But, per USD (AT&L) Memo of 26 November 2003, UID equivalents are permissible DoD Guide to Uniquely Identifying Items, Appendix D is a wealth of detailed information for building Construct 1 and 2 UIDs – walks through the entire process. MILSTD 130L The Web site for the Association for Automatic Identification (AIM) is provided to assist implementers in finding the right marking and reading solution for their implementation of UID. 25

Business Rules UID Construction & Physical Marking (Selected)* The UID component data elements, at a minimum shall be contained in a Data Matrix ECC200 symbol, as required by MIL STD 130 L (or later version). Data may be contained in other AIT media (e.g., contact memory buttons, linear bar codes, RFI, etc) in addition to the Data Matrix. The physical marks that contain the UID-required elements shall remain legible until the item is destroyed. * Department of Defense Guide to Uniquely Identifying Items Appendix C – Business Rules (Version 3.5a) 26

DoD UID Equivalents Criteria for Determining DoD UID Equivalents Must contain an enterprise identifier which is assigned by a registration or controlling authority 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 Identifiers Meeting the Equivalence Criteria Global Individual Asset Identifier (GIAI) EAN.UCC (AI:8004) Global Returnable Asset Identifier (GRAI), EAN.UCC (AI: 8003) Vehicle Identification Number (VIN) ISO 3779 (DI: I) Electronic Serial Number (ESN, cellular telephones only), TIA (DI: 22S) There are other markings in use that can be used in lieu of Constructs 1 and 2 --- First bullet provides attributes of equivalents --- Second bullet lists some Identifiers that have already been accepted, including the well known VIN that is applied by manufacturers to all vehicles. DFARS 252.211-7003 “Contractors provide DoD unique item identification, or unique identification equivalent for” as detailed earlier in the presentation 27

Agenda Overview of UID Program Contracting for UID The UID Mark Marking Items Capturing and Using UID Data Bottom Line Resources “Unique identification is the ability to physically distinguish one item from another…We view a unique identifier as a set of data for assets that: is globally unique and unambiguous ensures data integrity and data quality throughout life supports multi-faceted business applications and users” 28

UID Vendor Perspective Receive Inspect & Store Contract Award Functional Inspect Determine what items need to be marked Determine mark method and location Create MBOM and MPP Make Item Mark Item, Capture UID(s) Record UID Data Delivery Requirements Ship, DD250 Final Inspection Buy Item Subcontract SOW with UID Requirements Retrieve from Stock Record UID, Integrate into end Product This vu-graph makes the point that it is the vendors that will be doing the marking and they will need a process to get it done. MBOM – Manufacturing Bill Of Materials MPP – Manufacturing Process Planning 29

UID Receipt & Acceptance Process Vendor marks items and reports the mark on DD 250 when he “sells” item to the government. Vendor needs to verify that the mark can be read and also enter the mark into his data base. Transmission of the marking data on the DD250 initiates entry of the item into the data register that is being developed by DLA but the entry is not confirmed until the item is either accepted by the government at point of shipment – again by reading the mark into an Acceptance Data Base that is connected to the Data Registry, or by reading the mark at destination and transmitting that the item has been received to an Acceptance Data Base. Vendors have multiple paths to access the system, Web based, system to system communication using EDI (Electronic Data Interchange) or FTP (File Transfer Protocol). All three methods are being successfully used. WAWF – RA = Wide Area Work Flow – Receipt and Acceptance -- DCMA Developed System (WEB BASED): --Electronic acceptance and invoicing on DoD contracts. --Direct electronic feed to payment system --Web, EDI or FTP input --PKI enabled (password too) --Provides complete transaction visibility -- DFARS Clause 252.232-7003 Electronic Submission of Payment Requests . NOTE: DEBX will shortly become GEX = Global E-Commerce Exchange WAWF is operated by DISA in Ogden Utah. For more information, contact the WAWF Helpdesk: DISA WESTHEM Area command Ogden Customer service Center CONUS ONLY 1-866-618-5988 801-605-7095 30

Vendor Submits Invoice Operational View DEBX Invoice & Receiving Report Vendor Vendor EDI Vendor EDI Vendor FTP Vendor web WAWF Vendors have multiple paths to access the system, Web based, system to system communication using EDI (Electronic Data Interchange) or FTP (File Transfer Protocol). All three methods are being successfully used. DAAS CCR EDA Email notices sent to next workflow user 31

Government Accepts WAWF Vendor Government Workflow Users -Inspectors Operational View DEBX Invoice & Receiving Report Vendor Vendor EDI Government Workflow Users -Inspectors -Acceptors -Certifiers Vendor EDI Vendor FTP Invoice & Receiving Report SIGN REJECT Vendor web WAWF Government acceptor accesses the system through the web. EDA copy of the contract is available if contract information needs to be verified. DAAS CCR EDA Email notices sent to next workflow user 32

