FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES

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FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES FEDERAL EDI INITIATIVES--TITLE PAGE June 10, 1991

FEDERAL ELECTRONIC DATA INTERCHANGE

INITIATIVES

U. S. General Services Administration Information Resources Management Service FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES FEDERAL EDI INITIATIVES--FOREWORD

FOREWORD

This pamphlet was prepared by the U. S. General Services Administration (GSA) with the assistance of the Ad Hoc Interagency Committee on Electronic Data Interchange in order to provide guidance to Federal agencies on Electronic Data Interchange (EDI). In addition to examining EDI concepts and benefits, it provides information about Federal EDI initiatives and includes examples of standard forms used in Federal EDI applications. The pamphlet also discusses the importance of standards. It includes a discussion and listing of the American National Standards Institute (ANSI) X12 and United

Nations/Electronic Data Interchange for Administration, Commerce, and Transport (UN/EDIFACT) EDI standards. We would like to thank the following individuals who helped in the preparation of this document: David Schwarz and Charles Winter Environmental Protection Agency Charlotte Cooley and Bill White Defense Logistics Agency Daniel J. Drake Logistics Management Institute Elaine Barker and Roy Saltman U. S. Department of Commerce National Institute of Standards and Technology Robert A. Weeks II General Services Administration Federal Supply Service Dale F. Snell, Jr. Treasury Department U. S. Customs Service Neil Lamb and Peter Weiss Office of Management and Budget Office of Federal Procurement Policy Bruce McConnell Office of Management and Budget Office of Information and Regulatory Affairs The principal authors of this pamphlet were Douglas Arai and Franklin C. Stack of GSA's Information and Resources Management Service. If you have any

questions, suggestions, or items on EDI projects for inclusion in follow-up publications or meetings of the Ad Hoc Interagency Committee on EDI, please contact Frank Stack at 501-4047. Thomas J. Buckholtz Commissioner Information Resources Management Service U.S. General Services Administration FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES FEDERAL EDI INITIATIVES--TABLE OF CONTENTS

EXECUTIVE SUMMARY

Federal agencies and commercial enterprises are increasingly availing themselves of an opportunity to save time and money through the utilization of Electronic Data Interchange (EDI). Trading partners can avoid transferring paper forms and documents among themselves as they transact business.

Information can instead be transferred in standard EDI document formats via telecommunication links. Standard forms can be a part of an EDI system. Purchase orders, procurement requests, receiving reports, bills of lading, and other standardized forms used in the conduct of commerce are typical

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applications. The challenge for Federal EDI users is the multitude of organizations and industries with which the Federal Government trades. The solution lies in the use of standards. Standards simplify the exchange of data among the Federal trading partners. GSA recommends that Federal agencies adhere to existing standards when creating EDI systems. The United Nations Electronic Data Interchange for Administration, Commerce, and Transport (UN/EDIFACT) and American National Standards Institute (ANSI) X12 are recommended. ANSI X12 is the most widely used family of national standards and UN/EDIFACT is the most widely used family of international standards for EDI. Federal Information Processing Standard (FIPS) Publication 161 requires all agencies procuring new or upgrading existing EDI systems to use either the ANSI X12 or UN/EDIFACT standard. FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES FEDERAL EDI INITIATIVES--EDI OVERVIEW

