Unique Identification (UID)

April 13, 2006

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UID is something you will hear more and more about. The current rule requires all contractors to uniquely identify, through the use of Item Identification Marketing, all items to be delivered to the federal government. The policy was issued on July 29, 2003 and became effective January 1, 2004. UID has been established to identify tangible items, using all practical international standards and commercial item markings.

It will facilitate item tracking in DoD business systems and will give the government reliable and accurate information for management, financial, accountability and asset management purposes. (DoD will be using Commercial ISO/IEC SC31 as its standard along with MIL-STD-130L, go to http://www.ide.wpafb.af.mil/engdat/pubnews.htm; you also can find more information at http://www.uniqueid.org and http://www.acq.osd.mil/uid, or through your local PTAC.)

The benefits to the government are many: It will integrate item data; improve data quality and global interoperability; facilitate management and accountability of items; enhance asset visibility and lifecycle management through traceable and more accurate audit opinions on the property, plant, and equipment, operating materials and supplies portions of financial statements.

In fact, Wal-Mart is using the same type of system to track its entire inventory in all its stores all over the country. They can tell every time someone buys an item, takes it out of inventory or moves it in the system.

Work Smart

The bottom line for small businesses is: "How does this affect me?" The answer: If you hope to supply the government with an item, you had best get up to speed on these new inventory tracking systems.

What is an item? According to the DoD, "An item is a single hardware article or a unit formed by a grouping of subassemblies, components or constituent parts. In the Department, an item is any article produced, stocked, stored, issued, or used or any product, including system, material, parts, subassemblies, sets, and accessories."

Needless to say, that covers just about everything over $5,000. Use the nearby flow chart to help you determine your needs.

If you think that the government is just doing this to you personally, please remember that the rest of the world is also switching over, and this is the price of doing business with just about anyone nowadays. Also, if you think you will get out of this situation by being a subcontractor, think again. The primes will just flow down the requirements to you.