Testimony of Louis J. Freeh, Director, FBI
Before the Senate
Committee on Appropriations, Subcommittee for the
Departments
of Commerce, Justice, and State, the Judiciary, and Related
Agencies
May 17, 2001
"FY 2002 Budget Request"
Good morning, Chairman Gregg,
Senator Hollings and other members of the Subcommittee. Once
again, I am pleased to discuss the Fiscal Year (FY) 2002 budget
request for the Federal Bureau of Investigation (FBI).
The work of the FBI, whether
it is catching criminals, drug traffickers, terrorists, and
spies; providing training, investigative assistance, and forensic
and identification services to our law enforcement partners;
or developing new crime-fighting technologies and techniques,
is made possible by the strong support of this Subcommittee.
On behalf of the employees of the FBI, I thank you.
Challenges Facing the FBI
Before discussing our FY 2002
budget request, I would like to highlight for the Subcommittee
several of the challenges facing the FBI, and update you on
the implementation of the FBI Strategic Plan that we adopted
in 1998 to prepare the FBI for the 21st Century. This plan
and its vision of the FBI is especially important given the
challenges and changes facing the FBI.
Increasingly, the crime problems
and national security threats facing the FBI are transcending
the traditional investigative programs under which the FBI
operates. For example, the Southwest Border and East Caribbean
crime strategies are based upon a coordinated attack against
drug trafficking (organized crime/drugs program), violent
crimes and gangs (violent crimes program), and public corruption
(white-collar crime program). Emerging criminal enterprises
from Eastern Europe and Eurasia tend to be involved not only
in "traditional" organized crime activities, such
as extortion, loan sharking, and street crime, but also complex
money laundering, tax evasion schemes, medical fraud, and
other "white-collar" offenses and international
trafficking in prostitution.
We are also facing a growing
internationalization of crime. Increasingly, cases being worked
by FBI Agents on the streets of America are developing leads
that take us to foreign lands for resolution. Recent events,
such as the abductions and brutal murders of Americans in
Uganda and Colombia, required the FBI to exercise its statutory
extraterritorial jurisdiction and deploy investigative teams
overseas. Organized criminal enterprises are often involved
in related illegal activities on several continents. Communications
networks and the Internet allow criminals in foreign countries
to commit theft and fraud or to distribute child pornography
in the United States without leaving their homelands.
To respond to these types of
emerging crime problems and national security issues more
quickly, the FBI must focus its efforts and resources along
broader investigative strategies.
Another challenge facing the
FBI is the changing demographics of our workforce. Since assuming
the position of Director in September 1993, the FBI has hired
and trained approximately 4,800 new Special Agents. Agents
hired since September 1993 represent about 41 percent of the
agents on board today. While I am immensely proud of our agent
workforce, I am also aware that it is a young workforce in
terms of experience. Similarly, we have hired nearly 7,800
new support employees since September 1993; nearly 36 percent
of our current support employees entered on duty since September
1993.
Keeping current with the fast
pace of technology and more complex crime problems and issues
requires a more technically trained and competent workforce.
This applies not only in terms of our investigators, but also
with respect to the scientists, engineers, analysts, and other
support staff who help our agents do their jobs. We are also
recognizing that technically trained specialists are becoming
an increasingly important part of our investigative teams.
Emerging technologies present
both a challenge and an opportunity for the FBI to develop
new methods and capabilities for preventing and investigating
crime and protecting the national security. Criminals, terrorists,
and foreign intelligence agents, mirroring legitimate businesses
and society in general, have embraced information technology
and recognize the potential of new efficiencies and capabilities
in developing and maintaining criminal enterprises and other
illegal activities. Traditional crimes, especially financial
and commercial crimes, are now being committed in a digital
world. Paper trails are now electronic trails. Records which
were once written and stored in a safe are now written to
electronic media and encrypted. At the same time, the same
efficiencies and capabilities being exploited by criminals
and others to commit crimes can also be used to improve the
effectiveness of the FBI and law enforcement in fighting those
very same illegal activities. We must be able to upgrade existing
investigative techniques and technologies and to take advantage
of emerging technologies to develop new capabilities to keep
abreast of changing criminal problems and national security
issues.
Ensuring an infrastructure to
support the operational, information technology, administrative,
safety, and security requirements of the FBI also presents
challenges. The FBI employs over 27,000 employees, located
in 56 major field offices, approximately 400 smaller resident
agencies, four information technology centers, a fingerprint
identification and criminal justice information complex, a
training academy, an engineering research facility, and FBI
Headquarters. We also operate Legal Attache Offices in 44
foreign countries on the continents of Africa, Asia, Europe,
North and South America, and Australia. Tying these offices
together are large, complex radio communications and telecommunications
networks. In addition, we also operate and maintain a nationwide
criminal justice, forensic, and investigative information
systems and services, such as the Integrated Automated Fingerprint
Identification System, the National Crime Information Center,
the National Instant Criminal Background Check System (NICS),
Law Enforcement On-line, the Violent Criminal Apprehension
Program, and the Combined DNA Identification System, that
are relied upon by federal, state and local law enforcement
and criminal justice agencies.
