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Item Unique Identification IUID

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National Defense Inventory is valued at $700B. DoD Maintenance ... commence when equipment is returned for maintenance. Key Direction from IUID Policy Updates ... – PowerPoint PPT presentation

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Title: Item Unique Identification IUID


1
Item Unique Identification (IUID)
Professor Kim Meyer, CDFM Professor of Program
Management 937-781-1040 Kimberly.meyer_at_dau.mil Pr
ofessor Judy Volpe Professor of Contract
Management 937-781-1033 Judith.volpe_at_dau.mil
2
Overview
IUID
  • Genesis
  • So What is IUID?
  • End-2-End Concept
  • Implementation of IUID
  • Contracting for IUID
  • Whats New?
  • Reference Sources

3
DoD Maintenance Enterprise Systems Supported
30,000 Combat Vehicles
? 900 Strategic Missiles
  • Maintained by
  • 659,000 DoD personnel
  • Private sector companies

? 280 Ships
? 14,000 Aircraft/Helicopters
Maintenance cost 81 billion per year
300,000 Tactical Vehicles
Communications/Electronics Equipment Support
Equipment Other Systems
National Defense Inventory is valued at ? 700B
gt 100M Candidate Parts
Source LMI analysis of DoD data
4
Scope of DoD Maintenance
DoD Budget
DoD Personnel
81 billion
659,000 maintainers
2.9 million total
503 billion total
23 maintainers
16 spent on maintenance
Sources FY2007FY2011 Presidents Budget and
LMI analysis of Defense Manpower Data Center
FY2005 data
6
5
Materiel Readiness Life Cycle Framework from the
Warfighter View
6
Facing new challenges…
  • Rapidly moving force on a dynamic battlefield
  • Demand for better information on assets
  • Need for more effective visibility and management
    of inventory
  • Improve business processes now
  • Improve confidence
  • Influence the direction and cost of technology
    development
  • Drive the standards to work for us
  • Facilitate the implementation of Unique
    Identification (UID)

7
The Whats in it for Me - Big Picture Performanc
e Driven Outcomes
  • Upon the attainment of IUID/SIM Full Operating
    Capability, DoD weapon system sustainment
    managers will have dramatically improved insight
    into the cause-and-effect relationship between
    resources and readiness.
  • Capitalizing on this insight, weapon system
    support decisions will both be more informed and
    take less time.
  • Data-driven continuous process improvement
    (CPI) initiatives will be institutionalized,
    enabling the effective management of materiel
    reliability, materiel repair/replacement cycle
    time, and materiel sustainment cost
    performance-to-plan.
  • Overall material readiness will be higher, and
    overall weapon system life-cycle cost will be
    lower.
  • Fully automated maintenance management
    (unburdens the maintainer)

8
Prime Movers What Will Drive DoD to IUID
  • Requirements
  • JROC approved sustainment KPP Availability
  • 2 KSAs Life Cycle Cost, Reliability
  • Integrated Policy
  • DoDI 5000.2 - Life Cycle Acquistion/Support
  • DoDI 4151.19 Serialized Item Management
  • DoDD 8320 UID in Net-Centric Operations
  • DoDI 8320.xx UID Instruction (coming)
  • DAG/Supportability Guide
  • Governance/Oversight/Training
  • DAB, DAES, MRSSG/MRU, GAO, BTA-IRB, DAU

9
The Genesis of IUID
  • GAO concerned with DOD management of its
    inventory of equipment.
  • Finding DODs inventory exceeded its war
    reserve or current operating requirements, but
    lacked key spare parts (particularly aviation
    spares) due to a lack of adequate accountability
    over material shipments or effective monitoring
    of defective spare parts.

GAO-02-477G (Mar 02) Executive Guide, Best
Practices in Achieving Consistent, Accurate
Physical Counts of Inventory and Related Property
10
Policy Approach created two IUID PPE
Populations New Tangible Items Legacy Items
USD(ATL) Policy Memo 29 July, 2003
USD(ATL) Policy Memo 23 December, 2004
  • New tangible items
  • Begin NLT 1 Jan 2004
  • commercial purchases
  • Begin NLT 1 Jan 2005
  • depot manufactured items
  • Legacy items in inventory
  • IOC Jul 2005
  • pilot depots
  • Complete NLT Sep 2007
  • all existing serialized items
  • Complete all items NLT Dec 2010

11
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 tangible items will
    facilitate item tracking in DoD business systems
    and provide reliable and accurate data for
    management, financial, accountability and asset
    management purposes.

