Agenda Unique Identification (UID); Item Unique Identification; Unique Item Identifier (UII) UID/IUID Policy Contracting for IUID Marking Items WAWF and.

Item Unique Identification (IUID) Defense Acquisition University February, 2006

Agenda Unique Identification (UID); Item Unique Identification; Unique Item Identifier (UII) UID/IUID Policy Contracting for IUID Marking Items WAWF and IUID Registry Planning IUID Implementation PM’s IUID Program Plan Summary, References & Resources This brief will provide a brief overview of the Unique Identification (UID) initiative, a detailed examination of DoD AT&L’s Item Unique Identification IUID) Program, and frequent reference to Unique Item Identifier (UII) that are the data elements marked on items in accordance with specified standards. The brief will present why DoD has undertaken these efforts and the benefits to the operational and logistic commanders, as well as acquisition community, financial community, and maintenance communities when there is a universe of uniquely identified personnel, locations, units, and of course items. There is first a need to understand the difference between the macro UID initiative and the IUID program. Then to understand the IUID program including definition of a IUID, contracting for IUID, what needs to be marked, how marks are constructed (UII), what information about an item needs to be reported, and specifically what is expected of Program Managers regarding implementation of IUID in new and legacy systems. This is an information brief and will not provide the level of detail that some of you will need on specific aspects of the IUID 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

DoD Vision for Unique Identification (UID)
For efficient and effective management of resources: Establish an Approach for DoD, its Coalition Partners, and Industry That enables consistent, reliable, and accurate assignment/use Of through life and globally unique identification that is Integrated across tangible items, real property, force management, people, organizations, locations, Etc. The quote is a concatenation of the two objectives for DoD’s UID program. 3

Déjà vu All Over Again . . . Yogi Berra
Marsh’s Supermarket Troy, Ohio June 26, 1974 Starting out recognizing there is a correlation between the introduction of bar codes to retail and DoD’s introduction of UID. Just as bar codes over time transformed retail in terms of data available to mange stock – what sells, what does not sell; how much stock is in the store; ability to change prices at the register vice on the shelve, etc., so UID will greatly improve DoD’s knowledge of assets, and ability to manage them. And while the first bar coding was done in the 70s, it was not until the 90s that bar codes were prevalent, a “must have” on every item for sale, so it will be a number of years before UID becomes prevalent and a driver of decisions. Bottom line is as bar codes transformed retail, so UID will be an agent for DoD transformation. This package is the First Item actually Bar Coded and is now in The Smithsonian Museum 67¢ Bar Codes Transformed Retail Sales and Inventory Management 4

UID—Integrated Situational Awareness of People, Places and Things
Site UID Creation Site UID Creation UID—Integrated Situational Awareness of People, Places and Things Today -- No UIIs To Be State -- UIIs No integrated planning view Integrated planning view Requirement: Capability to integrate force structure planning for identifying and constituting deployable combined force modules. Who is available? With what equipment? Where are they now? How long can we support them? People, things and property related to force structure. Deployment and constitution options can be continuously evaluated. Required items identified, pre-positioned and tracked with RFID. UID IS THE MACRO PROGRAM; This vu-graph illustrates the “now” and “to be” states. Now there are not the enterprise wide data bases that enable operational commanders to easily determine the status of the people, equipment and say bases that they will be utilizing in executing a specific operation. In the “to be” state there will be enterprise wide data bases where the enterprise is the Department of Defense assessable by operational commanders and other decision makers. They will then be able to make decisions on the basis of complete, timely, accurate and relevant data on the people, equipment, organizations and real property (as bases) that they will utilize in execution of an operation. People and things can be identified to sites and facilities for rapid deployment response. RFID Tracking Questions Questions answered 5

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 (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. This is where we transition to IUID = the program to be planned and implemented by acquirers for new and legacy items As noted, USD (AT&L) Memo of Jul 29, 2003 announced a policy that Unique identification (UII) 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 UII as a primary or alternate key to achieve a globally interoperable network centric architecture for the integrated management of tangible items. (VISION) AT&L established a UID Program Office has been established to manage IUID implementation and there is a UID IPT that continues to work issues. "Purchases initiated by DoD and executed through the General Services Administration (GSA) or another federal agency shall comply with the UID policy." Effective 1 January 04 Mandatory for Solicitations 6

Enterprise IUID Digital Data Flow Potential
Financial Management Property, Logistics, and Transportation DoD Budget Submission 0001AA Bolt, Restraining, Rotorhead 4 ea $158.55 NSN Line Item Need Requisition UID Appropriations Requirement SPS Shipping Notice X-6X G 25POLI P68EY78945J145 POLI RFID X-6X G 25POLI P68EY78945J123 POLI Contract UID Lines of Accounting UID Transportation Commitment Delivered Item UID Receiving This is a pictorial depiction of the process all in the defense acquisition business know. Requirements from the operators generate programs; funding is requested from Congress to develop the item to satisfy the requirement; Congress funds the program (authorize and appropriate). DoD then lets a contract to develop and produce the item to satisfy the requirement; when delivered via MIRR (aka DD250) and accepted, it is delivered and possibly tracked during delivery process via an RFID label. Eventually the item is assigned top a specific unit, is picked up on that unit’s property log. This vu-graph then goes to the original driver for UID/IUID, one to one correlation between funding appropriated by Congress and items in the field toward satisfying Congressional mandate for DoD to achieve the Clean Audit Report that includes an accurate inventory and a valuation of the inventory. Obligation WAWF Inspection UID Acceptance Expenditure UID Property Log Acquisition 7

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 . . . This is the definition of unique item identification (UII). A DoD Unique Identifier (UII) permanently identifies an individual item distinctly from all other individual items that DoD buys and owns. What does it mean to “do” IUID? IUID 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 IUID data elements in a data carrier with the proper semantics and syntax formats. IUID also requires that AIT technology be available with associated UID business rules to read the machine-readable label/mark to derive the UII for processing in Automated Information Systems. The graphic shows what a UII might look like on an item. With the UII, 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 UII is constructed, items are marked, and UIIs reported. EID (12V) Orig. Part No. (1P)1234 Serial No (S)786950 8