FBI Strategic Plan Update
Three years ago, I issued the
FBI Strategic Plan, 1998 - 2003. This plan represented the
culmination of work performed over a year's time by a strategic
planning task force. This group conducted strategy sessions
with every FBI investigative program, both criminal and national
security, and met with FBI Special Agents in Charge and other
field office representatives. In doing so, the task force
not only identified the strategic direction and national priorities
for the FBI, but it also performed a self-assessment of the
FBI's capacity to achieve these goals. This self-assessment
identified deficiencies and performance gaps that must be
improved or completely eliminated if we are to be successful
in dealing with emerging crime problems and more challenging
threats and issues related to protecting the national security.
Some of these deficiencies and performance gaps are being
corrected by reengineering processes and implementing policy
decisions, while others may require funding and resources
to mitigate.
Guiding the implementation of
our national priorities is a statement of core values for
performing the mission of the FBI, which I personally wrote.
Briefly, the core values that I have established for FBI employees
can be summarized as follows:
- rigorous obedience to the
Constitution;
- respect for the dignity of
all those we protect;
- compassion;
- fairness; and
- uncompromising personal and
institutional integrity.
To accomplish the mission of
the FBI, we must follow these core values. The public expects
the FBI to do its utmost to protect people and their rights.
As I have told FBI employees, observance of these core values
is our guarantee of excellence and propriety in meeting the
Bureau's national security and criminal investigative responsibilities.
The FBI Strategic Plan, 1998
- 2003 identified three major functional areas that define
the FBI's strategic priorities. These three national priorities
are: national and economic security; criminal enterprises
and public integrity; and individuals and property. Within
these three functional areas the FBI identified nine strategic
goals emphasizing the FBI's need to position itself to prevent
crimes and counterintelligence activities, rather than just
reacting to such acts after they occur, as follows:
National and Economic Security. Our highest national priority is the investigation
of foreign intelligence, terrorist, and criminal activities
that directly threaten the national or economic security of
the United States. We have established four strategic goals
for this area:
- Identify, prevent, and defeat
intelligence operations conducted by any foreign power within
the United States, or against certain U.S. interests abroad,
that constitute a threat to U.S. national security;
- Prevent, disrupt, and defeat
terrorist operations before they occur;
- Create an effective and ongoing
deterrent to prevent criminal conspiracies from defrauding
major U.S. industries and the U.S. Government; and
Deter the unlawful exploitation of emerging technologies
by foreign powers, terrorists, and criminal elements.
Key Tier 1 Performance Indicators,
1999 - 2000
|
1999
|
2000
|
Foreign
Intelligence Surveillance Act
Applications Processed |
531
|
562
|
Counterespionage
(CE) Arrests and Locates |
16
|
11
|
CE
Information and Indictments |
18
|
9
|
CE
Convictions and Pre-trial Diversions |
17
|
6
|
|
|
|
Joint
Terrorism Task Forces |
23
|
29
|
Counterterrorism
(CT)-related Arrests and Locates |
305
|
596
|
CT-related
Information and Indictments |
139
|
223
|
CT-related
Convictions and Pre-trial Diversions |
186
|
241
|
|
|
|
FBI
Field Computer Intrusion (CI) Squads/Teams |
10
|
16
|
National
Infrastructure Protection
Center (NIPC) Crisis Action Teams
Activated |
6
|
3
|
NIPC
Threat and Warning Notices Issued |
33
|
36
|
Key
Assets Identified |
2,745
|
5,384
|
Infragard
chapters |
8
|
31
|
Infragard
participants |
18
|
392
|
CI-related
Arrests and Locates |
40
|
62
|
CI-related
Information and Indictments |
49
|
66
|
CI-related
Convictions and Pre-trial Diversions |
54
|
62
|
|
|
|
Health
Care Fraud (HCF) Arrests and Locates |
376
|
361
|
HCF
Information and Indictments |
696
|
825
|
HCF
Convictions and Pre-trial Diversions |
607
|
635
|
HCF
Recoveries and Restitutions ($000) |
312,861
|
581,517
|
HCF
Fines ($000) |
51,724
|
137,456
|
Criminal Enterprises and
Public Integrity.
Our second national priority is crimes that affect the public
safety or which undermine the integrity of American society.
These investigations are often targeted at criminal organizations,
such as the La Cosa Nostra, cartels and drug trafficking organizations,
Asian criminal enterprises, and Russian organized crime groups
that exploit social, economic, or political circumstances.
Another focus within this area is public corruption and civil
rights. For this area, we have established four strategic
objectives:
- Identify, disrupt, and dismantle
existing and emerging organized criminal enterprises whose
activities affect the United States;
- Identify, disrupt, and dismantle
targeted international and national drug-trafficking organizations;
- Reduce public corruption
at all levels of government with special emphasis on law
enforcement operations; and
- Deter civil rights violations
through aggressive investigative and proactive measures.
