Defense Logistics: Improvements Needed to Enhance DOD's Management Approach and Implementation of Item Unique Identification Technology

Abstract : Item Unique Identification Technology (IUID) technology allows DoD to assign a unique number to an item and use that number to manage that item in a variety of logistics processes. In 2003, DoD began implementation of IUID and has estimated that its use could improve the agency's accountability and maintenance of its property and equipment and save it from $3 billion to $5 billion per year. Also, integrating and sharing unique item identification (UII) data across DoD's enterprise information systems could enable DoD to track equipment as it moves between its components. GAO evaluated the extent to which DoD has done the following: (1) incorporated key elements of best management practices into its framework for IUID implementation, (2) marked items with IUID labels, and (3) developed the capability to share UII data across DoD in its enterprise information systems. GAO reviewed documents, interviewed cognizant officials, and reviewed DoD and GAO key practices for its analysis. GAO is making nine recommendations for enhancing DoD's implementation of IUID. They include actions to improve DoD's management of IUID implementation through best practices; enable the components to report complete data for marking items with IUID labels; and enable the components to share UII data across DoD enterprise information systems. DoD concurred with eight recommendations and partially concurred with one related to updating estimated financial costs and benefits of IUID implementation. DoD stated it will continue to identify such costs, but GAO continues to believe that updating benefits is also important, as discussed more fully in the report.