Item Unique Identification (IUID) - How Is It Done?
The UII Is Derived From Discrete Component Data Elements – The UII Is Not Required To Be Marked On The Item as Its Own Data Element Coded in the Data Matrix: Enterprise Identifier = 0CVA5 (CAGE Code) Original Part Number = 1234 Serial Number = 674A36458 The ISO assigned Issuing Agency Code (IAC) can be derived using the Enterprise data qualifier. The IAC for CAGE, is “D”: There are two acceptable DoD constructs Construct 1 on the left in blue contains the enterprise Identification and more on enterprise identifiers later, and the serial number of the equipment. And that’s all because the equipment manufacturer can guarantee that thru life those two data elements in combination will uniquely and unambiguously identify the item on which marked. Construct 2, on the right in red, has the additional element of data, part number, that the manufacturer needs in order to ensure that through life the identification is unique and unambiguous. It is the manufacturer of the item, not the government that decides whether to use construct 1 or 2. The alphanumeric at the bottom of each example is the concatenated UII for the item = EID then Serial Number for Construct 1; EID Part Number then Serial number within that Part number for construct 2. UII Construct 1 UII Construct 2 If the Serial Number is Unique within the Enterprise Identifier If the Serial Number is Not Unique within the Enterprise Identifier but is Unique within the Part Number D0CVA5674A36458 D0CVA A36458 9 ROB LEIBRANDT

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. This chart amplifies on the preceding vu-graph for the two IUID constructs. Whether an enterprise uses IUID Construct #1 or IUID 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 IUID either construct and still guarantee that the UII 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 UII 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 UII The current part number may be marked on the item as an additional element Note that construct 2 is also used for ammunition where stock is referenced by both by manufactured lot (=part number) and Serial Number of the round within the lot. 10

Create and Generate the UII
Data Element DI (Format 06) AI (Format 05) TEI (Format DD) Enterprise Identifier CAGE/NCAGE DUNS EAN.UCC Other Agencies 17V 12V 3V 18V 95 CAG, MFR, or SPL DUN EUC Serial Number within Enterprise Identifier SER or UCN Serial Number within Original Part Number S 21 SEQ Original Part Number 1P 01 PNO Lot/Batch Number 1T 10 LOT or BII Concatenated UIIs 25S I 22S 8002 8003 8004 UID Unique item identifier (not including the IAC) 18S USN or UST 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 UII construct is used to build the UII. [1] Data identifier 18V is the concatenation of the Issuing Agency Code (IAC) + Enterprise Identifier (EID). This data identifier would be used for all other EIDs, which were assigned by an issuing agency that has an assigned IAC but does not have their own specific EID data identifier. [1] MFR – Manufacturer CAGE Code. Identifies the manufacturer, government agency or other organization controlling the design and the part number assignment of the subject part. SPL – Supplier CAGE Code. Identifies the organization assigning a Unique Component Identification Number (UCN), where the organization is not the manufacturer, government agency, or other organization controlling the design of the serialized component. [1] SER – Part Serial Number (Serial Number within Enterprise) is the manufacturer’s serialized identity for an individual part, component or component end item. UCN – Unique Component Identification Number. The UCN is the permanent tracking identity assigned to an in-service part in lieu of the manufacturer’s serial number. [1] 25S is a data identifier defined as the identification of a party to a transaction (as identified by data identifier 18V), followed by a supplier assigned serial number (For UII purposes, this has to be unique serialization within the EID that assigns the UII data elements). Thus, for UII purposes, 25S must represent the following string of concatenated elements – IAC + EID + Unique serial number within the EID, which directly corresponds to a concatenated UII using Construct #1. [1] DI I identifies a U. S. Vehicle Identification Number – VIN. [1] DI 22S identifies a cellular mobile telephone electronic serial number. [1] AI 8002 identifies a cellular mobile telephone electronic serial number. [1] AI 8003 identifies an EAN.UCC GRAI. [1] 8004 is the application identifier for the EAN.UCC Global Individual Asset Identifier (GIAI). The GIAI is up to 30 characters and is a combination of the EAN.UCC Company Prefix and an Individual Asset Reference, which is assigned by the holder of the EAN.UCC Company Prefix. [1] In the case where the EID is the CAGE Code, data identifier 18S may be used. 18S is defined as the concatenation of the CAGE Code (EID) + Unique serial number within the CAGE Code. This is UII Construct 1. This data element does not contain the IAC, which must be added. [1] USN – The concatenation of MFR + SER. UST – The concatenation of SPL + UCN. These elements do not contain the IAC, which must be added. Current Part Number P PNR 11

Defining the Scope of an UII
A UII Is A UII Is Not A Data Element A Unique Identifier for an Item Globally Unique Unambiguous Permanent Created by Concatenating Specific Data Elements The enabler for business intelligence A Device for Communicating Data, such as Radio Frequency Identification (RFID) Tags, Contact Memory Buttons, Linear Bar Codes, or 2-D Data Matrices A Replacement for the National Stock Number Intelligent Data that Yields Information About the Item Transferable from one item to another Focus on what UII is not, we’ve already covered what it is. The DOD has traditionally identified items by National Stock Number (NSN). However, this only identifies one entire class of items—for example, all circuit cards with the same NSN. By using the UII, the DOD will be able to identify and track each and every specific circuit card with that NSN. 12

UID Policy Overview Policy memorandum released on July 29th 2003 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 will be a mandatory payment requirement no later than January 1, 2005 Policy Updates issued November 26, 2003, December 22, 2003, September 3, 2004, December 23, 2004, May 11, 2005, May 12, 2005. 14

Key Direction from UID Policy Updates
Apply IUID to legacy items in inventory and operational use All program and item mangers plan for and implement IUID - ACAT 1D programs submit plans by June 2005 - All others to MDAs by January 2006 Plans should target FY2007 as the point by which: - All existing serialized assets will be entered in UID registry - UII marking capabilities established such that marking can commence when equipment is returned for maintenance Government Furnished Property (GFP) must meet UID policy requirement effective 1 Jan 2006 Policy Updates issued November 26, 2003, December 22, 2003, September 3, 2004, December 23, 2004, 15

Key Direction from UID Policy Updates
(Continued) DUSD (Logistics and Material Readiness) develop UID implementation plan for organic depot maintenance operations DCMA negotiate corporate/facility strategies with top 30 DoD suppliers DCMA issue UII quality assurance plan AT&L work with Services/Agencies to modernize infrastructure, reengineer business processes, revise Automated Information Systems (AIS) Policy Updates issued November 26, 2003, December 22, 2003, September 3, 2004, December 23, 2004, 16

Evolutionary Approach to Legacy IUID
Plans should target FY 2007 as point by which: All existing serialized assets that meet IUID criteria have been entered in UID Registry UII marking capabilities established for all existing items and embedded assets Complete marking of items and embedded items by Dec 31, 2010: Plans identify exemptions for items to be removed from inventory before Dec 31, 2010 DoD Organic Depot Maintenance Operations Initial Operational Capability by June 2005 Full Operational Capability by FY2007 Government Furnished Property (GFP) must meet UID policy requirement effective 1 Jan 2006 17

USD (AT&L) 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. Clarifications in Attachments PIPC is a financial statement weakness so DoD is developing policy and processes to improve accountability, accuracy and reliability. One objective is to reduce the proliferation of GFP and AT&L requests Services and agencies to ensure that property is furnished to contractors only when in DoD’s best interest – benefit outweighs cost of administration including eventual disposal; and that government risk is not substantially greater than if pproperty were not furnished. 18