Key Tier 2 Performance Indicators,
1999 - 2000
|
1999
|
2000
|
U.S.
based drug organizations affiliated
with 13 national priority targets
that were |
|
|
-
identified |
64
|
201
|
-
dismantled |
8
|
16
|
Percent
of La Cosa Nostra members incarcerated |
18%
|
22%
|
Eurasian
Criminal Enterprises dismantled |
3
|
6
|
Asian
Criminal Enterprises dismantled |
4
|
15
|
|
|
|
Safe
Streets Task Forces (SSTFs) |
165
|
175
|
SSTF
Arrests and Locates |
17,473
|
16,147
|
SSTF
Information and Indictments |
2,049
|
1,989
|
SSTF
Convictions and Pre-trial Diversions |
2,576
|
2,300
|
|
|
|
Violent
Gang Task Forces |
45
|
49
|
Violent
Gang Arrests and Locates |
N/A
|
5,987
|
Violent
Gang Information and Indictments |
N/A
|
2,549
|
Violent
Gang Convictions and Pre-trial Diversions |
N/A
|
2,315
|
Violent
Gangs affiliated with 7 national target
groups that were dismantled |
31
|
37
|
|
|
|
Public
Corruption (PC) Arrests and Locates |
355
|
422
|
PC
Information and Indictments |
597
|
606
|
PC
Convictions and Pre-trial Diversions |
552
|
551
|
|
|
|
Civil
Rights (CR) Arrests and Locates |
240
|
145
|
CR
Information and Indictments |
204
|
149
|
CR
Convictions and Pre-trial Diversions |
257
|
195
|
Individuals and Property. Our third national priority is crimes that affect
individuals and property. Within this area, we will develop
investigative strategies that reflect the public's expectation
that the FBI will respond to and investigate serious criminal
acts that affect the community and bring those responsible
to justice. Our strategic goal for this area is:
- Reduce the impact of the
most significant crimes that affect individuals and property.
Key Tier 3 Performance Measures,
1999 - 2000
|
1999
|
2000
|
Crimes
Against Children (CAC) Resource Teams |
35
|
35
|
CAC
Arrests, Locates, Summons |
872
|
1,004
|
CAC
Information and Indictments |
621
|
731
|
CAC
Convictions and Pre-trial Diversions |
591
|
802
|
Number
of Missing Children Located |
90
|
92
|
|
|
|
"Innocent
Images" National Initiative (IINI)
Undercover Operations |
10
|
14
|
IINI
Arrests, Locates, Summons |
337
|
482
|
IINI
Information and Indictments |
307
|
421
|
IINI
Convictions and Pre-trial Diversions |
315
|
476
|
|
|
|
Safe
Trails Task Forces (STTFs) |
6
|
6
|
Indian
Country (IC) Arrests and Locates |
668
|
733
|
IC
Information and Indictments |
819
|
755
|
IC
Convictions and Pre-trial Diversions |
726
|
735
|
[Note: in some instances,
data shown reflects updated information from that presented
in the Department of Justice FY 2000 Performance Report
and FY 2000 Performance Plan issued in April 2001]
Overall, during FY 2000, FBI
investigations led or contributed to the indictment of 19,134
individuals, the conviction of 21,420 individuals, and the
arrest of 36,387 persons on federal, state, local, or international
charges. Additionally, FBI investigative efforts led or contributed
to $946,811,505 in fines being levied, $1,012,851,257 in recoveries
of stolen property, and $3,259,384,477 in court-ordered restitutions.
To achieve the strategic objectives
that we have identified, the FBI has developed five operational
support strategies that are designed to build enhanced investigative
capabilities and effectiveness. These operational support
categories are: intelligence, information technology, applied
science and engineering, management, and assistance to State,
local, and international law enforcement partners.
Key support performance indicators,
1999 and 2000:
|
1999
|
2000
|
Students
trained, FBI Academy: |
|
|
New
FBI Special Agents |
718
|
312
|
FBI
employees (in-service, advanced) |
11,250
|
11,767
|
Other
federal, state,
local, and international |
4,881
|
5,796
|
Other
students trained (regional, local): |
|
|
State,
local |
117,599
|
120,233
|
International |
7,105
|
7,709
|
Countries
represented |
121
|
161
|
Forensic
examinations performed: |
|
|
Federal
agencies |
727,354
|
651,751
|
Non-federal
agencies |
139,354
|
120,101
|
Fingerprint
identification services: |
|
|
Criminal
cards processed |
5,926,920
|
8,577,911
|
Civil
card processed |
6,496,415
|
6,743,428
|
Civil
submissions with criminal records |
565,929
|
701,164
|
Civil
submissions using false identity |
66,213
|
82,036
|
National
Crime Information Center
(NCIC) transactions |
764,189,606
|
850,351,631
|
National
Instant Check System: |
|
|
Checks
performed by States |
3,480,832
|
4,511,866
|
Checks
performed by FBI |
3,346,743
|
4,489,113
|
Persons
with criminal records prevented
from purchasing firearms (FBI checks) |
62,189
|
71,890
|
For the FY 2002 budget, FBI
program managers continued to use the FBI Strategic Plan,
1998 - 2003, and the five operational support strategies as
guides for developing their resource requirements. Through
an integrated strategic planning and budget framework, the
FBI has significantly sharpened its focus for allocating resources
based upon national priorities and strategic objectives that
concentrate on the most significant crime problems and threats
to the Nation.
