Dra� – Supply Chain Traceability Recommenda�ons

R01 - Encourage the use of Global Identifier Standards for supply chain traceability: The federal

government should collaborate with international allies to create programs that incentivize suppliers to 

establish unique corporate IDs, product IDs, asset IDs and part IDs by using global standards such as GS1. 

Identifiers for tracking & tracing assets from design to manufacturing to field use, this will help enhance 

national security, protect public health and safety, promote environmental sustainability, and address

consumer demand for transparency and accountability. 

Justification

• Improve national security and supply chain transparency and reduce the risk of counterfeit or 

tampered goods used in critical sectors and by ensuring the authenticity and integrity of goods. 

• Increase public health and safety by enabling faster identification and recall of products that may pose 

a functional safety, cybersecurity, or privacy concerns. 

• Promote environmental sustainability by enabling greater visibility into the entire supply chain, from 

raw materials to recycling or disposal by facilitating tracking of materials and reducing waste.

• Address market needs and meet consumer demand for greater visibility, transparency and 

accountability by providing detailed information on the origin and journey of products.

• Enable the creation of a digital thread of data through digitalization of enterprise workflows and 

linking of workflow IDs to the product and asset IDs delivered by such workflows.

Implementation

• Collaborate with international allies to develop programs and guidelines that incentivize suppliers to 

adopt global identifier methods based on standards such as GS1. 

• Encourage suppliers to establish unique corporate IDs, product IDs, asset IDs, and part IDs to drive

consistency, interoperability, and trustworthiness in any supply chains. 

• Facilitate the adoption of identifiers through incentives, education and outreach programs.

• Provide resources and guidance to suppliers to help them implement the new standards.

• Create incentives to upgrade existing supply chain management systems to include global identifier 

standards that ensure seamless tracking and tracing.

• Promote linking Global Identifiers for IoT devices to IoT cybersecurity labeling programs 

Potential Implementation Barriers

• Resistance from suppliers who may view the implementation of ID infrastructure as burdensome and 

expensive and may be reluctant to invest time and money into adopting new standards.

• Technical challenges in implementing methodologies using identifier standards, especially for small 

suppliers who may lack the resources and expertise.

• The need for collaboration and coordination between different stakeholders in the supply chain, 

including suppliers, manufacturers, and distributors.

• The need for harmonizing identifier standards and systems used by different countries or regions and 

creating a secure and reliable database to store and manage the IDs and related information.

Federal Agencies Involved

• The Department of Commerce (DOC)

• The Department of Homeland Security (DHS)

• The Department of Defense (DOD)

• The Food and Drug Administration (FDA)

• The Federal Trade Commission (FTC)

• Small Business Administration (SBA)

Examples: These agencies can collaborate to establish programs and incentives for the use of Global Identifier 

Standards in their respective domains and require them procurement contracts and regulatory frameworks.
Dra� – Supply Chain Traceability Recommenda�ons

1. Department of Commerce (DOC) can collaborate with interna�onal standards organiza�ons to promote 

the use of standards such as GS1 and create programs to incen�vize suppliers to adopt them.

2. Department of Homeland Security (DHS) customs control unit can implement traceability standards for 

supply chain security, customs controls and tracking the products provenance and chain of custody.

3. Food and Drug Administra�on (FDA) can promote the adop�on of global iden�fier standards to improve 

drug and medical device traceability, ensure product safety, and prevent counterfei�ng.

Federal Considerations

• The federal government should collaborate with international allies to ensure that the implementation 

of global identifier standards is consistent with U.S. trade policy goals.

• The federal government should work to harmonize U.S. standards with international standards to 

facilitate interoperability.

• The federal government should prioritize the protection of sensitive information and ensure the 

security and reliability of databases used to manage the identifiers and related information.

• The federal government should ensure that agencies can collaborate to establish programs and 

incentives for the use of Global Identifier Standards in their respective domains.

• Agencies can also require the use of Global Identifier Standards in procurement contracts and 

regulatory frameworks and balance the costs benefits and challenges of implementing new standards

R02 - Promote trusted architectures for supply chain provenance and traceability: The federal 

government should incentivize hardware suppliers to develop trusted architectures for supply chain 

provenance, traceability chain of custody and IoT lifecycle management. By cryptographically linking SBOM to 

trusted HBOM in any IoT device or system, industries can help mitigate the risks associated with compromised 

components and ensure the security of critical systems. This will provide benefits for national security, public 

safety, and economic stability, making it a worthwhile investment for the government and society.

Justification

• The use of trusted architectures for supply chain provenance and traceability can help mitigate the 

risks associated with vulnerabilities or compromised components.

• Trusted architectures for supply chain provenance and traceability can increase the trustworthiness of 

critical IoT systems, which is key for national security, public safety, and economic stability.

• These architectures can increase consumer confidence in the products they purchase, and prevent 

supply chain attacks and data breaches leading to greater economic benefits for businesses.

• Cryptographic linking of SBOM to trusted HBOM enhances supply chain security, visibility, chain of 

custody and IoT lifecycle management. 

Implementation Considerations

• Educate stakeholders in the value chain on the benefits of using trusted architectures for supply chain 

provenance and traceability.

• Promote industry adoption of trusted architectures through education and outreach. Incentivize 

hardware suppliers to develop trusted architectures for supply chain provenance and traceability.

• Develop guidelines for how the trusted architectures should be implemented by linking of HBOM and 

SBOM for provenance and traceability and encourage the adoption of standards and best practices.

• Encourage collaboration between government agencies and industry stakeholders (Private-Public 

Partnerships) to develop and promote trusted and traceable architectures.
Dra� – Supply Chain Traceability Recommenda�ons

Potential Implementation Barriers

• Lack of awareness or understanding of the benefits of trusted architectures.

• Resistance from industry stakeholders who are not interested in investing in new technologies.