USD (AT&L) Memorandum 11 May 2005
Budget Instructions for UID Implementation FY Identify UID support in applicable budget exhibit submissions in the existing budget lines in FY07-FY12 budget R-2 for RDT&E P-Series for Procurement OP&PB-Series for Operations and Maintenance AT&L coordinate with PA&E 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) 19

Contracting for UII - 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 dtd 10 Oct 2003 Second Interim Rule dtd 30 Dec 2003 Final Rule dtd 22 Apr 2005 OSD Policy Memo dated July 29, 2003 directed implementation of UID within DoD by January 2004. Final Rule released on 22 April 2005; no significant changes between first interim and final rule IUID Mandatory for Solicitations Issued after January 1, 2004 21

Item Unique Identification (IUID) and Valuation
Contracting for IUID Item Unique Identification (IUID) and Valuation DFARS General. 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 22

Contracting for IUID (Continued)
DFARS Policy for Item Unique Identification (IUID) DoD unique item identification, or a DoD recognized unique identification equivalent, is required for: All delivered items where unit acquisition cost is $5,000 or more; Items less that $5,000 when identified by the requiring activity as serially managed, mission essential, or controlled inventory; Items less than $5,000 when the requiring activity determines that permanent identification is required; Regardless of value, Any DoD serially managed subassembly, component, or part embedded within a delivered item The parent item that contains the embedded subassembly, component, or part. Mandatory for all items $5,000 and above Key Point: For items less than $5,000 PM identifies, and PCO includes a list of items 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. 23

DFARS 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; A determination and finding 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 CAE for ACAT I HCA for all other programs DoD UII Program Office must receive a copy of the D&F (ACAT 1) Exception to Contractor Marking: Special, contingency use as detailed in first bullet and/or when items obtained from small businesses /via commercial process and it is determined that it is more economical for receiving activity to do the marking. Note marking will be done but by receiving activity vice by selling activity. Also note requirements for higher level authority to approve the deviation, and for documentation. 24

IUID Decision Tree 25

DFARS Policy for Valuation. It is DoD policy that contractors shall be required to identify the Government’s unit acquisition cost for all items delivered, even if none of the criteria for placing a unique item identification mark applies The Government’s unit acquisition cost is: Unit price identified in the contract at time of delivery for fixed price type line, subline, or exhibit line items Contractor’s estimated fully burdened unit cost at time of delivery to the Government for cost type or undefinitized line, subline, or exhibit line items; For items delivered under a time and material contract, the contractor’s estimated fully burdened unit cost to the Government at the time of delivery The Government’s unit acquisition cost of subassemblies, components and parts embedded in delivered items need not be separately identified Valuation required for all items! Items may or may not require UID marking but do require a unit acquisition cost at the time of delivery to the government. Estimated fully burdened cost does not include estimated fee. Fee is not a direct or indirect cost and is not considered part of the items value. 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. Note that acquisition cost of the end item, delivered item, is what is reported, not the acquisition cost of the embedded items 26

Contract Clause Use the clause at , Item Identification and Valuation, in solicitations and contracts that require item identification or valuation, or both, in accordance with and Provide the contract line, subline, or exhibit line item number and description of any item (s) below $5,000 in unit acquisition cost for which DoD UII or a DoD recognized equivalent is required; Provide applicable attachment number when DoD unique item identification or a recognized equivalent is required for DoD serially managed subassemblies, components, or parts embedded within deliverable items If marking is not required, delete paragraphs about marking and add: 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 (aka “DD250”) the contractor shall report Government’s Unit Acquisition cost; The Contractor shall submit the information in accordance with data submission procedures at First of several vu-graphs that presents the mandatory clause for UII. Last sub-bullet recognizes need for valuation where marking not required. Delete paragraphs c- f, include paragraphs a, b, and g. 27

Clause at , Item Identification and Valuation Paragraph a: Definitions: (as used in the clause) Paragraph b: The Contractor shall deliver all items under a contract line, subline, or exhibit line item. Paragraph c: DoD unique item identification or DoD recognized unique identification equivalents. The Contractor shall provide DoD unique item identification, or a DoD recognized unique item identification equivalent, for All delivered items for which the Government’s unit acquisition cost is $5,000 or more; and The following items for which the Government’s unit acquisition cost is less than $5,000 Subassemblies, components, and parts embedded within delivered items as specified in Attachment Number _____ The concatenated UII and component data elements of the DoD UII or DoD recognized unique identification equivalent shall not change over the life of the item Here are paragraphs b and beginning of c from the clause. Note in c that lists of items to be marked are to be in the contract and/or referenced. 28

Clause at , Item Identification and Valuation Paragraph c: DoD unique item identification or DoD recognized unique identification equivalents. (Continued) Data syntax and semantics of DoD UII and DoD recognized unique item identification equivalent. The contractor shall ensure that The encoded data elements (except the IAC) of the UII are marked on the item using one of the following three types of data qualifiers as determined by the Contractor: Data Identifiers (DIs) per ISO/IEC International standard 15418 Application Identifiers (AIs) per ISO/IEC International Standard 15418 Text Element Identifiers (TEIs) per DoD collaborative solution “DD” format for use until the solution is approved by ISO/IEC JTC1 SC 31 The encoded data elements of the UII conform to ISO/IEC International UII and DoD standard 15434 Continuing paragraph c, this portion of the clause includes the data qualifiers (DI, AI, TEI) already presented. 29

Clause at , Item Identification and Valuation Paragraph c: DoD unique item identification or DoD recognized unique identification equivalents. (Continued) DoD UII and DoD recognized unique item identification equivalent. The Contractor shall: Determine whether to serialize within the enterprise identifier or serialize within the part, lot or batch number Place the data elements of the UII per version of MIL-STD-130 Identification Marking of U.S. Military Property cited in the contract Schedule Issuing Agency code shall not be placed on the item Shall be derived from the data qualifier for the EID Paragraph d: For each item that requires UII under paragraph c, in addition to the information provided as part of the Material Inspection and Receiving Report (MIRR) the Contractor shall report at the time of delivery as part of the MIRR or associated with the MIRR (see following) Continuing c, here we see that it is the contractor who desides which construct to use. Paragraph d lists reporting requirements for delivered items, and that they are to be included in the MIRR – the list is on a subsequent vu-graph; 30