Overview of FY 2002 Budget
Request
For FY 2002, the FBI is requesting
a total of $3,507,109,000 and 24,938 permanent positions (10,420
agents) and 24,490 workyears for its Salaries and Expenses
($3,505,859,000) and Construction ($1,250,000) appropriations.
For FBI Salaries and Expenses, this amount represents a net
increase of $277,377,000 from the current year and consists
of $106,569,000 for adjustments to base and $170,808,000 for
program increases. The adjustments to base include such items
as the proposed 3.6 percent pay raise for FY 2002, higher
federal employee health insurance costs, additional General
Services Administration (GSA) rent costs, and annualization
of prior year increases and pay raises provided by Congress.
Program increases proposed for FY 2002 would provide 279 new
positions, including 76 new agents, and $170,808,000 for four
budget initiatives: Counter-intelligence; Counterterrorism;
Cybercrime; and Infrastructure.
In addition to direct funded
resources, the FY 2002 budget request assumes a total of 2,826
reimbursable workyears, including 1,041 agents. Under the
auspices of the Interagency Crime and Drug Enforcement (ICDE)
program, the FBI would be reimbursed for a total of 912 workyears,
including 547 agents, and $115,436,000 for FBI drug and gang-related
task force investigations and operations. Pursuant to the
Health Insurance Portability and Accountability Act of 1996,
the FBI will receive $101,000,000 in FY 2002 to fund 793 workyears,
including 465 agents, for health care fraud enforcement. For
user fee programs of the Criminal Justice Services program,
a total of 692 workyears are planned, based on estimated fees.
The remaining reimbursable workyears are used to facilitate
a variety of other activities, including victim/witness assistance,
name checks for other federal agencies, facility and maintenance
support to other agencies sharing FBI facilities, pre-employment
background investigations, and detail assignment to other
agencies.
At this point, I would like
to describe in more detail the four budget initiatives proposed
for FY 2002.
Counterintelligence
Despite the fall of the Iron
Curtain and the emergence of democracy in many of the countries
formerly under the rule of communism, the threat posed to
U.S. national, military, and economic security from foreign
countries remains significant. Investigations in this area
have become more complex as foreign intelligence services
have expanded their focus from traditional military-related
targets to new areas, including technology, intellectual property,
economic espionage, and proliferation. The FBI continues to
work closely with the intelligence community to identify and
reduce the presence of hostile intelligence services in the
U.S.
To keep pace with the changing
counterintelligence threat to the U.S., the FBI is proposing
a counterintelligence initiative that would provide an additional
$31,277,000 and 182 positions (62 agents) in four areas of
this mission-critical responsibility:
- enhancing field investigative
activities focused on identifying, preventing, and defeating
intelligence operations conducted by any foreign power within
the U.S. or against U.S. interests abroad that pose a threat
to U.S. national security;
- improving national-level
program management and coordination of field investigative
activities;
- developing and acquiring
technology to support FBI counterintelligence activities;
and
- improving security countermeasures
to ensure the reliability of FBI personnel and contractors
and security of information and facilities.
Counterterrorism
The United States continues
to face a serious, credible threat from terrorists both abroad
and at home. The number of groups and individuals capable
of carrying out a terrorist act has increased over the past
several years. Of continuing concern to the FBI are groups
and individuals for which political or religious beliefs constitute
sufficient motivation for carrying out a devastating terrorist
act.
To deal effectively with domestic
and international terrorism, the FBI must concentrate on both
prevention and response. The FBI's counterterrorism strategy
is focused upon five inter-related elements to build and maintain
an operational capacity for identifying, preventing, deterring,
and investigating terrorist activities. First, the FBI must
have the capacity to respond to acts of terrorism committed
in the U.S. and abroad when those acts are directed against
the U.S. government or its interests. Second, the FBI must
have the capacity to receive, react to, and disseminate counterterrorism
information. Third, the FBI must develop its internal capacities
to support proactive counterterrorism programs and initiatives.