• Implementation costs associated with developing and deploying new systems.

• Technical challenges associated with integrating new systems with existing infrastructure.

• Complexities involved in developing and deploying trusted architectures at scale.

Federal Agencies Involved

• National Institute of Standards and Technology (NIST)

• Department of Homeland Security (DHS)

• Department of Defense (DOD) 

• Department of Commerce (DOC)

• Federal Trade Commission (FTC)

• Federal Energy Regulatory Commission (FERC)

• Cybersecurity Infrastructure Security Agency (CISA)

• General Services Administration (GSA) 

• Industry stakeholders such as hardware suppliers and manufacturers

Examples: The DOD and CISA may require the use of trusted architectures for supply chain provenance and 

traceability in defense and critical infrastructure. The (GSA) may promote them in government procurement.

1. The Na�onal Ins�tute of Standards and Technology (NIST) may develop guidelines and tools for 

implemen�ng trusted architectures for supply chain provenance and traceability.

2. The Federal Energy Regulatory Commission (FERC): Promote the use of secure hardware and so�ware 

components in the energy sector to ensure the reliability of cri�cal infrastructure.

3. The Federal Trade Commission (FTC): Enforce regula�ons on decep�ve trade prac�ces that may 

compromise the security of supply chains.

Federal Considerations

• Funding and budget allocations for incentivizing hardware suppliers to develop trusted architectures 

for supply chain provenance and traceability.

• Developing and implementing policies and regulations related to the use of trusted architectures.

• Coordinating efforts between federal agencies and the commercial sector, to ensure a unified 

approach to implementing trusted architectures.

• Funding and resource allocation to support the development and implementation of trusted 

architectures.

• Promoting regulatory and policy changes to incentivize industry adoption of trusted architectures.

• Collaboration and coordination with industry stakeholders to develop and deploy trusted architectures 

at scale.

R03 - Incen�vize IoT Systems Supply Chain to accelerate adop�on of trusted traceability. Ensuring the security 

and integrity of the connected Electronics and IoT Systems supply chain is key to accelerate IT/OT convergence and 

prevent cyber-atacks in cri�cal infrastructure that could result in serious human and economic losses. Unlike 

classic supply chains focusing on Availability of goods, IoT Systems also require Confiden�ality and Integrity (CIA) 
Dra� – Supply Chain Traceability Recommenda�ons

for data protec�on and assurance. The term “trusted” in this context refers to whether the IoT System and its 

parts operate as intended and whether the data it produces is trusted and not compromised. 

Jus�fica�on

• Ensure the confiden�ality and integrity of IoT electronics supply chains to prevent cyber-atacks in cri�cal 

infrastructure and protect against human and economic losses.

• Accelerate IT/OT convergence with adop�on of trusted traceability methods for the electronics supply 

chain that enhance the efficiency & effec�veness in the delivery of cri�cal infrastructure services.

• Enable companies and businesses to foster innova�on, create a compe��ve advantage with smart-secureconnected electronics IoT Systems and ul�mately become smart-connected-secure suppliers.

• Enable the crea�on of trusted connected ecosystems that accelerate end-to-end innova�on, mone�za�on 

and growth of IoT economies. 

Implementa�on Considera�ons

• Offer tax credits, grants, or other financial incen�ves to companies that market electronics products with 

traceable parts country of origin, provenance, and journey in the supply chain.

• Require contractors and suppliers to adhere to specific security and traceability standards when bidding 

on government contracts, par�cularly for cri�cal infrastructure.

• Establish a cer�fica�on process for connected electronics products that meet security and traceability 

standards to enhance trust in the supply chain.

• Partner with industry associa�ons and other stakeholders to develop best prac�ces and guidelines for 

secure connected electronics product development and supply chain management.

Barriers

• Lack of awareness: Some companies may not be aware of the benefits of traceability or the risks 

associated with untraceable components in their supply chain.

• Lack of exper�se: SMEs may lack the exper�se and resources to implement traceability methods 

effec�vely.

• Limited supply chain visibility: In some cases, it may be difficult to trace components back to their original 

source due to limited visibility into the supply chain.

• Complexity: Implemen�ng traceability methods in a complex supply chain can be challenging and �meconsuming.

• Data confiden�ality concerns: Collec�ng and storing data for traceability purposes may raise concerns 

about data trust and poten�al risks of using it for various applica�ons. 

• Cost of implementa�on: Companies may be resistant to inves�ng in trusted traceability methods due to 

limited budgets, or lack of exper�se or lack of standardized security and traceability protocols.

Federal Agencies Involved

• Department of Homeland Security (DHS)

• Department of Defense (DOD)

• Na�onal Ins�tute of Standards and Technology (NIST)

• Federal Energy Regulatory Commission (FERC)

• Federal Communica�ons Commission (FCC)

• Department of Energy (DOE)

• Cybersecurity Infrastructure Security Agency (CISA)
Dra� – Supply Chain Traceability Recommenda�ons

• Environmental Protec�on Agency (EPA)

• Small Business Administra�on (SBA)

Examples: Some federal agencies such as the DHS may require adop�on of trusted traceability methods in cri�cal 

infrastructure systems. Others such as NIST may develop and promote guidelines for adop�on of such methods.

1. The Department of Energy (DOE) can establish incen�ves for u�li�es to adopt secure IoT systems in order 

to protect cri�cal infrastructure from cyber-atacks.

2. The Cybersecurity Infrastructure Security Agency (CISA) can provide educa�on and training to businesses 

and organiza�ons on how to implement secure IoT supply chain processes and offer resources to assess 

and mi�gate supply chain risk.

3. The Federal Communica�ons Commission (FCC) can require manufacturers of connected devices to 

implement secure supply chain processes and ensure the security and integrity of IoT systems.

