OVERVIEW OF THE U.S. ARMY UNIQUE IDENTIFICATION (UID) IMPLEMENTATION STRATEGY UID SUMMIT Ft. Belvoir, VA November 17, 2004 Good Morning/Good Afternoon: On behalf of Mr. Claude Bolton (Army’s Component Acquisition Executive), I wish to thank you for the opportunity to present this “Overview of the U.S. Army’s Unique Identification (UID) Implementation Strategy”. Army’s UID strategy must be recognized as part of the Army’s current transformation. The Army is currently engaged in the largest force restructuring effort in its history – a restructuring that is forcing a complete re-examination of our units, our doctrine and our policies to maximize the effectiveness of our force – to ensure it is always relevant and ready. This transformation is being accomplished during a time of war. We’re going to generate more combat power by adding up to 15 Brigades over the next 6 years in the Active Component and by standardizing all of our Brigade Combat Teams/Units of action formations to create a deeper rotation pool. We’re adapting our personnel policies to facilitate these changes for both our Soldiers and their families in order to provide them with better stability and predictability. Our changing Global Defense Posture is shifting from long-term overseas basing to more CONUS-centric stationing with short-term deployments where needed. Said another way, the changes we’re making enhance our overseas power projection; allow for flexible projection in key regions where needed; reduce the Cold War overseas basing burdens; and expand our interoperability with strategic partners. All of this improves our Army’s contribution to the Global War on Terrorism and other strategic commitments, today and into the future, while simultaneously doing a better job of taking care of our Soldiers and families. Presented by: Mr. Benjamin B. Morgan, RN HQDA G-4 (DALO – SMI) morganbb@hqda.army.mil (Voice) 703-692-9577 (Fax) 703-695-6173

AGENDA Concept of Operations Life Cycle Managers/Depots Contractor Single Process Initiatives (SPI) AIS Integration Challenges The balance of my remarks emphasize: Unique identification is a goal to which Total Army (Active, Reserve, National Guard) fully subscribes and remains committed. UID supports Army’s transformation on many levels and helps us achieve focused logistics and performance-based logistics strategies. UID is one of many tools that support Army’s restructuring. B. B. Morgan/DALO-SMI (703-692-9577), DSN 222-9577, morganbb@hqda.army.mil 5/5/2019

CONCEPT OF OPERATIONS Spiral Development Process: Include UID policy in overarching Army Regulation (AR) on Automatic Identification Technology (AIT) Develop scenarios describing how UID will be used operationally Identify target business processes, e.g., UID supports serial number tracking (SNT) Identify stakeholder responsibilities (all classes of supply, all Army communities) Training Issue support plans and prioritized marking schedule Require suppliers to mark items prior to delivery; mark legacy items as rapidly as possible Identify and institutionalize metrics and performance measures for UID Work with other Services, defense agencies, and industry to resolve common issues and evaluate success UID part of program reviews Maintain outreach program Army’s Concept of Operations (CONOPS) for UID aligns Army acquisition, maintenance, financial and logistics processes (and associated AIS) to meet the requirements of the Office of the Secretary of Defense (OSD) policy and the Chief Financial Officers (CFO) Act of 1990 (Public Law 101-576). Army’s approach to UID will follow a spiral development process (PARTIALLY SHOWN HERE). Our CONOPS initially focuses on new acquisitions and new procurements, but will soon embrace legacy items and eventually real property. Army has 38.5 million items (excluding Class V material) in inventory today that qualify as UID candidates. These items are valued at $139 billion. Our work processes are being modified to mirror Army’s new force structure and industrial organizations, e.g., Life Cycle Management Commands. NOTE: Any logistics process that currently uses serial numbers may be an application that UID can be used with success. Army future automated information systems are being designed to exploit the capabilities inherent in the UID. Under the Army UID CONOPS, Maintenance events, primarily overhaul or rebuild, are the primary triggers for the marking of legacy materiel. The Army is committed to physically marking materiel as rapidly as possible given available resources, but preventing uneven implementation throughout Army will require a great deal of coordination. Maintaining an outreach program with our suppliers is also a key element of our strategy. - THINGS ARMY NEEDS TO DO - B. B. Morgan/DALO-SMI (703-692-9577), DSN 222-9577, morganbb@hqda.army.mil 5/5/2019

