Docstoc

Military Equipment Valuation - PowerPoint

Document Sample
Military Equipment Valuation - PowerPoint Powered By Docstoc
					Item Unique Identification (IUID)
                  Professor Kim Meyer, CDFM
                Professor of Program Management
                 Defense Acquisition University
                         Midwest Region
                           Kettering OH
                          937-781-1040
                    Kimberly.meyer@dau.mil
                    Overview

IUID
 •   Genesis
 •   End-2-End Concept
 •   Implementation at Depots
 •   Contracting for IUID
 •   What’s New?
 •   Reference Sources
                        Facing new challenges…
                                                     • Rapidly moving force on a dynamic
                                                         battlefield
                                                     •   Demand for better information on
                                                         assets
                                                     •   Need for more effective visibility and
                                                         management of inventory



•   Improve business processes now
•   Improve confidence
•   Influence the direction and cost of technology
    development
•   Drive the standards to work for us
•   Facilitate the implementation of Unique
    Identification (UID)
                            The Genesis of IUID

    GAO concerned with DOD management of its inventory of
    equipment.

    Finding: DOD’s inventory exceeded its war reserve or current
    operating requirements, but lacked key spare parts (particularly
    aviation spares) due to a lack of adequate accountability over
    material shipments or effective monitoring of defective spare
    parts.


GAO-02-477G (Mar 02): Executive Guide, Best Practices in Achieving Consistent, Accurate Physical
                         Counts of Inventory and Related Property
                DoD Vision for
        Item Unique Identification (IUID)

To implement a policy establishing a strategic imperative
  for uniquely identifying tangible items relying to the
  maximum extent practical on international standards
  and commercial item markings and while not imposing
  unique government data requirements.
Uniquely identified tangible items will facilitate item
  tracking in DoD business systems and provide reliable
  and accurate data for management, financial,
  accountability and asset management purposes.

   Effective 1 January 04 Mandatory for Solicitations
              UID: What makes it so Special?

UID…
 Provides “The Key” to discovery and correlation of item, real
  property and human resource information so …
    – DoD can consistently locate, control and value assets
      anywhere and anytime
 Enables globally accessible and secure enterprise data
 Registries enable creation of UID mission critical services to
     Translate legacy data for existing DoD systems
     Enable access for operational support
     Enable joint paperless management
                UII: What Is It?
•In today’s world, many items we buy have identification on them
that indicate the manufacturer or distributor of the product and
the product type.
---Two identical cans of Coke from the same bottling plant will
show the same data on the Universal Product Code (UPC)

Some items also have a serial number that differentiates one item
from another identical item (e.g., the 24th engine off the assembly
line is different from the 1024th)
---Serial numbers are unique, but not outside of their enterprise –
the serial number assigned by XYZ Manufacturer could be the
same as one assigned by ABC Company.

By combining enterprise identification, item class and
serialization, a globally unique item identifier is created that
differentiates each item from other items
---Each item has its own globally unique identifier (UII)
           Defining the Scope of a UII
           A UII Is                       A UII Is Not
 A Data Element                A Device for Communicating
 A Unique Identifier for an     Data, such as Radio Frequency
  Item                           Identification (RFID) Tags,
 Globally Unique                Contact Memory Buttons, or
                                 Linear Bar Codes.
 Unambiguous
                                A Replacement for the National
 Permanent                      Stock Number
 Created by Concatenating      Intelligent Data that Yields
  Specific Data Elements         Information About the Item
 The enabler for business      Transferable from one item to
  intelligence                   another
                 IUID Policy Overview
Policy memorandum released on July 29th 2003 (with subsequent updates)
established IUID as a mandatory DoD requirement on all solicitations issued on
or after January 1, 2004.
IUID is required for all property items delivered to the Government if:
 • Acquisition cost is more than $5,000
 • Items with an acquisition cost below $5,000, when identified by the requiring
    activity as DoD serially managed, mission essential, or controlled inventory
 • Items with an acquisition cost below $5,000 as determined by the requiring
    activity
 • Regardless of value, any DoD serially managed subassembly, component or
    part embedded within an item and the “parent” item in which it is embedded
Wide Area Workflow (WAWF) is the preferred method for capturing IUID data and
became a mandatory payment requirement on January 1, 2005
           Key Direction from IUID Policy Updates

   Apply IUID to legacy items in inventory and operational use

   All program and item managers plan for and implement IUID
         - ACAT 1D programs submitted plans by June 2005
         - All others to MDAs by January 2006