Clause at , Item Identification and Valuation Paragraph e: Embedded DoD serially managed subassemblies, components, and parts. The contractor shall report at the time of delivery, either as part of, or associated with the MIRR, the following information: (see following) Paragraph f. The Contractor shall submit the information required by paragraphs (d) and (e) of this clause in accordance with the date submission procedures at Paragraph g. Subcontracts. If paragraph c (1) of this clause applies, the contractor shall include this clause including this paragraph g, in all subcontracts issued under this contract. Paragraph e – same as d but for embedded items reporting; list also on a subsequent vu-graph Paragraph f – data submission is evolving hence reference to OSD UII site. Basically will be via WAWF or directly to registry. Paragraph g is a key one, what government includes in prime contract re UII will be flowed to subs. Serially Managed (Definitions) Includes reparable items down to and including sub-component reparable unit level; life-limited, time-controlled, or items requiring records (e.g., logbooks, aeronautical equipment service records, etc.); and items that require technical directive tracking at the part level. A distinction must be made between “serialized items” and “DoD serially managed” items. While DoD may use an item that has been serialized by the manufacturer, DoD may not manage the item by means of its serial number. When DoD elects to serially manage an item it becomes "DoD serially managed". This means it is a tangible item used by DoD, which is designated by a DoD, or Service Item Manager to be uniquely tracked, controlled or managed in maintenance, repair and/or supply by means of its serial number. 31

Clause at 252.211-7003, Item Identification and Valuation
UII DFARS FORMAT “An Item’s Pedigree” Clause at , Item Identification and Valuation End Item Data (“d”) UII (Concatenated); or Unique Identification Equivalent UID type Issuing Agency Code Enterprise Identifier Original Part number Lot or Batch Number Current Part Number Current Part Number Effective Date Serial Number Government’s Unit Acquisition cost * In addition to information required by MIRR specified elsewhere in the contract Embedded Items of End Items (“e”) Parent UII (Concatenated); Unique Identification Equivalent of the parent item (delivered) Embedded Item UII (Concatenated); Unique Identification Equivalent of the parent item UID type Issuing Agency Code Enterprise Identifier Original Part number Lot or Batch Number Current Part Number Current Part Number Effective Date Serial Number Unit of Measure Description What is submitted; different for end Item (paragraph “d” in the clause; and for embedded items (paragraph “e” of the clause. And there is a link between embedded and the end item in which it is embedded Note that of course the MIRR will include other information on the item not specifically related to UII and called out elsewhere. 32

IUID in Systems Acquisition Clause at 252
IUID in Systems Acquisition Clause at , Item Identification and Valuation (“g”) Product Data Supply Chain Unique Items UII ** Enterprise Item Markings UN H EI PN 200H0028 SN * Prime PN 200H0028 List of Hardware UIIs Delivery to Govt End Item Specs End Item (Optional) Item Markings EI PN 210H0611 SN * UN H Tier 1 PN 210H0611 List of Hardware UIIs Delivery to Govt Subassembly Specs Spares Item Markings (Optional) EI PN 216H1439 SN * Tier 2 This chart shows the relationships between product data, the components of the acquisition of systems/supply chain, unique items and the UII. 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 UIIs in the specs. The various vendors will produce these UII identified items and deliver them to the prime. Spares may be purchased directly from the vendors or through the prime. These UII-qualifying spare items also have to be marked appropriately with the UII components. So, when the prime delivers the end item, that is one UII. The spares are delivered with their own UIIs. The Government has the option of asking the prime to deliver a list of all UIIs for UII-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 UIIs 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 UN H Delivery to Govt List of Hardware UIIs Component Specs Spares Item Markings (Optional) EI PN 218H2861 SN * Tier 3 PN 218H2861 UN H Delivery to Govt Part Specs * Serialized within the part number using DUNS as EI **UN = Issuing Agency Code for DUNS UII = Unique Item Identifier; EI = Enterprise Identifier PN = Part Number; SN = Serial Number 33 Spares

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.) R&D 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. 34

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 , Item Identification and Valuation Reference to MIL-STD-130 (current version) Include the new/revised DID 35

IUID Cost Accounting and Contract Pricing
AIA Letter to Director of Defense Procurement and Acquisition Policy Concern regarding recovery of UII costs Request DOD consider issuing guidance OSD issued guidance July 19, 2004 No one method for all contractors. Assignment of costs will depend on type of costs and the allocation of costs will be based on the benefits received or some other equitable relationship. General Rules for Assignment of Costs to Accounting Periods Tangible Capital Assets = Capitalize/Depreciate Intangible Capital Assets = Follow GAAP Other Recurring = Expense as period cost Non-Recurring = expense/agreed to amortization History of discussion between Government and Industry regarding allowability of costs for UII/RFID Implementation: Original proposal – no recovery of costs for UID implementation Alternative suggestions for allowability suggested by industry Resulted in July 19, 2004 DPAP Letter – Costs are allowable, subject to the provisions of CAS 404, 409 and FAR OSD Guidance contained in Director, Defense Procurement and Acquisition Policy (DPAP) letter dated July 19, 2004 The costs necessary to comply with DFARS are generally allowable, provided they comply with applicable assignment and allocability requirements of the Cost Accounting Standards and Federal Acquisition Regulations Part 31. The general guidance that follows should be utilized by Contracting Officers in applying these requirements. 36

Marking Items DoD Guide to Uniquely Identifying Items MILSTD 130M
V1.5 June 7, 2005 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 130M DoD Standard Practice [for] Identification of U.S. Military Property 2 December 2005 [Supersedes “L” w/Chg 1 of 20 Dec 2004] Provides “further clarification and increased insight and guidance for the implementation of machine-readable information (MRI) for item identification marking and automatic data capture”. Application of free text identifiers is still necessary for many end users 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 130M – Wealth of Information 38

IUID Implementation Includes…
MARK Process Controls DATA CAPTURE READ COMMUNICATE COMMUNICATE Standards Compliance Image Capture Electronic Data Interchange Symbology 39

<<P/N xyz / COMBINER TRANSMISSION>>
MATRIX Current Proposed LABEL <<P/N xyz / COMBINER TRANSMISSION>>

The Direct Part Marking Process
Examples of part marking methods include: laser additive, laser subtractive, ink jet, dot peen, chemical etch, etc. Examples of part marking using Labels and Direct Marking on item surface. 41 Source: Rolls-Royce, Nat Russhard

MIL-STD-130M Overview Provides criteria by which product designers develop specific item identification marking requirements Marking content, size, location, and application process Acquiring activities must clearly state that item identification marking is required and that requirements must be in IAW MIL-STD -130 Applies to military property produced, stocked, stored, and issued by DoD Provides criteria and data content for both free text and machine readable Lists additional specifications, standards, handbooks, drawings, documents and publications that form a part of the document as specified Government and Non-Government (as ISO/IEC; ANSI; AIAG; Lists items excluded from provisions of MIL-STD-130 Listed specifications and standards apply for those items ISO/IEC—International Organization for Standardization/International Electrotechnical Commission. 42

