Alternate Hardware Form Factors?
Redesigning a traffic sensor to include an embedded chip often can require a significant non-recuring engineering cost and also alter the cost economics of the sensor (an edge processing chip could add >$30 to the sensor’s retail price). This can prevent commercial adoption of such technology, as products may no longer be price competitive. The cost to develop and produce such a custom embedded chip is also typically several millions of dollars.
In transportation industries such as airports, ports, and rail, other hardware form factors have successfully enabled this use case as well. An ITS example is the Advanced Traffic Controller standard, which envisions this edge processing taking place locally, but at the ATC and not at the sensor. Would the Government consider hardware form factors other than a chip if the fundamental requirements of local area processing and control are still met?

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jerry commented
Other hardware form factors have also effectively allowed this use case in the transportation sectors, including rail, ports, and airports.
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The Government supports all arrangements and forms.