   Government Furnished Property (GFP) must meet IUID
    policy requirement effective 1 Jan 2006

   Plans targeted FY2007 as the point by which:
        - All existing serialized assets will be entered in IUID registry
        - UII marking capabilities established such that marking can
       commence when equipment is returned for maintenance
                                  Key Direction from IUID
                                      Policy Updates
                                              (Continued)


   DUSD (Logistics and Material Readiness) develop IUID
    implementation plan for organic depot maintenance operations

   Jan 2007: OUSD Materiel Readiness & Maintenance Policy
    released “Implementing Item-Unique Identification in DoD
    Maintenance” (dated 31 Jan 07)
     The Concept of Operations IUID-Enabled Maintenance in Support of
      DoD Materiel Readiness

   Feb 07: Policy Update for Item Unique Identification (IUID) of
    Tangible Personal Property

   DoD Directive 8320.03, dated 23 Mar 07, Unique Identification (UID)
    Standards for a Net-Centric Department of Defense
                    Overview

IUID
 •   Genesis
 •   End-2-End Concept
 •   Implementation at Depots
 •   Contracting for IUID
 •   What’s New?
 •   Reference Sources
                                  Applying the UII
Vendor-Applied-at-Source: Marking applied when item is manufactured

Opportunity-Based Item Application: Can be done in the field or factory,
wherever it is convenient to gain access to items either on an end item or
available in a storage facility (phase maintenance, scheduled servicing, depot
rebuild or overhaul processes, and work-order processes during
modification)

Seek-and-Apply: Used for particular items held within service, either at the
end item or in storage. This strategy is dependent on establishing the
location and availability of items before deployment of application equipment
and teams. This approach is dependent upon good legacy data, and will
demand greater overhead of coordinated effort to effect access to the assets.

Gated: The interception of items as they transit specific gates within the
supply chain. After identification, the situation can be resolved by diverting
the item back to the vendor for application, provision of an application
capability at the specific supply gate, or diversion of the item to a centralized
application facility.
                     UII Marking by DoD
It may be desirable for the DOD-requiring activity to mark items when
received rather than require the vendor to mark until the vendor’s internal
capabilities are established. The requiring activity must ensure that DOD
activities can guarantee that the UII information they use is unambiguous and
globally unique through life.

There will be non-recurring costs to make the appropriate changes to
drawings and marking instructions for legacy items, in accordance with MIL-
STD-130 requirements, as well as costs for marking equipment and readers

11 May 05: Directed programs to include requirements in budgeting
documents (FY07-12) to ensure implementation visibility within the Planning,
Programming, Budgeting, and Execution (PPBE) process
 • Budget exhibits for RDT&E, procurement, operations & maintenance
    funds
 • Capital and operations budgets in Working Capital Funds (included in
    customer rates)
 • Needs to be an on-going process as requirements are identified
Evolutionary Approach to Legacy IUID
                                          IUID: An End-2-End Look
  Future
Applications                                                     Establish                     Contractor
                                                                   IUID                    Physical/Contractual
and Planning                               IPTs                  Program                       Compliance
                                          PM/FM                    Plan
                  Property              Contracting
                    to be                Engineer
                  provided                                         Military
                   under               •Contract Clauses         Equipment                                        Inspection &
                  contract             •CLINs/SLINs               Valuation
                                       •Mil Std 130                                             WAWF               Acceptance
                                                                (Id for initial
                                       •Etc                       valuation)                                        Govt QA




                                                                                                           WAWF
                                                                                      Contractor
                                                                                  Physical/Contractual
                                                                                      Compliance
                                       Establish Depot
                  Depot                                                                                   Inspection &
                                       UID Team (IPTs)
                                                                Establish                                  Acceptance
               Maintenance                  PM/FM
                                                                marking                                     Govt QA
                                         Contracting                                                                         IUID Registry
                Activities                                        plan
                                           Engineer
                                          Item Mgrs
                                         Equip Spec
  PM                                                                              DOD Organic Depot
                                                                                  Physical Compliance
               Warfighter




                                  Property In                                Contractor
                                                                         Physical/Contractual
                                  Possession                                 Compliance                   WAWF
                                 Of Contractor
                                    (PIPC)
                                                                          •Trigger Events for IUID                  Inspection &
                                                                                                                     Acceptance
                                                                                                                      Govt QA
                  •Property Accounting Roles/Responsibilities

