MOUNTAIN VIEW, Calif – 26 Oct. 2009. Savi, a Lockheed Martin [NYSE: LMT] company, won orders totaling $6.6 million for standards-based active Radio Frequency Identification (RFID) tracking technologies and accompanying services under the U.S. Department of Defense's (DOD's) RFID III procurement contract.

The RFID tags, which are affixed to cargo containers and other military supply chain assets, comply with the ISO 18000-7 standard (also called DASH7), enabling near real-time supply visibility and interoperability with allied defense forces and government organizations.

The U.S. Army Information Technology, E-Commerce and Commercial Contracting Center (ITEC4) issued the procurement orders utilizing competitive procedures under the RFID-III contracting vehicle, which is a multiple award, indefinite-delivery-indefinite-quantity (IDIQ) contract with a total value of $429.4 million. RFID III was established for active RFID hardware, software and engineering services, and is open to all U.S. military Services, U.S. Federal Agencies and non-U.S. defense forces.

"This initial order of DASH7 RFID devices marks the DOD's conversion of RFID products to an open global standard that will support multi-national interoperability and innovative solutions that can leverage sensor-rich networks," says David Stephens, chief executive officer of Savi Technology. "We're gratified to be both a long-term supplier of RFID solutions to the DOD, and now a pioneering supporter of its transition to standards-based technologies that will help provide war fighters with the right supplies at the right time to get the job done."

Savi received three orders with staggered delivery dates with the final deliveries due in three months. The contract includes orders for the Savi ST-654, which is an ISO 18000-7 compliant active RFID tag used to track shipping containers, vehicles, and other large and valuable assets; and, the Savi ST-621, (also ISO 18000-7 compliant), which is a lower-cost, license plate tag designed for quick commissioning that is ideal for tracking shipping containers, rolling stock and other conveyances.

RFID III calls for "state-of-the-art" active RFID products compliant with ISO 18000-7 that provide "logistics tracking, locating, and health monitoring of commodities and assets." Savi actively participated in the development of ISO 18000-7, and offers a reasonable and non discriminatory licensing program for patent-protected protocols included in the international standard. Several commercial companies have licensed Savi's technology, including companies selected for possible awards under the RFID III contract.