LIFE CYCLE MANAGERS/DEPOTS Lifecycle management processes will be primary beneficiaries of UID Only approved activities will mark legacy items Capturing the movement of an individual UID through its lifecycle has potential to quantify system performance Design activities define marking requirements. Technical data packages will ensure future buys or repair contracts contain marking and reporting requirements – as appropriate Optimizing benefits of UID requires a multi-functional approach UID supports replacement of some contact memory buttons (CMB) applications with data matrix markings UID pilots are underway in Army ADDITIONAL POINTS: Many logistics and maintenance functions potentially benefit from UID (overhaul, repair, retrofit and modernization) Marking will occur only in approved locations. We do not anticipate field soldiers will have a requirement to mark anything in the near future. Technical data packages reduce risk of suppliers and provide the government marking guidelines. Design activities define the technology used to apply the UID mark and where to mark. This is an engineering decision - not a responsibility of logistics personnel. UID data can be used by many functional specialties in an industrial organization or by life cycle managers so we need a multi-functional approach. UID marking may reduce – but not eliminate – dependence on some forms of automatic identification technology Army is currently conducting a limited number of UID pilots at depots B. B. Morgan/DALO-SMI (703-692-9577), DSN 222-9577, morganbb@hqda.army.mil 5/5/2019

CONTRACTOR SINGLE PROCESS INITIATIVES (SPI) Commercial outreach program during transition period is critical to success Outreach program helps suppliers align internal corporate and business unit policies and pricing to accommodate UID Suppliers starting to recognize UID provides business efficiencies and competitive advantage Major costs are non-recurring engineering work, software changes, and technology investment – not part marking Joint operations require “Best Value Analysis” to standardize marking methods Army will assist Defense Contract Management Agency (DCMA) with development of guidelines related to mark quality and permanency Army helped develop National Defense Industrial Association (NDIA) training syllabus Army participates on the Joint Aeronautical Commanders’ Group (JACG) UID Working Group To be successful, Army’s commercial suppliers must be convinced that UID is to their competitive advantage and is not unduly disruptive to their business processes. Said another way, “socialization” of UID is essential to achieve OSD’s goals and objectives in a timely fashion. In this regard, the Army Aviation community has forged strong ties with its principal suppliers Single process initiatives must provide for “Joint Value Analysis” to help standardize UID marking methods – especially for items that are in common use across Services and by our coalition partners. Army will assist the Defense Contract Management Agency (DCMA) to develop guidelines related to quality assurance of data matrix barcodes and requirements for permanency. Army helped develop the UID training syllabus for the National Defense Industrial Association. Army is supporting the Joint Aviation Commader’s Group. B. B. Morgan/DALO-SMI (703-692-9577), DSN 222-9577, morganbb@hqda.army.mil 5/5/2019

AUTOMATED INFORMATION SYSTEM (AIS) INTEGRATION System-wide benefits of UID depend on information exchange through AIS; connecting Army logisticians is top priority Future systems will incorporate UID data and support evolving policies and Joint system integration Current Army Standard Army Management Information Systems (STAMIS): Cease operation once ERP solution fully fielded OSD requires return on investment (ROI) for system upgrades over $1M ROI validation difficult before legacy system shutdown UID requirements will be included in Army’s Enterprise Resource Planning (ERP) software baseline capability The sharing of UID data between Services requires standardized business practices, data syntax, and format UID enables the link between the product and install dates, removal dates, and decisions to repair or replace broken items UID requirements are included in Army Working Capital Fund (AWCF) POM FY06 – FY11 The two wars in Iraq have demonstrated that operational sustainment of forces in the field requires agile, assured, 24/7 communications capability. Army is “blueprinting” its current and planned logistics processes as part of its Enterprise Resource Planning (ERP) efforts and as part of the design for GCSS-A, LMP and SALE. Current Standard Army Management Information Systems (STAMIS) will not be modified to accommodate UID. Army is working to ensure that Service systems can migrate information tied to UID across Services for common use systems and components, e.g., HUMVEE. Data cannot move within or between applications or systems or networks unless it is created, stored, and passed according to generally accepted standards (format and syntax). UID can link product data with maintenance data. UID is the common thread between domain managers for legacy systems - and integrators for future systems. UID requirements are being identified and included in the Program Objective Memorandum (POM) process. B. B. Morgan/DALO-SMI (703-692-9577), DSN 222-9577, morganbb@hqda.army.mil 5/5/2019