EDI OVERVIEW

Electronic Data Interchange (EDI) is a means of transmitting information between a host computer and a vendor/client agency computer via telecommunication links. Order processing and the exchange of purchase orders may be accomplished electronically with significant savings over manual processing, but the benefits of EDI are not limited to financial transaction processing. Other types of data may also be transmitted, processed, and used to update databases. Data transmitted through EDI systems may also be used by electronic forms software packages to generate completed forms that may be printed out or archived on machine-readable media for audit purposes. Evolution EDI has evolved in conjunction with automatic data processing technology. In recent years, low cost personal computers have proliferated to the point that business and administrative information is now almost universally machine-readable. Trading partners have realized that one of their major transaction expenses is the keying and re-keying of information. To be competitive, many firms are requiring their trading partners to have EDI capability. While transmission and line costs for on-line transmission systems were prohibitive until the late 1980s, modems now allow data to be transmitted over standard voice-grade telephone lines at faster speeds and for less money. EDI users find it increasingly economical to communicate with their trading partners and others with whom they share information. Information to complete electronic forms can be transmitted over communication systems. Today this is primarily financial information used to complete forms such as purchase orders and proofs of receipt of goods and services. In the near future, however, EDI is likely to encompass other standard forms for everyone to use. New EDI transaction sets are being proposed and implemented at a rapid rate as new industries and applications within industries are being developed. Technology EDI technology requires at least a PC, data translation software, and access to EDI network services. Value added networks (VANs) are likely to play an increasing role in the growth of EDI. VANs permit many different trading partners to communicate through a central vendor-maintained public network. The teleprocessing networks can perform system administration functions, translate documents into the proper format, place documents in client mail boxes, fulfill report requests, check for compliance with existing standards, and edit documents. VANs can process trading documents such as purchase orders, invoices, and shipment information as well as other traditional paper exchanges. VANs permit asynchronous and synchronous telecommunication with most user devices using a variety of protocols and transmission speeds. The transmitted data may be stored in a user's computer for further processing on a mainframe or PC. Benefits Both the public and private sector can benefit by using EDI's document processing, inventory management, and industry service capabilities. EDI enhances document processing by reducing document handling, eliminating manual re-entry of data, improving accuracy of the data, and lowering ordering costs. EDI simplifies inventory management by processing orders faster, reducing purchase order lead times, forecasting supply needs more accurately, reducing levels of safety stocks, and reducing warehousing needs. EDI improves service to industry by allowing faster and more accurate purchase order processing, facilitating prompt and accurate payment, and lowering costs to vendors and buyers. An advantage of using an established standard such as ANSI X12 or UN/EDIFACT is that hundreds of data elements have already been defined. Many existing and potential trading partners use these standard data elements. Use EDI may be used throughout the entire ordering cycle. The following standard message types (commonly known as transaction sets) have been developed for EDI use in the ordering cycle. o Pre-ordering or preparations for purchasing: transaction sets for the planning

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schedule, the price/sales catalog, the request for quotation (RFQ), and the responses to the RFQ. o Ordering or purchasing: transaction sets for the purchase order, the purchase order acknowledgment, the order status inquiry, the order status report, the order change request, and the order change request acknowledgment. o Shipping, transportation, or receiving: transaction sets for the notification of readiness to ship, shipping schedule, shipping notice or manifest, bill of lading, post-shipment documentation, and receiving advice. o Payment: transaction sets for the invoice and the remittance or payment advice. Standards As use of EDI has increased, so has interest in the development of sets of standards which allow the Federal Government and industry to interchange electronic information more efficiently. A variety of standards has been developed for data exchange between trading partners and within particular industries. EDI provides a standard methodology for transmitting business data using the ANSI X12; Transportation Data Coordinating Committee Electronic Data Interchange Association (TDCC-EDIA); and/or the United Nations Electronic Data Interchange for Administration, Commerce, and Transport (UN/EDIFACT) standards. The data may be transmitted over commercial value-added networks (VANS) and/or private networks. The Accredited Standards Committee on Electronic Data Interchange (ASC X12) is organized under the procedures of the American National Standards Institute (ANSI). It's secretariat, the Data Interchange Standards Association (DISA), may be contacted at the following address. Data Interchange Standards Association 1800 Diagonal Road, Suite 355 Alexandria, VA 22314 An industry usually adopts one particular EDI standard for exchanging information within that industry. However, standards may differ from industry to industry. These different standards can complicate EDI systems for an organization such as the Federal Government which must deal with many different industries. The National Institute of Standards and Technology (NIST) approved a Federal Information Processing Standard (FIPS) for electronic data interchange. FIPS Publication 161 requires that all agencies procuring new or upgrading existing EDI systems use either the ANSI X12 and/or UN/EDIFACT standards. (See the Appendix for a list of these standards.) NIST based FIPS Publication 161 on the ANSI Accredited Standards Committee's X12 definitions for types of messages and on the United Nations Economic Commission for Administration, Commerce, and Transport for syntax and data dictionaries. As a requirement of the EDI standard, Federal users would have to use telecommunications protocols specified under FIPS Publication 146-1, the