Federal Considera�ons

• The federal government should provide financial incen�ves to companies to encourage the adop�on of 

trusted traceability methods that are aligned with execu�ve orders and broader government priori�es. 

• The federal government should work with industry stakeholders offer tax credits, grants, or other financial 

incen�ves to companies that offer traceable connected electronics products. 

• The federal government should require contractors and suppliers to adhere to specific security and 

traceability standards when bidding on government contracts for cri�cal infrastructure.

• The federal government should promote partnerships of industry associa�ons and stakeholders to iden�fy 

poten�al gaps in the connected electronics supply chain and develop targeted solu�ons to address them.

R04 - Promote the Crea�on of Traceable and Trusted IoT Network Ecosystems: Drive awareness and 

interoperability programs on how trust is established among devices, networks, and personas opera�ng in 

connected IoT environments, in ways that enable secure and reliable data exchanges and protect against malicious 

atacks, data breaches, and other security threats. By promo�ng a framework of trust, the government can have a 

significant impact on the security and resilience of cri�cal infrastructure, informa�on sharing, innova�on, data 

protec�on, interna�onal coopera�on and interna�onal trade.

Jus�fica�on

• Trusted network ecosystems facilitate informa�on sharing, innova�on, data protec�on, interna�onal 

coopera�on, and interna�onal trade.

• They improve the security and resilience of cri�cal infrastructure with informa�on sharing, analy�cs and 

feedback for digital twins

• They enable trusted data exchanges, and protect against malicious atacks and data breaches 

• Manage threats and mi�gate risks and consequences, economic, reputa�onal and loss of life

Implementa�on Considera�ons

• Drive awareness on how security and trust is established among in IoT networks among devices, personas 

and applica�ons opera�ng in connected IoT environments.
Dra� – Supply Chain Traceability Recommenda�ons

• Work with industry stakeholders to develop and promote standards, guidelines, and interoperability 

programs to ensure that devices and networks can communicate securely and reliably.

• Encourage the development and adop�on of secure and trusted IoT technologies and solu�ons.

• Work with industry, academia, and other stakeholders to promote innova�on and research in the area of 

IoT security.

Poten�al Implementa�on Barriers

• Implemen�ng trusted IoT network ecosystems may require significant upgrade to exis�ng legacy systems 

and supply chain processes. Lack of standards and best prac�ces is a key barrier.

• Companies may be resistant to inves�ng in trusted IoT network ecosystems due to the costs involved.

• Lack of awareness and understanding of the importance of IoT security and trust. 

• Limited interoperability between IoT devices and networks.

• Challenges in securing legacy systems that may not have been designed with security in mind.

• Resistance to change and the adop�on of new technologies and approaches.

Federal Agencies Involved

• Department of Homeland Security (DHS)

• Na�onal Ins�tute of Standards and Technology (NIST)

• The Federal Trade Commission (FTC) 

• Department of Energy (DOE)

• Environmental Protec�on Agency (EPA)

• Federal Communica�ons Commission (FCC)

• Environmental Protec�on Agency (EPA)

• Small Business Administra�on (SBA)

Examples: Some agencies such as DHS can promote the adop�on of trusted IoT network ecosystems in cri�cal 

infrastructure systems while DOC/NIST may work interna�onal allies to harmonize of guidelines and standards. 

1. The FCC can promote the development of secure and reliable IoT networks by alloca�ng and managing 

spectrum resources for IoT communica�ons and promo�ng the use of secure network protocols.

2. The EPA can promote the use of IoT sensors and networks to monitor and manage environmental quality 

and promote sustainability.

3. Small Business Administra�on (SBA): The SBA can provide resources and assistance to small businesses 

seeking to implement secure and reliable IoT networks and devices.

Federal Considera�ons

• The federal government should work with industry stakeholders to develop guidelines for trusted IoT 

network ecosystems and provide financial incen�ves to companies to encourage their adop�on.

• The federal government should promote the adop�on of workflow processes that improve the security 

and resilience of cri�cal infrastructure. 

• The federal government should develop a comprehensive strategy for promo�ng the security of IoT 

devices and networks and invest in infrastructure to accelerate adop�on of secure IoT solu�ons. 

• The federal government should work with interna�onal partners to promote and harmonize global 

standards and best prac�ces for securing IoT devices and networks.
Dra� – Supply Chain Traceability Recommenda�ons

• The federal government should encourage the use of secure IoT technologies and solu�ons in federal 

agencies and cri�cal infrastructure sectors and encourage the crea�on of networked ecosystems

R05 - Accelerate evolu�on of trusted digital threads across value chains: The government should support the 

development of digital threads across value chains by incen�vizing companies to digitalize their workflows, link 

their internal data IDs and holis�c Bills of Materials (DBOM, HBOM, SBOM) to data market toward trusted digital 

threads that will enable marketplaces of data producers and data consumers pla�orms. Such pla�orms can have a 

significant impact on supply chain traceability, innova�on, efficiency, security and economic growth. 

Jus�fica�on

• Increase end-to-end visibility of a product's lifecycle, and enable beter supply chain visibility and security, 

to reduce risk of cyberatacks, product counterfei�ng, and product recalls.

• Companies the adopt a digital thread can improve supply chain efficiency, reduce costs, manage 

vulnerabili�es, increase differen�a�on, and promote innova�on & data mone�za�on.

• Digital threads can enable marketplaces of data producers and data consumers, crea�ng new business 

opportuni�es for innova�on and revenue stream that will fuel the future digital economies. 

• Accelerate adop�on by linking digital threads (DBOM, HBOM, SBOM) across value chains in ways protect 

proprietary IP but enable data marketplaces. 

Implementa�on Considera�ons

• Develop educa�onal and training programs to help businesses implement digital threads. Establish 

guidelines for crea�ng a digital thread, including standards for data sharing and security.

