1. 2013 NPMA Fall Conference Value Through Professional Asset Management IUID Are you Ready? Mike Herskovits, CPPM November, 2013

2. 2013 NPMA Fall Conference Value Through Professional Asset Management IUID – Are You Ready?  Disclosure –  This presentation has extracted from several sources of information and is not intended to be construed the presenter’s employer or as changing or modifying any statute, regulation, DoD policy or guidance, or any term(s) of any contract with the U.S. Government or any department or agency of the U.S. Government.  This briefing focuses on the August 2012 version of DFARS Clause 252.211-7007

3. 2013 NPMA Fall Conference Value Through Professional Asset Management AGENDA  Background & History  Focus of Presentation  Evolution of Reporting  Types of GFP  What is UII  What is Serially Managed  Reporting  Events  Assumptions

4. 2013 NPMA Fall Conference Value Through Professional Asset Management Background & History  DoD has a long tradition of identification and marking of its military property.  The Defense Standardization Act of 1952 gave rise to the national stock number (NSN) system to provide unification & standardization of consumable items to assure like items would be identified as such.  After WWII, an effort was made to prevent unnecessary duplication of supply and allow for sharing across all services.  March 4, 1953 – MIL-STD-130 ID of Marking Published.  Rev. L in 2003 – Allowed for other than only human readable information.

5. 2013 NPMA Fall Conference Value Through Professional Asset Management Background Con’t  1990 – Chief Financial Officer’s Act called for improved financial management. DoD needed capability for enhanced total asset visibility, improved lifecycle management accountability and clean financial audits.  Combatant Commanders need battlefield awareness and total asset visibility.  2002 – DoD initiated an effort to re-engineer the process.

6. 2013 NPMA Fall Conference Value Through Professional Asset Management FOCUS  This briefing focuses on the August 2012 version of DFARS Clause 252.211-7007 The clause does not contain a “marking” requirement  The clause does contain a GFP reporting requirement  The clause is often confused with DFARS 252.211-7003  Both clauses involve the DoD IUID registry. However, each reflects fundamentally different requirements:  DFARS clause 252.211-7003 pertains to delivery of items  DFARS clause 252.211-7007 pertains to reporting of GFP

7. 2013 NPMA Fall Conference Value Through Professional Asset Management Focus Background  2007: Contractor reporting of GFP begins in earnest  Regulatory (DFARS) timeline:  252.211-7007 [August 2012] (Includes new 2014 requirements*)  252.211-7007 [November 2008] (Final Rule)  252.211-7007 [September 2007] (Interim Rule)  Multiple changes created a degree of confusion, but core reporting requirements did not change *Afforded industry adequate time to prepare for new requirements

8. 2013 NPMA Fall Conference Value Through Professional Asset Management Evolution of 252.245.7001

9. 2013 NPMA Fall Conference Value Through Professional Asset Management Types of GFP  Item is serially managed or over $5,000  Item is NOT serially managed AND Under $5,000 RegisteredNot Registered MarkedCompliantFailure to Report Not MarkedFailure to MarkNon-Complian RegisteredNot Registered MarkedPermitted by draft Revised DDFARS 252.211-7003 Failure to Report Not MarkedFailure to MarkIUID Not Required No ISSUE

10. 2013 NPMA Fall Conference Value Through Professional Asset Management What is UII  “a set of data elements marked on items that is globally unique and unambiguous. The term includes a concatenated unique item identifier or a DoD recognized unique identification equivalent.”  Why do some GFP items have UII’s ? Because – The contractor assigned and registered a UII by virtue of delivery under DFARS 252.211-7003 requirements, or The DoD Component assigned and registered a UII while the item was in its custody  By default, items with a UII are serially managed

11. 2013 NPMA Fall Conference Value Through Professional Asset Management What Does Serially Managed Mean?*  “An item designated by DoD to be uniquely tracked, controlled, or managed in maintenance, repair and/or supply systems by means of its serial number.” DFARS clause 252.211-7007 * In addition to items previously marked with a UII, certain FAR property categories already meet this definition.