System Distributes WAWF Vendor Government Workflow Users -Inspectors Operational View SABRS DEBX Invoice & Receiving Report Vendor Vendor EDI MOCAS Government Workflow Users -Inspectors -Acceptors -Certifiers Vendor EDI DEBX Vendor FTP SAMMS Invoice & Receiving Report SIGN REJECT Vendor web WAWF One Pay View Only Users -Contracting Officer -Payment Clerks Invoice & Receiving Report VIEW The system automatically distributes to the correct payment site. The transactions, invoices and receiving reports are received by the payment systems in a data format and no human input is required. The Army uses CAPS for the contracts they retain administration on. They also have a one pay site in Hawaii. BSM IAPS CAPS DAAS CCR EDA Email notices sent to next workflow user 33

Components of End Items Interim UID Timeline Jan ‘04 May 03 ‘04 Jul ‘04 Future Data Capture Fixed Price End Item WAWF Interim Solution 10/04 Cost Type End Item WAWF WAWF implementation depicted here will accelerate transfer of vendor data to the UID Registry. WAWF is an electronic commerce system that allows vendors to submit invoices (invoice, financing, and voucher types) and receiving reports (DD Forms 250) in three different formats: manual input using a Worldwide Web-based input form, file transfer Protocol (FPT), and the X.12 Electronic Data Interchange. Government personnel review and approve those documents (where required) via the web. WAWF system sends the appropriate EDI transaction sets to each DoD payment system that is capable of receiving EDI transactions. Note that a solution for reporting components of end items ( think spares) directly to the registry is not yet defined. So the process is a manual transfer of UID data on spares from a DD 250 from government buyer as DLA to the UID Registry. Other (DID + XML?) Components of End Items 34

UID Data Capture and Reuse Acquisition Channel Contract (non-SAP) SAP Purchase Charge Card Coop. Agreement Internal DoD (E.g. Depots) Economy Act WAWF Purchase Log Acceptance Tool (WAWF?) UPC/UID, Description, Value, Delivery time/place/method UPC/UID, Location, status Domain Services GCSS Property Records Logistics Systems Financial Systems Configuration Management Systems UPC/UID,Value,Delivery Map UID to baseline UID+Value Property Systems UID/UPC Validation UID Validation DEBX (soon to be GEX = Global E-Commerce Exchange) Currently DEBX and WAWF provide data to the UID Registry. Eventually other systems will also interface as Logistics, Financial to enable meeting the full capability of UID. When the data is available and interfaces established, UID Registry will support Configuration Management and Property Management Systems. The DoD electronic Business Exchange System (DEBX) is the Electronic Data Interface (EDI) hub for all of DoD. It provides translation, routing, and archive systems for EDI transactions that are sent between two or more Government systems or between Government systems and their commercial trading partners. DEBX Legacy Alias Registry UID Registry UID + Description UPC/UID Directories UPC/UID Validation CCR Industry Registries (e.g. D&B) Enterprise Services UPC/UID Validation FedReg EID Validation Industry 35

Unique Item Identification Data Submission Information Initial constraints for UID data submission include: Submit fixed price contracts using an interim solution until WAWF is ready to receive data in May 2004 Submit cost type contracts using an interim solution until WAWF is ready in October 2004 Provide for end items only When a contractor ships items UID data must be included in the shipment notification as the contract specifies and as the PM requests. Submission of UID data in the interim FTP format via WAWF X12 Ship Notice/Shipment and Billing Notice via DEBX UID XML format Manually enter via UID Web entry site Government and contractors may get detailed information on submission of UID data at the DoD UID Web Page – above are pertinent extracts from the paper at the site that recognize that reporting via electronic means is evolving. As required, but rare so soon after Jan , there are alternatives to WAWF until it’s implementation and even after WAWF is fully deployed there are alternatives. But there are clearly advantages to using WAWF, not the least of which is rapid dissemination of DD 250 data to all data bases, including the payments data base. 36