Effective 1 January 04 Mandatory for Solicitations
12
A DoD Strategic Imperative
  • IUID is strategically critical to enable property
    management processes throughout the DoD
    enterprise to engage with precision and speed to
  • Always know what property the DoD owns
  • Always be able to account for it
  • Know where it is
  • Know who has custody of it
  • Know who is accountable for it
  • Know how it has been used maintained
  • Know what it cost
  • Know its value
  • And use this information to
  • Enable capability-based readiness
  • Support planning, forecasting, and budgeting
  • Identify gaps in capabilities
  • Improve reliability and warranty management
  • Improve processes
  • Reduce cycle time

13
IUID Policy Overview
  • Policy memorandum released on July 29th 2003
    (with subsequent updates) 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 became a mandatory
    payment requirement on January 1, 2005

14
USD (ATL) 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.

15
Key Direction from IUID Policy Updates
  • Apply IUID to legacy items in inventory and
    operational use
  • All program and item managers plan for and
    implement IUID
  • - ACAT 1D programs submitted plans by June 2005
  • - All others to MDAs by January 2006
  • Government Furnished Property (GFP) must meet
    IUID
  • policy requirement effective 1 Jan 2006
  • Plans targeted FY2007 as the point by which
  • - All existing serialized assets will be entered
    in IUID registry
  • - UII marking capabilities established
    such that marking can commence when equipment is
    returned for maintenance

16
Key Direction from IUID Policy Updates (Continued)
  • DUSD (Logistics and Material Readiness) develop
    IUID implementation plan for organic depot
    maintenance operations
  • Jan 2007 OUSD Materiel Readiness Maintenance
    Policy released Implementing Item-Unique
    Identification in DoD Maintenance (dated 31 Jan
    07)
  • The Concept of Operations IUID-Enabled
    Maintenance in Support of DoD Materiel Readiness
  • Feb 07 Policy Update for Item Unique
    Identification (IUID) of Tangible Personal
    Property
  • DoD Directive 8320.03, dated 23 Mar 07, Unique
    Identification (UID) Standards for a Net-Centric
    Department of Defense

17
Overview
IUID
  • Genesis
  • So What is IUID?
  • End-2-End Concept
  • Implementation of IUID
  • Contracting for IUID
  • Whats New?
  • Reference Sources

18
Déjà vu All Over Again ?...
Marshs Supermarket
Troy, Ohio
June 26, 1974
67
Bar Codes Transformed Retail Sales and Inventory
Management
19
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 . . .
20
UID What makes it so Special?
  • UID…
  • Provides The Key to discovery and correlation
    of item, real
  • property and human resource information so …
  • DoD can consistently locate, control and value
    assets
  • anywhere and anytime
  • Enables globally accessible and secure
    enterprise data
  • Registries enable creation of UID mission
    critical services to
  • Translate legacy data for existing DoD systems
  • Enable access for operational support
  • Enable joint paperless management

21
In todays world, many items we buy have
identification on them that indicate the
manufacturer or distributor of the product and
the product type. ---Two identical cans of Coke
from the same bottling plant will show the same
data on the Universal Product Code (UPC) Some
items also have a serial number that
differentiates one item from another identical
item (e.g., the 24th engine off the assembly line
is different from the 1024th) ---Serial numbers
are unique, but not outside of their enterprise
the serial number assigned by XYZ Manufacturer
could be the same as one assigned by ABC Company.
By combining enterprise identification, item
class and serialization, a globally unique item
identifier is created that differentiates each
item from other items ---Each item has its own
globally unique identifier (UII)
UII What Is It?
22
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.
23
Overview
IUID
  • Genesis
  • So What is IUID?
  • End-2-End Concept
  • Implementation of IUID
  • Contracting for IUID
  • Whats New?
  • Reference Sources

