U.S. Defense Department Picks Four for RFID III

Savi manufactures and markets all of the RFID equipment necessary to supply organizations seeking solutions under the RFID III umbrella. To create active RFID systems that comply with the DOD's requirements, the other three prime contractors (or their subcontractors) first had to license intellectual property (IP) from Savi, since that firm holds IP essential to meeting the ISO 18000-7 standard (see Seven Companies Sign Up for Savi IP License).

The RFID III RFP was initiated in August 2008, with vendors given until Sept. 3, 2008, to respond (see DOD Issues RFP for Active RFID). That deadline was subsequently extended to Sept. 10 (see Evigia Launches 433 MHz Active RFID Product Line). The Defense Department's previous contracts for 433.92 MHz active tags and interrogators, and related and software—known as RFID I and RFID II—were awarded solely to Savi Technology.

Savi's CEO, David Stephens, believes the RFID III contract will be a boon to the RFID market, and that it will also spur innovation. "There will be a broader continuation [of existing RFID initiatives within the government]," he says, "but I also think there will be some new business areas opening for adoption of RFID. The government has rallied and supported the ISO standard to ensure interoperability among all the products, and that will also contribute to much more innovation. The issue comes down to what's the business value [of RFID], and I believe the DOD has put RFID on a trajectory to provide greater business value."

What's more, Stephens says, the addition of other companies able to fill the contract will benefit the market as well. "This contract allows the possibility of more companies building a broader market for RFID III solutions across the world," he states. "As the market grows, everyone benefits."