Accounting and Valuation

IUID will be instrumental in tracking and reporting the value of items the Government owns. IUID will enable the DoD to obtain a clean audit opinion through the ability to track and account for items uniquely. The IUID policy requires the submission of the value of each item upon acquisition. This information is populated in the IUID registry and can be used to support accounting and financial management.

Accountability of items begins when hardware (equipment and repairables), and supplies (materials and consumables) are acquired through purchase, lease, or other means, including transfer or fabrication, whether the hardware and supplies are already in existence or must be created, developed, demonstrated and evaluated. DoD Instruction 5000.64 requires that accountability records be established for all property (i.e., property, plant and equipment) purchased, having a unit acquisition cost of over $5,000 or more, and items that are classified or sensitive, or items located at third parties, regardless of acquisition cost. Property accountability records and systems should follow the 5000.64 exactly: part number, cost, national stock number, serial numbers, bar codes, or other unique identifiers (e.g., hull, building numbers, aircraft tail numbers, vehicle registration, disposal turn-in document number, as may be appropriate and necessary), as well as other data elements.

For materiel covered under DoD 4140.1-R, accountability records are established for all materiel received, regardless of cost.


Item value is reported via contract line item numbers (CLIN), sub-line item numbers (SLIN), or exhibit line item numbers (ELIN).

Using Contract Line Items

All property delivered to the Government must be delivered on a contract line item or subline item. The acquisition cost of each item entering the Government property inventory is captured on the contract line item (CLIN) or subline (SLIN) item. An Exhibit Line Items (ELIN) may be used to provide additional information.

CLINs, and SLINs are established when the contract is structured prior to award and must be included for all items for which the Government will take delivery, either during the performance of or at completion of the contract. The estimated acquisition cost of property will be identified upon delivery.

The table below shows the preferred approach for identifying the acquisition cost of items delivered under a contract is for the items to be separately priced under CLINs or SLINs. Informational subline items are used to capture the acquisition cost for items to be delivered when separately priced CLINs or SLINs are not practicable. Informational SLINs used only for identification of acquisition cost have to be clearly marked as such so they are not confused with delivery, acceptance, and payment requirements of the contract. When the acquisition costs for like items differ, separate informational SLINs must be used to identify the acquisition cost for each of the items with a different acquisition cost.

Deliverable IUID or IUID Equivalent Required Unit Acquisition Cost (or price) Required Valuation Method (Contract Type)
CLIN/SLIN Items requiring IUID or IUID Equivalent (Includes items delivered separately as spares). Yes. All items valued at $5k/unit and above. Use DoD decision tree to determine requirements under $5K per unit value. Yes Fixed Price- use CLIN/SLIN values. Cost Type-use contractor estimated costs. DoD will address delta $ from final total price.
Sub items requiring IUID or IUID Equivalent contained within CLIN/SLIN delivered end items. (LRU/Spares) Yes. Application of maintenance plan (e.g. lowest repairable or replaceable unit by DoD); No dollar threshold for applicability. No N/A
Other commercially marked items not requiring IUID. (CLIN/SLIN) No. The DoD shall accept existing commercial markings. Yes - All delivered items must be valued per unit. Fixed Price- use CLIN/SLIN values. Cost Type-use contractor estimated costs. DoD will address delta $ from final total price.

Contract Requirements

The Contracting Officer will modify a contract to establish separate CLINs/SLINsELINs prior to delivery of items that were not identified as contract deliverables at the time of contract award.

Valuation of Items

Both the unique identification and the value of items that will be delivered under the contract need to be reflected in the Department's property accountability and management information systems. According to DoD Instruction 5000.64, acquisition cost should be the basis for valuation of property.

  • For fixed price contracts, the acquisition cost for items to be delivered is the fixed price paid by the Government.
  • For cost type contracts, the acquisition cost for items to be delivered is the Contractor's estimated cost at the time the item is delivered.

The acquisition cost of components delivered within end items need not be identified. Item markings may be either the UII or other commercial markings for items not requiring the DoD UII.

An end item may be composed of embedded items, such as subassemblies, components and parts. The prime contractor will pass down appropriate specifications, including the IUID marking requirements, to the tiered vendors for subcontracted subassemblies, components and parts.

Spares may be purchased directly from the vendors or through the prime. IUID-qualifying spare items (subassemblies, components and parts) have to be marked appropriately with the UII data elements.

So, when the prime delivers the end item-that is one UII. The spares are delivered with their own UIIs. The Government has the option of asking the prime to deliver a list of all UIIs for IUID-qualifying embedded items in the end item.

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