                                                           Data Systems
                                                             Interfaces
                    Overview

IUID
 •   Genesis
 •   End-2-End Concept
 •   Implementation at Depots
 •   Contracting for IUID
 •   What’s New?
 •   Reference Sources
                        Achieve Full IUID Capability
                                      in
                 Depot Maintenance for Items w/o Virtual UIIs
   Tasks to accomplish for achieving full IUID capability in depot
  maintenance for items without virtual UIIs include the following:
 Assess Depot UII Capability
    Marking Methods                       Acquire Marking/Labeling Equipment
    Part Numbering                        Acquire Printers & Verifiers
    Serialization                         Acquire Readers
    Machine-Readable Marking              Facilitate Host Computer
                                           Select Process Specifications
 Determine Shortfalls in Current Depot    Label, stock, inks, solvents, adhesives,
UII Capability to Meet UID Requirements   coatings, equipment, etc.
    Processes                             Equipment & Software Installed Tested
    Equipment
    Software                              UII Registration Capability
    Training
    Funding                               Customer Acceptance of Marks
Start Program to Overcome Shortfalls      Virtual UIIs Assigned for Inaccessible,
    Specify Symbology                    Embedded Serially Managed Items in End
    Specify Semantics                    Items/Spares
    Specify Syntax
    Acquire Marking Software
              Planning Implementation

   What Activities Need to be Involved (IPT/IPPD) *

Program Management                 Engineering
Logistics/Customer Support         Manufacturing
Process Engineering                Procurement
Finance                            Configuration Management
Data Management                    Contracts
Supply Chain Management            Information Technology
Business Area Leads                Audit
Communications                     International Liaison
Legal                              Supply Chain Management
Training                           Wide Area Workflow (WAWF)
Customer Liaisons:                 Subcontract Liaison
         DCMA
         DCAA

* Representative Listing from Corporate Implementation Briefs
                                      Key Responsibilities for IUID
                                            Implementation
Program Managers will identify items that require unique identification,
including embedded subassemblies, components and parts. These
embedded items will be identified in a Contract Data Requirements List
(CDRL) or Exhibit.

Contracting Officers shall include the clause at 252.211-7003, Item
Identification and Valuation, in all solicitations and contracts that require
delivery of items.

All items delivered to the Department will be delivered under a contract line
item and the Department’s acquisition cost of each item will be identified
under a contract line item or sub-line item

Contractors are required to provide item unique identification, or a DoD
recognized IUID Equivalent, for all items delivered with an acquisition cost of
$5,000 or more and as designated by the requiring activity for items less than
$5,000.

Under the clause at 252.211-7003, marking of items shall be in accordance
with MIL-STD-130, Identification Marking of U.S. Military Property.
                                    Key Responsibilities for IUID
                                          Implementation

Defense Contract Management Agency will inspect and accept IUID items,
provide oversight of government-furnished property, provide oversight of
initial IUID-enabled SIM information requirements per contract clauses, and
provide program and technical support using IUID associated data for
analyzing the cost/schedule/technical performance of contractor programs
and systems

IUID Registry will establish interfaces with Wide Area Work Flow and property
systems; maintain the IUID Registry; and establish interfaces with item
history, maintenance, system configuration, and other pertinent technical
databases

Maintenance Activities will incorporate IUID processes into all relevant
transactions, mark legacy items as required, associate maintenance events to
IUID items, coordinate the development of IUID processes and SIM
requirements with the appropriate information systems
           Implementing Guidance for Depots
Concept of Operations for IUID-Enabled Maintenance in Support
of DoD Materiel Readiness (dated 1 Jan 07)
Fundamental formula: I + T = M
• I represents identification, T represents tracking, M represents
  management
Three key transformation enablers
• Accurate asset visibility
• Common standardized data
• Standardized IUID
Envisioned end-state for four scenarios
•   Field-level operations
•   Sustainment-level operations
•   Life-cycle management
•   Performance –based agreements, contractor logistics support, and
    foreign military sales
          Implementing Guidance for Depots
Roles and responsibilities
• Program managers, contracting officers, supporting contractors, Defense
  Contract Management Agency, UID Registry administrations, supply
  systems, transportation systems, top-level accountability systems,
  maintenance activities, Defense Utilizations and Marketing activities,
  component headquarters
IUID Implementation Template for DoD Maintenance Depots
• Phase I: Conduct preliminary research and planning efforts
• Phase II: Determine the new business environment and develop a
  marking plan for initial IUID items
• Phase III: Execute marking plan and develop a full implementation plan
  for remaining IUID items
Special considerations and measuring progress
                    Overview

