Originally posted by: AMCRambler
Sounds interesting. I'd be a bit worried though. $420 million worth of RFID tags and you've got 19 people making them. Lets say they are the advanced ones so they go for $50 apiece. That's like 8.4 million tags! Are you equipped to handle that? I know nothing about making RFID tags, but that order sounds like a shit load of tags!!!!
Congrats on your contract though. Don't listen to all the haters in here. They are pissed that the DoD went off shore. Of course if their taxes went up so that the DoD could pay an American company to do the work, they'd be bitching too.
$420 million does not all go for tags. There are readers, software, relays... a ton of equipment. The DoD is issuing the 420 mil for selective vendors for an entire solution. We will be getting a smaller portion, which is still a lot of cash. These RFID are over $100 as they last 5 years, and have multiple sensors in them, and a lot of memory.
No this isn't off shoring, we are here in the states... fabrication might be offshore to Mexico or China for these reasons:
1) we tried finding someone here to fabricate them... they charge us a lot to offshore the job themselves.
2) cost way too much money to do it in the US. You would think by now they would have large facilities that can assemble electronics for cheap..
We are considering local companies... spread the wealth in this region as it needs it badly.