1

DoD RFID Policy

March 4, 2004

Mr. Alan Estevez Assistant Deputy Under Secretary

of Defense (Supply Chain Integration)

2

Support Warfighter requirements . . . Directs use of active RFID across DoD Components for ITV Directs immediate implementation of active RFID business rules

Streamline the Supply Chain . . . Directs implementation of passive RFID within the DoD supply chain States intent to be early adopter of the technology

Oct 2003 RFID Policy

Established January 2005 for implementation of passive RFID

3

Why we need RFID . . .Why we need RFID . . .

4

Why RFID now?

• Improve business processes now• Drive the direction and cost of technology

development• Drive the standards to work for us• Facilitate the implementation of Unique

Identification (UID)

Set the foundation for future supply chain improvements…TODAY!

5

Active RFID Policy

• Immediately implement active RFID in support of in-transit visibility requirements• Tags on containers and consolidated air pallets

• Establish RFID infrastructure to support core business processes

• Must be standard way of doing business!

• Enhance Asset Visibility, even in austere environments • Reduce Logistics Footprint

• Hands-Off Data Capture • Improve Force Tracking

• Optimize Transport/Logistics Assets

Supports COCOM Directive Authority

For Logistics

6

Passive RFID - Policy Update

• Establishes Initial Passive RFID Business Rules

• Directs that DoD sites prepare for passive RFID application and utilization

• Directs Development of Proposed DFAR rule by May 2004• Requires passive RFID for solicitations issued after October

1, 2004 for delivery of materiel on or after January 1, 2005

• Establishes Initial Passive RFID Tag Requirements• Reaffirms intent to use EPC compliant technology

7

Operational Implementation

Cross-docking operation at FISC Norfolk Ocean Terminal

• Tracking small package shipments• Expanding to all shipments• Eliminating hand-scanning when stuffing

containers• Using tag as transaction of record!

8

DoD RFID Policy – Next Steps

• Conduct Initial Implementation Projects – Jan 04 - May 04

• Convene Second DoD RFID Summit for Industry – Apr 04

– Present EPC requirements to suppliers

– Continue dialog with suppliers

• Publish Policy Update – Apr 04

• Develop/Publish proposed DFAR rule for RFID – May 04

• Publish Final RFID Policy – Jul 04

• Publish Final DFAR rule effective Oct 1, 2004 – Sep 04

• Implement – Jan 1, 05

9

Summary

Implementing Active RFID for in-transit visibility Implementing Passive to streamline the supply chain Piloting the technology Developing final policy

Set the foundation for future supply chain improvements…TODAY!