IUID
 •   Genesis
 •   End-2-End Concept
 •   Implementation at Depots
 •   Contracting for IUID
 •   What’s New?
 •   Reference Sources
                      Policy and Clauses

DFARS 211.274-2 Policy for Item Unique
Identification (IUID)
• Exceptions and approval levels identified


DFARS 211.274-3 Policy for Valuation
• Discusses how to value depending on contract type

252.211-7003, Item Identification and Valuation
                       Concerns/Challenges/Strategies
Concerns
• General Contract Quality Observations
   − Line item structures made it difficult to identify the deliverable/delivery
   − “Lot” line items and misleading kit descriptions complicate payments &
     UID compliance
   − Unclear Options and ordering provisions
   − FAR Part 12 contracts w/o UID clause
• UID requirements not getting into contracts
• Clause placement varies – D, F, H, I, both full text and by
  reference
• WAWF-RA deployment
   − Inaccurate or incomplete payment information
   − Not payable as written without extensive manual intervention
• Procurement/Contracting professionals who actually do the
  work are not attending the UID Forums
                    Strategies – Subline Items

Two types:
• Information Only (numeric suffix)
• Separately Identified (alpha suffix)
   − Identical Items with Different Funds
   − Identical Items with Different Sizes or Prices
   − Segregate Individually Payable Items (different packaging or ship to
     requirements)
   − Individual Delivery Dates or Destinations
   − Kits or Parts with Separate Prices
• Exhibits can substitute for large numbers of subline items
  (subassemblies, components or parts)
   − Reference in Section B; attach in Section J
               Strategies – Inspection and
                       Acceptance
Inspection and acceptance of these items will be made at the
contractor’s plant

Inspection and acceptance of these items shall be made at the
contractor’s plant by the cognizant DCMA office (Sxxxx) in
accordance with the acceptance test procedure in Attachment
A, Statement of Work, section 7.7

Inspection and Acceptance of these items shall be at the
contractor’s plan by the cognizant DCMA office (Sxxxx) in
accordance with the acceptance test procedure to be submitted
and approved under CDRL G00F
               Strategies – Section E
Identify where inspection and acceptance will
occur
Identify who has the authority to accept
Explain how we will inspect and accept
List Inspection/Acceptance DoDAAC for each
delivery point (used in WAWF to route
electronically)
Reference CDRLs if appropriate
              Strategies: Consistency in Line
                      Items Structures
Issues:
• “Lot” pricing – a variety of items and quantities delivered
  over time
Problems
• DFAS has no mechanism to pay for partial deliveries if no
  mechanism to report a partial acceptance; only reconciled at
  close out
• Valuation is problematic for IUID registry
Strategy
• Rare usage of “lot” items
• Use subline items or exhibits to denote the actual
  deliverables and schedule
• Note: no NSNs with a unit of issue of “lot”
           Strategies: Consistency in Line
                   Item Structures
CLIN = Kit
Kit includes multiple, usually dissimilar items
Items are not separately priced
Varying quantities
Multiple shipments
Kit is not considered received until all
shipments are received
                  Strategies: Consistency in Line
                          Item Structures

If the CLIN exceeds $5000, requires UID of the kit
•   Are the contents unpriced embedded items
•   Are the contents separately priced SLINS with IUID requirements
•   How to segregate costs
•   Are there parent/child relationships (part, component, subassembly)


Cannot record partial acceptance of the kit in WAWF

WAWF requires a single shipment per 856 transaction
             Strategies: Consistency in Line
                     Item Structures