Government Open System Interconnection Profile (GOSIP). EDI's message handling protocol will be incorporated into the Open System Interconnection (OSI) presentation layer. ANSI X12 is GOSIP compliant. Issues There are several outstanding EDI issues which the Federal and private sector user communities are addressing. These include the need for a conceptual model for EDI, trusted

authentication procedures (signature verification in particular), and assurance of secure transactions. The International Joint Technical Committee (JTC1) Special Working Group is in the process of developing a conceptual model for EDI. The goal of the model is to identify and coordinate existing and future standards and services in order to further global interoperability of EDI. The Special Working Group seeks to: o Clearly position EDI relative to other document transfer technologies o Arrive at an "open EDI" that will minimize specific prior agreements with trading partners o Focus on a "top down" approach which includes o generic EDI transactions o semantic requirements o data requirements o service and protocol requirements o Distinguish responsibilities and requirements of users (applications) and services (user agents). The ANSI Special Working Group plans to complete this project and issue a report on the "Conceptual Model for EDI" in the Fall of 1991. Electronic signature verification continues to be the topic of lively debate in EDI circles. Several vendors have offered solutions based on the use of encrypted keys, personal identification numbers (PINs), and password protection in combination with one another. The General Accounting Office (GAO), NIST, and the National Security Agency (NSA) are developing standards for this critical area. Currently, GAO will authorize specific electronic signature systems only if the system can be demonstrated to be secure and auditable. There are several EDI security initiatives. The Data Encryption Standards (DES) developed by NIST are described in FIPS PUBS 46-1 and 140. The issue with DES is that it is complex and expensive to implement. When used in accordance with NSA guidelines, the Low-Cost Encryption Authentication Device (LEAD) is endorsed by NSA for securing sensitive-unclassified DOD computer data . Federal agencies are exploring the feasibility of obtaining a waiver to use this standard. The Public Key Encryption (PKE) Standard is being developed by NIST and NSA. This standard will specify a Public Key Signature algorithm appropriate for use in digital signature

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applications. The standard will enable users not only to verify the integrity of the data and the origin of messages sent between computers but also to verify the integrity of data and programs that are stored in computers. FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES FEDERAL EDI INITIATIVES--FEDERAL EDI INITIATIVES

FEDERAL EDI INITIATIVES

The Federal Government has undertaken a number of EDI initiatives, but these are largely in the formative stages. The Department of Defense (DOD) is seeking to integrate EDI with its Computer-Aided Acquisition and Logistics Support (CALS) system. DOD developed the Modernization of Defense Logistics Standard Systems (MODELS) - which uses ANSI X12 and TDCC-EDIA standards as its basis - to replace the Defense Logistics Standard Systems (DLSS). The Defense Logistics Agency (DLA) has developed the Standard Automated Material Management System (SAMMS)/Procurement by Electronic Data Exchange (SPEDE) to allow trading partners to request quotations, receive quotations, and place orders. SPEDE will be enhanced by the addition of electronic invoicing and payment capabilities. The U. S. Customs Service has developed its UN/EDIFACT EDI capabilities in cooperation with public and private sector representatives from around the world. Customs' EDI capabilities include: 1. The Automated Broker Interface (ABI) 2. The Automated Manifest System (AMS) 3. The Automated Invoice Interface (AII) 4. Automated Clearing House (ACH) 5.