MIL-STD-130M Overview (continued)
3. Definitions (5 Pages in MIL-STD-130) 3.2 Acquiring Activity. Element of agency or command that identifies and initiates a contract requirement…and monitoring the acquisitions. 3.6 Commercial and Government Entity (CAGE) Code. Five position alphanumeric code assigned to U.S. organizations which manufacture and/or control the design of items supplied to USG agencies (DoD M Volume 7) 3.11 Data Qualifier. Character or string of characters that immediately precedes a data field that defines that data Data Universal Numbering System (D-U-N-S). A nine-digit number assigned by Dun & Bradstreet to identify a business location in the D&B global database. 3.16. DoD Activity Address Code (DoDAAC). A distinct six-position alphanumeric code assigned to identify specific units, activities or organizations (DoD M) 3.13. Design Activity. An organization that has, or has had, responsibility for the design of an item. ISO/IEC—International Organization for Standardization/International Electrotechnical Commission. 43

MIL-STD-130M Overview (continued) 3. Definitions (continued)
3.19 Enterprise Identifier (EID). A unique identifier used to distinguish one activity from another. Examples are code assigned to a business responsible for assigning the unique identifier to an item. Examples: CAGE, DoDAAC, D-U-N-S, NATO CAGE, and GS1 Company Prefix. ISO/IEC applies. 3.20 Free Text. Free text is human readable information that is other than what is encoded in a linear bar code or 2D symbol. 3.23 Human Readable Information (HRI). One of four types of information intended to be conveyed to a person. Appears on a label in association with a linear bar code or two-dimensional (2D) symbol) Human readable interpretation Human-readable translation Data area titles Free Text Issuing agency Code (IAC). Registration authority that issues the EID 3.27 Item. A single hardware article or a single unit formed by a grouping of subassemblies, components, or constituent parts. (DFARS ) ISO/IEC—International Organization for Standardization/International Electrotechnical Commission. 44

MIL-STD-130M Overview (continued) 3. Definitions (continued)
3. 29 Item Unique Identification (IUID). A system of establishing unique item identifiers within DoD by assigning machine readable character string or number to a discrete item, which serves to distinguish it from other like and unlike items. IUID Equivalent. Unique identification methods in commercial use that have been recognized by DoD as item UID equivalents, also referred to as Unique Item Identifiers (UIIs): Global Individual Asset Identifier (GAIA) Global Returnable Asset Identifier (GRAI- when serialized) Vehicle identification Number (VIN) Electronic serial number (ESN – for cell telephones only 3.32 Machine-Readable Information (MRI) Marking . A pattern of bars, squares, dots, or other specific shapes containing information interpretable through the use of equipment specifically designed for that purpose. Patterns may be applied by digital imaging, infrared, ultra-violet, or other interpretable reading capabilities 3.51 Unique Item Identifier (UII). The set of data elements marked on items that is globally unique, unambiguous, and robust enough to ensure data information quality throughout life and to support multi-faceted business applications and users. ISO/IEC—International Organization for Standardization/International Electrotechnical Commission. 45

MIL-STD-130M Section 4 4. General Requirements
4.1. Methods of Applying. The required marking shall be applied to an identification plate, band, tag or label securely fastened to the item or shall be applied directly to the surface of the item. The design activity shall implement the guidance ainn4.3. Machine-readable information (MRI) marking. Table II Marking Methods Table III Criteria in Selection of Marking Methods 4.2 Location, Size and Content. Readability during normal use; legible per 4.3; specified directly or by reference to the item to be marked 4.3 Permanency and Legibility. As permanent as the normal life expectancy of the item and be capable of withstanding the environmental tests and cleaning procedures. Exception: if not feasible to mark with an MRI that will survive to intended life cycle then mark to survive to intended point of rebuild 46

MIL-STD-130M Section 5 5. Detailed Requirements
5.2. Machine-Readable Information (MRI) Marking. For DFARS mandated IUID marking, the minimum mark is Data Matrix ECC 200 symbol using ISO syntax and the semantics of ISO or ATA CSDD. Items shall be individually marked as follows: Preferred marking includes Data Matrix and when required by contract or order linear symbols with human-readable information. When supplemental information is required by the acquiring activity, additional information may be included as free text Where space is limited, the linear symbol marking may be omitted and human-readable information abbreviated To accommodate severe space limitations, human readable information may be omitted from the item and applied to the packaging 5.2.1 Minimum Information Content. The MRI must contain the EID and Part or Identifying Number (PIN) of the marked item Assignment of Item UID to Legacy Items. The IUID mark is supplemental to prior marks on the item and it only needs to replicate UII related information. The EID of the organization ensuring the uniqueness must be the EID used to generate the UII versus other EID represented in prior marks. 47

MIL-STD-130M Section 5 5. Detailed Requirements (continued)
Air Transport Association (ATA). Manufacturers that implement ATA product marking standards shall mark in accordance with: For linear bar symbols: SPEC 2000 For Data Matrix symbols: ATA CSDD and ISO/IEC syntax with DoD assigned format DD (TEIs) GS1. Manufacturers that implement GS 1 specifications shall mark items in accordance with GS1 specifications as applicable: For Linear Bar Codes: GS1 General Specifications For Data Matrix Symbols for UID item marks use the GS1 General specifications with the Data Matrix Symbol syntax in accordance with ISO/IEC 15434 Linear Bar Code Symbol. Linear Bar code Symbols shall be Code 39 symbols in accordance with ISO/IEC 16388, Code 128 symbols in accordance with ISO/IEC 1541`7 or GS1-128 (formerly UCC/EAN-128) symbols in accordance with ISO/IEC Also addresses ratio of wide to narrow element 48

MIL-STD-130M Section 5 5. Detailed Requirements (continued)
Two-Dimensional Symbol. Two dimensional symbol shall be Data Matrix ECC 2000 in accordance with ISO/IEC Unless otherwise specified, the module size shall be no smaller than inch (0.19mm) and no larger than inch (0.64mm) 5.2.7 MRI Marking Quality Standards. Linear Bar Codes Printing on Label Material Other Marking Methods Data Matrix Symbol Dot Peen, Laser, Laser Ablation, Electro-Chemical Etching Printing on Label Material Other Marking Methods 5.8 Security Classification. When required by the acquisition document, classified items shall be marked in a conspicuous manner to provide notice that the items are subject to security restrictions. Classified markings in accordance with DoD M 49