• Incen�vize companies to digitalize their workflows by offering tax credits, grants, or subsidies for inves�ng 

in digital technologies.

• Encourage collabora�on between industry leaders and government agencies to raise awareness on best 

prac�ces and develop interoperable digital thread methods. 

• Leverage the Cybersecurity labeling program to create a digital trail of IoT systems Bills of Materials 

(DBOM, HBOM, SBOM, Security keys, etc.) that will vary by ver�cal market.

• Provide funding for research and development of digital thread guidelines, methods and standards to

facilitate development of best prac�ces and guidelines for implemen�ng digital threads.

Poten�al Implementa�on Barriers

• Resistance from businesses to adopt new digital technologies and workflows. The upfront costs of 

digitaliza�on may be prohibi�ve for some companies, even thought the ROI may jus�fy them. 

• Some companies may be hesitant to share data due to concerns about intellectual property and 

compe��ve advantage. The digital thread should allow sharing of data at the producer’s discre�on. 

• Different industries may have varying requirements for digital threads, making it challenging to establish 

common standards and overcome concerns around data privacy and security and interoperability. 

Federal Agencies Involved

• Na�onal Ins�tute of Standards and Technology (NIST)

• Department of Commerce (DOE)

• Department of Homeland Security (DHS)

• Department of Defense (DOD)
Dra� – Supply Chain Traceability Recommenda�ons

• Food and Drug Administra�on (FDA)

• Environmental Protec�on Agency (EPA)

• Cybersecurity Infrastructure Security Agency (CISA)

• Department of Energy (DOE)

• Federal Trade Commission (FTC)

• Small Business Administra�on (SBA)

Examples: NIST may develop standards and guidelines for the crea�on of a trusted digital thread, while the DOC 

may promote the adop�on of digitaliza�on and the Cybersecurity labeling program linking to corporate Iden�fiers.

1. The FTC can encourage companies to adopt digital threads to improve transparency and accountability in 

supply chains and prevent fraud.

2. CISA can provide guidance on cybersecurity best prac�ces for digital thread adop�on to protect against 

cyberatacks.

3. The EPA can encourage the adop�on of digital threads in the environmental sector to improve monitoring 

and reduce waste.

Federal Considera�ons

• The federal government should provide financial incen�ves to companies to encourage the adop�on of 

digitaliza�on and the crea�on of a digital thread for both SMBs as well as large enterprises.

• The federal government should work with industry stakeholders to develop guidelines for crea�ng a 

trusted digital thread and how to comply with regulatory requirements for data privacy and security.

• The federal government should promote the adop�on of a digital thread in government procurement 

processes to improve supply chain traceability and security.

• The federal government should foster public-private partnerships to promote innova�on and collabora�on 

in crea�ng trusted digital threads that comply with relevant federal regula�ons and standards.

R06 - Incen�vize the crea�on and growth of trusted data marketplaces: The government should incen�vize the 

crea�on and growth of trusted data marketplaces where data producers and data consumers query and share 

informa�on about data, enabling beter visibility, traceability, and mone�za�on while protec�ng proprietary IP. 

Trusted data marketplaces can drive incen�ves for market preference, regulated market access & use of goods as 

well as tax credits or subsidies. Pla�orms that facilitate adop�on of marketplaces can help data producers and 

consumers reduce costs, improve efficiency by streamlining processes and eliminate redundancies, especially in 

complex supply chains where informa�on flows are o�en fragmented or disconnected.

Jus�fica�on

• Establish market preference and market access with beter supply chain visibility and traceability

• Reduce costs of data sharing and licensing among data producers and consumers 

• Improve efficiency by streamlining supply chain processes to locate and license relevant data

• Reduce redundancies and simplify logis�cs in complex supply chains for access and use of goods

• Increase data visibility in value chains to enable growth of market places that will fuel digital economies

Implementa�on Considera�ons
Dra� – Supply Chain Traceability Recommenda�ons

• Iden�fy suitable marketplaces to incen�vize and support

• Develop guidelines and regula�ons for access and use of data in the marketplace

• Provide tax credits and subsidies to encourage par�cipa�on

• Promote the benefits of the marketplace to poten�al par�cipants

• Ensure data security and confiden�ality measures are in place

• Monitor and evaluate the effec�veness of the marketplace

• Use analy�cs to improve visibility, traceability, efficiency, and cost

Poten�al Implementa�on Barriers

• Lack of awareness about the benefits of marketplace pla�orms

• Concerns and resistance over data security and confiden�ality

• Difficulty in regula�ng and monitoring access and use of data in the marketplace

• Unwillingness to share proprietary data without a license 

• Lack of open and par�cipatory pla�orms for data marketplaces

Federal Agencies Involved

• Department of Commerce (DOC)

• Small Business Administra�on (SBA)

• Department of Agriculture (USDA) 

• Department of Homeland Security (DHS)

• Food and Drug Administra�on (FDA)

• Federal Trade Commission (FTC)

• Na�onal Science Founda�on (NSF)

• General Services Administra�on (GSA) 

• Na�onal Ins�tute of Standards and Technology (NIST)

• Federal Trade Commission (FTC)

Examples: While NIST may develop standards and guidelines for data sharing and security, the DOC and DHS may 

promote data sharing ini�a�ves among domes�c and interna�onal supply chains.

1. The Food and Drug Administra�on (FDA) could collaborate with trusted data marketplaces to improve the 

safety and efficacy of drugs and medical devices.

2. The Federal Trade Commission (FTC) could develop guidelines for data marketplaces to ensure that they 

protect consumer privacy and prevent data breaches.

3. The General Services Administra�on (GSA) could promote the use of trusted data marketplaces in 

government procurement.

Federal Considera�ons

• Implement data privacy and confiden�ality regula�ons based on experience (GDPR, CDPP, etc.)