Fourth, the FBI must have the capacity to establish and maintain
sound and productive relationships with other domestic and
foreign law enforcement and intelligence counterparts. Fifth,
the FBI must have the capacity to use all of the necessary
assets and capabilities of the FBI and other U.S. government
agencies to support and initiate complex investigations and
operations against domestic and international terrorists and
terrorist organizations. For FY 2002, the FBI is requesting
increases totaling $32,059,000 and 42 positions (8 agents)
to improve and enhance existing counterterrorism capabilities
and operations.
2002 Winter Olympics Preparation. The 2002 Winter Olympic Games have been designated
a National Special Security Event. Consistent with FBI lead-agency
responsibilities for intelligence collection and crisis management
as contained in PDD-39 and PDD-62, the FBI is working closely
with the United States Secret Service and other federal, State,
and local law enforcement and consequence management agencies
to plan for security and public safety issues for the 2002
Winter Olympic Games that will be hosted by Salt Lake City,
Utah.
For FY 2002, the FBI requests
increases totaling $12,302,000 for 2002 Winter Olympic Games
deployment. The funding requested will cover travel, per diem,
vehicle lease, utilities, telecommunications, and FBI overtime
costs for the planned deployment of over 800 FBI personnel
for the event period. The Salt Lake City games will be conducted
at 20 official Olympic venues spread over a 6,000 square mile
area. Olympic competition will take place simultaneously at
10 venues in 3 major cities and 6 remote mountain resort areas.
Recurring Security Services. The FBI is committed to implementing the security
standards contained in the June 1995 Department of Justice
report entitled, "Vulnerability Assessment of Federal
Facilities." FBI facilities are often the target of potential
terrorist threats. Safeguarding agency employees and physical
security must be a priority. For FY 2002, the FBI requests
an increase of $2,020,000 to acquire contract guard services
for 6 stand-alone field office facilities where GSA does not
provide such service ($1,600,000), replace an outdated closed-circuit
television (CCTV) security system at FBI Headquarters ($320,000),
and replace three guard booths at FBI Headquarters to facilitate
new visitor identification procedures ($100,000).
Incident Response Readiness. Consistent with the provisions of PDD-62, the
FBI initiated a long-term program in FY 2000 to develop law
enforcement capabilities for the technical resolution of a
weapons of mass destruction incident involving chemical, biological,
or radiological threats or devices. Initial funding for this
effort was provided through an interagency agreement with
the Department of Defense. For FY 2002, the FBI requests 42
positions (8 agents) and $17,737,000 to support ongoing efforts
in the areas of threat assessment, diagnostics, and advanced
render safe equipment.
Cybercrime
In recent years, technological
advances have fundamentally changed the way of life in this
country. Computers and networks allow millions of individuals
to access, on a daily basis, a broad range of information
services, databases, commerce, and communications capabilities
that were previously unavailable. A combination of reduced
cost for computer technology and increased storage capacity
allows the accumulation, storage, and management of large
amounts of information by individuals on personal computers
and peripheral devices. Many FBI investigations, especially
those involving organized crime, drug trafficking, crimes
against children, white-collar crime, counterintelligence,
and counterterrorism, are encountering the use of computer
technology to facilitate illegal activities. As a result,
the FBI must develop the investigative and forensic capacities
and capabilities to deal with the use of computer technology
by criminals and others to commit crimes or undermine national
security. For FY 2002, the FBI is requesting an increase of
33 positions (6 agents) and $28,144,000 for providing specialized
technical assistance to field investigators and for developing
investigative tools for law enforcement to counter the use
of digital technology by criminals, terrorists, and others.
Technical Support to Field
Offices. Criminals
and other subjects of FBI investigations are employing advanced,
complex physical and electronic security technology to protect
their operations from competing criminal groups and to thwart
law enforcement from executing lawful searches of premises
and conducting court-approved interceptions of communications.
The ability of the FBI to overcome such defensive measures
is often critical to the success of high profile investigations
and operations and the collection of evidence. The FBI's Laboratory
Division provides technical support to FBI field offices,
as well as the Drug Enforcement Administration, United States
Customs Service, and other federal, state, and local law enforcement
encountering such problems. To be able to continue providing
this assistance, the FBI is requesting an increase of 10 positions
(4 agents) and $1,358,000.
Network Data Interception. In the Omnibus Safe Streets Act of 1968, as amended,
Congress provided the FBI with the basic legal authority to
conduct the interception of oral, wire, or electronic communications
in criminal investigations. The statutory authority to intercept
communications in national security cases was provided by
Congress in the Foreign Intelligence Surveillance Act. The
use of court-authorized intercepts is the investigative tool
of last resort, and allowed only after all other logical investigative
avenues are exhausted. Often, the evidence collected through
the use of court-authorized intercepts of communications is
critical to the prosecution of criminal enterprise leadership
who are otherwise able to insulate themselves through the
use of intermediaries from direct ties to criminal acts and
illegal activities. The increasing use of the Internet and
world-wide web by criminals, terrorists, and intelligence
agents to commit illegal acts and carry out conspiracies against
U.S. national security has presented the FBI and law enforcement
with new challenges in conducting court-approved interceptions
of communications and obtaining evidence and intelligence.