12. 2013 NPMA Fall Conference Value Through Professional Asset Management Inherently Serially Managed Items  All items subject to DoD Instruction (DoDI) 5000.64 are considered serially managed, i.e., “designated by DoD” Special tooling (ST), special test equipment (STE), and equipment all fall under DoDI 5000.64 Therefore all ST, STE, and Equipment items are subject to DFARS 252.211-7007 reporting  Material (items other than ST, STE and Equipment) is a different matter; material cannot be considered “inherently” serially managed* *True, “some” material items have serial numbers— but that does not make them inherently “serially managed”

13. 2013 NPMA Fall Conference Value Through Professional Asset Management Identification of Serially Managed  THE GOVERNMENT – Not the Contractor, Has to Identify Serially Managed Items Contract Terms and Conditions MUST identify ALL items to be Serially Managed  Example – Items individually listed on the “Scheduled” GFP Attachment (SGFP)

14. 2013 NPMA Fall Conference Value Through Professional Asset Management What Does Report Mean -  In simplest terms, it means sending information to the DoD IUID registry (“the registry”) related to a property item’s custody.

15. 2013 NPMA Fall Conference Value Through Professional Asset Management REPORTING (Cont) (2014)  Reporting involves the following events: Receipt of property Delivered or shipment from the contractor’s plant (unless to a subcontractor) Consumed or expended Disposed of Transferred to a follow-on or other contract  Let’s look at each of these reporting events

16. 2013 NPMA Fall Conference Value Through Professional Asset Management Reporting - Receipt  Receipt means acknowledging (electronically) the physical receipt of all GFP  This is the clearly the most important reporting requirement: Impacts overall property accountability The Government’s warranty of timeliness of GFP delivery Contract performance Readiness Applies to all categories of GFP. Period. No exceptions. Universal electronic acknowledgement of all GFP items is a fundamental requirement of DFARS 252.211-7007 and property accountability!

17. 2013 NPMA Fall Conference Value Through Professional Asset Management Receipt (Cont.)  Electronic receipt acknowledgment is crucial and required for all GFP items  It does not matter if the GFP is: Serially managed Not serially managed* Valued above or below $5,000 An item for repair Lacks a UII * If the property is not serially managed, acknowledgement of receipt is all that’s needed. No other reporting is required under the clause. Done!

18. 2013 NPMA Fall Conference Value Through Professional Asset Management Receipt (Cont)  GFP reported to the IUID Registry in 3 ways – 1.Through Wide-area Workflow (WAWF) 2.Registry website – if has UII and in registry 3.Electronic File submission

19. 2013 NPMA Fall Conference Value Through Professional Asset Management Other Reporting Events  Delivered or Shipped from Contractor’s Plant IAW Contract T&C or Direction of Contracting Officer Shipped to a DoD entity or another DoD contract Requires electronic acknowledgement of receipt by gaining contractor & WAWF repairable repors  Disposed of (Different than above) Means:  Transfer to a non-DoD federal Agency  Donation, sale or abandonment

20. 2013 NPMA Fall Conference Value Through Professional Asset Management Other Reporting Events (cont)  PCARSS automatically to update registry when “disposed of” events occur  PCARSS does NOT automatically update the registry when “shipment” (to Army, Navy, Air Force, Federal ciovil agencies) events occur.  Note – DCMA’s Property Loss Tool updates the registry automatically upon contractor reporting of property loss (ref: DFARS 252.245-7002)

21. 2013 NPMA Fall Conference Value Through Professional Asset Management Other Reporting Events (cont)  Consumed or expended Destructive testing Test firing a missile Certain types of drill bits  Transferred to a follow-on or other contract means: a contractual transfer of property accountability (same contractor/same CAGE)  Registry (via WAWF) must be updated to reflect the new contract

22. 2013 NPMA Fall Conference Value Through Professional Asset Management Reporting Assumptions  If an item is not – “Delivered” by the contractor “Shipped” by the contractor (as part of the T&Cs) “Disposed of” as defined above Processed through PCARSS Reported as lost through DCMA’s Loss Tool (etools) Transferred to another Contract at the same Cage Then it would be considered consumed as part of the process. Issue records should be able to verify.

23. 2013 NPMA Fall Conference Value Through Professional Asset Management Questions Mike Herskovits, CPPM Mike.Herskovits@boeing.com

24. 2013 NPMA Fall Conference Value Through Professional Asset Management References - History of UID and MIL-STD-130 HTTP://www.camcode.com/asset-tags/uid-overview-series-part-i-iudHTTP://www.camcode.com/asset-tags/uid-overview-series-part-i-iud. Ruckdaschel, Tom, GFP Reporting Under DFARS Clause 252.211-7007, 2013/10/23. https://home.dcma.mil/POLICY/124r/index.cfm Resources https://home.dcma.mil/POLICY/111r/index.cfm http://dodprocurementtoolbox.com/ http://www.acq.osd.mil/dpap/pdi/gfp/index.html