24
What is the IUID Lifecycle?
Require DoD contracts reflect the requirement
for part marks to include UII data elements for
all items which require unique identification
Dispose DoD/GSA records the termination of
the UII at time of item disposal
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
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
25
Applying the UII
  • Vendor-Applied-at-Source Marking applied when
    item is manufactured
  • Opportunity-Based Item Application Can be done
    in the field or factory, wherever it is
    convenient to gain access to items either on an
    end item or available in a storage facility
    (phase maintenance, scheduled servicing, depot
    rebuild or overhaul processes, and work-order
    processes during modification)
  • Seek-and-Apply Used for particular items held
    within service, either at the end item or in
    storage. This strategy is dependent on
    establishing the location and availability of
    items before deployment of application equipment
    and teams. This approach is dependent upon good
    legacy data, and will demand greater overhead of
    coordinated effort to effect access to the
    assets.
  • Gated The interception of items as they transit
    specific gates within the supply chain. After
    identification, the situation can be resolved by
    diverting the item back to the vendor for
    application, provision of an application
    capability at the specific supply gate, or
    diversion of the item to a centralized
    application facility.

26
Use of Commercial Identifiers
  • Commercial identifiers can be considered for use
    as a DoD IUID equivalent if it meets these
    criteria
  • Must contain an enterprise identifier
  • Must uniquely identify an individual item within
    an enterprise identifier, product or part number
  • Must have an existing Data Identifier (DI) or
    Application Identifier (AI) listed in ANSI
    MH10.8.2, Data Identifier and Application
    Identifier Standard
  • Some examples of commercial unique identifiers
    meeting these criteria are
  • Global Individual Asset Identifier (GIAI) for
    serially-managed assets
  • Global Returnable Asset Identifier (GRAI) for
    returnable assets
  • ISO Vehicle Identification Number (VIN) for
    vehicles
  • Electronic Serial Number (ESN) for cellular
    telephones only.
  • Commercial identifiers must be approved by the
    UID Program Office in order to be accepted as
    IUID Equivalents

27
UII Marking by DoD
  • It may be desirable for the DOD-requiring
    activity to mark items when received rather than
    require the vendor to mark until the vendors
    internal capabilities are established. The
    requiring activity must ensure that DOD
    activities can guarantee that the UII information
    they use is unambiguous and globally unique
    through life.
  • There will be non-recurring costs to make the
    appropriate changes to drawings and marking
    instructions for legacy items, in accordance with
    MIL-STD-130 requirements, as well as costs for
    marking equipment and readers
  • 11 May 05 Directed programs to include
    requirements in budgeting documents (FY07-12) to
    ensure implementation visibility within the
    Planning, Programming, Budgeting, and Execution
    (PPBE) process
  • Budget exhibits for RDTE, procurement,
    operations maintenance funds
  • Capital and operations budgets in Working Capital
    Funds (included in customer rates)
  • Needs to be an on-going process as requirements
    are identified

28
(No Transcript)
29
Overview
IUID
  • Genesis
  • So What is IUID?
  • End-2-End Concept
  • Implementation of IUID
  • Contracting for IUID
  • Whats New?
  • Reference Sources

30
Implementation Pathway
  • DO SOMETHING WITH THE DATA!

UID Plan
SIM Plan

Requirements
UID Budget

Responsibilities
Develop
Materiel

Business Rules
Marking
UID Resources
Readiness
Capability
Budget
Resources
?
Decide Where
Select Items
to Mark and
Do Something
Mark Items
to be
Marking
with the Mark
Marked
Technology
Document
Transact
I
UID Registry
Engineering
D
Data
Decisions
E
Service/
DLA AISs
31
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

Representative Listing from Corporate
Implementation Briefs
32
Key Responsibilities for IUID Implementation
  • Program Managers will identify items that require
    unique identification, including embedded
    subassemblies, components and parts. These
    embedded items will be identified in a Contract
    Data Requirements List (CDRL) or Exhibit.
  • Contracting Officers shall include the clause at
    252.211-7003, Item Identification and Valuation,
    in all solicitations and contracts that require
    delivery of items.
  • All items delivered to the Department will be
    delivered under a contract line item and the
    Departments acquisition cost of each item will
    be identified under a contract line item or
    sub-line item
  • Contractors are required to provide item unique
    identification, or a DoD recognized IUID
    Equivalent, for all items delivered with an
    acquisition cost of 5,000 or more and as
    designated by the requiring activity for items
    less than 5,000.
  • Under the clause at 252.211-7003, marking of
    items shall be in accordance with MIL-STD-130,
    Identification Marking of U.S. Military Property.

