As a supplier or defense contractor, your ability to utilize the iRAPT system is paramount to your success. Fortunately, we have written a comprehensive guide — iRAPT and the DoD – what suppliers and contractors need to know about iRAPT.

The purpose of this guide is to help you understand what your role is as a Supplier or Defense Contractor in the iRAPT process, and how you can ensure your continued adherence to best practices in this area.  Here is an overview of what the iRAPT and the DoD Guide offers:

 

iRAPT and the DoD

iRAPT – Invoicing, Receipt, Acceptance and Property Transfer

Luckily, working with the US Military has become much easier in recent years thanks to improvements in technology. One of the technological changes is the implementation of a system called iRAPT — which stands for Invoicing, Receipt, Acceptance, and Property Transfer. For many Department of Defense (DoD) contractors who are aware of Wide Area Workflow (WAWF), this system changed its name to iRAPT in November 2014.

What is iRAPT?

In 1997 the US Department of Defense began to make the move towards a paperless invoicing environment. Starting in fiscal year 1999, the DoD achieved operational success with the original iRAPT application.

At its core, iRAPT is a secure web-based system that can be used for electronic invoicing, receipt, and acceptance. iRAPT has quickly become the system that is responsible for the DoD’s ability to reach e-invoicing goals, while simultaneously reducing interest penalties that could have been accrued due to the loss or misplacement of critical documents.

iRAPT and the DoD

The Benefits of iRAPT

There are tremendous benefits to implementing iRAPT in your processes. The most notable benefits are outlined below, but there are certainly additional positive effects.

Elimination of Paper-Based Support Functions
iRAPT eliminates the manual entry of data across programs, which leads to increased labor savings. Paper-based processes require a multitude of support functions. These functions require additional management to properly succeed.

iRAPT reduces the need for additional management and thus effectively removes the aforementioned support functions, so that additional monies can be saved. The electronic capture, storage, and retrieval of required documents, succinctly removes the need for the mail, file, and copy rooms, as well as the associated personnel that a paper solution requires.

Global Accessibility
Multiple users can globally access documents on a secure network. This global connectivity will streamline processing, reduce the need for re-typing, improve accuracy, and provide real-time processing and access to document status. iRAPT users will be able to research discrepancies, history, or status related to past payment, shipment, or invoices, without having to involve individuals from other organizations during the process.

Eliminates Lost or Misplaced Documents
All documents are securely and conveniently stored in one place that is accessible over the web. A DoD vendor is able to submit invoices electronically, access contract payment records, and review the payment status. iRAPT eliminates the lead-time from the mail transit of documents. Additionally, it enhances cost efficiency by effectively eliminating the costs associated with storing paper. In layman’s terms, it is easier and cheaper to store and transfer electronic documents, than it is to handle paper documents.

Accuracy of Documents
Current problems such as unmatched disbursements, duplicate payments, and payment delays can be alleviated through the use of iRAPT.
iRAPT and the DoD

Secure & Auditable Transactions
iRAPT maintains the security of each document that passes through its network. The latter security is achieved, in part, due to the user registration process. During user registration, each user is only given access to the appropriate functions and documents. In addition, Public Key Infrastructure (PKI) certificates are used to verify user identification, and, when required, to digitally sign documents.

Enables DoD to Take Maximum Benefit of Discounts
iRAPT highlights vendor-offered discounts documents first, so that government personnel can maximize their use.
Documents go through extensive edit checking up front, which improves the vendor’s ability to be paid on time. Any problems with the submitted documents are immediately flagged. In this vein, the vendor can immediately issue a correction.

Enables Timely & Accurate Payments
DoD vendors have experienced benefits by using iRAPT. iRAPT is capable of taking in EDI X12 files and FTP batch files for transactions such as asset registration and Advanced Ship Notices (ASN). Vendors who are able to electronically connect system-to-system are seeing a decrease in the time it takes to generate a document and get it into the correct government hands for acceptance.

