0 TITLE: Item Unique Identification Presented To: Supply PRC November 29, 2006 Lydia Dawson, Procurement Analyst Defense Procurement and Acquisition Policy, Program Development & Implementation (703) ; Web site:

1 What have we accomplished? (FY 2006)  New releases of IUID Registry - improved error checking, additional GFP roles and interfaces  Volume in IUID Registry increased almost 100%, from approximately 68K to over 670K (53% small businesses)  Almost 600 business submitting records to the IUID Registry (50% of top 30 DoD suppliers)  75% of ACAT 1D IUID Program Plans successfully submitted and approved *  43% of non-ACAT 1D IUID Program Plans successfully submitted and approved  ISO Air Transport Association format code approved - enables implementation using one international standard to cover all commodity areas * 13 ACAT 1D programs recently added.

2 What have we accomplished? (FY 2006)  Replaced paper-based process for annual contractor reporting of GFP with IUID capabilities  Proposed IUID DFARS Rule for GFP published, comments received, adjudicated, and pending review and approval at DARC prior to recommendation for final publication  IUID Registry and Wide Area Workflow enhancements - established an initial electronic property transfer capability for GFP (paperless GFP 50% complete)  Initial maintenance depot capability established (30% complete)  With DAU, developed mandatory training for all 1102 (contracting) personnel  Trained over 3,000 DoD program managers, contracting & quality control personnel, and industry partners on IUID policy and implementation issues and opportunities.

3 Expanding GSA solutions ContractorContract #PhoneCity, State Socio- Economic A2B TRACKING SOLUTIONS INC C & C GOODS LIMITED FIBREGRATIONS LLC GS-02F-0227R GS-02F-0106S GS-02F-0058S (401) (215) (615) PORTSMOUTH,RI YARDLEY, PA GALLATIN,TN S S/V S FIBRE TECHNOLOGIES LLCGS-02F-0236R(610) READING,PAS/DV INTERNATIONAL PAPER COMPANY ST CLAIR PACKAGING INC XIO STRATEGIES GS-15F-0062K GS-02F-0194S GS-02F-0060S (212) (800) (703) NEW YORK,NY MARYSVILLE, MI MC LEAN,VA O S S/W

4 Current IUID Registry enhancements  Release 3.3 currently in test – deployment scheduled for December 2006 –Adds support for item disposition (third party custody/retirement/disposal) –Improves edits –Streamlines access mechanisms to improve performance –Implements API to allow validation of UII syntax –Performance tracking

5 What metrics are we tracking?  IUID of all qualified items delivered to the Department of Defense – contract compliance  Program Plan Progress – “Critical Mass” of personal property items registered  Electronic “paperless” property management capability –Eliminate DD Form 1662, DoD Property in the Custody of Contractors –Integrate property transfers between DoD and contractors –Integrate Plant Clearance Automated Reutilization Screening System (PCARSS) and the Lost, Theft, Damaged and Destroyed (LTDD) system –Establish integration alternatives with Component property accountability systems –Enable Military Equipment Valuation in 2006

6 IUID contract compliance Sampled 382 supply contracts from June and July 2005 Adjusted total shows percentages weighted by component based on number of contracts Sampled 45 of 526 contracts with delivered UIIs Statistical Measures  95% Confidence Interval Shown  Compliance By Component –Army*27.0% ± 8.5% –Navy/MC*16.3% ± 7.7% –Air Force75.4% ± 9.4% –DLA 0% ± 2.9%

7 IUID Registry statistics (critical mass) Growth rate over 11,000 new UIIs/week* Goal 97M (data as of 1 November 2006)

8 IUID Registry statistics (by component) (data as of 1 November 2006)

9 Elimination of the DD Form 1662  Transition process was initiated in October –Forecast February 2006 –No cost, no consideration –2,585 contract DD 1662 reports were completed at the end of FY 2005  Round I of the transition ended September 2006 –85 contract DD 1662 reports were completed (3%) –Approximately 69K items  Round II of the transition began October 2006  Pending DFARS Rule, recommending use of existing clause, –Allowance for approved “substitute” reporting

10 DD Form 1662 Elimination Timeline (2005 – 2006) Transition process repeats in FY 2007 Enhanced WAWF Transaction Functionality Dec FY ’06 Participating contractors must complete 1662 reconciliation & notify the cognizant contracting officer(s) no later than May 31, 2006 – contract mod to incorporate IUID Registry as “approved substitute” [DFARS (a)(2)] - Data on all qualified PIPC must be contained in registry prior to reconciliation Sep 30 FINAL DD Form 1662 All Normal 1662 Reports Due Sep 30 [DFARS] ACO/PCO Contract Mods. Sep ‘06Oct 31 Jun 30 Registry Capable of PIPC Bulk Load DD Form 1662 Report Effective Date May 31 All required PIPC in Registry Reconcile 1662 All new GFP meet IUID Requirement DFARS Change Sep 15 DD Form 1662 Eliminated after September 2006 [All PIPC in IUID Registry no later than September 30, 2007]