Strategy:
• If the kit is used as a kit (e.g. tool kit), then UID the
  toolbox and any necessary components
• Otherwise, apply the same solution as for lots
   − Use exhibits
   − Use subline items
                           UID in Contracts --
                              Conclusions
Do
• Include the UID clause
• Specify which line items it applies to
• Identify any embedded components to be valued and marked
• Include language requiring use of WAWF
• Ensure that each deliverable has a separate CLIN, SLIN, or ELIN and a
  defined delivery schedule
• Ensure inspection and acceptance criteria address UID
Do Not
• Lump dissimilar items together as a “lot” or a “kit”
• Specify which UID construct is to be used
• Require that the contractor use government assigned identifiers for
  enterprise, part or serial number
• Impose unusual payment or acceptance procedures
                               10 Basic Questions
1. What do we expect the contractor to deliver (list hardware, software,
   service, and data)
2. Do we have a line item, subline item or exhibit line item for each? Do
   we have ACRNs assigned to each in Section B? Do the totals by ACRN,
   CLIN and line of accounting match?
3. When is each item due to be delivered?
4. How much will the contractor get paid?
5. Are there interim payments before delivery? If so, on what basis?
6. When will the contractor get paid? What documentation will be required
   to effect payment?
7. How is the timing of contract payments related to deliveries?
8. Is it clear in the line item structure and sections F – I how payments
   relate to delivery?
9. What constitutes acceptable performance? How is it measured?
10.How do the inspection and acceptance criteria in Section E relate to the
   answers in 9?
                       Other Challenges/Issues
Concerns/Challenges
• Contractors reporting valuation info per the UII clause
• DCMA reported a contractor has not marked items per the UII
  requirements in the contract. Contractors replied they are unable to
  comply.
• Clarification on the IUID exceptions.
• Solicitations issued without clause
• DMCA inspectors accepting items without marking even though it
  was expressly outlined in the contract
                         Other Challenges/Issues
Strategies
• Stryker program -- TACOM buys performance with CLS (ORR) that was
  worked with OSD on structure for CLS. This includes an attachment of all
  items to be marked rather than a Section B listing. The Stryker team
  worked with the contractor to keep costs at a minimum by having the parts
  marked as they entered the CLS warehouse rather than at every small
  business or subcontractor facility.
• Amend the solicitation and reissue with clause (ex. US Army locomotives
  procured by US Department of Transportation). US Army PM decided it
  was more cost effective to amend the solicitation and have the contractor
  mark the three generator set of locomotives and major components
  >$5,000 (axle, motor, etc) than accept and mark as legacy items
• Refer to inspection and acceptance clauses. Educate DCMA and/or QA
  personnel if inspection and acceptance accomplished in-house

              Please Give Us YOUR Examples
                    Overview

IUID
 •   Genesis
 •   End-2-End Concept
 •   Implementation at Depots
 •   Contracting for IUID
 •   What’s New?
 •   Reference Sources
                             DAU IUID Training
Updating existing UID Continuous Learning Module
(CLM 200) – focuses on new items
Developing new UID CLM for Legacy Items
• Based on End-2-End concept and DoD Maintenance
  CONOPS
• Lessons:
   −   Overview of CONOPs
   −   Program Management and Integrated Product Team Responsibilities
   −   Implementation Template for DoD Maintenance Depots
   −   IUID Registry
   −   IUID Data Usage in Current and Future Applications
• Availability: Targeting end of year completion; waiting on
  Program Management Plan from contractor
                        End-2-End Concept Workshops
                                           Establish                     Contractor
                                             IUID                    Physical/Contractual
                          IPTs             Program                       Compliance
                         PM/FM               Plan
        Property       Contracting
          to be         Engineer
        provided                             Military
         under        •Contract Clauses    Equipment                                        Inspection &
        contract      •CLINs/SLINs          Valuation
                      •Mil Std 130                                       WAWF                Acceptance
                                          (Id for initial
                      •Etc                  valuation)                                        Govt QA




                                                                                     WAWF
                                                                Contractor
                                                            Physical/Contractual
                                                                Compliance
                      Establish Depot
        Depot                                                                       Inspection &
                      UID Team (IPTs)
                                          Establish                                  Acceptance
     Maintenance           PM/FM
                                          marking                                     Govt QA
                        Contracting                                                                    IUID Registry
      Activities                            plan
                          Engineer
                         Item Mgrs
                        Equip Spec                          DOD Organic Depot
                                                            Physical Compliance
      Warfighter


Contracting for UID, Property in Possession of the Contractor (PIPC), Military
Equipment Valuation, Depot CONOPs
Practical cases and examples; attendees to include all members of UID Team
Presented to TACOM in Nov 2007; can be tailored to any organization
Item Unique Identification
   Reference Sources
May 2006 UID e-newsletter
                       Other Information Tools

DoD Guide to Uniquely Identifying Items: Outlines the UID process, business
rules, and UID constructs

UID 101: This guide explores all aspects of this initiative and is intended to
provide an understanding of how DoD program offices and commercial
businesses can successfully implement the Unique Identification (UID) policy

Guidelines for the Virtual Unique Item Identifier (UII): This document describes
the virtual unique item identifier (UII) concept, the processes for assigning and
registering virtual UIIs, and the prospective marking of items that have virtual
UIIs.