Decreases Interest Penalties
iRAPT decreases processing time by several orders of magnitude. As such, the system can greatly reduce the number of Prompt Payment Act (PPA) violations. These are some of the many benefits to your organization that iRAPT can bring.
Of course, in order to gain those benefits, you have to develop and maintain disciplined iRAPT practices. One of the key aspects that you may need to adapt is how you complete your asset reporting. The next section goes over how iRAPT affects the way you report your shipments and assets.

How iRAPT affects your Asset Reporting

iRAPT requires Item Unique Identification (IUID) to achieve asset identification compliance to MIL STD 130.

The Defense Federal Acquisition Regulation Supplement (DFARS) requires defense manufacturers to identify, mark, and track assets by placing a durable asset tag containing a machine readable IUID, or a 2D Data Matrix barcode, on new equipment or existing government property under contract.

The 2D Data Matrix barcode links to a range of asset pedigree data that is unique to the item including manufacturer and serial number as well as identifying traits and lifecycle history. Branches of the DoD and all defense contractors must account for all qualifying DoD assets using IUID barcode labels and plates.

However, with iRAPT, you can no longer add new acquisition deliveries directly to the IUID Registry. Instead, you must submit them through the iRAPT Receiving Report.

Before submitting any data, be sure to read your contract carefully. If your DoD contract contains DFARS clause 252.211-7003, then you must comply with the IUID policy. Your contract will also tell you which items you are obligated to mark.

iRAPT and the DoD

Here is a quick video that explains why IUID labels are important.

Remember, it is the prime contractor’s responsibility to ensure the required IUID data is registered. Be sure to verify your tags to ensure the 2D Data Matrix barcode can be read and decoded, reducing risks and cost from returned items.

To learn more about IUID labels and your marking and reporting obligations as a DoD supplier, take a look at our free whitepaper: Guide to Marking and Uploading Government Property.

iRAPT and the DoD

How iRAPT affects your Shipment Reporting

The use of iRAPT and the nature of defense contracts can prove to cause various complexities in shipment requirements and reporting. This is an extremely vital part of the process. Incorrect reporting or labeling could result in snags like rejected payments or rejected shipments from the customer.

When both IUID and RFID requirements are listed on a contract, the relationship between the two is fairly complex. Both standards are followed which means that parts requiring IUID’s are labeled or marked with the appropriate IUID per MIL-STD-130 and containers and shipping containers that are packed with IUID labeled parts are tagged with RFID-enabled Military Shipping Labels (non-UII’d assets or materials can also require an RFID tag on the case or palette).

This creates a parent-child relationship between RFID labels and IUID labels/marks. The parent-child relationship must be reported in the iRAPT submission. This reported relationship allows the receiving DoD depot to read the RFID label on a container and know what parts are contained in the container.

It is important to note that this provides for an audit trail of both IUID and RFID labeled parts and shipping containers.

The challenge with generating RFID labels is that they have to conform to the exact specifications of human readable content (e.g. shipping address information, TCN) as well as machine readable codes (e.g. 2D barcodes and RFID encoding).

In addition, in order to be compliant with shipping regulations, these labels have to be verified as readable according to MIL STD 129. It’s important to ensure that you’re getting your labels from a reputable source that knows and will satisfy these requirements.

iRAPT and the DoDAnother notable change due to iRAPT is in the process by which final shipment information gets communicated and processed. Final shipment data including RFID numbers, must be programmatically used to create the Advanced Ship Notice (ASN). The ASN must be submitted with the final invoice to iRAPT in order to complete the delivery.

It is extremely important to be aware of these changes and to implement them completely to ensure that your DoD contracts are not compromised and that you will get paid for your efforts.

iRAPT and the DoD

As your company begins using iRAPT, here are few tips for making the transition go more smoothly:

Timeliness: Don’t wait until you need to submit an invoice to update your registration in iRAPT. Instead, as soon as your contract is awarded, take some time to verify that your registration in the iRAPT system is up to date. Otherwise, waiting to confirm that your registration is accurate could result in a payment delay.

Assign a GAM: When your company registers in iRAPT, you will be asked to name someone as the Group Administrator, or GAM. We will discuss the building of your compliance team later on in this guide.

