Item Unique Identification or IUID, is an essential component for maintaining compliance with US Department of Defense equipment contracts. IUID refers to the permanent marking method used to give equipment a unique ID. Item Unique Identification compliance is critical for all Defense contractors that either manage or supply equipment to the DoD.

IUID Data

IUID is a string of data (made up of alphanumeric characters) for assets that is globally unique and unambiguous. MIL-STD-130 specifically identifies how to mark an asset with an IUID. Having a unique ID for each particular asset is the best way to manage and keep track of an inventory. By using IUID, the Department of Defense is leveraging and taking advantage of commonly accepted asset tracking best practices.

An IUID is only assigned to a single item and can never be used on another asset. Furthermore, once the IUID is assigned to an item it can never be changed unless the asset has been modified and has now been reclassified with a new part number or serial number. An IUID, is essentially, a global license plate assigned to an asset for its entire life cycle.

Item Unique Identification Compliance

In order to maintain compliance to the Defense Department’s IUID Policy, organizations need to follow a number of important steps. There are other smaller steps within this Item Unique Identification compliance process; but, from a high level here is what needs to happen.

  • Organize the IUID Data
  • Select an appropriate label material and marking method
  • Verify and validate the quality of your IUID label
  • Apply the IUID label
  • Report to the IUID Registry

 

Maintaining Item Unique Identification Compliance is a critical requirement for any defense contractor working with the US Military today.

Why IUID Compliance is important

The DoD is the world’s largest military and has approximately $2.7 Trillion in assets. The Pentagon has made it abundantly clear that the property, assets and equipment of the DoD need to have more visibility and accountability. The US Congress has mandated the FIAR initiative (Financial Improvement and Audit Readiness) to require compliance to the IUID Policy.

In 2018 the Defense Department spent close to $400 Million on their first ever full financial audit sending out 1,200 auditors to more than 900 site visits at 600 locations looking at more than 90,000 items across the entire DoD. This is a massive undertaking and the Pentagon has been planning this audit for years.

The Audit results in 2018 were less than favorable – although no one expected the DoD to pass the audit on the first year. However, the DoD should be congratulated for completing a thorough, full financial audit with an organization of its size. Obviously, there is more work to be done. And it is clear that US Congress and the Pentagon are committed to continue these audits for years to come.

Glenn Fine, the acting DoD Inspector General, explained the Pentagon’s position by saying “This is an important, long-term effort, which we are committed to fully supporting.”

What this means to the Defense Contractor

The Defense Audits will continue and the DCMA auditors will be looking for full compliance to the IUID Policy. Defense Contractors need to be prepared for DCMA audits in 2019 and beyond. Item Unique Identification compliance is a key component and critical for the success of these programs. Furthermore, audit readiness needs to be built into your organizational culture so that it’s an on-going sustained practice and not a last minute fire drill.

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