IUID, Clean Audit, FIAR and You Peter Collins A2B Tracking Solutions

1. IUID, Clean Audit, FIAR and You Peter Collins A2B Tracking Solutions

2. The Takeaway: Better Start Marking FIAR: Top priorities are budgetary and mission critical assets. DoD: Must be validated as audit-ready by September 2017. IUID: Best way to identify, mark and track assets of all kinds. GAO: Ways the DoD can better manage IUID deployment. YOU: Need to stay ahead of the Clean Audit and FIAR curve. A2B: Compliance and best-practice asset tracking solutions.

3. The Messenger: A2B Tracking Over 3000 tracking installations around the world. Largest DoD IUID program partner. Core systems and software developed specifically to support MIL STD 130. Mobilize field teams to identify and mark mission-critical assets and verify asset existence and completeness. Turn physical assets and inventory into item unique data that can be easily tracked, audited, and reported to the IUID Registry.

4. The Bad News Over 60% of records in your inventory are incorrect or incomplete.

5. The Even Worse News You need to change that.

6. The Even-Worse-Than-That News Now.

7. The Really Good News You’ve got IUID on your side.

8. The Directorate: FIAR. Financial Improvement and Audit Readiness (FIAR) plan. Full audit readiness of DoD property, plant, equipment, operating materiel and supplies to be completed by 2017. Puts highest priority on accountability for all mission-critical asset information. Verify inventory completeness and existence.

9. Mission Critical Asset Existence and Completeness Audit. Improvement and audit readiness of information is essential to effective management of mission-critical assets. Mission-Critical Assets: • Military Equipment – ships, aircraft, combat vehicles, etc. • Inventory – rations, supplies, spare parts, fuel, etc. • Operating Materials and Supplies – ammunition, munitions, missiles, etc. • General Equipment – material handling, training, tooling, testing, etc. Financial Management Asset Information: Unique item identifier, category/type, location, status, description, custody, controlling/financial reporting entity. Accountable Property System of Record (APSR) Reporting entities must record assets in their APSR, verifying mission-critical assets exist (book to floor), and that they are complete (floor to book).

10. 2011: FIAR Initiative Begins. Defense Secretary Panetta: “All hands on deck.”

11. 2013: FIAR Initiative Affirmed and Sustained. Defense Secretary Hagel will continue “to ensure we make that deadline of 2017 on the audits.” WEBINAR SERIES

12. The Reality: The DoD Has to Account for All Serialized Assets Automated, serialized item identification enables audit readiness within accelerated FIAR timeline. Using IUID: Item Unique Identification Capture and register data for all legacy assets, GFP and newly-acquired items. Industry best practice for quickly and cost-efficiently identifying, marking and tracking critical assets. Contains item unique information (UII) for end items and embedded parts. Durable mark lasts the full lifecycle of the item.

13. Meet Reporting Obligations Using IUID. Contains all required financial management asset information. Leverages current IUID Registry infrastructure and methodologies to achieve audit readiness reporting requirements. Enables reporting entities to record asset information in their APSR (Accountable Property System of Record).

14. The Challenge: So Many Assets Marked. So Many More to Go 122,000,000 Assets 21,000,000 Registered – GAO Report, May 2012

15. The Benefits: IUID and Asset Management Know what you have. Buy only what you need. Reduce spares and costs. Total asset visibility for timely, accurate information on location, quantity, condition and status. Update property books and ERP systems to enable audit processes. Eliminate slow, error-prone manual processing. A $3.2B investment in IUID yields an annual ROI of over $4B for the DoD. - Joint Logistics Board

16. The Benefits: IUID in the Field Eliminate counterfeit, incorrect and non-conforming parts. Ensure warfighter safety and preparedness. Sustain rapid deployment capability. Optimize chances for a successful mission. Increase accuracy and improve inventory decision-making.

17. The Reinforcement: GAO Recommendations for Using IUID Establish quantifiable interim milestones for gauging progress of IUID marking. Use UII data to improve accountability of equipment and increase efficiencies in maintenance. Develop policies and procedures for making sure 2D Data Matrix marks from contractors are reliable. Start getting more DoD legacy items marked.

18. The Reinforcement: GAO Recommendations for Using IUID Define requirements for IUID data across the DoD and within ERP systems. Examine and report on contracts that should include acquired-items and government-property clauses. Implement IUID marking to improve asset accountability, tracking and lifecycle management.

19. The Wake-up Call: You Need to Do This Yesterday. Maintain control by becoming FIAR compliant within your own timeframe. Not a matter of “if,” but “when.” The technology and systems you need to get started are available right now.

20. The Wake-up Call: More Items In Play Asset tag must be IUID compliant. IUID data is registered in the DoD IUID Registry. Mark new items and legacy items valued over $5K USD. $5K USD threshold for reporting value of items removed for all serially-managed GFP. GFP managers can now think of UID not as the exception, but the rule.

21. The Wake-up Call: What’s At Risk Stay ahead of the compliance curve! Control your time frame, keep your sanity. Manage your resource availability better. Avoid interruptions in operations. Minimize mistakes. Optimize your competitiveness.

22. The Wake-up Call for Contactors: What’s At Risk Stay ahead. Be competitive. CONTRACTOR B CONTRACTOR A Ahead of the curve Behind the curve ✔ MIL STD 130 compliant Not 130 compliant yet ✖ Delayed bid response ✔ ✖ Quicker bid response ✖ ✔ Accurate project estimates Unrealistic project estimating ✔ No item returns Costly returned items ✖ Win more contracts ✔ Lost contract opportunities ✖

23. The Wake-up Call for Legacy Custodians: What’s At Risk Know what you have and where it is with IUID PROPERTY MANAGER A PROPERTY MANAGER B Ahead of the curve Behind the curve ✖ ✔ Huh? Full property management ✖ Lost items. Duplicate inventory. ✔ Know condition and readiness ✖ ✔ Laborious, error-prone processes Quick item accountability ✖ Audit readiness nightmare ✔ Facilitate audit readiness ✖ ✔ Keep warfighter prepared Risk warfighter safety

24. At The End of the Day: If You Only Remember 2 Things… IUID is the industry BEST PRACTICE in critical asset identification and tracking IUID can support your clean audit and FIAR COMPLIANCE efforts.

25. The Solution: Identify, Mark and Track with A2B IDENTIFY IUID systems, software and services that validate existence and completeness of mission-critical assets. Marking and registering services go anywhere around the globe. MARK Advanced tracking software developed specifically for asset visibility and reporting. Integrated lifecycle asset tracking management from acquisition to sustainment to disposal. TRACK

26. The Next Step: Learn More, Then Act The FIAR plan and updated FIAR status report with information on the plan’s accelerated compliance timetable. Visit the Resources section of the A2B Tracking website at a2btracking.com for more information on: IUID for the DoD DoD Clean Audit requirements Email info@a2btracking.com Call 800.733.7592

27. Thank you. A2B Tracking. We’re on it.