CHALLENGES Life Cycle Management Commands (LCMC) and Program Executive Offices (PEO) must act in concert to promote data interoperability and equipment standardization Need consistent approach for marking items whose cost cycles above and below $5K UID threshold Packaging requirements – including passive RFID - need more definition Potential for uneven implementation across Army communities and Joint arena UID requirements and “Best Business Practices” must be incorporated into the Single Army Logistics Enterprise (SALE) UID may affect contract price and schedule Current and future Army networks must be scaled to accommodate pervasive use of UID Major challenge is to define best use of UID data to support transformation of Army logistics processes - marking items is not enough Unique identification has its share of challenges that must be resolved. Solutions will be more long-lasting when reached in a collaborative and cooperative basis within the Service and in the Joint environment. The cost of identical items may change from contract to contract. Army is searching for a solution to dealing with legacy items that come in over - and then under - the $5000 benchmark. Packaging requirements – including those for Passive RFID – need more definition Some Army communities are starting later than others in their UID implementations. Lack of funding and trained personnel increases the risk of uneven implementation across the Army. Army is blueprinting UID into its ERP solution, but the issue of how to migrate maintenance histories for end items that migrate between Services, e.g., HUMVEE, requires inter-Service coordination. Contract requirements for UID may impact contract cost and schedule. This is particularly critical in the case of spares Sample contract issues.Some foreign governments have rejected UID marking because added cost not previously negotiated. They object to paying for UID since many items purchased never enter U.S. inventory. While there are other issues, the major challenge for Army is to define the best use of UID data to support the transformation of Army logistics processes – the simple marking of items to comply with policy is not enough. B. B. Morgan/DALO-SMI (703-692-9577), DSN 222-9577, morganbb@hqda.army.mil 5/5/2019

BACK-UP SLIDES

G4 Strategy Map Sustain the Force Core Competencies Enduring and Essential Capabilities Soldier Readiness Unit Readiness Equipment Readiness Processes Modernize Theater Distribution Improve Force Reception Connect Logisticians Integrate Supply Chain This slide is used by the Chief of Staff of the Army to describe the ways and means by which Army will “Sustain the Force” under Army transformation. There are four logistics processes associated with this transformation. Modernize Theater Distribution Improve Force Reception Connect the Logisticians Integrate the Supply Chain Military/DA Civilian Development Program Learning & Growth Resources People, Dollars, Infrastructure, Installations, Institutions(I3), Materials, Supplies and Time B. B. Morgan/DALO-SMI (703-692-9577), DSN 222-9577, morganbb@hqda.army.mil 5/5/2019

Army FOCUS “CONNECT” OUR LOGISTICIANS MODERNIZE THEATER DISTRIBUTION Agile, Assured, 24 / 7 Data Capability into the Enterprise Plug / Un-plug as Required Enable “Sense and Respond” Logistics Include Log, Per, Med & Eng (Operational Sustainment) MODERNIZE THEATER DISTRIBUTION Single Proponent Enable Control With 100% Visibility Single Doctrine, Force Structure & Training IMPROVE FORCE RECEPTION APOD / SPOD; Distribution; Life Support Strategic Connectivity - Theater Log C2 Node Embedded Sustainment Capability Life Support – Division in 5 Days INTEGRATE THE SUPPLY CHAIN Eliminate Stovepipe Suboptimization Army FOCUS SPEED & PRECISION CRITICAL TO SUCCESS Our Commitment Joint Integration Policy Modernization Refined Doctrine New Force Structure Standards and Discipline CONNECT OUR LOGISTICIANS The biggest problem that has caused logisiticians to have difficulty supporting the warfighter is not being able to “See the Requirements”. We need a virtual network that links Army systems (Distribution System, Supply System, Maintenance System, Medical System, Financial System, Personnel System, etc.) We need to develop the capability to pass logistics data from point of need to the source of supply anywhere on the battlefield. Log, personnel, medical and engineer functions fall under operational sustainment and should be connected under the same information system at that level. THEATER DISTRIBUTION Who is the Army’s FEDEX? Who has visibility of what is moving? Who validates delivery/receipt? We need to identify one owner. FORCE RECEPTION We’ve spent millions of dollars on Army power projection platforms (APOE, SPOE, rail) but have not invested enough on the other end…APOD, SPOD, Theater Opening Packages INTEGRATING THE SUPPLY CHAIN Who has visibility of all of assets in the entire supply chain? We can’t make proper decisions at one level of supply without considering impacts on the other levels or taking into account the changes that they have made. We must think holistically. End state is Total Asset Visibility from the factory to the foxhole. B. B. Morgan/DALO-SMI (703-692-9577), DSN 222-9577, morganbb@hqda.army.mil 5/5/2019