• Develop policies to prevent monopolies in the data marketplace

• Provide educa�on and resources to help organiza�ons par�cipate in data marketplaces. Ensure that the 

marketplace is accessible to small businesses and not just large corpora�ons

• Balance incen�ves for par�cipa�on with data security and privacy concerns

• Coordinate with other federal agencies and interna�onal allies to ensure a cohesive approach.
Dra� – Supply Chain Traceability Recommenda�ons

• Align with broader government efforts to promote open innova�on pla�orms

R07 - Subsidize digitaliza�on of enterprises in the IoT value chain: The digitaliza�on of all business func�ons 

(design, produc�on, marke�ng, procurement, distribu�on, etc.) enables more efficient management, greater 

visibility and traceability over supply chains to track products, monitor quality, and fix issues or defects. By using 

cryptographic methods, digitaliza�on can have a major impart in the security, reliability, and integrity of the data 

for the digital economy. By providing incen�ves for businesses to adopt digital tools, the federal government can 

help promote ecosystems that create opportuni�es for businesses and workers and drive economic growth. 

Jus�fica�on

• Digitaliza�on of business func�ons leads to greater management, efficiency and visibility in supply chains

• Cryptographic methods improve security, reliability, and integrity of digital data, especially in hand-offs

• Digitaliza�on enables secure ecosystems, opportuni�es for businesses & workers and economic growth

• Subsidizing digitaliza�on can lead to increased adop�on of digital technologies and tools by businesses

• Digitaliza�on of value chains enhances security, reliability, and integrity of data for the digital economy.

Implementa�on Considera�ons

• Develop and communicate clear guidelines and criteria for eligibility for the subsidies

• Create a streamlined applica�on and approval process for businesses to apply for the subsidies

• Ensure that the subsidies are accessible to businesses of all sizes and types in the IoT value chain

• Monitor the effec�veness of the subsidies to ensure that they are achieving the intended outcomes

• Provide incen�ves for businesses to invest in digitaliza�on and adopt digital technologies and tools.

• Encourage collabora�on and knowledge sharing among businesses to promote best prac�ces.

Poten�al Implementa�on Barriers

• SMBs lack the resources or exper�se to effec�vely implement digital technologies and tools

• The ini�al cost of implemen�ng digital technologies and tools may be a barrier for some businesses

• Resistance to change or adop�on of new technologies, or lack of technical exper�se and resources.

• Concerns over the security and confiden�ality of digital data may discourage some businesses from 

adop�ng digital technologies and tools

Federal Agencies Involved

• Department of Commerce (DOC)

• Department of Energy (DOC)

• Department of Homeland Security (DHS)

• Environmental Protec�on Agency (EPA)

• Na�onal Science Founda�on (NSF)

• Department of Transporta�on (DOT)

• Na�onal Ins�tute of Standards and Technology (NIST)

• Cybersecurity Infrastructure Security Agency (CISA)

• Small Business Administra�on (SBA)

Examples: NIST can provide guidance on cybersecurity best prac�ces for digitaliza�on. SBA can offer subsidies, 

resources, and support for small businesses to adopt digital technologies based on subsidies from the DOC.
Dra� – Supply Chain Traceability Recommenda�ons

1. The Environmental Protec�on Agency (EPA) may provide technical assistance and funding to businesses 

that are looking to adopt IoT technologies to improve environmental monitoring and sustainability efforts.

2. The Na�onal Science Founda�on (NSF) may provide funding for research and development of new IoT 

technologies and digitaliza�on tools that can drive innova�on and economic growth.

3. The Department of Transporta�on (DOT) may work with industry groups to develop standards for the use 

of IoT technologies in transporta�on and logis�cs, to ensure the efficient and secure movement of goods.

Federal Considera�ons

• Ensure that the subsidies align with broader federal priori�es and goals, such as promo�ng economic 

growth and na�onal security and that digitaliza�on efforts priori�ze security and privacy protec�ons.

• Coordinate with other federal agencies to ensure that the subsidies do not conflict with other federal 

programs or ini�a�ves to promote consistency and avoid redundancy.

• Monitor and evaluate the impact of the subsidies in IoT value chains and the economy

• Encourage equitable access to digital technologies and tools across different regions and industries and 

ensure that digitaliza�on efforts priori�ze security and privacy protec�ons.

R08 - Promote crea�on and orchestra�on of trusted value chains: Promote orchestra�on of networks of en��es, 

such as manufacturers, service providers, and regulatory bodies, that interact to establish and maintain Trust 

through collabora�on and accountability to ensure that the IoT value chains and infrastructure are secure, 

transparent, trustworthy. By providing incen�ves for businesses to adopt transparent workflow prac�ces, the 

federal government can help drive economic growth and social responsibility while protec�ng against supply chain 

atacks, device vulnerabili�es and cri�cal infrastructure risks.

Jus�fica�on

• Maintain transparency, trust and accountability throughout the supply chain 

• Grow economic value collabora�on and accountability among enterprises in the value chain

• Protect against supply chain risks of vulnerabili�es, intrusions, and adversaries

• Ensure that IoT supply chain infrastructure is secure, transparent, trustworthy

• Drive shared mone�za�on among stakeholders in the value chain and scalable economics

Implementa�on Considera�ons

• The federal government can provide incen�ves for businesses to adopt transparent workflow prac�ces.

• Networks of en��es can be orchestrated to maintain trust through collabora�on and accountability.

• Establish regula�ons, guidelines, standards for the crea�on and maintenance of trusted value chains.

• Provide incen�ves for businesses for collabora�on and adop�on of transparent workflow prac�ces

Poten�al Implementa�on Barriers

• Compe��veness and lack of collabora�on and accountability between en��es within the value chain.

• Resistance to change and adop�on of transparent workflow prac�ces and open ecosystems. 