Passwords: Be prepared for stringent password restrictions. iRAPT is a secure DoD system, so your employees will need to update their passwords every 60 days. Make sure your employees are aware of when their passwords are about to expire because getting a user back into the system will take time, effort and patience.

Read the Instructions: When you receive your contract, read the instructions carefully because many different types of invoices can be submitted through iRAPT – it all depends on the type of contract you have with DoD. For some contracts, such as those awarded based on the Fast Pay procedures, not all documents are required to be submitted through iRAPT.

Ask Questions: Don’t wait until your invoicing date to ask questions about the process. It is best to read through instructions and make sure you understand them when the contract is awarded so that, when it is time to invoice, you know what documents to submit and how to submit them. This will allow your company to be paid on time.

Invest in Automated Compliance Software:  The WAWF e-Business suite is a powerful system that has modernized the way the DoD does business. By most accounts it has been a great improvement over the days of triplicate paperwork. But understand that iRAPT and the IUID Registry were built to serve the Department of Defense.

iRAPT was designed to improve the eCommerce experience for defense contractors and suppliers — but, that is not to say that it is particularly efficient for the contractor. If you only need to report a few assets to iRAPT, then manual reporting is fine. But, when a significant amount of detailed asset and shipment data is required for reporting, meeting contract obligations and getting paid — using a manual reporting method is asking for trouble.

Defense Contractors and Suppliers need to have an internal system that is specifically built for iRAPT and IUID Registry reporting in order to ensure compliance and maintain high levels of organizational efficiency. 

One example is A2B Tracking’s UC! Web™, which is military-grade software that lets you take control of your assets and inventory by tracking serialized and non-serialized items. Create linear or 2D Data Matrix barcodes and RFID labels, and track any mission critical asset for accurate data from the very start. Print, mark, track, ship and update the status of any asset using IUID or RFID throughout its lifecycle. Manage and report items to be maintained internally or to be shipped to other locations while automatically reporting to iRAPT and the IUID Registry.

UC! Web facilitates compliance for branches of the military as well as DoD contractors and suppliers who support them. Plus, you’ll be using best practices set by the U.S. military for asset tracking and reporting of shipments.

An internal asset management system like UC! Web™ should also be able to manage the complexities of your government property management requirements to help your organization comply with FAR 52.245-1 (Government Property), DFARS 252.211-7003 (Item Identification and Valuation) and DFARS 252.211-7007 (Reporting of Government Furnished Property).

Defense contractors need a property management system, like UC! Web™ that will automate their property reporting, improve property accountability and reduce manual entry to a minimum. This software also needs to stay up to date with ongoing changes in Government systems and policies in order to truly help the organization maintain compliance. 

To learn more read: Why are the iRAPT and IUID Registry websites insufficient.

iRAPT and the DoD

Build a Team: The most important thing you can do to ensure that you are successful in using iRAPT and staying IUID and RFID compliant is to build a team that understands their role in reaching that goal. The next section goes over each role in the team, and how they contribute to the ongoing maintenance of your DoD contracts.

Organizing your iRAPT, IUID and RFID Compliance Team

Every member of your team is important to the efficient use of iRAPT and the ability for your business to stay IUID and RFID compliant. One weak link can cause a lot of problems, and it only takes one or two major mistakes to lose your contracts and a significant source of revenue.

It is extremely important that everyone on the team understands the significance of IUID and RFID compliance and the use of iRAPT, and they know the role they play in achieving it.

iRAPT and the DoD

The Group Administrator – GAM

As discussed earlier, the Group Administrator, or GAM, is a key member of the team. They ensure that the information in the electronic system remains accurate, and aids in the quality assurance process to ensure continued compliance to iRAPT best practices.

IT Professionals

The IT Department needs to understand that it is responsible for data and application management. Because everything that is recorded or documented electronically needs to remain secure and protected, the IT department needs to be on their A-game to ensure all electronic tasks are completed with IT security in mind.

