I N S T I T U T E F O R D E F E N S E A N A L Y S E S

IDA Paper P-4094

Log: H 06-000161

April 2006

Selected Issues in DoDs RadioFrequency Identifi cation(RFID) Implementation

Christine YoungblutSarah H. Nash

Michael S. Nash, Task Leader

Approved for public release; unlimited distribution.

This work was conducted under contracts DASW01 04 C 0003 and W74V8H 05 C 0042, Task DE-5-2452, for the Defense Logistics Agency (DLA). The publication of this IDA document does not indicate endorsement by the Department of Defense, nor should the contents be construed as refl ecting the offi cial position of that Agency.

2006 Institute for Defense Analyses, 4850 Mark Center Drive, Alexandria, Virginia 22311-1882 (703) 845-2000.

This material may be reproduced by or for the U.S. Government pursuant to the copyright license under the clause at DFARS 252.227-7013 (NOV 95).

I N S T I T U T E F O R D E F E N S E A N A L Y S E S

IDA Paper P-4094

Selected Issues in DoDs RadioFrequency Identifi cation(RFID) Implementation

Christine YoungblutSarah H. Nash

Michael S. Nash, Task Leader

Preface

This document was prepared by the Institute for Defense Analyses under the task order Defense Logistics Agency (DLA) IT-Based Supply Chain R&D. It partially fulfills the objectives of the task, being a necessary preparatory step to identifying and addressing DLA-specific issues. Many people contributed to this work by providing the information documented here. We are grateful for all such contributions. This document was reviewed by IDA research staff members, Dr William E. Cralley, LTG Peter A. Kind (Ret)., Dr. L. Roger Mason, Jr., and Dr. Richard P. Morton.

iii

Contents

Executive Summary ...................................................................................................................ES-1

1. Introduction..............................................................................................................................1

2. Policy Implementation.............................................................................................................3

3. DoDs New Uses of Active RFID..........................................................................................15

4. DoDs Use of Passive RFID ..................................................................................................23

5. Integration of Passive and Active RFID ................................................................................37

6. Standards................................................................................................................................39

7. Training..................................................................................................................................53

8. Outstanding DLA Issues ........................................................................................................57

References .................................................................................................................................Ref-1

Acronyms and Abbreviations ................................................................................................. Acro-1

Appendix A. Glossary of RFID Terms ........................................................................................ A-1

v

List of Figures

Figure 1. Active RFID Coverage of Supply Chain Nodes .............................................................16 Figure 2. Timing of Field Trials and Demonstrations ....................................................................26 Figure 3. Passive RFID Coverage of Supply Chain Nodes ............................................................27 Figure 4. GAV-RFID General Supply Point Process Flow............................................................28 Figure 5. Ocean Terminal ePC Process Flow.................................................................................29

List of Tables

Table 1. Issues Raised in Implementation Plans ..............................................................................4 Table 2. Status on Issues Raised in GAO Report [2005] .................................................................8 Table 3. Active RFID Implementation Cost Estimates (in $1,000s)..............................................10 Table 4. Passive RFID Implementation Cost Estimates (in $1,000s).............................................11 Table 5. Status of RFID Identification Standards...........................................................................42 Table 6. Status of Data and System Protocol Standards.................................................................44 Table 7. HF Air Interface Standards for Passive RFID..................................................................45 Table 8. UHF Air Interface Standards for Passive RFID ...............................................................46 Table 9. Air Interface Standards for Active RFID .........................................................................47 Table 10. Status of Application Support Standards........................................................................48 Table 11. Status of Compliance Standards.....................................................................................48 Table 12. Health & Safety Standards .............................................................................................49 Table 13. Terminology Standards ..................................................................................................49 Table 14. Status of RTLS Standards ..............................................................................................50

vii

Executive Summary

The DoD Radio Frequency Identification (RFID) Policy (Policy), issued 30 July 2004, requires DoD components to immediately implement the use of active RFID for all Outside Contiguous United States (OCONUS) shipments and states that the Defense Logistics Agency (DLA) is the procurement activity and single manager for active RFID tags. The Policy also specifies the business rules for a phased introduction of the use of passive RFID on shipments in the DoD supply chain.

Several recent activities have moved DoD closer to full Policy compliance. A new Defense Federal Acquisition Regulation Supplement (DFARS) rule was published on 13 September 2005, all affected DoD components had delivered RFID implementation plans to ADUSD (SCI) by December 2005, and five Blanket Purchase Agreements have now been awarded to facilitate implementation of the necessary RFID infrastructure. Steps taken by industry will also benefit DoD, for example, EPCglobal has revised its EPC tag data standard to incorporate DoDs Commercial and Government Entity code and the DoD Activity Address Code. Nevertheless, there are some outstanding issues, particularly with regard to Service funding and spectrum management for RFID equipment.

DoD has been using active RFID technology for sustainment cargo for over a decade, primarily to provide Combatant Commanders with in-transit visibility of shipments in the supply chain. Over the last few years, DoD has been involved in several efforts that are looking at how best to exploit technology advances. The Air Force has led an effort investigating how augmenting active RFID tags with environmental monitoring can best support the DoD supply chain. Part of this work included in an Advanced Concept Technology Demonstration ended with a positive Military Utility Assessment. The Army is collaborating with the Air Force in looking at new application areas for this technology. There are plans to investigate the potential of new types of active tags that enable monitoring shipping container security. Other work is determining the best mix of communications technologies for providing on-demand location of shipments where there is no preexisting RFID infrastructure. DoD components are also looking at new ways of using the existing technology, with applications ranging from container management to tracking parts through lengthy overhaul and repair processes.

DoD has less experience with the use of passive RFID technology and most current efforts are identified as pilots or proof-of-concept studies. The majority of these efforts have had successful outcomes. This is particularly notable for the two that were conducted as field trials where passive RFID tags were used in operational processes. It is also encouraging to note that, between them, these two efforts have examined most ways in which the technology can be used in the supply chain. The outstanding gap is exploiting the information provided by the technology for logistics decision-making, such as automated reordering of stock once available supplies reach a threshold value.

As yet, there is no evidence of integrated use of active and passive tagging of data. Some efforts have captured manifests on active tags attached to shipping containers, but this data does not seem to have been used at other nodes in the supply chain. However, one demonstration that used passive and semi-passive tags in a simulated supply chain has validated the concept. Currently in development, the Alaska RAPID project will be the first major demonstration of this capability in an operational environment.

Standards are important for the device and data interoperability required for seamless use of RFID across the supply chain. Since DoDs operations span many continents, the pending ISO ratification

ES-1

of EPCgobals Class 1 Generation 2 (Gen 2) specification is important because World Trade Organization treaties require that ISO be