UN/EDIFACT Customs Declaration (CUSDEC) 6. UN/EDIFACT Customs Response (CUSRES) In January 1991, more than 1,000 brokers and importers were able to use ABI to file electronic customs entry declarations. The agency plans to continue expansion of its EDI use. There are several other instances where the Federal Government and industry exchange data electronically. These include: o The Department of Veteran Affairs (VA) hospitals and suppliers. o The Federal Supply Service (FSS) of GSA and Federal contractors. o The DOD medical supply office and suppliers. o The Defense General Supply Center (DGSC) and DOD contractors using the Paperless Order Processing System (POPS). o The Internal Revenue Service (IRS) and licensed tax preparers' use of the IRS Electronic Filing System. o The Security and Exchange Commission (SEC) and security brokers' use of the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system. o The Commerce Department and exporters use of the Export License Application and Information Network (ELAIN). The Office of Management and Budget (OMB) Office of Federal Procurement Policy (OFPP) is examining the written documentation requirement of 31 U.S.C. 1501, the Federal statutory counterpart to civil "statute of frauds" contained in state Uniform Commercial Codes and elsewhere, as a potential impediment to the comprehensive implementation of procurement automation techniques. 31 U.S.C. 1501 provides in pertinent part that no amount may be recorded "as an obligation of the United States Government unless supported by documentary evidence of a binding agreement between an agency and another person (including an agency) that is in writing..." OFPP is considering whether 31 U.S.C. 1501 should be amended to explicitly sanction the use of data interchange technologies in

procurement. For further information contact: Peter N. Weiss, Deputy Associate Administrator Office of Federal Procurement Policy 725 17th Street, NW Washington, DC 20503 Telephone: (202) 395-6803 NIST expects EDI to be used with "the entire range of information associated with commercial and business transactions and with field unit supply." Possible applications for EDI in the Government include the transmission of procurement notices, proposals from vendors, purchase orders, product specifications and drawings, shipping documents and status reports, invoices, and tariff and tax filings. DLA case study The Defense Logistics Agency (DLA) has developed several automated procurement systems using EDI technology. The major ones are: o The Standard Automated Material Management System (SAMMS)/Procurement by Electronic Data Exchange (SPEDE) which allows trading partners to request quotations, receive quotations, and place orders. o The DLA Pre-Award Contracting System (DPACS) provides the data that a buyer will need to complete a solicitation package. This data includes item descriptions, specifications, drawings, packaging data, ship-to addresses, synopsis information, histories of past buys, and other open purchase requests or contracts for the National Stock Number (NSN). DPACS provides the buyer with a chronology of every action taken on a purchase request. It also provides solicitation and award forms, vendor mailing lists, contract clauses, and fill-ins. The award package is forwarded electronically to management and the legal department for

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review. Once approved and funded, the contract is maintained in electronic form for the period prescribed in the retention and disposition schedule. o The Paperless Order Processing System (POPS) helps DLA and DOD contractors provide supplies and services to DOD facilities in a timely manner, thereby reducing stockpiling and warehousing costs. GSA case study Since 1987, the General Services Administration's Federal Supply Service (FSS) has been automating the processes leading to the award of contracts. This complex and labor-intensive operation evaluates approximately 10,000 offers each year and subsequently generates $4.8 billion in sales from about 7,700 contracts. The automated system being developed is modular and based on seven procurement processing steps: (1) mailing lists, (2) item descriptions and contract requirements, (3) contracting plans, (4) solicitation generation, (5) bid processing, (6) award processing, (7) operating reports and management data. Since the fully integrated database system accumulates and re-uses information from each succeeding transaction, it will virtually eliminate most clerical tasks now performed by FSS contracting officers and support staffs. Professional contracting and contract management personnel will have more time to devote to the planning, analysis, and decision-making necessary for effective contracting. In addition to automating internal operations, FSS has initiated the use of electronic commerce with some of its contractors. Using ANSI X12, the industry standard for electronic business data interchange, FSS sends 8,000 purchase orders and purchase order amendments each month to vendors over a