Guidelines for Engineering, Manufacturing, and Maintenance Documentation
Requirements for UID implementation: Provides suggested methods for
minimizing the non-recurring engineering costs associated with incorporating
marking requirements for DoD unique identification into engineering drawings,
manufacturing instructions, and maintenance work records.
Other Information
      Tools


   **Added to
   Conference
     Website
QUESTIONS?
                         IUID Implementation Plan *
 Top of the Plan
     Program Name
     Program Element
     Program Manager
     PEO
     Date of Plan
     ACAT
     POC

1. System Description
       Description/Mission/Position in Acquisition Cycle

2. References
       Service IUID CONOPs/Instructions/Relevant Service Policy
        Documents/Contractor

3. Exemption and Approval Source
       Phase out and/or per DFARS 211.274.2

                                    * Template & Sample Plan on UID Home Page
                        IUID Implementation Plan *
                                          (continued)

4. Overall IUID Implementation Strategy
     Marking
      Current and future contracts
      Legacy Items
      Depot Manufactured Items and Plant Equipment
     Process for entry of UII and pedigree data into IUID Registry
     Technical documentation strategy to minimize NRE
     Property in Possession of Contractors
     Sustainment Strategy – how IUID is being utilized
5. Identify UII related opportunities to improve or enhance business
   processes.
6. List Metrics
     Exit Criteria
     Measures of Success
7. Provide Schedule by Completing Form
8. Establish Priorities for Application of IUID and Associated Data Transfer
9. Identify Key Program Trigger Points for Physical Marking
10. Show Program IUID Related Budget Information
                                  * Template & Sample Plan on UID Home Page
IUID Implementation Plan
                    IUID Implementation Plan

Establish priorities for application of IUID and associated data transfer:
   [insert priority number 1 (high), 2 (med), 3 (low), 4 (not applicable)]

_____New solicitations: Post Jan 2004.
_____On-going Contracts: Post Jan 2005.
_____Operational Fleet: Post Jan 2005.
_____Assets in inventory: Post Jan 2005.
_____Assets in Depot Maintenance: Post Jan 2005
_____GFP in possession of contractors: Post Jan 2006.

Exemptions or exclusions to the IUID policy require approval by:
   ________________ .

Identify Key Program trigger events (physical IUID marking of items):
   no more than 8
_____________________________________________________________
_________________________________________________________ etc.
                         IUID Implementation Plan *
 Provide references including service IUID CONOPs, Instructions, Relevant Service IUID
  Policy documents (Most recent draft for those documents in development) and prime
  contractor(s) Single Process Initiatives if available

 Describe the overall IUID Implementation Strategy to include
     Marking
     Current and future contracts
     Legacy items
     Depot Manufactured items and plant equipment
     IUID Planning/Budgeting
 Technical documentation strategy to minimize the non-recurring costs for marking,
 Describe the business strategy for implementing IUID
 Identify IUID-related opportunities to improve or enhance business processes.
 List Metrics
     Exit Criteria
     Measures of Success
                                                          * Template on UID Home Page
             IUID Solicitation Prep/Contract Award

Solicitations for Service Contracts - IUID requirements do not
apply unless the service requirement involves delivery of an item.
 • Equipment involved in performance of the service may have a
   UII assigned. (Beginning in 2006 GFP provided to contractors
   will need to be appropriately marked and have a UII assigned.)

R&D hardware that never sees operational service nor requires
logistical support might be treated as an expense for accounting
purposes and would not require a value be assigned to its UII.
The Program Manager makes that determination.