11 DFARS Rule - IUID of GFP (status)  Proposed DFARS Rule Published March 21, 2006, comments received May 22, 2006 [DFARS Case 2005-D015] –Under revision to address “significant” comments –Under revision to revise format –Pending approval to publish final rule  Pending next IUID Registry release, maintain changes for Sept 30 synchronization.  Will be in all solicitations and contracts and replaces DFARS , Reports of Government Property –PAs will request balances for analysis and risk assessment, if necessary –PAs will check during the reconciliation (if any) that UID items are accurately reflected in the stewardship records and IUID Registry –PA certification of total items and total dollars ends with DD1662 elimination

12 What is the current property transfer environment?

13 Where are we going? Re-engineering acquisition, finance, logistics business rules to – Uniquely Identify Items + Track Items = Management Information I + T = M Identify Item

14 How are we getting there? Using a central registry of items (audit hub) Capturing data in Wide Area Workflow Working with industry and the maintenance depots to find value –Enhanced asset visibility –Improved life cycle management –More accurate accountability Re-engineering business rules; Mandatory DFARS Clause –Item identification –Marking practices –Technical data –Data exchange WAWF IUID Registry

15 Planned IUID Registry enhancements  Improved access rules for Government and for Contractors in support roles  Corrections processing  Warranty data capture  Disposition data enhancements –Capture for out of service events (e.g. mothballed) –Return to service after disposition  Improved handling of “Mark” data  Additional reporting capabilities

16 Electronic Property Management Capability (I + T = M) MetricQuantity (millions) UII Items in DoD Inventory67.7 Property in Possession of Contractors29.5 Total UIIs97.2 IUID Registry Unique Item Identifier (UII) STEP 2: Register Data STEP 3: Automatic Data Capture STEP 4: Application Processing Updates Estimated Scope of UII Coverage Acquire Store Use Expend/ Dispose Maintain WAWF Class I – Subsistence Class II – Clothing & Individual Equip Class III – Fuels & Petroleum (Packaged) Class IV – Construction (Installed Equip) Class V – Ammunition Class VII – Major Items Class VIII – Medical Class IX – Reparables Identify Item STEP 1: Mark Items Transactions Retrieval

17 Synchronizing UID/RFID/SIM Policy Assets Personal Property Land PP&E Inventory/OM&S Real Property Repairables Facilities Internal Use Software Consumables Equipment Military Equipment General Purpose Equipment Structures Buildings DoD R (LM&R) DoDI (P&E Policy) DoD R (Comptroller) DoDI /65 (I&E)

18 Property System Integration Shipping Contractor (1) Contractor EDI (1) Contractor FTP (1) Contractor Web Contractor EDI (1) WAWF DoD Receiver IUID Registry GFP Ship Notice (2) 856 Due-In Notice (3) 856 Receipt IUID/GFP Info (4) IUID/GFP Info GEX (3) Receipt (3) FTP Receipt DoD Property Mgmt System (4) Property Update (4) Property Update Contractor Property Mgmt System GEX Contractor to DoD

19 PCARSS Integration

20 PCARSS Schedule Development Phase Testing Phase Pilot Phase Full Scale Deployment JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY On time!

21 Lost, Theft, Damaged and Destroyed (LTDD) PA investigates the case. Recommendation Case Closed LDD report is sent to the designated PA. Assesse d Amount Received PA receives the report. Relieved Yes Liable No Government property is Lost, Damaged, or Destroyed. Contractor enters/updates the instance into the LDD application. Reject Interface to UID Registry

22 LTDD Schedule Development Phase Testing Phase Pilot Phase Full Scale Deployment JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC On time!

23 Capital Asset Management System-Military Equipment (CAMS-ME) BEIS Core Accounting Systems SOMARDS STANFINS STARS SIGMA SABRS GAFS-R CAMS-ME Increment 2 (Contract Cost System – SFFAS 6 Compliant) Expenditure Data Asset Status Data Asset Valuation Data (Contract Cost) IUID Registry APUID Registry DUID Registry IUID Registry Phase 1 Phase 2 CLIN/SLIN Policy Increment 2 will be SFFAS 6 Compliant

24 Priorities Identified by Components  Mark Items, Training, Training, Training  Define program requirements & get DFARS clause in contracts – focus on training and compliance  Reinforce budgets for IUID and emphasis Program Plans  Integrate item marking, tracking and management policy across finance, logistics and acquisition and synchronize policies  Determine top level IUID ERP requirements  Facilitate global standards

25 Questions?  IUID Toolkit –Four tracks: PMs, Suppliers, Depot, Operational Maintenance –  DAU UID Special Interest Area –Within Acquisition Community Connection –  UID Website –