TECHNOLOGY AREAS: Electronics, Human Systems

ACQUISITION PROGRAM: Naval Supply Systems Command, Navy Cash Program (ACAT III)

The technology within this topic is restricted under the International Traffic in Arms Regulation (ITAR), which controls the export and import of defense-related material and services. Offerors must disclose any proposed use of foreign nationals, their country of origin, and what tasks each would accomplish in the statement of work in accordance with section 3.5.b.(7) of the solicitation.

OBJECTIVE: Develop a human-systems based next generation solution to replace existing debit card and stored value card systems used by DoD warfighters.

DESCRIPTION: The Navy currently uses a "hybrid" smart card, which includes a smart chip (stored value e-purse for use onboard ship) and a magnetic strip (functioning as a debit card for commercial ashore transactions). This system, known as Navy Cash, also supports automated functionality allowing cardholders to receive a salary allotment directly onto their smart card, to access their home bank and credit union accounts, to transfer funds to their families, and to make purchases aboard ship and ashore. Navy Cash has significantly improved the sailor�s quality of life, while at the same time reducing the administrative workload for the disbursing office and eliminating the management of currency.

Although the current Navy Cash Program has effectively eliminated the need for cash by Navy personnel, the desire is to adopt a superior, card-less and DoD-common technology in place of the existing Navy Cash cards in order to provide the next significant quality of life improvement for the sailor. Next generation technology will also have less system maintenance and lower system component costs.

The requirements for a Next Generation replacement for Navy Cash are different than for similar commercial applications. Industry is evolving towards having only systems that rely on 100% available communications (open system environment), most notably with prepaid debit cards. These open system environments found in nearly all commercial applications are vastly different than the closed system environments found on U.S. Navy ships and in other military settings. The military�s closed system environments, with their limited or unpredictable communications, present unique challenges in the areas of secure communication and user authentication. In addition, the Navy desires to jump to a card-less or contactless technology to reduce the amount of maintenance associated with traditional card-based systems. Thus, Next Generation Navy Cash will not be able to simply adapt existing or evolving commercial technologies. The entire Next Generation Navy Cash system (currently includes point of sale devices, routers and switches, self-service kiosks, stored value cards, software, etc.) will require unique development and system integration, as well as a communications solution to operate in DoD�s closed-system environments.

Possible next generation technologies to consider include secure biometric-based solutions that do not rely on cards. The proposed solution should consider the following at a minimum:

� Limitations of a closed-system environment (e.g. an underway U.S. Navy ship) with limited or unpredictable communications
� Use or adaptation of commercial technologies for verification of a person�s identity, such as optical fingerprint and hand geometry scanners in combination with facial and speech recognition devices
� Common solution able to replace existing DoD stored value card systems
� Security of all sensitive user information
� Value of the completed SBIR concept for future commercial applications - specifically where closed system environments are needed, such as highly secure buildings or remote locations with little or no communications.

PHASE I: Investigate alternative technologies/approaches to develop a secure replacement for DoD stored value cards, based on Navy and other DoD component requirements. Evaluate and document alternatives and a development approach for one or more candidate solutions.

PHASE II: Develop a prototype based on open systems specifications and demonstrate operation in a secure transaction environment onboard ship.

PHASE III: Develop a solution for follow-on commercialization accommodating installation aboard Navy ships and facilities ashore, as well as distribution through financial institutions that offer banking services.

PRIVATE SECTOR COMMERCIAL POTENTIAL: Biometric and contactless products are currently available in the commercial market, and financial institutions are beginning to adopt verification of identity without a smart card. Adopting biometric technology, RF technology, or other facilitating technologies can result in significant cost savings by eliminating the need for costly cards and improving security. These same changes and related savings could also revolutionize the banking and commerce industry.

REFERENCES:

1. ANSI standard X9.84-2001, Biometric Management and Security for the Financial Services Industry(C)

2. Human Recognition Services module of The Open Group's Common Data Security Architecture (CDSA) standard

3. Additional Information provided by TPOC for Topic SBIR N091-064: Naval Supply Systems Command is having an Industry Day on December 4th from 1400-1600 EST. The Dial-in Number = 866-752-5831; Part code 7005498#

KEYWORDS: Biometric; radio-frequency, RF, smart card; stored value card; Navy Cash; open standards; financial; banking; commerce

TPOC: Daniel Olson
Phone:
Fax:
Email: [email protected]
2nd TPOC: Carrie Kunze
Phone:
Fax:
Email: [email protected]

** TOPIC AUTHOR (TPOC) **

DoD Notice:   Between November 12 and December 7, 2008, you may talk directly with the Topic Authors to ask technical questions about the topics. Their contact information is listed above. For reasons of competitive fairness, direct communication between proposers and topic authors is not allowed starting December 8, 2008, when DoD begins accepting proposals for this solicitation.

However, proposers may still submit written questions about solicitation topics through the DoD's SBIR/STTR Interactive Topic Information System (SITIS), in which the questioner and respondent remain anonymous and all questions and answers are posted electronically for general viewing until the solicitation closes. All proposers are advised to monitor SITIS (09.1 Q&A) during the solicitation period for questions and answers, and other significant information, relevant to the SBIR 09.1 topic under which they are proposing.

If you have general questions about DoD SBIR program, please contact the DoD SBIR Help Desk at (866) 724-7457 or email weblink.