Operating lease items would not normally require UII marking or
associated valuation, unless they are subsequently be purchased
or supported by DOD.
                            Examples – Major System
ITEM SUPPLIES/SERVICE       QTY/UNIT UNIT PRICE       AMT

0001 A-44B Attack Aircraft 12       ea       $55,555,000    $666.660,000
     Lot 3 (FY11)
0002 Aircraft Technical Manuals                             (NSP)
0003 Logistics Analysis                                     $2,500,000
0004 Data for Item 0003                                     (NSP)
     (see Exhibit B)
0005 Initial Spares                                         $1,123,546

Option Items
                         Example – subline items structured to identify
                     destinations for identical items, identically priced*

ITEM SUPPLIES/SERVICE                   QTY/UNIT      UNIT PRICE      AMT

0001   NSN 1615-00-591-6620
       Shim, Alum Alloy,
       Rotor, Helicopter
       PRON A1-9-63821-M1-M1
       ACRN: AA
0001AA A3168R-9030-4025                   10   ea      $100            $1000.00
       A2537M IPD: 2 RDD: 334
       PROJ 501

0001AB A3168R-9030-4026                   10   ea      $100           $1000.00
       A2537M IPD: 2 RDD: 325
       PROJ 502
Delivery schedule shall be established for each subline item, not the contract
                     line item (DFARS PGI 204.7104-2)
           Example – subline items structured to identify destinations
                            for identical items, not identically priced*
ITEM SUPPLIES/SERVICE                   QTY/UNIT UNIT PRICE             AMT

0001     NSN 1615-00-591-6620
         Shim, Alum Alloy,
         Rotor, Helicopter
         PRON A1-9-63821-M1-M1
         ACRN: AA
0001AA   A3168R-9030-4025               10         ea        $100                $1000.00
         A2537M IPD: 2 RDD: 334
         PROJ 501

0001AB   A3168R-9030-4026               20         ea        $99                 $1980.00
         A2537M IPD: 2 RDD: 325
         PROJ 502

   Delivery schedule shall be established for each subline item, not the contract line item
                                  (DFARS PGI 204.7104-2)
                Example – subline items structured to identify different
                          sizes of an items that are identically priced*

ITEM SUPPLIES/SERVICE               QTY/UNIT           UNIT PRICE        AMT

0013    Boots, Insulated,
        Cold Weather White
        Type II, Class 1                     PR        $38.35            $13,422.50
00013AA 8430-00-655-5541                     50
         Size 5N
00013AB 8430-00-655-5544                     70
        Size 8N
00013AC 8430-00-655-5551                     30
        Size 9R

   *Delivery schedule shall be established for each subline item, not the contract line
         item.
                              How NOT to structure CLINS –
                                            “kits” or “lots”
ITEM SUPPLIES/SERVICE          QTY/UNIT         UNIT PRICE AMT

001    Processing Module/8
       FFP
       Model No. 234-56-7890 FOB: Destination
0001AA Funding for Processing Module    1 LOT         $8,044.00 $8,044.00
       FFP
       Model No 234-56-7890 FOB: Destination
       Purchase Request No xxxxxxxxxx
       ACRN: AA
0001AB Funding for Processing Module    1 LOT         $6,033.00 $6,033.00
       ACRN: AB
       Funding for Processing Module    1 LOT         $2,011.00 $2,011.00

Why not have a unit price of $2,011 and show the actual quantities in each
         line (shown in a footnote in the accounting data in Sect G)?
                          Example – subline items structured to identify
                                                          parts of a kit*
ITEM SUPPLIES/SERVICE                   QTY/UNIT        UNIT PRICE         AMT

0031     Conversion Kits to Convert
         Torpedo MK 45 Mod 0 to
         Torpedo MK 4Torpedo Mod 1
         (50 Kts @ $10,868.52; $543,426 total)
0031AA   Integrator Assy LD 620106     50 EA            $10,868.52         $543,426
0031AB   Pulse Generator Assy
         LD 587569                     50 EA                               NSP
0031AC   Drive Shaft Assy              50 EA                               NSP
0031BF   Actual Panel Assy             50 EA                               NSP


 Delivery schedule and price shall be established for each identified part at the subline
                    item level, not for the kit at the contract line item level

UID requirements can be expressed at the subline level, avoiding the need to generate a
                                  dummy UID for the kit
                           Example: Use of an Exhibit for
                                                 Spares
                           INSPECTION
ITEM               UNIT OF    AND        DELIVERY          DELIVER
NUMBER DESCRIPTION ISSUE ACCEPTANCE       DATE         FOB   TO         UII

A001                  SS                90 days ARO   Origin   SPxxxx   Yes
A002                  SS                90 days ARO   Origin   SPxxxx   Yes
A003                  SS                90 days ARO   Origin   SPxxxx   Yes
A004                  SS                90 days ARO   Origin   SPxxxx   No

				
DOCUMENT INFO
Description: Military Equipment Valuation document sample