2PL to 5PL

Originally, the F-E-G operated as a 2PL carrier service, having transported freight in 48 U.S. states and Canada. 

On January 1, 2022, re-structured from a 2PL to a nationally certified Best Value (Merit-Based) Research & Science 5PL model:

D-U-N-S 015991216, UEI/SAM DLRMJUQKMU45, CAGE code 9R4B4 

and Certified by the U.S. Black Chambers, Inc. 

How F-E-G Qualifies as a Research and Science 5PL

Organizational & Regulatory Credentials-

• NAICS 541614: National Certified Fifth-Party Logistics (5PL) provider

 

• Legal Entity Identifier (LEI)-894500P8LIX5ZWOKNE48

• UEI/SAM registration: DLRMJUQKMU45

• D-U-N-S number: 015991216

• CAGE code (DoD): 9R4B4

• Patented SMaRTi™ ("Patent Applied For-63/813,316") compliance engine, embedding IRC/CFR rules into real-time workflows using cutting-edge technology and innovative solutions to convert an invoice’s QRE data into an immediate tax credit. This differs from traditional logistic models (such as 3PL or 4PL) and is accomplished by specifically emphasizing scientific research and development (R&D) as a means to qualify for tax benefits and promote economic growth. 

Legal Entity Identifier (LEI)-894500P8LIX5ZWOKNE48

A Legal Entity Identifier (LEI) is a 20-character alphanumeric code that uniquely identifies legal entities participating in financial transactions. It is based on the ISO 17442 standard developed by the International Organization for Standardization (ISO) and is used globally to enhance transparency in financial markets. The LEI helps to identify companies and organizations involved in financial activities, ensuring accurate and efficient data management.

The 5PL Advantage and SMaRTi® Process Overview

The SMaRTi™ Enhanced Digital Format Invoice marks a substantial improvement over traditional digital invoice. Unlike conventional digital invoices, typically PDF files or scanned documents requiring manual processing, Ford Enterprises Group's system produces structured, machine-readable documents that automatically trigger tax incentive applications and financial optimizations.

Traditional logistics models often face regulatory limitations that restrict the immediate benefits of R&D tax credits. In contrast, F-E-G’s 5PL structure—classified under NAICS 541614—and its SMaRTi® process distinguish it from standard 1PL, 2PL, 3PL, or 4PL models. By integrating real-time, patented compliance features and automating tax incentive infusion, every dollar spent on qualified research is directly converted into a dollar-for-dollar tax credit.

Advances research, development, and supply chain optimization:

• Immediate liquidity and tax liability reduction without aggregation delays.
• No artificial caps, deferred credit challenges, or limitations imposed by conventional accounting cycles.
• A fully auditable, transparent compliance trail that satisfies stringent IRS documentation and verification requirements.

The Ford Enterprises Group (F-E-G) qualifies as a Certified Research and Science 5PL under IRS rules

due to its proprietary Strategic Management and Research Technology infusion (SMaRTi™) process.

 

Here’s how it meets the criteria:

• R&D Tax Incentives: F-E-G invests in scientific research and development to optimize invoicing processes using advanced technologies. These activities qualify for R&D tax credits under IRS Code Section 41, which incentivizes innovation.

• Tax Incentive Integration: The SMaRTi™ process embeds tax incentives directly into the invoicing system. This transforms tax-deferred liabilities into dollar-for-dollar redeemable tax credits, ensuring compliance with IRS regulations.

• Environmental and Economic Sustainability: By adopting energy-efficient and eco-friendly invoicing technologies, F-E-G qualifies for additional tax incentives aimed at reducing environmental impact and promoting sustainability.

• Compliance and Accountability: The SMaRTi™ system ensures measurable compliance with federal regulations, creating a transparent and auditable process for stakeholders under Public Law 95-507 and the Code of Federal Regulations satisfying the requirements of IRC §6001.

• Innovation and Automation: F-E-G’s use of AI and automation in its invoicing processes enhances efficiency and accuracy, aligning with IRS guidelines for technological advancement; applicable to entities with an invoicing process and D-U-N-S number seeking to transform its tax-deferred liabilities into exponential, redeemable, tax refundable credits and incentives.

 Technical & Security Controls

• Straight-through processing with real-time reconciliation and reporting capabilities—matching industry best practices for Fednow/Fedwire message handling.

• End-to-end encryption (TLS 1.2+), dual-control access, and role-based authorization for all Fednow/Fedwire APIs.

• FedRAMP moderate–level alignment for cloud services housing Fednow/Fedwire-related data.

• Regular penetration tests, audit reviews, and contingency drills to validate operational resilience and security.

• Encryption: TLS 1.2+ for all FedLine connections; AES-256 for data at rest.

• High Availability: Active/active clustering with geo-redundant failover.

• Audit & Logging: Immutable, item-level logs stored 7-years+; evidentiary chain via SMaRTi™.

• Risk Management: Real-time OFAC/AML screening integrated in message pipeline.

• Governance: Alignment with Public Law 95-507, IRS regulations and Good-Housekeeping standards.

This SMaRTi® automated innovation identifies and quantifies every qualified research expense (QRE) as soon as it is captured

on an invoice. Not only does it qualify F-E-G as a Research and Science 5PL provider as a technology-driven,

research-centric entity but it also positions it as a leader in leveraging logistics for economic & environmental benefits.