33
Key Responsibilities for IUID Implementation
  • Defense Contract Management Agency will inspect
    and accept IUID items, provide oversight of
    government-furnished property, provide oversight
    of initial IUID-enabled SIM information
    requirements per contract clauses, and provide
    program and technical support using IUID
    associated data for analyzing the
    cost/schedule/technical performance of contractor
    programs and systems
  • IUID Registry will establish interfaces with Wide
    Area Work Flow and property systems maintain the
    IUID Registry and establish interfaces with item
    history, maintenance, system configuration, and
    other pertinent technical databases
  • Maintenance Activities will incorporate IUID
    processes into all relevant transactions, mark
    legacy items as required, associate maintenance
    events to IUID items, coordinate the development
    of IUID processes and SIM requirements with the
    appropriate information systems

34
IUID Implementation Plan
  • Provide references including service IUID CONOPs,
    Instructions, Relevant Service IUID Policy
    documents (Most recent draft for those documents
    in development) and prime contractor(s) Single
    Process Initiatives if available
  • Describe the overall IUID Implementation Strategy
    to include
  • Marking
  • Current and future contracts
  • Legacy items
  • Depot Manufactured items and plant equipment
  • IUID Planning/Budgeting
  • Technical documentation strategy to minimize the
    non-recurring costs for marking,
  • Describe the business strategy for implementing
    IUID
  • Identify IUID-related opportunities to improve or
    enhance business processes.
  • List Metrics
  • Exit Criteria
  • Measures of Success

Template on UID Home Page
35
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.
36
Implementing Guidance for Depots
  • Concept of Operations for IUID-Enabled
    Maintenance in Support of DoD Materiel Readiness
    (dated 1 Jan 07)
  • Fundamental formula I T M
  • I represents identification, T represents
    tracking, M represents management
  • Three key transformation enablers
  • Accurate asset visibility
  • Common standardized data
  • Standardized IUID
  • Envisioned end-state for four scenarios
  • Field-level operations
  • Sustainment-level operations
  • Life-cycle management
  • Performance based agreements, contractor
    logistics support, and foreign military sales

37
Implementing Guidance for Depots
  • Roles and responsibilities
  • Program managers, contracting officers,
    supporting contractors, Defense Contract
    Management Agency, UID Registry administrations,
    supply systems, transportation systems, top-level
    accountability systems, maintenance activities,
    Defense Utilizations and Marketing activities,
    component headquarters
  • IUID Implementation Template for DoD Maintenance
    Depots
  • Phase I Conduct preliminary research and
    planning efforts
  • Phase II Determine the new business environment
    and develop a marking plan for initial IUID items
  • Phase III Execute marking plan and develop a
    full implementation plan for remaining IUID items
  • Special considerations and measuring progress

http//www.acq.osd.mil/log/mrmp/UID_maintenance.
htm
38
Implementation Pathway
  • DO SOMETHING WITH THE DATA!

UID Plan
SIM Plan

Requirements
UID Budget

Responsibilities
Develop
Materiel

Business Rules
Marking
UID Resources
Readiness
Capability
Budget
Resources
?
Decide Where
Select Items
to Mark and
Do Something
Mark Items
to be
Marking
with the Mark
Marked
Technology
Document
Transact
I
UID Registry
Engineering
D
Data
Decisions
E
Service/
DLA AISs
39
Capture IUID Registry
  • IUID Registry is the central repository for IUID
    information and serves as an acquisition gateway
    to identify
  • 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
  • Supports full lifecycle visibility for tangible
    items, integrating financial, maintenance, and
    accountability systems.
  • Maintained by the Defense Logistics Information
    Service (DLIS), Battle Creek.

