An October 13, 2011, DoD-wide memorandum, issued by Secretary of Defense Leon Panetta, directed the Department to accelerate key elements of the FIAR (Financial Improvement and Audit Readiness) Plan and to place greater emphasis on achieving key priorities. One of those priorities is effective management of mission critical assets, utilizing the unique item identifier to prove mission critical items’ existence, location, type, status and custody.
Senior defense and GAO officials have long known that until the Pentagon’s financial ledgers achieve a clean audit, DoD will be unable to determine baseline information including the true cost of running the military. With clean audit data, DoD will know what spare parts it has or needs and will realize savings by eliminating duplication and other inefficiencies.
DoD suppliers stand to realize similar efficiencies through the utilization of IUID and serialized item management.
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