commercial network. Expansion of the electronic data interchange project will increase the speed of document exchange and simplify processes now based on paper documents. Agencies with automated FAR forms The Federal Acquisition Regulations (FAR) are available in machine- readable form through vendor systems. These systems permit automated text searches to reduce research time. The automated FAR systems feature indexes that identify subjects and locate the subjects by paragraph numbers. Cross-references are also available on some systems. The systems often permit the user to cut and paste clauses from the FAR into solicitations and contracts. There are also vendor systems which assist users in producing a synopsis of a procurement or contract in FAR-format for publication in the Commerce Business Daily (CBD). These systems permit the synopsis to be transmitted to the CBD and reviewed on-line the day before publication, assuring the agency that its notice will be published as planned. The Department of the Air Force has placed the FAR on-line to users. In its system, the regulations available are the FAR, The Department of Defense Supplement to the FAR (DFARS), the Air Force Supplement to the FAR (AFFARS), the Air Force Logistics Command Supplement to the FAR (AFLCFARS), and the Federal Information Resources Management Regulation (FIRMR). To use the Air Force system, users must have Wordperfect word processing software and a 40 megabyte cartridge tape backup system. Users must also have at least 40 megabyte capacity on their hard disk. Air Force recommends the Wordperfect Library (and/or Office) software which provides an excellent means of searching for specific subjects. The Air Force has created a memorandum of agreement for agencies who wish to become part of the on-line FAR system. The memorandum of agreement delineates the responsibilities of the Air Force Logistics Command (AFLC) Contracting Data Systems Development Laboratory and the agency requesting the service. The memorandum states that the Laboratory will maintain the FAR and related files. The Laboratory will send an updated tape to the agency quarterly. At the same time, an updated tape will be sent to the AFLC contracting sites. The agency will provide the Laboratory with a supply of formatted 40 megabyte magnetic tapes. The agency must agree to control the tapes. (The AFLC does not want anyone to copyright the system.) All costs associated with implementing the system in an agency will be borne by that agency. The

Laboratory currently provides the service to over 150 Government agencies. The FAR and related files can be provided in both ASCII and Wordperfect formats. The ASCII version is available only on nine-track magnetic tapes (for use with mini and mainframe computers). The version for PCs will only be supplied in a WordPerfect format. For more information please contact: AFLC Contracting Laboratory OO-ALC/PML Building 1297 Attn: Sandra Ward or Dan Jones Hill AFB, Utah 84056-5320

Telephone: Autovon: 458-9011 Commercial (801) 777-9011 The Department of Housing and Urban Development has an automated FAR system procured from a vendor. The vendor maintains this off-the-shelf system. Users can use it to research the FAR, prepare documents, and produce reports. FAR automation activities will be enhanced by the recent publication of "Governmentwide Procurement Automation Concept" by The President's Commission on Management Improvement (PCMI). Its objectives are to: 1. Improve the productivity and the effectiveness of individual procurement

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automation systems of the Federal procurement agencies through the interchange of appropriate data, documents, databases, and software within the Government and with the private sector. 2. Establish a basic framework that enables agencies and businesses involved in the Federal acquisition process to take advantage of current automation networking and technological capabilities. This will permit the processing and interchange of electronic information products and services. 3. Establish a

Governmentwide management, organizational, and funding mechanism to facilitate the development and implementation of Federal acquisition automation activities. Commercial vendors provide databases which include the thousands of clauses and instructions in the FAR and software to retrieve the desired text. FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES FEDERAL EDI INITIATIVES--GSA RECOMMENDATIONS

GSA RECOMMENDATIONS

GSA recommends that agencies adopt the ANSI X12 and the UN/EDIFACT standards according to the terms of the FIPS on EDI. GSA expects that the major remaining standard for EDI within the next decade will be a combination of ANSI X12 and UN/EDIFACT. FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES FEDERAL EDI INITIATIVES--GLOSSARY

GLOSSARY

ANSI X12. American National Standards Institute's family of EDI standards. ANSI ASC X12. ANSI Accredited Standards Committee (ASC) X12 for Electronic Data Interchange. This committee is accredited by ANSI to develop American national standards for Electronic Data Interchange. Approved standards are designated as ANSI X12 standards. Data element dictionary. Software for storing and processing the specifications for all data elements in a system. EDI. Electronic Data Interchange. The computer to computer exchange of transactions in a standardized format. EDI element. A data element. EDI segment. A short sequence of related data elements. EDI transaction set. The sequence of data segments that constitute a message. Electronic signature. A symbol, generated through electronic means, that can be used to validate (1) the sender's identity and (2) the integrity of the critical information received from the sender. An electronic signature may represent a person or an

organizational entity. FIPS. Federal Information Processing Standard. Trading partners Term used in EDI to denote the organizations exchanging electronic forms and reports. The organizations may exchange all types of transactions electronically. UN/EDIFACT. The United Nations/Electronic Data Interchange for Administration, Commerce, and Transport is the most widely used international standard for EDI. VANs. Value Added Networks. FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES FEDERAL EDI INITIATIVES--APPENDIX A. EDI STANDARDS