MIL-STD-130M Tables Table II Marking Methods
Methods --- Characteristics ---- HRI/1D/2D Recommended Use Intended as a guide and use is not mandatory Table III Criteria in Selection of Marking Methods Protective Finish ----Surface Roughness----Marking Method------Remarks Intended as a guide and theses methods are not mandatory Table IV UII Construct Business Rules UII Construct #1-----UII Construct #2 Table V Issuing Agency Codes for use in Unique Identification Concatenation IAC Issuing Agency------UII EID Table VI Data Qualifiers (Semantics Identifiers for use in UII) Data Element----Data Identifier----- Application Identifier Text Element Identifier Table VII Data Identifiers and Their Usage by Constructs/Equivalents Data Qualifier---Construct #1---Construct #2---DoD Recognized IUID Equivalents--- Current Part Number Table Vii Preferred Data Area Titles Data Element ---Preferred Language 50

What is WAWF? Not the World Wrestling Federation.
It is a system for performing 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 52

Vendor Submits Invoice
Operational View GEX Invoice & Receiving Report Vendor Vendor EDI Vendor EDI Vendor FTP With UII as Required 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 notices sent to next workflow user 53

Approve UII as Required
Government Accepts Operational View GEX Invoice & Receiving Report Vendor Vendor EDI Government Workflow Users -Inspectors -Acceptors -Certifiers Vendor EDI Vendor FTP Invoice & Receiving Report SIGN REJECT Vendor web WAWF Approve UII as Required 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 notices sent to next workflow user 54

System Distributes WAWF Vendor Government Workflow Users -Inspectors
Operational View GEX Invoice & Receiving Report Vendor Vendor EDI MOCAS Government Workflow Users -Inspectors -Acceptors -Certifiers Vendor EDI GEX 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 notices sent to next workflow user 55

Why Electronic Invoicing?
It’s the Law The 2001 Defense Authorization act requires DoD to receive and process invoices electronically It’s in the Regs DFARS Electronic Submission of payment requests requires electronic invoicing It makes good sense Electronic invoices are paid sooner and more reliably then paper invoices 56

“Why WAWF ?” - The DFARS Clauses
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). 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 ) fulfills the requirement for a material inspection and receiving report (DD Form 250). 57

“Why WAWF ?” - Benefits PAPER WAWF Takes Less Time to Get Paid
Navy and Air Force experiencing similar results Takes Less Time to Get Paid % on time payments Interest paid Without WAWF $289 per $million paid With WAWF <2 cents per $million paid Lost Documents Paper – 35,000 WAWF - 1 60% reduction in invoice cycle times PAPER WAWF Currently $1M savings monthly - Reduced DFAS costs billed to customers - Interest avoidance - Labor savings 58

WAWF Progress to Date WAWF X12 standards for vendor submission
Version deployed to capture UII for fixed price contracts-May 2004 Version deployed for cost type contracts-August 2004 Version to be deployed to capture RFID data- In Test - March 2005 Version to be deployed (no UII/RFID changes)-In Build – August 2005 Version to be deployed to capture Virtual UII – November 2005 X12 standards for vendor submission Extended to accommodate UII data Extended to accommodate RFID data 856 Shipment Notice and 857 Shipment and Billing Notice v4010 FTP - modified for vendor submission (User Defined Formats) DEBX/GEX Maps deployed to extract UIIs from WAWF feed and forward to Registry Future maps for other systems – Defense Standard Supply (DSS) – March 2005 (Proof of Concept) 59

WAWF Information Sources
WAWF Websites Production: Training: Practice: Web Based Training: DCMA: select “Electronic Invoicing” WAWF Help Desk CONUS Only: All: FAX: DoD Vendor Training - Carol Albany, DCMA On-line Demo – Workshops -- Handouts Wide Area Workflow 60

IUID Registry Purpose: Operational Environment: Submit Data
Collect IUID and pedigree information of tangible items owned by DoD Distribute IUID and pedigree information to DoD users Provide single point of reference for DoD tangible items that have assigned Unique Item Identifier Operational Environment: IUID Registry – database located in Battle Creek, MI Operated by Defense Logistics Information Service (DLIS) Resides on Business Process Network backbone Submit Data By WAWF XML or flat file through GEX Manually via IUID Web Entry Site at 61

IUID Registry Status Implementation Timeline:
Concept definition – Oct 03 Development and Test – Nov 03 – May 04 Initial Operational Capability - May 04 Enhancement implemented – May 05 Established Functionality: UID and Pedigree data capture for new End Items Source data from vendors WAWF Shipment Notification Direct electronic submission Web-enabled manual submission Current population Over 90,000 Items 62

Newly Released Capabilities
Registry Enhancement Released May Ability to update Item data Current Part Number Capability to identify embedded items (e.g., subassembly) Capability to identify Government Furnished Property Contract, Contractor, type of property Capability to identify Legacy Items Capability to capture original Manufacturer and Marking entity Capability to capture type of mark Virtual Other unique marks Initial roll out of new functionality via xml data structure 63

Legacy Data Submission
Mark Items with IUID Data Elements Or Virtual IUID Defined IUID XML Legacy data submission has relaxed business rules for contract info DoD Application UID XML Manual Web Entry IUID Registry 64

What is the IUID Lifecycle?
Dispose – DoD/GSA records the “termination” of the UII at time of item disposal Require – DoD contracts reflect the requirement for part marks to include UII data elements for all items which require unique identification 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 This chart illustrates the UID lifecycle. The business rules associated with each “phase” are highlighted in this section. Business rules are also presented. Note the role of the main players: government requires; contractors implement per government requirements and lists in the contract; MIRR data enables capturing 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 66

Develop Strategies for IUID Application
New Solicitations: Post-January Include DFARS Clause On-Going Contracts: Post-January Modify to include DFARS Clause Operational Fleet: Post-January Assign Virtual UIIs to serially managed end items and to serially managed items embedded in end items. Assets in Inventory: Post-January Assign virtual UIIs to serially managed items only. Assets in Depot Maintenance: Post-January Mark end items > $5,000, spares > $5,000, and serially managed items embedded in end items and spares if accessible during maintenance. Assign virtual UIIs to items inaccessible. GFP in Possession of Contractors: Post-January Assign Virtual UIIs to fixed assets, mark mobile assets upon movement and mark new assets upon receipt. Six cases is the universe of UII applications – implementation plan will address all six although some programs depending on there stage may need only address a subset 67

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 Six cases is the universe of UII applications – implementation plan will address all six although some programs depending on there stage may need only address a subset * Representative Listing from Corporate Implementation Briefs 68

Achieve Full IUID Capability for New Solicitations
Tasks to accomplish for achieving full UII capability for new solicitations include the following: Issue Implementing Instructions Train Supporting Integrated Product Teams on UII Include DFARS in Solicitations Comply With Established Cost Accounting Standards For UII Cost Recovery on Contracts Monitor Compliance & UII Registrations Engage Support Functions in Upgrade of Automated Information Systems to Utilize UII 69