• Cost of implemen�ng and maintaining secure prac�ces and trustworthy value chains.

• Lack of awareness about the importance of trustworthy and secure supply chains. 

• Difficulty in orchestra�ng and coordina�ng mul�ple stakeholders across fragmented supply chains
Dra� – Supply Chain Traceability Recommenda�ons

Federal Agencies Involved

• Na�onal Ins�tute of Standards and Technology (NIST)

• Department of Commerce (DOC)

• Federal Trade Commission (FTC)

• Department of Homeland Security (DHS)

• Food and Drug Administra�on (FDA) 

• Small Business Administra�on (SBA)

• Cybersecurity Infrastructure Security Agency (CISA)

Examples: NIST may develop and promote standards and best prac�ces, the DOC may provide guidance and 

resources for businesses, CISA may drive R&D for secure systems, and DHS promote trust in global value chains. 

1. The Department of Energy can promote the adop�on of transparent workflow prac�ces among energy

companies and work with them to maintain a secure and trustworthy infrastructure.

2. The Food and Drug Administra�on can collaborate with regulatory bodies and service providers to ensure 

a secure and trustworthy medical IoT infrastructure.

3. The Federal Trade Commission can provide guidance and incen�ves for businesses to adopt transparent 

workflow prac�ces and collaborate to maintain a secure IoT infrastructure.

Federal Considera�ons

• The federal government should ensure that any incen�ves provided align with established guidelines and 

standards for trusted value chains.

• Foster collabora�on among federal agencies, industries and value chains to accelerate adop�on with a 

unified approach to IoT supply chain security and transparency.

• Develop con�nuous monitoring and upda�ng of regula�ons and standards are necessary to keep up with 

emerging threats and technologies. 

• Ensure that incen�ves and regula�ons are not overly burdensome for businesses

R09 - Subsidize orchestrated Public-Private Partnerships across value chains: The federal government can 

accelerate the crea�on of traceable supply chains by subsidizing orchestra�on of connected Private-Public 

Partnerships across complex value chains which digitalize por�ons of supply chains piecemeal using consistent 

methods of “receivables-process-deliverables”. This can help supply chain stakeholders to collaborate in parallel 

and accelerate adop�on of the digital thread, and be more efficient which will help businesses to grow new data 

revenue streams on top of IoT products and services which will fuel economic growth. 

Jus�fica�on

• Subsidizing orchestrated value chain partnerships can accelerate the adop�on of end-to-end digital thread 

and traceability in complex supply chains.

• Digitalizing por�ons of supply chains piecemeal using consistent methods can help stakeholders 

collaborate in parallel and accelerate adop�on of traceability.

• Crea�ng resilient and secure supply chains can help businesses drive economic growth. 

• Improve supply chain traceability can help businesses reduce risk and increase resilience, which can lead 

to business and economic growth.
Dra� – Supply Chain Traceability Recommenda�ons

Implementa�on Considera�ons

• Subsidize the orchestra�on of connected Private-Public Partnerships across complex value chains.

• Promote consistent digitaliza�on methods for "receivables-process-deliverables" across supply chains by 

digitalizing por�ons of supply chains piecemeal to facilitate collabora�on among stakeholders.

• Fund the development of digital infrastructure, training programs, and other resources necessary for 

successful partnership implementa�on.

Poten�al Implementa�on Barriers

• Resistance to change from supply chain stakeholders who are accustomed to tradi�onal methods.

• Lack of technical exper�se and infrastructure to implement digitaliza�on across the supply chain.

• Costs associated with implemen�ng digitaliza�on across the supply chain.

• Resistance from supply chain stakeholders who may be hesitant to share data or work with compe�tors. 

• Resource constraints for smaller businesses that may not have the capacity to par�cipate in partnerships.

Federal Agencies Involved

• Department of Commerce (DOC)

• Department of Agriculture (USDA) 

• Environmental Protec�on Agency (EPA)

• Food and Drug Administra�on (FDA)

• Department of Homeland Security (DHS)

• Federal Trade Commission (FTC)

• Federal Communica�ons Commission (FCC)

• Small Business Administra�on (SBA)

Examples: The DOC can provide funding for PPP supply chain digitaliza�on ini�a�ves, NIST may develop and 

promote best prac�ces and SBA may provide resources and support for smaller businesses to par�cipate in PPPs.

1. The Department of Homeland Security can provide security cer�fica�ons and audits for the digital 

components of the supply chains to build trust among PPP par�cipants.

2. The Federal Trade Commission can enforce an�trust regula�ons to prevent PPP monopolies from forming 

in digital marketplaces and incen�vize PPPs to include small and innova�ve businesses in the mix.

3. The Federal Communica�ons Commission can work with private sector partners to improve connec�vity 

and communica�on across supply chain networks.

Federal Considera�ons

• The federal government should priori�ze partnerships that promote transparency, efficiency, and security.

• The federal government should ensure that partnerships do not unfairly disadvantage smaller businesses 

or create monopolies.

• The federal government should be prepared to address poten�al security and confiden�ality concerns 

associated with increased data sharing in supply chains.

• The federal government should consider the poten�al impact on domes�c and interna�onal trade policies 

and importance of ensuring that the subsidies are distributed equitably across various stakeholders.
Dra� – Supply Chain Traceability Recommenda�ons

R10 - Establish data policies that drive economic growth: Mone�za�on of data will require infrastructure for 

Security, Privacy, Data Sharing, Ownership and Control Frameworks, Iden�ty and Access management (IAM), Data 

Protec�on, Sharing and Exchange, plus Data Analy�cs with AI to minimize supply chain risk and maximize 

economic value. Policies related to data can have a major impact on privacy, security, interoperability, 

transparency, accountability, innova�on, and mone�za�on, as it can fuel synergis�c ecosystems and the future 

digital economies.

