The U.S. Department of Defense (DoD) has extended the time and increased the value of its Radio Frequency Identification (RFID) II contract with Savi, a Lockheed Martin [NYSE: LMT] company. The contract has been extended to Jan. 31, 2009 and its ceiling increased by about $60 million to $483 million for the company’s active RFID products and services.

The contract amendments were made by the U.S. Army’s Information Technology, E-Commerce and Commercial Contracting Center (ITEC4), and the executive agent for the DoD is the office of the Product Manager, Joint-Automatic Identification Technology.

Savi, a leading developer and provider of RFID-based supply chain solutions and services for defense, government and commercial customers, has provided RFID solutions to the DoD for more than a decade. The company helped build the DoD’s RF In-Transit Visibility (ITV) network, which spans more than 45 countries and tracks military supplies through 4,000 sites.

In addition to the DoD, the company provides RFID solutions for NATO, and defense forces in the United Kingdom, Australia, Denmark, Sweden, and Spain, among others. Savi is building interoperable RFID-based networks for allies that enable them to improve the management of consignments for multi-national, joint-force operations.