History

• In 1998, a report by the government's General Accounting Office found discrepancies in the Department of Defense (DoD) inventory. Essentially, the DoD had more equipment than it required to maintain its operating requirements, yet it was still missing essential spare parts to ensure the proper upkeep of that equipment. The DoD then determined that it needed a more efficient, uniform and unique means of marking and tracking its inventory.
  
  

Policy Change

• The Unique Identification Policy, put into effect in January of 2004, requires barcodes for all government property in inventory or operational use, all government-furnished property, and any item where the end cost is valued at more than $5,000. Manufacturers, specifically those that work directly with the government, must comply with the DoD's policy and provide UIDs for all of their manufactured items.
  
  

Benefits

• According to the DoD, the UID barcoding policy allows them to keep better track of their inventory, reduce the chance of human error through a computer-coded database system, and track inventory through their entire lifespan. Most importantly, however, the DoD claims that barcoding reduces wasteful practices and saves money. For example, UID-marked items pass through the receipt-and-payment process, enabling the DoD to remit payments quickly and avoid late charges.