Jus�fica�on

• Data policies can have a major impact on privacy, security, interoperability, transparency, accountability, 

innova�on, and mone�za�on.

• A lack of clear and consistent data policies can create uncertainty and hinder the growth of digital 

economies.

• The mone�za�on of data can drive business growth and fuel synergis�c ecosystems, but it requires 

infrastructure for security, privacy, data sharing, ownership and control frameworks, iden�ty and access 

management (IAM), data protec�on, sharing, licensing, and data analy�cs with AI to minimize supply 

chain risk and maximize economic value.

Implementa�on Considera�ons

• Promote infrastructure for security and privacy, data sharing, ownership and control frameworks, iden�ty 

and access management (IAM), data protec�on, sharing and exchange, and data analy�cs

• Establish policies related to data need to be established and enforced to ensure compliance with 

regulatory requirements. 

• Evolve policies in consulta�on with industry, academia, civil society, and government agencies and keep 

them up-to-date with changing technologies and business models.

Poten�al Implementa�on Barriers

• Lack of knowledge about data policies, resistance to change and implementa�on of new policies. Lack of 

clarity on how data policies will impact stakeholders, par�cularly on privacy and security.

• The lack of clear and consistent data policies can create uncertainty and hinder the growth of digital 

economies.

• The cost of establishing infrastructure for data security, privacy, sharing, and exchange, as well as data 

analy�cs with AI, could be significant.

• Developing data policies that balance privacy and security concerns with innova�on and economic growth 

can be challenging.

Federal Agencies Involved

• Department of Commerce (DOC)

• Federal Trade Commission (FTC)

• Department of Homeland Security (DHS)

• Na�onal Ins�tute of Standards and Technology (NIST)

• Department of Jus�ce (DOJ)

• Department of Homeland Security (DHS)

Examples: NIST may provide guidance on data security and privacy, DOC may promote data sharing and exchange, 

FTC may enforce data protec�on laws, and DOJ can inves�gate and prosecute data breaches and cybercrimes. 
Dra� – Supply Chain Traceability Recommenda�ons

1. The Department of Homeland Security (DHS) may develop data confidden�ality and security regula�ons 

that protect sensi�ve informa�on while promo�ng innova�on and economic growth.

2. The Food and Drug Administra�on (FDA) may establish data sharing policies that promote innova�on in 

medical research and development while ensuring pa�ent privacy and safety.

3. The Cybersecurity Infrastructure Security Agency (CISA) may establish data security standards and policies 

that protect cri�cal infrastructure and reduce cyber threats.

Federal Considera�ons

• The federal government should consider poten�al impact of data policies on privacy, security, 

transparency, accountability, and mone�za�on and develop policies that priori�ze privacy and security to 

build trust with consumers and encourage innova�on by providing clear guidelines for data use.

• The federal government policies should promote interoperability to enable data sharing across different 

systems and consider the impact on SMBs. 

• The government should promote collabora�on and informa�on sharing among federal agencies and 

industry partners to improve data policies and infrastructure.

R11 - Facilitate the Crea�on of Data-driven business ecosystems: The federal government should raise 

awareness about the New Gold, Data Mone�za�on Strategies, Data Analy�cs for Insights, Trusted Data 

Marketplaces, Pla�orm-based Business Ecosystems, Network effects, Digital Thread of Data in connected value 

chains, Data Regula�ons, and tools for Monitoring and Managing Data Marketplaces. Data-driven networks of 

interconnected businesses, technologies, and pla�orms can leverage synergies to enhance exis�ng products and 

services, create new revenue streams and enable digital twins.

Jus�fica�on

• Data-driven ecosystems can create new revenue streams and enhance exis�ng products and services

among Interconnected businesses, technologies, and pla�orms can leverage synergies in the value chain.

• Data analy�cs can provide insights that drive innova�on, improve decision-making and enable data 

mone�za�on strategies can lead to significant benefits and economic growth

• Trusted data marketplaces can promote data sharing and collabora�on. Data-driven business ecosystems 

can lead to new revenue streams and enhanced products and services.

• Pla�orm-based ecosystems can enable businesses to collaborate and innovate more effec�vely and scale 

rapidly through network effects can create a virtuous cycle of growth for businesses.

• Data regula�ons can provide a framework for businesses to manage and use data responsibly and use 

tools for monitoring and managing data marketplaces can ensure transparency and accountability

Implementa�on Considera�ons

• Develop educa�onal programs for businesses and individuals. Raise awareness about data-driven business 

ecosystems among through public campaigns, conferences, and workshops. 

• Provide funding and incen�ves for data-driven ecosystem and solu�ons PPPs with industry leaders, 

innova�ve startups and academic ins�tu�ons

• Foster the development of pla�orm-based ecosystems by providing incen�ves and resources to 

businesses.
Dra� – Supply Chain Traceability Recommenda�ons

• Encourage collabora�on and innova�on among businesses by promo�ng network effects. Provide tools 

and resources for monitoring and managing data marketplaces.

Poten�al Implementa�on Barriers

• Lack of awareness and understanding about data-driven business ecosystems.

• Difficulty in developing and implemen�ng data mone�za�on strategies

• Limited resources and exper�se for implemen�ng data mone�za�on strategies and data analy�cs.

• Lack of na�onal strategy to create pla�orm-based ecosystems.

• Balancing the benefits of data-driven business ecosystems with data privacy and security concerns.

Federal Agencies Involved

• Department of Commerce (DOC) 

• Na�onal Ins�tute of Standards and Technology (NIST)

• Na�onal Science Founda�on (NSF)

• Department of Energy (DOE)

• Department of Transporta�on (DOT)

• Department of Agriculture (DOA)

• Federal Trade Commission (FTC)

Examples: The DOC may raise awareness about data-driven business ecosystems, provide resources and train 

businesses. NIST may develop guidelines for best prac�ces for the digital thread of data in connected value chains. 

