Defense Logistics: More Efficient Use of Active RFID Tags Could Potentially Avoid Millions in Unnecessary Purchases
Highlights
For many years, the Department of Defense (DOD) has been attempting to improve visibility over its inventory and equipment. The lack of visibility over inventory and equipment shipments increases vulnerability to undetected loss or theft and substantially heightens the risk that millions of dollars will be spent unnecessarily. Additionally, needed supplies may not reach the warfighter when needed, which may impair readiness. In order to improve visibility, DOD began using a technology to enable it to track shipments. This technology is known as radio frequency identification (RFID). RFID technology consists of active or passive electronic tags that are attached to equipment and supplies that are shipped from one location to another. This technology is part of a family of automatic information technologies used to enable hands-off identification of cargo and inventory. This report focuses on active RFID tags, which cost around $100 each and are reusable. DOD has been using active RFID technology since the early 1990s to help with in-transit visibility of shipments, and, as of January 2005, it officially began to implement the use of passive RFID. During the course of our work on the use and implementation of passive RFID technology in DOD, we observed that active RFID tags were not being routinely returned for reuse. This report discusses DOD's efficiency in managing the reuse of active RFID tags, specifically the effectiveness of DOD's RFID policy and the extent of tag reuse and monitoring. DOD's final RFID policy was issued by the Under Secretary of Defense (Acquisition, Technology, and Logistics), the defense logistics executive for RFID implementation, on July 30, 2004.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Under Secretary of Defense (Acquisition, Technology, and Logistics) to modify the July 30, 2004, RFID policy and other operational guidance to require that active RFID tags be returned for reuse or be reused by the military services and other users. |
Closed – Implemented
The Office of the Secretary of Defense published guidance on 5/22/06 to the Services, DLA and TRANSCOM to reemphasize reuse of active RFID tags. In addition, DoD 4140.1-R was rewritten to include policy for active RFID. Beginning in July 2007, the Office of the Secretary of Defense (OSD), Directorate for Acquisition, Technology, and Logistics (AT&L) has been coordinating with the Services, DLA, and TRANSCOM on the language for the revision to this regulation. After several iterations of revisions to the regulation OSD AT&L received final comments from the Services, DLA, and TRANSCOM. OSD AT&L is incorporating the final comments, and will issue the revised regulation as GAO recommended.
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| Department of Defense | The Secretary of Defense should direct the Under Secretary of Defense (Acquisition, Technology, and Logistics) to direct the secretaries of each military service and administrators of other components to establish procedures to track and monitor the use of active RFID tags, to include (1) determining requirements for the number of tags needed, (2) compiling an accurate inventory of the number of tags currently owned, and (3) establishing procedures to monitor and track tags, including purchases, reuse, losses, repairs, and any other categories that would assist management's oversight of these tags. |
Closed – Implemented
The Office of the Secretary of Defense (OSD), Directorate for Acquisition, Technology, and Logistics (AT&L) published guidance on 5/22/06 to the Services, DLA and TRANSCOM which required the development or adaptation of existing procedures for the use and reuse of active RFID tags. According to OSD AT&L, each of the Components has complied with the requirement. In addition, DOD's Office of the Production Manager for Joint and Automatic Identification Technology has investigated causes for tag reuse and made reports available to users. Since the beginning of combat operations in Iraq and Kuwait, the Department has seen a significant increase in the use and re-use of RFID tags. The Department stated that it continues to monitor the reuse of active RFID tags and has seen an average of 62% reuse of the tags. The vast majority of the tags are being reused in Kuwait and Iraq where they are most needed.
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