Funding may be a sticking point for FBI tech upgrade

The FBI is exercising more control over its $425 million information technology modernization effort than it did over the project's predecessor, but funding remains uncertain, according to an audit released Monday.

The FBI has made "significant progress" in addressing many initial concerns about the development of the case management system dubbed Sentinel, the Justice Department inspector general's office stated in the audit.

For instance, the FBI has made strides in staffing the project's program management office, auditors said. An October Government Accountability Office review found that the bureau had not properly analyzed its staffing needs.

But uncertainty about funding and cost estimates, and deficient contingency planning, must be addressed if the law enforcement agency is to avoid delays and other problems developing Sentinel, the IG report stated. This is particularly important as the project enters a high-risk second development phase in early 2007, it noted.

The FBI's fiscal 2007 budget request included $100 million for Sentinel, but an additional $56.7 million is needed to bridge the gap between requested funds and the program's requirements, the report stated.

According to the IG, about $50 million remains from the first phase of Sentinel and unspent balances in other accounts. But if the fiscal 2007 appropriation is less than the $100 million requested, reprogramming of other agency funds may be required to keep the project on track, the report stated. Reprogramming could diminish the agency's abilities in counterterrorism and cybercrime, the auditors said.

In a statement on the report, Sen. Patrick Leahy, D-Vt., incoming chairman of the Senate Judiciary Committee, said, "I remain seriously concerned about the handling of this project. The American people cannot afford another fiasco."

"Bush administration mismanagement of this project seems to know no bounds," Leahy said.

FBI Director Robert Mueller is scheduled to testify before the Senate Judiciary Committee on Wednesday.

Sentinel, a six-year effort to replace the failed Virtual Case File project, is intended to upgrade the FBI's old-fashioned paper-based system for managing investigations and information. Lockheed Martin Corp. won a $57 million task order in March to work on the first stage of the program, with options to earn $248 million for three additional phases.

Costs associated with Sentinel, such as changes to the FBI's National Name Check Program, security costs and employee salaries, were not included in the $425 million estimate for the project's overall costs, the report stated. Auditors estimated that more than $25 million in associated costs are not included in the FBI's estimate. An independent estimate of the project's price tag found that it could range from $329 million to $493 million, and would most likely fall at $438 million.

The IG recommended that the FBI update the project's estimated total cost as actual cost data becomes available, develop contingency plans for identified risks to the project and fill all vacancies in the program management office.

In a response to the report, the FBI agreed with all of the IG's recommendations.