Increasingly, affidavits for
the interception of communications are including e-mails,
file transfers, and Internet Relay Chat messages, within the
scope of court orders. Emerging new digital technologies,
such as Internet telephony, digital subscription lines, cable
Internet, wireless Internet, and satellite communications,
are likely to be exploited by criminals and others in their
continuing efforts to thwart law enforcement detection. Law
enforcement requires the development of capabilities and techniques
for conducting court-approved interceptions of communications
in existing and emerging digital environments.
For FY 2002, the FBI requests
an increase of 7 positions (2 agents) and $7,664,000 to develop
and procure network digital interception technologies; to
provide on-site assistance to field offices, pursuant to court-approved
orders; and to provide training to FBI technically trained
agents.
Counterencryption. The widespread use of digitally-based technologies
and the expansion of computer networks incorporating privacy
features and capabilities through the use of cryptography
presents a significant challenge to the continued ability
of law enforcement to use existing electronic surveillance
authorities. The FBI is already encountering strong encryption
in criminal and national security investigations. In 1999,
53 new investigations encountered encryption. The need for
a law enforcement cryptanalytic capability is well documented
in several studies, including the National Research Council's
1996 report entitled, "Cryptography's Role in Securing
the Information Society." The report recommends high
priority be given to the development of technical capabilities,
such as signal analysis and decryption, to assist law enforcement
in coping with technological challenges.
The Administration supports
the enhancement of a centralized law enforcement capability
within the FBI for engineering, processing, and decrypting
lawfully intercepted digital communications and electronically
stored information. For FY 2002, the FBI requests an increase
of $7,000,000 to further develop an initial operating capability
that will allow law enforcement to obtain plain text and meet
the public safety challenges posed by the criminal use of
encryption. With this funding, the FBI intends to work with
existing national laboratories and other government agencies
to ensure all existing resources are used in executing processing
functions. This approach will prevent duplication of effort.
Additionally, the FBI plans to acquire necessary computer
hardware, software tools, technical expertise, and services
to develop capacities in four counterencryption program areas:
(1) analytical engineering;
(2) signal analysis research; (3) counterencryption deployment;
and (4) industry-assisted technology transfer. The FBI also
requests an increase of 13 positions and $1,202,000 for the
collection and examination of evidence (devices and communications)
which include encrypted materials and other electronic analysis
forensic and technical examinations.
Electronic Surveillance Data
Management System.
With funding appropriated by Congress in FY 2001, the FBI
is acquiring and installing new digital collection systems
to update existing analog equipment currently being used in
FBI field offices. For FY 2002, the FBI requests an increase
of 3 positions and $10,920,000 for the Casa de Web project
which would serve as a distributed database that provides
agents and analysts with access to minimized (not unprocessed)
recordings of audio, data, and reports generated by digital
collection systems. The Casa de Web system will consist of
two separate databases, one for criminal law enforcement data
and one for foreign counterintelligence data. This separation
ensures compliance with Executive Order 12333 that prohibits
the commingling of such materials. Firewalls and security
protocols will prevent data from being accessed by unauthorized
users and prevent external access of the system. The Casa
de Web project is being coordinated with Trilogy, the FBI's
information technology upgrade program.
Casa de Web will allow authorized
agents, analysts, and translators to share and analyze minimized
data on an inter and intra office basis. Analytical tools
planned for Casa de Web, such as key word speaker identification,
and speech recognition, will improve information and intelligence
sharing capabilities and permit FBI Agents and analysts to
view, listen, and act on collected minimized electronic
surveillance information on a more timely basis.
Infrastructure
To be successful, the FBI must
have the capacity for collecting, storing, managing, analyzing,
and disseminating case and intelligence information on a timely
basis to its own investigative personnel, as well as other
federal, State, and local law enforcement and the intelligence
community. Existing systems and capacities must be upgraded
to meet increased investigative demands. New technologies
also present opportunities for making for effective and timely
use of case information and intelligence currently being collected.
On a daily basis, the FBI depends on its core infrastructure
to ensure its agents and support staff can perform their jobs.
A strong, solid infrastructure is necessary for providing
everyday tools and services, such as replacement and safe
automobiles for responding to and conducting investigations
and equipment and supplies for conducting forensic examinations
of evidence.
Trilogy. Trilogy is the FBI's three-year information technology infrastructure
upgrade initiative. Trilogy consists of three key components:
User Applications, a collection of user-specific software
applications and tools to enhance the ability of agents and
support employees to organize, access, and analyze information;
Information Presentation, replacement computer hardware and
office automation software within each office to link employees
at their desks with counterparts throughout the FBI; and Network,
upgrades to acquire high-speed local and wide area networks
and telecommunication circuits to deliver information between
users and locations securely and quickly.