Production and Property Management

The Production and Property Management teams need to understand that they aren’t just there to create, store, and transport the required products or assets for each shipment. Because of the IUID and RFID requirements, they must also create, manage, submit, and report all IUID and RFID data along with military shipment data.

Any lapse in proper processes in this area can result in drastic consequences such as rejected shipment or invoice. Also, non-serialized government property or materiel must be reported directly to iRAPT.

Customer Support

In order to be successful within the iRAPT framework, you definitely need to implement and utilize the proper hardware and software solutions. Customer support is responsible for supporting the team and customers in the use of these tools.

Engineering and Quality Assurance

Engineering and Quality Assurance not only need to ensure the quality of the product itself, but that the IUID labels are designed and placed properly on each asset. Any mistakes in this area could lead to much bigger problems to solve down the road such as remarking items that weren’t marked correctly the first time.

Procurement

Procurement is responsible for obtaining all materials that contribute to both IUID and RFID compliance and effective iRAPT processes. This includes labels, software, and hardware that aids in the tracking of assets and shipments as well as communication through iRAPT.

Legal

Legal acts as both the auditing team to maintain compliance to best practices, as well as the submission of shipping notices to iRAPT. Mistakes in this regard could lead to missed payments and loss of revenue.

Supply Chain/Shipping

iRAPT and the DoDYour Supply Chain must create the MIL STD 129 compliant Military Shipping Labels (MSLs) which may require an RFID embedded tag. The labels data contains shipment information that must generate the Advanced Ship Notice (ASN) for electronic reporting of the shipment and invoice.

Whether you have teams of people filling each of these roles or a few individuals covering a variety of responsibilities, it’s imperative that each person understands how to operate within iRAPT, IUID, and RFID and how important it is to make even the smallest of steps a priority. Frequent, consistent training on these topics will keep these important principles top-of-mind for everyone involved.

Maintaining iRAPT Compliance is much easier with the proper tools

The iRAPT system is like any other advanced computer technology. High school students who learn advanced computer technology don’t necessarily become smarter and better students. They do, however, learn to use tools that can make them better students if they apply the tools correctly. The tools give them an opportunity to become better students. The iRAPT system does the same thing for companies that sell supplies to the Pentagon.

iRAPT and the DoD

The same principles apply throughout the Supplier’s business. Using the right software and hardware solutions can be an investment that greatly relieves the stress and complexity of managing contract data to iRAPT, but is also critical to IUID and RFID compliance and the tracking of assets and shipments. A combination of all of these systems is required to maintain your contracts with the DoD.

In short, purchasing and implementing these systems may seem like a big investment, but leveraging automated systems can generate real cost savings and is vital to your business and can lead to continued and significant revenues when working with the Department of Defense.

About A2B Tracking

For over 20 years, A2B Tracking has been a leader in enterprise-class solutions for identifying, marking, and tracking critical assets in highly regulated environments.

A2B Tracking provides essential support for the Property Manager by making sense of these contract obligations and simplifying these challenges by developing a Property Management System called UC! Web™ that was specifically designed for US military requirements and to comply with FAR 52.245-1 (Government Property), DFARS 252.211-7003 (Item Identification and Valuation) and DFARS 252.211-7007 (Reporting of Government Furnished Property).

UC! Web different from other systems because it was designed from the ground up with military standards for asset identification (IUID and RFID) as well as integrated iRAPT and IUID Registry reporting as core capabilities yet flexible enough to handle all company property.

We help businesses, government agencies, the military, and other organizations gain total control of their government property and supply chains using our proprietary, cloud-based asset tracking and data management software which incorporates today’s advanced barcode and Radio Frequency Identification (RFID) technology and integrates easily and seamlessly with iRAPT.

It allows us to provide a precise, data-centric solution that generates, updates, and leverages unique item information to better manage assets, optimize their use, and save money. We also facilitate compliance with various industry and military standards and integrate automatic identification and data capture (AIDC) systems seamlessly into enterprise processes and diverse workflows.

Defense Contractors Guide to iRAPT and the DoD

To download the entire Defense Contractors Guide to iRAPT as a PDF click here.

iRAPT and the DoD