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**Federal Supply Service**

**Doing Business with DoD through your Federal Supply Service
Contract.**

As the Department of Defense (DoD) transforms the way they do business,
GSA must be a strategic partner in supporting DoD. On July 29, 2003, the
DoD Acting Under Secretary of Defense (AT&L) issued a Memorandum
entitled \"Policy for Item Unique Identification (IUID) of Tangible
Items - New Equipment, Major Modifications, and Reprocurements of
Equipment and Spares\" that made IUID mandatory for all solicitations
issued on or after 1 January 2004 by, or on behalf of a DoD activity.
Additional memoranda issued on September 3, 2004 and December 23, 2004
expanded the policy to legacy items, including Government Furnished
Property, and outlined implementation requirements for IUID. The IUID
Policy is considered to be the cornerstone of DoD's Business
Transformation.

IUID establishes the requirement for marking and valuing items delivered
to DoD that will enhance logistics, contracting, and financial business
transactions supporting the United States and coalition troops. DoD
contracting offices must include DFARS Clause 252.211-7003, Item
Identification and Valuation contract clause, in all solicitations and
reference MIL-STD-130. This key policy change will affect the way you
fill orders from DoD customers. It is important to work with the DoD
contracting offices to support what is considered to be a strategic
imperative.

DoD's goal is to improve business processes by achieving lower
life-cycle cost of item management and improve life cycle property
management; improve operational readiness; provide reliable
accountability of property and asset visibility throughout the life
cycle; and reduce the burden on the workforce through increased
productivity and efficiency. The following is a list of common questions
and their answers to help foster greater understanding of the DoD IUID
policy and its implications in supporting the DoD customer through your
GSA contract.

**Q & A**

Q. What DFARS Clauses compose the IUID policy?

A. The following is a summary of the DFARS SUBPARTS and the Clause that
compose the IUID policy. For the complete language in each clause please
refer to the IUID webpage at
[www.uniqueid.org](http://www.uniqueid.org/).

**DFARS 211.274 -2 Policy for Unique Item Identification**

It is DoD policy that DoD unique item identification, or a DoD
recognized unique identification equivalent, is required for-

-   Unit acquisition cost is \$5000 or more

-   If less than \$5,000 unit acquisition cost, item is serially
    managed, mission essential, or controlled inventory

-   requiring activity determines that permanent identification is
    required

> Regardless of value

-   Item is a DoD serially managed subassembly, component, or part
    embedded within a delivered item

-   The parent item (as defined in 252.211-7003(a)) that contains the
    embedded subassembly, component, or part

**211.274-3 Policy for Valuation.**

It is DoD policy that contractors shall be required to identify the
Government\'s unit acquisition cost (as defined in 252.211-7003(a)) for
all items delivered, even if none of the criteria for placing a unique
item identification mark applies.

\(b\) The Government\'s unit acquisition cost is\--

-   For fixed-price type line, subline, or exhibit line items, the unit
    price identified in the contract at the time of delivery;

-   For cost-type or undefinitized line, subline, or exhibit line items,
    the contractor\'s estimated fully burdened unit cost to the
    Government at the time of delivery; and

-   For items delivered under a time-and-materials contract, the
    contractor\'s estimated fully burdened unit cost to the Government
    at the time of delivery.

\(c\) The Government\'s unit acquisition cost of subassemblies,
components, and parts embedded in delivered items need not be separately
identified.

**DFARS Clause 252.211-7003 Item Identification and Valuation is the
contract clause.**

**Q. What is Item Unique Identification (IUID)?**

**A.** Item Unique Identification is a set of data for assets that is
globally unique and unambiguous, ensures data integrity and data quality
throughout life, and supports multi-faceted business applications and
users. Item Unique Identification depends upon a combination of data
elements, which is determined by how the enterprise serializes items.
There are two acceptable methods of serialization -- (1) Serialization
within the enterprise identifier, and (2) Serialization within the part
number.

**Q. What is an Enterprise Identifier?**

**A.** An enterprise identifier is a code uniquely assigned to an
enterprise by a registered issuing agency. An issuing agency is an
organization responsible for assigning a non-repeatable identifier to an
enterprise \[i.e., Dun & Bradstreet's Data Universal Numbering System
(DUNS) Number, Uniform Code Council (UCC)/EAN International (EAN)
Company Prefix, Allied Committee 135 Commercial and Government Entity
(CAGE) Number\].

**Q. What technology is used to mark an Item?**

**A.** The technology used to mark an item is 2D Data Matrix ECC 200
Symbol. 2D Data Matrix is a two-dimensional barcode that can store from
1 to about 2,000 characters, and must be applied to items via dot peen,
ink jet, label, laser etching, acid etching, or other methods. 2D-Data
Matrix is the type of symbol or mark that will contain the IUID
information about the part. MIL-STD-130 discusses the use and
requirements for 2D-Data matrix.

**Q. Does the DFARS Clause apply to DoD orders through GSA contract
vehicles?**

**A.** Yes. The DoD IUID policy is mandatory for all DoD issued
solicitations, contracts, and delivery orders which includes orders
through GSA contracting vehicles.

**Q. Are their any exceptions?**

**A.** Exceptions to the DoD IUID policy is contained in DFARS Clause
211.274-1(b). DoD understands there are many industry practices that
will need to be fleshed out on a case by case basis.

**Q. Who is responsible for determining what items require a IUID?**

**A.** The DoD requiring activity is responsible for inserting DFARS
clause 252.211-7003, and defining and listing the items requiring
identification and valuation.

DFARS clause 252.211-7003(c)(1) The Contractor shall provide DoD unique
item identification, or a DoD recognized equivalent, for-

(i) All items for which the Government's unit acquisition cost is
    \$5,000 or more; and

(ii) The following items for which the Government's unit acquisition
     cost is less that \$5,000; Contract Line, Subline, or Exhibit Line
     Item Number Item Description

**IUID Solutions**

There are several low cost marking services available that could provide
IUID solutions. These companies may provide automated marking capability
compliant with MIL-Std-130, data submission services as part of the
material shipping, inspection and receiving process, and the warehousing
of data as well as consulting and training services. GSA added IUID
services to the Federal Supply Schedules Program. Contracts are
currently being awarded under [Federal Supply Schedule 81 I
B](http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_BASIC&contentId=8656&noc=T)
SHIPPING, PACKAGING AND PACKING SUPPLIES, UID and RFID services. For
more information, please to [www.gsa.gov](http://www.gsa.gov/) and
search UID.

**Training Opportunities**

The DoD UID Program Office is engaged in a large communications effort
working with several organizations to provide IUID training. For more
information on IUID training please go to
[www.uniqueid.org](http://www.uniqueid.org/).

**Resources and Contact Information**

For more information about on how to support the DoD IUID program using
your GSA contract please contact go to
[www.gsa.gov](http://www.gsa.gov/) and search UID or visit the DoD IUID
Program Office's web site at
[www.uniqueid.org](http://www.uniqueid.org/).