DoD Update on Item Unique Identification (IUID)

1. DoD Update on Item Unique Identification(IUID) AIM Expo September 2011

2. IUID Value Proposition • IUID offers quantifiable efficiency and effectiveness gains • IUID value can be . . . • Quantified in key value chains: • Property Accountability • Serialized Item Management • Product Lifecycle Management • By assessing IUID requirements/applications within a set of functional nodes:

3. Key Actions to Synchronize IUID Activity • Communications to the Community • Programmatic Leadership Changes • Requirements and expectations • AT&L Ownership - synchronized roles • Aligned/unambiguous value based policy • Maintenance policy • Supply policy • Property Accountability policy • DFARS • Business Process Review • Funding • Synchronized investment • Confidence in savings projections • AIS capability • Decision support • Capable information systems • Serialization of items • Unique item identifier (UII) schema • AIT Infrastructure • Physical mark (UII) • Scan/read capability Open lines of communication IUID enabled business processes Information/ decision support environment Physics of automated enablement

4. Benefits—Value Chain Examples

5. Revised Secondary Item Policy as a Result of DoD Joint Logistics Board IUID Task Force Property Real Property Personal Property Principal Items Secondary Items Equipment with a unit acquisition cost of $5K or more DoD-serially managed: sensitive, critical safety, or pilferable items Controlled (sensitive or classified equipment) Depot Level Reparables Unique item-level traceability Required ( or other DoD-serially managed) “Mark what needs to be marked” IUID Criteria

6. IUID – Policy Updates Update DoDM 4140.01-M Update DoDI 8320.04 Update GFP/CAP Policy & Procedures Update DFARS Clauses 211.7003 & 211.7007 Update DoDI 5000.02, as appropriate Update DoDI 4151.19, as appropriate • Drafts have been updated, but not approved/published

7. Policy Refinement for Secondary Items In Use or In Inventory – Dec 2010 Focuses IUID requirement for secondary inventoryon items requiring unique item level traceability • $5000 threshold no longer applies for secondary inventory • Scope – DoD serially-managed secondary inventory • Spare and repair parts that are serially managed • AA&E that are serially managed, but not managed by “lot” only • Small Arms • Depot Level Reparables (DLRs) • Other sensitive, or pilferable, or critical safety items that are serially managed • Other secondary items that require unique item level traceability • Acquisition policy/DFARS clauses for secondary inventory being updated to align with policy

8. Emerging IUID Policy for the Supply Chain MANAGEMENT OF CONTROLLED INVENTORY SPECIAL REQUIREMENTS MATERIEL PROGRAMS MATERIEL DATA MANAGEMENT AND EXCHANGE SUPPORTING TECHNOLOGIES MATERIEL RETURNS, RETENTION, AND DISPOSITION DELIVERY OF MATERIEL MAKE AND MAINTAIN MATERIEL SOURCING DEMAND AND SUPPLY PLANNING OPERATIONAL REQUIREMENTS • Draft DoDM 4140.01-M: • Provides guidance on supply chain materiel management • Reorganized from a single regulation to a multi-volume manual • Includes specific guidance on serialized management using the UII

9. Draft DoDM 4140.01M Policy, Volume 9 Unique item level traceability is required for all DoD serially managed items that are also sensitive or pilferable, all DoD serially managed critical safety items and all NWRM using a Unique Item Identifier (UII) assigned to each individual item, i.e. a single instance of a stock-numbered item or a single assembly or subassembly. Unique item level traceability is also required for depot level reparables, as well as any item that the materiel manager decides requires unique item level traceability. This requirement does not apply to assets controlled by lot only. Components shall begin to transition from serially managing these critical items using the manufacturer’s serial number to serially managing the items using the globally unique and machine-readable UII (Construct #1 or #2 or acceptable equivalents) as defined in the “DoD Guide to Uniquely Identifying Items” at the IUID website, http://www.acq.osd.mil/dpap/UID/attachments/DoDUIDGuide.pdf.

10. Draft DoDM 4140.01M Policy (continued) While most items are accounted for by NSN, Components shall account for all DoD serially managed items that are also sensitive or pilferable, or DoD serially managed critical safety items or NWRM by UII within NSN or by serial number during the transition state until system changes implementing IUID are complete. These items shall be assigned a UII in accordance with DoD Instruction 8320.04. The Military Departments and DLA shall develop the capability to intensively manage these items as follows: (a) Receipt, issue, and inventory processes or balance affecting actions to both the storage site asset balance record and the materiel manager asset balance record, will be conducted by UII within NSN.(b) Issuing activities will provide shipment notification or shipment accompanying documentation to the recipient identifying the NSN and UII provided. (c) When wholesale stocks are issued, whether from stock or direct delivery, the recipient, in addition to updating asset records by UII within NSN, will acknowledge receipt back to the wholesale materiel manager by UII.

11. IUID – Marking Develop/issue guidance to reduce non-recurring engineering costs on IUID items Drafted Technical Data Memo on items with data plates and data labels Develop tools that reduce the cost of technical data updates Worked with Components on Technical Data Crawler Substantial benefits begin in 2015–17 with critical mass of marked items and IUID infrastructure.

12. IUID - Registry • The IUID registry will support full lifecycle visibility for tangible items, integrating financial, maintenance, and accountability systems. Data in the Registry includes: • What the item is • How and when it was acquired • The initial value of the item • Current custody (government or contractor) • How it is marked • Captures data from many systems and submitters, including Wide Area Workflow (WAWF), XML and flat file submissions from depots, shipyards, bases, airfields, and maintenance shops around the world. • Government Furnished Property included • Currently 15 million records in the IUID Registry. Anticipated volume – 90-100 million. • Public Access Website https://www.bpn.gov/iuid/ • Users with a need to know detailed IUID Information can request Controlled Access to the IUID Registry at https://www.bpn.gov/BRS • IUID Registry Program Manager Mr. Will Whittington, 269-961-4510, William.Whittington@dla.mil

13. IUID –Transition from Acquisition to Supply Chain Main focus shifted from upstream engineering and acquisition activities to downstream supply chain processes and systems implementation as the IUID program has progressed and evolved. With this shift, USD(AT&L) directed that the role of Program Lead for IUID transition from Defense Acquisition and Procurement Policy (DPAP) to the Assistant Secretary of Defense, Logistics and Materiel Readiness, (ASD(L&MR)) to align leadership with key implementation activities. L&MR POC – Ms. Lora Conrad, (571)372-5224 Lora.Conrad@osd.mil

14. Summary • Policy changes underway • DFARS • Supply Chain • Maintenance • Program Lead transition to SCI complete • ERP development/changes may present a challenge for 2015 IOC