ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the May 2005 issue


Competition for US Smart Passport Contract Passport


The United States Government Printing Office has awarded contracts to four companies to provide computer chips for testing a new electronic U.S. passport.

"The GPO designs and manufactures security and intelligence documents for the Federal government and takes the responsibility very seriously. The new technology that will eventually be incorporated into electronic U.S. passports will enhance the security of millions of Americans travelling around the world," said Bruce James, Public Printer of the United States and CEO of the GPO. The new technology makes available additional information about the passport holder, all embedded on a microchip.

The three-phase project involves GPO, Department of State Bureau of Consular Affairs and The National Institute of Standards and Technology (NIST). GPO will manufacture test passports using chip solutions provided by the four companies. NIST will then test the electronic passports for their ability to meet durability, security, and electronic requirements.

Contracts have been signed with the four candidate companies and substantial fees have been paid. "We are looking at different types of antennas and different substrates," he said. "The chip is only part of it. We are looking at chip durability and chip reliability, and the ability to integrate the products into passport covers." The four companies and the value of the contracts awarded for testing them in the first phase of the project are:
Axalto, Inc. 2 awards of $107,770 each
BearingPoint/SuperCom, Inc. $82,823
Infineon Technologies, North America $108,317
SuperCom, Inc. $73,787

Once test results are completed and a final vendor is selected, the Department of State plans to begin issuing electronic passports to U.S. Government employees. The first electronic passports are expected to be issued to the general public in the second quarter of 2005 with full deployment at all Department of State passport agencies in late 2005. State eventually may choose one or two suppliers for the job, Moss said.

The department now produces about 7 million passports annually. When State rolls out its biometric passport capability, it plans to charge applicants a $10 fee to pay for the biometric feature.

The contractor or contractors that provide the covers, which the Government Printing Office will combine with the passports' inside pages, would be likely to get a portion of the resulting revenues, amounting to $35 million or more annually.

SuperCom, (SPCBF.OB) one of the candidates for the contract, said in a statement that State's biometric passport project is the largest and most advanced program in the world. "The scope of the project, based on the request for proposals is estimated at 50 million passports over five years," SuperCom said.

SuperCom's solution provides a smart inlay, which can be included in the front or back cover, in the middle page or adjoining the personalization page. SuperCom has installed a significant number of passport personalization systems around the world. Tailored to meet the customer's specific requirements, the SuperCom system will capture the fingerprints of each visa applicant and store the images on a chip integrated in each visa, enabling automatic and positive identification of the person each time the visa is used. The system features an advanced and decentralized design that makes it fast and cost-effective to install while increasing its flexibility.

SuperCom, founded in 1988, started trading in Europe on the Euronext Brussels Stock Exchange in 1999, and on Nasdaq Over-The-Counter Bulletin Board in 2004. Israel has also decided to make the move to biometric passports and shortly will issue a tender for the project. Britain is also moving ahead and plans to be biometric by 2006.


Reprinted from the Israel High-Tech & Investment Report May 2005

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