1. The Department of Energy (DOE) can promote the use of data analy�cs in the energy sector to op�mize 

energy produc�on and reduce costs.

2. The Department of Transporta�on (DOT) can leverage data from connected vehicles and infrastructure to 

improve traffic flow, reduce conges�on, and increase safety.

3. The Department of Agriculture (USDA) can create data-driven ini�a�ves to op�mize agriculture 

produc�on, reduce waste, and improve food security.

Federal Considera�ons

• Ensure fair compe��on and preven�ng monopolies. Balance data sharing with privacy and security. 

Develop guidelines and standards for data management and sharing

• Encouraging private sector to invest in data-driven economic growth. Promote collabora�on between

government, industry, and academia

• Balance the need for data privacy and security with the benefits and value of data-driven business 

ecosystems. Promote collabora�on businesses while ensuring fair compe��on.

• Ensure transparency and visibility in data marketplaces by encouraging the use of data analy�cs to 

improve government opera�ons and services.

• Addressing the digital divide and ensuring that all businesses have access to the resources and tools 

needed to par�cipate in data-driven business ecosystems.

R12 – Evaluate Opportuni�es, Risks and Regula�ons on Using AI for Supply Chains: The federal government 

should evaluate the poten�al impact of AI in accelera�ng adop�on of supply chain resilience, security, and 

traceability. It should also evaluate the risks of malicious actors using AI to tamper with supply chains, as well as 
Dra� – Supply Chain Traceability Recommenda�ons

consequences, poten�al remedies and regulatory ac�ons needed to prevent state na�on atacks, especially in 

legacy infrastructure. 

Jus�fica�on

• AI-powered supply chain traceability can help improve the accuracy and efficiency of tracking products 

and components throughout the supply chain.

• It can help prevent counterfei�ng and improve supply chain transparency, which is increasingly important 

for businesses and consumers alike.

• AI can help companies quickly detect and respond to supply chain disrup�ons, reducing the risk of costly 

delays or shortages. 

• The use of AI by malicious actors to intrude the supply chain of cri�cal infrastructure could have serious 

consequences, such as data breaches, system disrup�ons, or physical damage.

• The increasing use of AI in cri�cal infrastructure makes it a poten�al target for atackers seeking to exploit 

vulnerabili�es in AI systems.

• AI-powered atacks could be more sophis�cated and harder to detect than tradi�onal atacks, making 

them more difficult to defend against.

Implementa�on

• Promote how to leverage AI and IoT technologies to create end-to-end supply chain visibility and 

traceability.

• Encourage the use of AI algorithms for analyzing vast amounts of supply chain data to iden�fy paterns 

and anomalies, making it easier to iden�fy poten�al vulnerabili�es or areas for improvement.

• Companies can use AI-powered predic�ve analy�cs to an�cipate supply chain disrup�ons and take 

proac�ve measures to mi�gate them.

• The government can work with industry stakeholders to develop AI-specific security standards and best 

prac�ces for cri�cal infrastructure.

• AI systems used in cri�cal infrastructure should be subject to rigorous tes�ng and evalua�on to iden�fy 

poten�al vulnerabili�es and ensure they are secure.

• The government should provide funding and resources for research into AI security and develop tools to 

detect and respond to AI-powered atacks.

Barriers

• The rapid evolu�on of AI technology makes it difficult to keep pace with emerging threats and 

vulnerabili�es.

• Lack of data quality: The accuracy and completeness of supply chain data can be a challenge, making it 

difficult for AI algorithms to provide reliable insights.

• Data privacy concerns: Sharing supply chain data with third-party AI vendors can raise concerns about 

data privacy and security.

• Technical exper�se: Implemen�ng AI-powered supply chain traceability requires significant technical

exper�se and resources and there are challenges associated with securing AI systems. 

• The cost of implemen�ng AI security measures could be significant, especially for smaller companies that 

may lack the resources to invest in advanced cybersecurity measures.

Federal commercial and civilian agencies involved

• Department of Commerce (DOC)
Dra� – Supply Chain Traceability Recommenda�ons

• Na�onal Ins�tute of Standards and Technology (NIST)

• Federal Trade Commission (FTC)

• Department of Homeland Security (DHS)

• Federal Bureau of Inves�ga�on (FBI)

• Department of Defense (DOD)

• Food and Drug Administra�on (FDA)

• Federal Energy Regulatory Commission (FERC)

• Cybersecurity Infrastructure Security Agency (CISA)

Examples: The DOC may evaluate the use of AI in supply chains and consider new regula�ons about the use of AI, 

while NIST may raise awareness about good and bad uses of AI and develop guidelines for best prac�ces. 

1. The Food and Drug Administra�on can evaluate the use of AI in pharmaceu�cal supply chains and assess 

the impact on public health.

2. The Cybersecurity Infrastructure Security Agency can assess the cybersecurity risks of AI in supply chains 

and develop best prac�ces for mi�ga�on.

3. The Federal Energy Regulatory Commission can evaluate the impact of AI on energy supply chains and 

assess regulatory implica�ons.

Federal considera�ons

• The government should evaluate the poten�al risks and benefits of AI-powered supply chain traceability 

and work with industry stakeholders to develop regula�ons and guidelines as needed.

• The government should ensure that any regula�ons or guidelines related to AI-powered supply chain 

traceability are consistent with exis�ng data privacy and security laws.

• The government should work to promote interna�onal collabora�on on AI-powered supply chain 

traceability to help establish global standards and best prac�ces.

• The government should work with industry stakeholders to develop standards and best prac�ces for 

securing AI systems used in cri�cal infrastructure.

• The government should promote collabora�on and informa�on sharing among federal agencies and 

industry partners to improve AI security.