40
Capture What Data is Included in IUID Registry
  • Pedigree
  • Acquisition Contract Information
  • Original Part Number
  • Serial Number
  • Valuation
  • Initial Acquisition Value
  • Changes in Valuation
  • Accountability
  • Contractor Custody Information
  • Acceptance Data
  • Contract Data
  • Configuration
  • Embedded Items
  • Item Markings
  • Part Number Changes
  • Registry is located on the internet at
    https//www.bpn.gov/iuid.
  • Users must register to obtain login credentials
    and access rights to controlled access portion
  • Must be a government employee or a U.S.
    Government Contractor with approval from a
  • DoD Program Manager or equivalent.
  • Prior to registering in IUID Registry,
    commercial manufacturers and government
  • manufacturing activities must be registered
    with the Central Contractor Registration
  • (CCR) system at https//www.bpn.gov/ccr/scripts
    /index.html

41
Overview
IUID
  • Genesis
  • So What is IUID?
  • End-2-End Concept
  • Implementation of IUID
  • Contracting for IUID
  • Whats New?
  • Reference Sources

42
Contracting for IUID 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, 10 Oct 2003
  • Second Interim Rule, 30 Dec 2003
  • Final Rule, 22 Apr 2005

IUID Mandatory for Solicitations Issued after
January 1, 2004
43
Contracting for IUID
  • DFARS 211.274-1 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

44
Contracting for IUID (Contd) Policy and Clauses
  • DFARS 211.274-2 Policy for Item Unique
    Identification (IUID)
  • Exceptions and approval levels identified
  • DFARS 211.274-3 Policy for Valuation
  • Discusses how to value depending on contract type
  • 252.211-7003, Item Identification and Valuation

45
Contracting for IUID (Contd)
  • DFARS 211.274-2 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 or
  • A determination and finding is 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 Component Acquisition Executive for ACAT I
  • HCA for all other programs
  • DoD UII Program Office must receive a copy of the
    DF (ACAT I)

46
Contracting for IUID (Contd)
  • DFARS 211.274-3 Policy for Valuation
  • It is DoD policy that contractors shall be
    required to identify the Governments unit
    acquisition cost for all items delivered, even if
    none of the criteria for placing a unique item
    identification mark applies
  • The Governments unit acquisition cost is
  • For fixed price type CLINs, SLINs or ELINs, the
    unit price identified in the contract at time of
    delivery
  • For cost type or undefinitized CLINs, SLINs or
    ELINs, the contractors estimated fully burdened
    unit cost at time of delivery to the Government
    and
  • For items delivered under a time and materials
    contract, the contractors estimated fully
    burdened unit cost to the Government at the time
    of delivery
  • The Governments unit acquisition cost of
    subassemblies, components and parts embedded in
    delivered items need not be separately identified

47
Contracting for IUID (Contd)
  • DFARS 211.274-4 Contract Clause
  • Use the clause at 252.211-7003, Item
    Identification and Valuation, in solicitations
    and contracts that require item identification or
    valuation, or both, in accordance with 211.274-2
    and 211.274-3.
  • The Contractor shall provide DoD unique item
    identification, or a DoD recognized unique item
    identification equivalent, for
  • All delivered items for which the Governments
    unit acquisition cost is 5,000 or more and
  • The following items for which the Governments
    unit acquisition cost is less than 5,000
  • Subassemblies, components, and parts embedded
    within delivered items as specified in Attachment
    Number _____
  • The Contractor shall include this clause in all
    subcontracts issued under this contract.

48
Contracting for IUID (Contd)
  • DFARS 211.274-4 Contract Clause Alternate I
  • If marking is not required
  • 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 (DD250) the
    Contractor shall report Governments Unit
    Acquisition cost
  • The Contractor shall submit the information in
    accordance with data submission procedures at
    http//www.acq.osd.mil/dpap/UID/datasubmission.htm

49
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.)
  • RD 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.