Achieve Full IUID Capability for On-going Contracts
Tasks to accomplish for achieving full IUID capability for on-going contracts include the following: Establish Feasibility Remaining Period of Performance Time/Cost to Implement Method/Source of Funding Contractor UID Capability Direct Implementation on Feasible Contracts Issue Modification for Including DFARS Negotiate and Award Modification Comply With Established Cost Accounting Standards For UII Cost Recovery on Contracts Monitor Compliance & UII Registrations Engage Support Functions in Upgrade of Automated Information Systems to Utilize UII 70

Virtual Unique Item Identifiers
Virtual IUID – Identifies an item until a trigger event occurs for physical marking Requires innate serialized identity data to be previously marked on the item Item must qualify for IUID, i.e., =/>$5,000; mission essential or controlled inventory if <$5,000; or embedded DoD serially managed item Used for items in operational use, in inventory and government property in possession of contractors 71

Virtual Unique Item Identifiers
Trigger Events Change in location - taken out of service at one place and moved to another to begin service Change in status - taken out of service and placed in maintenance or returned to inventory Change in program - shifted from control of one program to another Change in accountability - moved from the custody of one organization to the custody of another 72

Assign Virtual UIIs to Items Operational Use & Inventory
Tasks to accomplish for assigning virtual UIIs to items in operational use & inventory include the following: Determine List of Serially Managed Items/End Items Assess Availability of UII Data Elements on Serially Managed Items/End Items Determine Which UII Construct to Use For Virtual UIIs Develop Algorithm and Business Rules for Construction Virtual UIIs From Available Data Elements on Assets Assign Virtual UIIs and Register in UII Registry Maintain Integrity of UII Data Elements Appearing on Serially Managed Assets 73

Achieve Full IUID Capability in
Depot Maintenance for Items w/o Virtual UIIs Tasks to accomplish for achieving full IUID capability in depot maintenance for items without virtual UIIs include the following: Assess Depot UII Capability Marking Methods Part Numbering Serialization Machine-Readable Marking Determine Shortfalls in Current Depot UII Capability to Meet UID Requirements Processes Equipment Software Training Funding Start Program to Overcome Shortfalls Specify Symbology Specify Semantics Specify Syntax Acquire Marking Software Acquire Marking/Labeling Equipment Acquire Printers & Verifiers Acquire Readers Facilitate Host Computer Select Process Specifications Label, stock, inks, solvents, adhesives, coatings, equipment, etc. Equipment & Software Installed Tested UII Registration Capability Customer Acceptance of Marks Virtual UIIs Assigned for Inaccessible, Embedded Serially Managed Items in End Items/Spares 74

GFP in Possession of Contractors
Transition from the DD Form 1662 in Support of DFARS 10/1/05 - Phase out manual & migrate to electronic reporting. 1/1/06, DFARS Rule for electronic reporting of all Government property will permanently replace the DD Form 1662. Process; Step 1 – Complete the DD1662 as of September 30, 2005 – beginning balance Step 2 – By 5/31/06 submit UII and associated master data for PIPC valued at more than $5000 to the registry (bulk via XML format or online entry) Step 3 – On/before 5/31/06 contracting officers requested to mod contracts to replace DD 1662 with electronic reporting requirement. Initiated by written request that validates reconciliation of registry, last 1662, contractor’s property records List GP as of Sep 2005 not in registry List GP going through disposal as of Sep 2005 Quantity and value of PIPC removed from contractor’s responsibility prior to completing the reconciliation 75

UID Registry/1662 Timeline (2005-2006)
Jun 1 Jul 1 Aug 1 Sep 1 Oct 31 Nov 15 Jan 1 May 31 Jul 31 Sep 1 SEP 30 Registry Capable - PIPC each(s) All new GFP meet IUID Requirement DFARS Change All PIPC in Registry Reconcile 1662 FOC On-line Publish Detailed 1662 Criteria Registry Capable for PIPC bulk load DCMA Letter & Deviation/ DFARS Contractors Accept Deviation/ DFARS Normal 1662 Reports Due Final DFARS All contractors on-line Volunteer Contractors must complete 1662 reconciliation no later than Mar 31, 2006 Data on all PIPC must be contained in registry prior to reconciliation Small businesses may submit paper 1662 DD 1662 Eliminated December 2006 76

1662 Reconciliation Process/ Instructions
Jun 2005 – May 2006 May 31, 2006 May 31, 2006 Submit Only OPE, IPE, STE, ST, Military Property (excluding reparables) In Electronic Format No Contractor Acquired Property Submit Only Government Material (GF) Government Material (CA), Land, Other Real Property On DD Form 1662 Standard Submission of All Government Property on DD Form 1662 WAWF Bulk Loads Populate the UID Registry File Data File Data A Line Item Registry Report B DD 1662 Transition C DD 1662 Submission Reparables and serialized GFM are optional for A. Must be in A or B. Policy for Real Property – Pending. Grand Totals of A + B Should Equal C 77

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 Implementation Plan Format V1.7 of 9 November 2005 System Description: Briefly describe the military system, its mission, and its position in the acquisition life cycle. References: Provide a list of references including service IUID CONOPs, Instructions, Relevant Service IUID Policy documents (To develop the UID Program Plan use the most recent draft of the documents in development) and prime contractor(s) Single Process Initiatives if available. See OSD IUID Website for list of policy requirements, Exemption and Approval Source: The appropriate authority must separately approve exemptions for items being phased out of inventory by December 31, 2010, and exceptions based on DFARS in order to be included in this plan Describe the overall IUID Implementation Strategy to include: Marking Current and future contracts Legacy items Depot Manufactured items and plant equipment Describe process for entry of UII and pedigree data into the IUID Registry. Technical documentation strategy to minimize the non-recurring costs for marking Property In Possession of Contractors Describe the program sustainment strategy Explain the system and its point in the Program Development Life Cycle and current acquisition timeline. Explain the integrated components required to obtain the DoD objective. Identify the overarching program if this system roles up to support a broader mission capability. * Template & Sample Plan on UID Home Page 79

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 Implementation Plan Format V1.7 of 9 November 2005 System Description: Briefly describe the military system, its mission, and its position in the acquisition life cycle. References: Provide a list of references including service IUID CONOPs, Instructions, Relevant Service IUID Policy documents (To develop the UID Program Plan use the most recent draft of the documents in development) and prime contractor(s) Single Process Initiatives if available. See OSD IUID Website for list of policy requirements, Exemption and Approval Source: The appropriate authority must separately approve exemptions for items being phased out of inventory by December 31, 2010, and exceptions based on DFARS in order to be included in this plan Describe the overall IUID Implementation Strategy to include: Marking Current and future contracts Legacy items Depot Manufactured items and plant equipment Describe process for entry of UII and pedigree data into the IUID Registry. Technical documentation strategy to minimize the non-recurring costs for marking Property In Possession of Contractors Describe the program sustainment strategy Explain the system and its point in the Program Development Life Cycle and current acquisition timeline. Explain the integrated components required to obtain the DoD objective. Identify the overarching program if this system roles up to support a broader mission capability. * Template & Sample Plan on UID Home Page 80