Using the UID For activities after initial delivery, in support of the product life cycle, any entity that collects data about the item must be capable of associating the data with the UID in accordance with the program requirements. Using syntax and semantics translation table, software that resides either in the AIT device or the AIS can translate between the three approved, interoperable formats Formats: ATA: Text Element Identifiers [)>RSDDGSMFR 0CVA5GSSER 674A36458RSEoT EAN.UCC: Application Identifiers [)>RS05GS800406141411A0B9C3D6RSEoT MH 10.8.2: Data Identifiers [)>RS06GS17V0CVA5GS1P1234GSS786950RSEoT Bullet #1. As for instance, Depots will use UID as serial number to track actions on individual items so need the AIT and AIS This chart illustrates the three data qualifier formats and introduces a new concept that needs to accompany the UID. The concept is interoperability. Red area is the data qualifier D is header All three encode construct # 2, (TEI, AI, DI) AI comes from EAN, UCC Accepting the ISO/IEC 15434 syntax (in blue) as the UID standard enable interoperability between the three sets of semantics (in red): Text element identifiers, EAN.UCC application identifiers, and MH 10.8.2 data identifiers. Automatic Identification Technology AIT Range of capabilities from stand alone to image only with transfer to AIS CAGE, A Part Number and a Serial Number Automated Information System AIS AIM GLOBAL PM AIT has omnibus contract for gov’t AIT requirements Interoperability enables translation via inexpensive conversion software loaded in the AIT reader (shown above) or the AIS system. This type of interoperability enables DoD to accept commercially available standards rather than choosing one standard and forcing its suppliers to conform, which may ultimately result in higher item costs for DoD. 37

Business Rules for Capturing the Unique Identifier (Selected)* For activities after initial delivery, in support of the product life cycle, any entity that collects data about the item must be capable of associating the data with the UID in accordance with program requirements. Need an AIT reader Discovery of duplicate UID will occur when the government attempts to register the UID in its internal data base. If a true duplicate exists, the government will work with appropriate enterprise(s) to resolve the duplication In a database, once the UID is derived it shall not be parsed to determine the original elements. A database shall be capable of using the UID or combination of its component data elements to retrieve the data record associated with the item represented by the UID * Department of Defense Guide to Uniquely Identifying Items Appendix C – Business Rules (Version 3.5a) 38

Agenda Overview of UID Program Contracting for UID The UID Mark Marking Items Capturing and Using UID Data UID Program Schedule Bottom Line Resources “Unique identification is the ability to physically distinguish one item from another…We view a unique identifier as a set of data for assets that: is globally unique and unambiguous ensures data integrity and data quality throughout life supports multi-faceted business applications and users” 39

Bottom Line Program managers will identify items embedded in end 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 Department’s acquisition cost of each item will be identified under a contract line item or sub-line item Contractors are required to provide unique item identification, or a DoD recognized unique identification 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 accord with MIL-STD-130L, Identification Marking of U.S. Military Property. The program manager has the responsibility to determine the need for, and application of, UID for items below $5,000 in acquisition cost, as well as embedded subassemblies, components and parts. The UID requirement for part marking flows down to suppliers as well. After January 1, 2004 all requests for proposals (RFPs) must include DFARS clause 252.211-7003, Item Identification and Valuation, and reference to MIL-STD-130L. The new/revised data item description (DID) may need to be included and identified on the CDRL, due at the time of delivery for UIDs for subassemblies, components and parts embedded within end items. The UID would not be required if the delivered end item is a single spare component or part. More importantly, the contract line item number (CLIN) structure must be organized to identify all end-items, either at the CLIN level, or with sub line item numbers (SLINs) for more complex situations where different end-items are to be delivered within a lot. In requesting proposal responses, whether competitive or sole-source, it is recommended that no identifying UID or values be solicited from bidders, except where the normal CLIN pricing would be required. This avoids the cost and complexity of asking bidders, some of whom will be unsuccessful in competitions, from supplying the UID and value information at lower levels of detail.. When the contract is finally negotiated and awarded, the PCO should work with the contractor to extend the CLIN structure as necessary, using informational SLINs if needed, and enter known UID and valuation references. These may need to be updated via subsequent contract modifications to incorporate other UID and valuation information as it becomes known during the contract performance. 40

Overview of UID Program Contracting for UID The UID Mark Marking Items Agenda Overview of UID Program Contracting for UID The UID Mark Marking Items Capturing and Using UID Data UID Program Schedule Bottom Line Resources “Unique identification is the ability to physically distinguish one item from another…We view a unique identifier as a set of data for assets that: is globally unique and unambiguous ensures data integrity and data quality throughout life supports multi-faceted business applications and users” 41

Resources & Contact Information DoD Guide to Uniquely Identifying Items and other relevant UID materials including policy memos can be found at www.acq.osd.mil/uid or www.uniqueid.org For further information or questions, please contact: UID Program Mr. Robert Leibrandt at robert.leibrandt@osd.mil or at (703) 695-1099 UID Standards Lt Col Gregory Redick at gregory.redick@dcma.mil UID Training from Defense Acquisition University Capital & Northeast Region: (703) 805-2764 (DSN 655) Mid-Atlantic Region: (240) 895-7344 South Region: (256) 722-1100 (DSN 788) Mid-West Region: (937) 781-1025 West Region: (619) 524-2995 (DSN 524) Or by e-mail to uidprogramtraining@dau.mil 42