Easy Order Asset Tags

In 2003, the U.S. Department of Defense (DoD) instituted an asset tracking program in order to track DoD property under the control of external contractors.  This arose amidst claims of of contractors misappropriating assets, employing wasteful practices and generally charging exorbitant sums for work which should not have been charged.  Some readers may recall the issues associated with $200 hammers or thousand dollar toilet seats which plagued NASA, and in the realm of defense spending, there were many instances of inappropriate billing by contractors which was met by the extremely large budget of the Dod and ultimately, the taxpayer was footing the bill.

The Unique Identification program (UID) ensures that government property and assets are all marked by a special asset tag – the individual asset is allocated an Individual UID (known as the IUID – the military are renowned for their use of acronyms) and this in turn produces a Unique Identification Identifier (UII).  All equipment delivered to the DoD by an external supplier must bear a UII which comes in the form of a 2D matrix (a barcode), and this in turn feeds into the billing program of the external contractor which must be managed and presented in a format which meets DoD standards.

With the “War on Terror” commencing in 2003, the DoD is taking delivery of equipment throughout the sphere of operations as well as its main logistics deployment establishment established in Richmond, VA.  There are numerous problems associated with ensuring that equipment is delivered and gets to where it is needed most, especially for those operations involving combat and security duty in high risk areas such as Afghanistan.  At the same time, while the focus is on combat and operational effectiveness, it is very difficult to effectively manage equipment and supplies which are delivered direct into the sphere of operations by external contractors.  When you are getting shot at, you are less likely to be concerned with accounting for equipment!

The UII tags remove the need for such intensive management by personnel in the field, and simplifies the entire tracking and inventory management process.  The program has already resulted in savings worth several billions of dollars in the 6 years which it has been in operation, and has also been used as the  basis for billing adjustments with external contractors who otherwise would have billed for equipment and supplies not delivered as well as reversing overcharges.

One application of the UID program has seen enormous savings in the area of containerization.  The  DoD is the largest customer for cargo containers in the Middle East area with enormous amounts of cargo being transported and stored at a variety of ports and externally managed supply centers prior to onward transportation to the “front”.  Cargo containers are extremely expensive pieces of kit, and they are not in fact owned by the DoD – the containerization system relies upon them being leased or rented (typically for a $2,000 per week).  These containers are spread around a huge geographical area, greater than the size of the U.S., and in a large number of disparate locations.  It is vital to track them and establish which are in use and which aren’t being used – by ensuring that idle use is minimized, and advising the owner of non-use, significant savings have been incurred by not paying for containers which are in fact, sitting idle in the owners depot or are still on the lease book but in fact, are not being employed.

Posted by M. Trumper

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