50
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 252.211-7003, Item
    Identification and Valuation
  • Reference to MIL-STD-130 (current version)
  • Include the new/revised DID

51
Concerns/Challenges/Strategies
  • General Contract Quality Observations
  • Line item structures make it difficult to
    identify the deliverable/delivery
  • Lot line items and misleading kit
    descriptions complicate payments UID compliance
  • Unclear Options and ordering provisions
  • FAR Part 12 contracts w/o UID clause
  • UID requirements not getting into contracts
  • Clause placement varies -- Sections D, F, H, I
  • Clause included in full text and by reference
  • WAWF-RA deployment
  • Inaccurate or incomplete payment information
  • Not payable as written without extensive manual
    intervention
  • Procurement/Contracting professionals who
    actually do the work are not attending the UID
    Forums

52
Strategies Section B
  • Begin with Section B, Supplies and Services and
    Prices and Costs (CLIN structure)
  • Items must be separately identifiable
  • Items must have a separate delivery schedule or
    period of performance per item

53
Strategies Subline Items
  • Two types
  • Information Only (numeric suffix)
  • Separately Identified (alpha suffix)
  • Identical Items with Different Funds
  • Identical Items with Different Sizes or Prices
  • Segregate Individually Payable Items (different
    packaging or ship to requirements)
  • Individual Delivery Dates or Destinations
  • Kits or Parts with Separate Prices
  • Exhibits can substitute for large numbers of
    subline items (subassemblies, components or
    parts)
  • Reference in Section B attach in Section J
  • Consistency in CLIN, SLIN and ELIN structures

54
Strategies Section C
  • Reference lengthy work statements in Section C
    attach at Section J
  • Cross-reference applicable paragraph of work
    statement under appropriate line item
  • Clearly delineate which parts belong to which
    line item

55
Strategies Section E
  • Identify where inspection and acceptance will
    occur
  • Identify who has the authority to accept
  • Explain how we will inspect and accept
  • List Inspection/Acceptance DoDAAC for each
    delivery point (used in WAWF to route
    electronically)
  • Reference CDRLs if appropriate
  • Inspection and acceptance of these items will be
    made at the contractors plant
  • Inspection and acceptance of these items shall be
    made at the contractors plant by the cognizant
    DCMA office (Sxxxx) in accordance with the
    acceptance test procedure in Attachment A,
    Statement of Work, section 7.7
  • Inspection and Acceptance of these items shall be
    at the contractors plan by the cognizant DCMA
    office (Sxxxx) in accordance with the acceptance
    test procedure to be submitted and approved under
    CDRL G00F

56
Strategies Section G
  • Specify codes for offices involved in handling
    acceptance and payments
  • Issuing Office
  • Administrative Office
  • Inspector DoDAAC
  • Ship To DoDAAC
  • Acceptance
  • DCAA Office
  • DoDAAC search https//www.daas.dla.mil/daasinq/

57
Strategies Consistency in Line Item Structure
  • Issue
  • Lot pricing a variety of items and quantities
    delivered over time
  • Problem
  • DFAS has no mechanism to pay for partial
    deliveries if no mechanism to report a partial
    acceptance only reconciled at close out
  • Valuation is problematic for IUID registry
  • Strategy
  • Limited use of lot items
  • Use subline items or exhibits to denote the
    actual deliverables and schedule
  • Note no NSNs with a unit of issue of lot

58
Strategies Consistency in Line Item Structure
  • CLIN Kit
  • Kit includes multiple, usually dissimilar items
  • Items are not separately priced
  • Varying quantities
  • Multiple shipments
  • Kit is not considered received until all
    shipments are received

59
How NOT to Structure CLINs for Lots or Kits
ITEM SUPPLIES/SERVICES
QTY/UNIT UNIT PRICE AMOUNT
  • 001 Processing Module/Qty 8
  • FFP
  • Model No. 234-56-7890 FOB Destination
  • 0001AA Funding for Processing Module 1
    LOT 8,044.00 8,044.00
  • FFP
  • Model No 234-56-7890 FOB Destination
  • Purchase Request No xxxxxxxxxx
  • ACRN AA
  • 0001AB Funding for Processing Module 1
    LOT 6,033.00 6,033.00
  • FFP
  • Model No 234-56-7890 FOB Destination
  • Purchase Request No yyyyyyyyyy
  • ACRN AB
  • 0001AC Funding for Processing Module 1
    LOT 2,011.00 2,011.00
  • FFP
  • Model No 234-56-7890 FOB Destination
  • Purchase Request No zzzzzzzzzz
  • ACRN AC