Congress provided the approval
to proceed with the first year of the Trilogy implementation
plan in FY 2001 and authorized the expenditure of $100,700,000
in appropriated and unobligated prior year funds. Since receiving
approval to proceed with this project, the FBI acquired the
services of Mitretek Systems to provide management and technical
assistance to the FBI Trilogy Program Office and the services
of GSA's Federal Systems Integration and Management Center
(FEDSIM) to act as the acquisition agent for the project.
The FBI also selected the GSA Millenia contract as the acquisition
vehicle for the project. In January 2001, the FBI, through
FEDSIM, issued two task order requests (TORs) to the Millenia
contractors. One TOR addresses the User Applications component
of Trilogy, while the second TOR addresses the Information
Presentation and Network components. In April 2001, after
separately reviewing vendor proposals for both TORs, the FBI
selected vendors. Contractor work is expected to commence
by June 2001.
Second year implementation costs
of the Trilogy project are estimated at $142,390,000. To help
meet this requirement, the FBI plans to allocate $38,230,000
of existing base funding and apply $36,500,000 of unobligated
prior year funds toward Trilogy in FY 2002. To complete second
year funding requirements, an enhancement of $67,660,000 is
required. Second year activities of the Trilogy project will
focus on implementing multi-case analytical tools, intranet
upgrades, and multi-media electronic case files; continuing
office automation upgrades in field offices; and continuing
upgrades to local and wide-area networks and telecommunications
circuits. The third year of implementation will complete the
office automation upgrades in field offices and at Headquarters,
provide for additional wide-area network circuits, and permit
additional improvements to FBI case databases.
Telecommunications Services. An enhancement of $6,500,000 is requested to begin
the replacement and upgrade of telecommunications equipment
used to provide connectivity between FBI legal attache offices
and the Department of State's (DOS) worldwide network and
to provide telecommunications support for FBI participation
in High Intensity Drug Trafficking Area (HIDTA) multi-agency
investigations and meet special case needs. The DOS Diplomatic
Telecommunications Service (DTS) is upgrading its telecommunications
network over the next five years. This upgrade will require
the FBI to replace its legacy equipment with new equipment
compatible with the DTS network.
Motor Vehicle Program. An increase of $4,007,000 is requested for the
FBI motor vehicle program, including $2,557,000 to replace
an additional 110 vehicles with mileage exceeding 80,000 miles,
$450,000 for automotive diagnostic tools, and $1,000,000 to
upgrade the Vehicle Management System to enhance fleet management
and maintenance.
FBI Laboratory Activation. Occupancy of the new FBI Laboratory facility at
Quantico, Virginia, is scheduled to begin in Summer 2002.
Activation of the facility will require an increase of 22
buildings and facilities management employees and $1,161,000
to properly operate and maintain the new building.
Additionally, the FY 2002 budget
proposes that $40,000,000 from the Department of Justice Working
Capital Fund be used to meet costs associated with the activation
of the new facility. These costs include the following:
- $3,868,750 for the transfer
of 125 Laboratory Division employees;
- $15,000,000 for general and
specialized equipment;
- $4,695,812 for office furniture
and shelving;
- $600,000 for information
technology equipment, such as network routers, hubs, and
multiple access units;
- $908,438 for moving services;
- $792,000 for part-year FY
2002 operations and maintenance costs, such as utilities;
maintenance supplies; environmental testing, trash removal,
and other miscellaneous services; and housekeeping, landscaping,
and other building maintenance; and
- $14,135,000 for decommissioning
and renovation/ alteration of existing Laboratory Division
space in the J. Edgar Hoover Building being vacated. This
amount includes $3,000,000 for abatement and clean-up activities
and disposal of hazardous materials/waste and $11,135,000
for renovations and alterations of approximately 131,000
square feet of space.
Related Departmental Funding
Requests
Mr. Chairman, I would like to
highlight several requests for funding included within other
Department of Justice programs that are considered important
to FBI initiatives and programs.
State and Local Bomb Technician
Equipment. Within
the funding proposed for the Office of Justice Programs (OJP),
$10,000,000 is included to continue an FBI Laboratory-managed
program of training and equipping approximately 386 accredited
State and local bomb squads located in communities throughout
the United States.
Continuation of funding for
this program will ensure State and local bomb squads are properly
trained and equipped to deal traditional improvised and explosive
devices, as well as the initial response to devices that may
be used by terrorists or others to release chemical or biological
agents. Through this program, the FBI has provided State and
local bomb squads with weapons of mass destruction (WMD) protective
search suits, real-time x-ray devices, multi-gas monitoring
systems, portable radiation detectors, and computers to access
the Chemical and Biological Organisms - Law Enforcement database.
This initiative compliments the State and local bomb technician
training and accreditation program that the FBI Laboratory
provides at the Hazardous Devices School, Redstone Arsenal,
Alabama.
Grants for DNA Convicted
Offender and Crime Scene Backlog Reduction.