IUID Implementation Plan
Describe the overall IUID Implementation Strategy to include: (Continued) Exemptions are intended only for contingency operations. Are you including DFARS Clause in solicitations? What actions are you taking on existing contracts that do not include the DFARS Clause ? If applicable, provide rationale for each contract where modification to include the DFARS Clause is considered infeasible. Describe the population of legacy items that qualify for IUID. Are serially managed items going to be assigned virtual unique item identifiers? Who will assign virtual UIIs? What are the trigger events for marking legacy items? Who will mark legacy items at the trigger events? What are the infrastructure requirements? What is being done to satisfy these infrastructure requirements? What are your UII requirements in contracts / work orders for depots? What is the status of your supporting depot in developing the marking and registration capabilities required for your program? See Data Submission Paper at the UID Website, How is the program dealing with the resulting documentation (e.g. Drawings)? 81

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. Describe the overall IUID Implementation Strategy to include: (Continued) Are there any innovative approaches to minimizing costs? (See DoD Guidelines for Engineering, Manufacturing and Maintenance Documentation Requirements for Unique Identification (UID) Implementation, What is the status of your contractors’ implementation of IUID for Property in Possession of Contractors? How is IUID being used in Performance Based Logistics, Contractor Logistics Support, and organic support? What is the serialization methodology for legacy items? Are virtual UIIs to be used for serialized items? What is being done to ensure compatibility with cross program / cross service Automated Information Systems? 82

IUID Implementation Plan IUID Implementation Plan for Programs
FY (As needed) FY1 FY 2 FY 3 FY 4 Program Resource $Infrastructure _____ $Manpower _______ $Training _______ $Total _______ NOTES For information on plan development contact Mr. Charles lord at (703) Select following Website for IUID Program Information All plans are to be forwarded electronically in .PDF format, via the component or service acquisition executive as appropriate to ACAT 1D program plans are for OUSD (AT&L) approval. Copies of other service-approved plans are for the record. IUID Implementation Plan for Programs Submitted by: PM Reviewed//Approved by: PEO; CAE; OUSD (AT&L) Approvals: OUSD - ACAT 1D; CAE - ACAT 1C; PEO - other Programs 83

Top 5 Things to Know About IUID
Item IUID is a mandatory DoD requirement on: all new tangible personal property solicitations beginning Jan 04 (July 29, 2003 policy memorandum) legacy items in inventory and operation, including government furnished property (GFP) (Dec 23, 2004 policy memorandum) Motivators for transition planning Program Plans from government PMs Corporate/Facility Single Process Initiatives (now through 2010) Use existing marking processes & marks with UII content Item Identification and tracking can revolutionize the detail available to Configuration Management, Systems Engineering, Logistics Support and Operational Planning What began as a US DoD initiative has become truly International in scope!! 85

Key Responsibilities for IUID Implementation
Program Managers will identify items embedded in end items that require unique identification, including embedded subassemblies, components and parts. These embedded items will identified in a Contract Data Requirements List (CDRL) or Exhibit. Contracting Officers shall include the clause at , 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 , marking of items shall be in accord with MIL-STD-130M, 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 , 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. 86

See the Newly Completed Video (IUID 102) at
Key IUID References USD (AT&L) Policy Memoranda of July 29, Nov 26, Dec 22, 2003, Sep 3, 2004, Dec 23, 2004, May 11, 2005; May 12, 2005 DFARS Final Rule (April 22, 2005) MIL-STD-130M December 2, 2005 (New) Supersedes “L” with Change 1 of 20 December 2004 DoD Guide to Uniquely Identifying Items V1.5 June 7, 2005 (New) Program Manager’s Planning Roadmap for Implementing Item Unique Identification (IUID) V1.2 June 10, 2005 (New) UII Implementation Plan Format for Programs It is not the vu-graphs but the references that must be used in designing a UII implementation See the Newly Completed Video (IUID 102) at 87

Or by e-mail to uidprogramtraining@dau.mil
Resources & Contact Information DoD UID Homepage UID Special Interest Area UID 102 Video UID RDT Brief UID/IUID Program Mr R. Leibrandt at or at (703) IUID Training from Defense Acquisition University Capital & Northeast Region: (703) (DSN 655) Mid-Atlantic Region: (240) South Region: (256) (DSN 788) Mid-West Region: (937) West Region: (619) (DSN 524) Or by to Mention OSD Site; Brief available at DAU RDT site – detail how to get there from DAU home page Invite additional training on UII and other acquisition subjects by DAU – highlight locations and contact information 88

UID and RFID Comparison
BACKUP UID and RFID Comparison 89

UID-RFID Policy Relationship
According to current DoD Policy, RFID tags that carry data are required to be attached to packages at multiple levels, including item packages, cases, and pallets. Unique Identifiers are required to be attached or directly marked on items using a data matrix to carry the UID data elements. RFID Tag (Pallet Level) RFID Tag (Case Level) RFID Tag (Item Package Level) UID Data Matrix (Item Level) 90

Life cycle data visibility Supply chain receipt/track
UID vs RFID UID RFID Marking Item Packaging Technology 2D Data Matrix EPC RFID tag Purpose Life cycle data visibility Supply chain receipt/track Threshold >$5000, some exceptions NONE Implementation January 1, 2004 January 1, 2005 Separate but integrated initiatives Different technologies Different business rules 91

UID-RFID Data Relationship
End Item Database Data (15) UII (Concatenated) Descriptive Data UII Data Elements (3) Issuing Agency Code UID Type Item Description Unit of measure Acquisition Data Contractor Contract Number CLIN/SLIN/ELIN Price Acceptance Code (identifies acceptor) Acceptance Date Ship to code RFID Data at the Pallet Level Pallet EPC Shipping Data RFID Data at the Case Level Case EPC RFID Data at the Item Package Level Item Package EPC Embedded Items of End Items (10) UII (Concatenated) Descriptive Data UII Data Elements (5) Item Description Unit of measure Parent UII as of delivery date GFP flag 92

Agenda Unique Identification (UID); Item Unique Identification; Unique Item Identifier (UII) UID/IUID Policy Contracting for IUID Marking Items WAWF and.

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Agenda Unique Identification (UID); Item Unique Identification; Unique Item Identifier (UII) UID/IUID Policy Contracting for IUID Marking Items WAWF and.

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Presentation on theme: "Agenda Unique Identification (UID); Item Unique Identification; Unique Item Identifier (UII) UID/IUID Policy Contracting for IUID Marking Items WAWF and."— Presentation transcript:

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