APPENDIX A. EDI STANDARDS

The most widely accepted family of national EDI standards is ANSI X12. Some of the ANSI X12 standards for EDI which are currently available include the following: 1. ANSI X12.1 Purchase Order (PO) 2. ANSI X12.2 Invoice 3. ANSI X12.3 Data Element Dictionary 4. ANSI X12.4 Payment Order/Remittance Advice 5. ANSI X12.5 Interchange Control 6. ANSI X12.6 Application Control 7. ANSI X12.7 Request for Quotation (RFQ) 8. ANSI X12.8 Response to RFQ) 9. ANSI X12.9 Purchase Order Acknowledgment 10. ANSI X12.10 Shipping Notice/Manifest 11. ANSI X12.12 Receiving Advice 12. ANSI X12.13 Price/Sales Catalog 13. ANSI X12.14 Planning Schedule with Release Capability 14. ANSI X12.15 Purchase Order Change 15. ANSI X12.16 Purchase Order Change Acknowledgment 16. ANSI X12.18 Shipment Information 17. ANSI X12.20 Functional

Acknowledgment 18. ANSI X12.22 Data Segment Directory 19. ANSI X12.23 Order Status Report 20. ANSI X12.24 Financial Information Reporting 21. ANSI X12.25 Customer Account Analysis 22. ANSI X12.26 Product Transfer Account Adjustment 23. ANSI X12.27 Price Authorization

Acknowledgment/Status 24. ANSI X12.28 Inventory Inquiry/Advice 25. ANSI X12.30 Order Status Inquiry 26. ANSI X12.33 Product Transfer and Resale 27. ANSI X12.34 Text 28. ANSI X12.37 Shipping Schedule 29. ANSI X12.38 Lockbox 30. ANSI X12.41 Report of Test Results 31. ANSI

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X12.42 Cryptographic Service Message Transaction Set (815) 32. ANSI X12.43 Operating Expense Statement 33. ANSI X12.50 Response to Product Transfer Account Adjustment 34. ANSI X12.58 Security Structures UN/EDIFACT is the most widely accepted family of international standards for EDI. UN/EDIFACT includes the EDIFACT syntax rule of the International Standards Organization (ISO 9735), the EDIFACT data element directory, the EDIFACT code list, a directory of composite data elements, a directory of standard segments, a directory of United Nations Standard Messages, message design guidelines and syntax implementation guidelines, Uniform Rules of Conduct for the Interchange of Trade Data by Transmission, and explanatory material. Underlying standards for UN/EDIFACT include: International standard ISO 9735 which contains the UN/EDIFACT application level syntax rules. UN trade data interchange directory (UN/TDID): UN/EDIFACT syntax

implementation guidelines UN/EDIFACT message design guidelines UN/EDIFACT data element directory (EDED) UN/EDIFACT code list directory (EDCL) UN/EDIFACT segments directory (EDSD) UN/EDIFACT composites directory (EDCD) UN/EDIFACT message directory (EDMD) UN/EDIFACT messages (UNSMs) include: Invoice messages INVOIC Purchase order messages -ORDERS Additional messages are being identified, developed, and submitted for standardization. FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES FEDERAL EDI INITIATIVES--APPENDIX B. STANDARD FORM MODEL