60
A Better Way to Structure CLINs for Lots or Kits
ITEM SUPPLIES/SERVICES
QTY/UNIT UNIT PRICE AMOUNT
  • 001 Processing Module/Qty 8
  • FFP
  • Model No. 234-56-7890 FOB Destination
  • 0001AA Funding for Processing Module 4 EA
    2,011.00 8,044.00
  • FFP
  • Model No 234-56-7890 FOB Destination
  • Purchase Request No xxxxxxxxxx
  • ACRN AA
  • 0001AB Funding for Processing Module 3 EA
    2,011.00 6,033.00
  • FFP
  • Model No 234-56-7890 FOB Destination
  • Purchase Request No yyyyyyyyyy
  • ACRN AB
  • 0001AC Funding for Processing Module 1 EA
    2,011.00 2,011.00
  • FFP
  • Model No 234-56-7890 FOB Destination
  • Purchase Request No zzzzzzzzzz
  • ACRN AC

61
Line Item Structure -- 10 Basic Questions
  • What do we expect the Contractor to deliver (list
    hardware, software, service, and data)
  • Do we have a line item, subline item or exhibit
    line item for each? Do we have ACRNs assigned to
    each in Section B? Do the totals by ACRN, CLIN
    and line of accounting match?
  • When is each item due to be delivered?
  • How much will the Contractor get paid?
  • Are there interim payments before delivery? If
    so, on what basis?
  • When will the Contractor get paid? What
    documentation will be required to effect payment?
  • How is the timing of contract payments related to
    deliveries?
  • Is it clear in the line item structure and
    Sections F through I how payments relate to
    delivery?
  • What constitutes acceptable performance? How is
    it measured?
  • How do the inspection and acceptance criteria in
    Section E relate to the answers to Question 9?



62
Final Thoughts
  • Do
  • Include the UID clause
  • Specify to which line items the clause applies
  • Identify any embedded components to be valued and
    marked
  • Include language requiring use of WAWF
  • Ensure that each deliverable has a separate CLIN,
    SLIN, or ELIN and a defined delivery schedule
  • Ensure inspection and acceptance criteria address
    UID
  • Include the current version of MIL-STD- 130
  • Do Not
  • Lump dissimilar items together as a lot or a
    kit
  • Specify which UID construct is to be used
  • Require that the Contractor use government
    assigned identifiers for enterprise, part, or
    serial number
  • Impose unusual payment or acceptance procedures

63
More Final Thoughts
  • Make the contract easy to understand and manage
    for everyone
  • Use common procurement language
  • Be consistent in CLIN, SLIN and ELIN structures
  • Be consistent Period!

64
Overview
IUID
  • Genesis
  • So What is IUID?
  • End-2-End Concept
  • Implementation of IUID
  • Contracting for IUID
  • Whats New?
  • Reference Sources

65
DAU IUID Training
  • Updating existing UID Continuous Learning Module
    (CLM 200) focuses on new items
  • Developing new UID CLM for Legacy Items
  • Based on End-2-End concept and DoD Maintenance
    CONOPS
  • Lessons
  • Overview of CONOPs
  • Program Management and Integrated Product Team
    Responsibilities
  • Implementation Template for DoD Maintenance
    Depots
  • IUID Registry
  • IUID Data Usage in Current and Future
    Applications
  • Availability Targeting end of year completion
    waiting on Program Management Plan from contractor

66
End-2-End Concept Workshops
Contractor Physical/Contractual Compliance
New Items Mods
Establish IUID Program Plan
IPTs PM/FM Contracting Engineer
Property to be provided under contract
Military Equipment Valuation (Id for initial
valuation)
  • Contract Clauses
  • CLINs/SLINs
  • Mil Std 130
  • Etc

