The whole DOD is using it, but they're on crypto smart cards, so many folks don't realize that's what they're doing. Email, single sign on, web site auth, etc. Works great!
It's easy enough to use on a smart card, but try setting that up. I'm trivialising now, but you're looking at... - Card manufacture - Key handling - Enrolment - Card lifecycle - Certificate lifecycle - Identity synchronisation You could buy a stack of white-labelled cards, of it you're the DoD you'd roll your own. That's shopping for silicon wafers, contact plate assemblies, mag stripes, holograms, RFID blanks, plast…
You missed the part where you drive several hours to the closest military base and wait in line several hours(think DMV and TSA all rolled into one).