Subject: Radio Frequency Identification (RFID) Policy--UPDATE.

THE UNDER SECRETARY OF DEFENSE

3010 DEFENSE PENTAGON

WASHINGTON, D.C. 20301-3010

FEB 20, 2004

MEMORANDUM FOR: SEE DISTRIBUTION

SUBJECT: Radio Frequency Identification (RFID) Policy--UPDATE

[ILLUSTRATION OMITTED]

This memorandum updates the "Radio Frequency Identification (RFID) Policy," dated October 2, 2003. This policy update provides revised business rules for the use of high data capacity active RFID (Attachment 1) and an initial set of business rules for the implementation of passive RFID and the use of the Electronic Product Code (EPC)-compliant tags within the Department of Defense (DoD) supply chain (Attachment 2). This policy and associated business rules will continue to be refined as we implement the active RFID capability and pilot the passive RFID capability over the next six months.

DoD Components will continue maximum effort to immediately implement and expand the use of high data capacity active RFID currently employed in the DoD operational environment. DoD Components will also plan for a January 1, 2005, implementation of the passive RFID business rules. These rules, which are in Attachment 2, include the requirement for DoD suppliers to put passive RFID tags on the cases and pallets of materiel shipped to the DoD as well as on the packaging of all items requiring a Unique Identification (UID). DoD Components will establish an initial capability to read passive RFID tags and use the data at key sites by January 2005. The Defense Logistics Agency has committed to making the strategic distribution centers (San Joaquin, CA, and Susquehanna, PA) capable of reading passive RFID attached to shipments received from suppliers and applying passive RFID tags on shipments to DoD activities and units by that date.

A key component to implementing RFID throughout our supplier base is the publication of a Defense Federal Acquisition Regulation (DFAR) rule governing the application of RFID to the case/pallet/item packaging for materiel purchased by the Department. To that end, I have directed the Deputy Under Secretary of Defense (Logistics and Materiel Readiness) (DUSD(L & MR)) to work with Defense Procurement and Acquisition Policy to develop a proposed rule for publication in the Federal Register by May 2004. The rule will require passive RFID tagging at the case, pallet, and UID item packaging level for all new solicitations issued after October 1, 2004, for delivery of materiel on or after January 1, 2005.

Use of RFID to streamline our supply chain includes the integration of RFID event data into the DoD logistics information systems. To achieve this goal, the Assistant Deputy Under Secretary (Logistics Systems Management) will determine the requirements needed to integrate the RFID data into the DoD data environment in consonance with the Business Enterprise Architecture. The effort will include the integration with legacy/modernized logistics systems, middleware translation requirements, architecture and enterprise infrastructure requirements, and data security issues. The results of this effort will be available March 2004 and will assist DoD in decisions for legacy systems support as well as new systems development across the DoD.

In order to provide a capability to purchase passive RFID technology and leverage the purchasing power across the Department, the Army's Program Executive Office Enterprise Information Systems (PEO EIS) office will establish a multi-award contract mechanism to procure EPC-compliant technology. Contracts will only be awarded to vendors who meet the published EPC tag specification.

Much remains to be completed prior to issuing the final RFID policy in July 2004. This requires your continued strong support of an RFID policy development effort led by the Assistant Deputy Under Secretary (Supply Chain Integration). The RFID IPT will complete the following tasks and resolve the remaining issues outlined below.

* Finalize DoD requirements for use of the EPC (March 2004)

* Finalize DoD passive RFID technical specifications--tags and infrastructure (March 2004)

* Identify RFID budget requirements (March 2004)

* Conduct a second DoD RFID Summit for Industry (April 2004)

* Publish a proposed DFARS Rule for the application of passive RFID tags at point of origin (manufacturer/vendor) on items procured by DoD (May 2004)

* Complete an analysis of the initial RFID implementation projects (June 2004)

* Complete an analysis of applicable regulations and other requirements, such as Hazards of Electromagnetic Radiation to Ordnance (HERO) certification (June 2004)

* Provide a final RFID policy and implementation strategy (July 2004)

* Implement passive RFID contract schedule (August 2004)

* Develop an education and training plan for DoD RFID (September 2004)

* Issue final DFARS rule effective October 1, 2004 (September 2004)

We will continue to partner with our suppliers on this critical initiative. An RFID-enabled DoD supply chain will reduce our operating costs, allow us to refocus critical manpower resources, and will provide a key enabler for the asset visibility support needed by our warfighters. Your efforts are vital to our success in meeting this requirement. Additional information is available at http://www.acq.osd.mil/log/rfid/index.html.

Attachments:

As stated

Editor's note: To view the distribution and attachments to this memorandum, go to the DoD Supply Chain Integration Web site at <http://www.acq.osd.mil/log/logistics_materiel_readiness/organizations/sci/rfid/rfid_policy.html>.

Michael W. Wynne

Acting