Inspection Acceptance Govt QA
WAWF
WAWF
Contractor Physical/Contractual Compliance
Legacy Items
Establish Depot UID Team (IPTs) PM/FM Contracting
Engineer Item Mgrs Equip Spec
Depot Maintenance Activities
Inspection Acceptance Govt QA
Establish marking plan
IUID Registry
DOD Organic Depot Physical Compliance
Warfighter
  • Contracting for UID, Property in Possession of
    the Contractor (PIPC), Military Equipment
    Valuation, Depot CONOPs
  • Practical cases and examples attendees to
    include all members of UID Team
  • Presented to TACOM in Nov 2007 can be tailored
    to any organization

67
Item Unique Identification Reference Sources
68
(No Transcript)
69
May 2006 UID e-newsletter
70
(No Transcript)
71
(No Transcript)
72
(No Transcript)
73
(No Transcript)
74
Other Information Tools
  • DoD Guide to Uniquely Identifying Items
    Outlines the UID process, business rules, and UID
    constructs
  • UID 101 This guide explores all aspects of this
    initiative and is intended to provide an
    understanding of how DoD program offices and
    commercial businesses can successfully implement
    the Unique Identification (UID) policy
  • Guidelines for the Virtual Unique Item Identifier
    (UII) This document describes the virtual unique
    item identifier (UII) concept, the processes for
    assigning and registering virtual UIIs, and the
    prospective marking of items that have virtual
    UIIs.
  • Guidelines for Engineering, Manufacturing, and
    Maintenance Documentation Requirements for UID
    implementation Provides suggested methods for
    minimizing the non-recurring engineering costs
    associated with incorporating marking
    requirements for DoD unique identification into
    engineering drawings, manufacturing instructions,
    and maintenance work records.

75
Other Information Tools
Added to Conference Website
76
Other Resources
  • www.dau.mil
  • Continuous Learning Modules
  • CLC 033 Contract Format and Structure for the DoD
    e-Business Environment
  • CLM 200 Item Unique Identification
  • NEW! CLM to be deployed by 30 Sep 07 IUID for
    Legacy Items
  • http//www.iuidtoolkit.com/ UID Toolkit
  • http//www.acq.osd.mil/dpap/UID/ Official UID
    Website

77
QUESTIONS?
78
USD (ATL) Memorandum 11 May 2005 Budget
Instructions for UID Implementation FY 2007-2012
  • Identify UID support in applicable budget exhibit
    submissions in the existing budget lines in
    FY07-FY12 budget
  • R-2 for RDTE
  • P-Series for Procurement
  • OPPB-Series for Operations and Maintenance
  • ATL coordinate with PAE 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)

79
What you see 
  • Can contain 100 times the data as the same space
    in a barcode
  • Can be read omni-directionally
  • Can be damaged but still return accurate data
  • Can be scaled up or down to fit within available
    marking space

 What the Reader sees )gtRS12GSMFR 0CVA5 GSSER
786950 RS EoT
80
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 211.274.2

Template Sample Plan on UID Home Page
81
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

Template Sample Plan on UID Home Page
82
Why Electronic Invoicing?
  • Its the Law
  • The 2001 Defense Authorization act requires DoD
    to receive and process invoices electronically
  • Its in the Regulations
  • DFARS 252.232-7003 Electronic Submission of
    payment requests requires electronic invoicing
  • It makes good sense
  • Electronic invoices are paid sooner and more
    reliably then paper invoices

83
Why WAWF ? - The DFARS Clauses
  • 252.232-7003 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).
  • 252.246-7000 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 252.232-7003) fulfills the
    requirement for a material inspection and
    receiving report (DD Form 250).

84
Why WAWF ? - Benefits
  • Takes Less Time to Get Paid
  • 99.99995 on time payments
  • Interest paid
  • Without WAWF 289 per million paid
  • With WAWF lt2 cents per million paid
  • Lost Documents
  • Paper 35,000
  • WAWF - 1
  • 60 reduction in invoice cycle times
  • Currently 1M savings monthly
  • - Reduced DFAS costs billed to customers
  • - Interest avoidance
  • - Labor savings

PAPER
WAWF
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