APPENDIX B. STANDARD FORM MODEL

In converting a standard form to an EDI document, each section of the form becomes an EDI segment and each item within the section becomes an EDI element. The entire form is known as an EDI transaction set. Each transaction set contains a header, the data segments, and a trailer. The header contains identification data such as the date, name of the organization, address, and the form number. The trailer contains control and summary information. EDI elements, or data elements, are maintained in a data element dictionary. The data element dictionary provides specifications for each data element, such as its type, length, and ANSI X12 code. For example, a data item preceded by the ANSI X12 code AN must be alphanumeric. A segment directory identifies and clusters related data elements. For example, the person to contact (PER in ANSI X12) may include the name and telephone number of a point of contact. The coding may appear as follows: PER*1C*B.J.Smith*TE*2025014047 N/L where PER is the segment identifier, 1C is followed by a name, TE is followed by a telephone number, and N/L signifies the end of the segment. Transaction set standards define the content of a document. ANSI X12 has defined many transaction sets (See Appendix A). Transmission control standards define the envelope for transmitting transaction sets. They define such items as how transaction sets are transmitted, recognition of the beginning and ending of a document, grouping of transaction sets, identification of sender and receiver, and procedures for transmitting and acknowledging receipt. The coding, formatting, and decoding are accomplished through software. The users of the EDI system need not be aware of the X12 codes and transmission protocols. An example of ANSI X12 coding used to transmit a form (Environmental Protection Agency form E063-01-0001) follows: ST*SUI*U01234 BTR*00*yymmdd*hhmm*LC*SU1-nnnnnnn NTE*GEN*1. CERTIFIC STATEMENT NTE*GEN* CERTIFIC STATEMENT NTE*GEN* CERTIFIC STATEMENT DTM*007*yymmdd

PID*S**EP*E063-01-0001 N1*AD*Company Name*9*D&and;B Code N2*Company Name

N3*Company Address*cont'd Addr N4*City*State*Zip Code LIN*Line Number*CN*Chemical Name PID*S**EP*Chem ID Code*EPA Code Letter PID*S**EP*Mfg or Import CBI PID*S**EP*Site Limited CBI PID*S**EP*Site(Specific Chem) CBI PID*S**EP*Chemical ID CBI Status PID*S**EP*Mfg Volume CBI Status MEA**Production Volume*PG LIN*Line

Number*CN*Chemical Name PID*S**EP*Chem ID Code*EPA Code Letter PID*S**EP*Mfg or Import CBI PID*S**EP*Site Limited CBI PID*S**EP*Site(Specific Chem) CBI

PID*S**EP*Chemical ID CBI Status PID*S**EP*Mfg Volume CBI Status MEA**Production Volume*PG SE*nnU01234 FEDERAL ELECTRONIC DATA INTERCHANGE INITIATIVES FEDERAL EDI INITIATIVES--APPENDIX C. FAR EDI MODEL

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APPENDIX C. FAR EDI MODEL

A model has been prepared under the guidance of the Accredited Standards Committee (ASC) on Electronic Data Interchange.X12 to demonstrate the three separate but related functions involved in the transfer of business transactions using the standards of ANSI X12. ASC X12 is organized under the procedures of the American National Standards Institute (ANSI), and the secretariat is the Data Interchange Standards Association (DISA). This model diagrams and describes these functions as layers and presents some of the protocols that are logically exchanged between peer functions. The Application Related (semantics) layer provides the interface to the ASC X12 transfer system for the application processes which use it. All services provided to the application process are through this layer. Federal acquisitions, for example, could be an application. Though this layer may not directly perform the service, it coordinates the service for the application process. This layer will set certain restrictions on the information that can be transferred using the syntax of the Format Conversion Related layer: o Length of information o Organization of the information o Presence of certain data (mandatory information) This involves the meaning of the data. Any controls on that meaning will be applied through this layer. The Format Conversion Related (syntax) layer is concerned with the

conversion of the data between the internal syntax (format) of the application processes and the transfer syntax (format) as specified in the standards of ASC X12. The data syntax of the Application Related layer is the internal syntax of the application process. In the transfer of information, there could be three syntaxes involved: an internal syntax at each end and the transfer syntax used between the ends of communication. The advantage of a standard transfer syntax is that an organization may

communicate with multiple trading partners without concern for the internal syntax of the other application processes. The Distribution Related (interchange) layer provides the interface to the actual communications transfer. It is at this layer that the interchange is formed and understood including addressing information for routing. Also as the layer above the physical communication link, this layer is involved with: o Data link protocols. o Controls. o Communication related features. o Grade of service for delivery.