Also, requested under Community Oriented Policing Services
(COPS) program is $35,000,000 for grants to reduce the backlog
of DNA profiles for entry into the FBI's national Combined
DNA Information System (CODIS) database ($15,000,000), and
to reduce the backlog of crime scene evidence awaiting DNA
testing ($20,000,000). These proposals are related to several
on-going FBI Laboratory initiatives for improving State and
local crime-fighting and forensic capabilities.
White-Collar Crime. The OJP, Justice Assistance appropriation proposes
$9,230,000 for the operations of the National White-Collar
Crime Center (NW3C). The FBI has entered into a partnership
with the NW3C to staff the Internet Fraud Complaint Center
(IFCC), which opened in May 2000. The IFCC serves as a focal
point for receiving and analyzing complaints from citizens
and private industry victimized by Internet fraud and as a
resource to federal, State, and local law enforcement and
regulatory agencies.
Legislative Proposals
Mr. Chairman, the FY 2002 budget
request includes several general provisions proposed by the
FBI, including: danger pay, foreign cooperative agreements,
railroad police training, and warranty reimbursement authorities.
I encourage the Subcommittee to include these general provisions
as part of the FY 2002 Justice Appropriations Act.
Danger Pay. Section 108 would extend to the FBI the same authority
that the Drug Enforcement Administration (DEA) currently enjoys
for authorizing danger pay for personnel assigned to high
risk overseas locations. For the FBI, this is both a pay equity
issue for FBI Agents assigned to DEA Country Offices and a
recognition of the increased threat facing FBI personnel performing
extraterritorial investigations in foreign locations due to
our counterterrorism responsibilities. At times, FBI personnel
are deployed to overseas locations where, due to the nature
of our work, they face a threat or hostile environment that
does not always extend to all members of the United States
diplomatic team in a particular country. This authority would
allow me to address those situations. This authority has been
requested by the Administration in each of the past three
budgets.
Foreign Cooperative Agreements. Section 109 would allow the FBI to credit to its
appropriation funding that is received from friendly foreign
governments for that country's share of joint, cooperative
projects with the FBI. This authority would facilitate projects
with friendly foreign governments, especially in support of
our national security mission. The authority was first proposed
by the Administration last year, was adopted by the House,
but did not make its way into the final Conference bill.
Railroad Police Training. Section 110 would allow the FBI to establish and
collect a fee to pay for the costs of railroad police officers
participating in FBI law enforcement training programs authorized
by P.L. 106-110, and to credit those fees to its Salaries
and Expenses appropriation to cover the costs of providing
such training. P.L. 106-110 authorized railroad police officers
to attend FBI training programs, but directed that no federal
funds be used to provide such training. Railroad police officers
are willing to pay for such training; however, the law does
not provide an authority for the FBI to collect and retain
the fees to pay for the training. This provision provides
the requisite authority.
Reimbursement for In-house
Warranty Work. Section
111 would allow the Attorney General to seek and retain reimbursement
from vendors for warranty repairs and maintenance performed
in-house by Department of Justice employees when it is not
possible for the vendor to perform such services. For example,
FBI motor vehicles are equipped with radios that use government
encryption devices. As a result, these vehicles cannot be
left unattended at vendor repair facilities for servicing.
FBI mechanics currently perform warranty work that normally
would be provided at no cost by the vendor. Many vendors are
willing to reimburse or credit the FBI for the cost of the
warranty work provided in-house. This provision would provide
the authority needed to enter into such agreements when there
is a law enforcement, security, or mission-related reason
that precludes vendor servicing and permits the crediting
of payments received to the appropriate appropriation.
Summary
Mr. Chairman, I am especially
proud of the work being performed everyday by the employees
of the FBI. Their ability to do that work -- the work asked
of us by the Congress through the laws it passes, by the President
through executive orders, and by our federal, state, local,
and international law enforcement partners -- is a reflection
of the strong fiscal support given to the FBI by this Subcommittee.
The budget proposed for the
FBI for FY 2002 addresses critical resource needs identified
through our Strategic Planning process. These important investments
will allow the FBI to meet the investigative and technological
challenges we face as the FBI enters the 21st Century. These
investments will also enable us to develop the core competencies
that will allow us to be successful in investigating crimes,
protecting national security, developing and sharing technical
and forensic expertise, and working better with our federal,
state, local, and international partners. I believe that the
national priorities and objectives we have put forth reflect
the expectations for the FBI that are held by the American
people, as well as the Congress.
Congress, and this Subcommittee
in particular, has been extremely generous in its financial
support of the FBI over the past several years. Our successes
in the field, whether they be preventing pedophiles from luring
children over the Internet, to bringing terrorists from foreign
lands back to the U.S. to stand trial for their actions, to
protecting our Nation's critical infrastructure from cyber
attacks, to fostering greater cooperation with foreign law
enforcement through our Legal Attache Offices, were made possible
because of your support for the FBI. As we look forward to
FY 2002, I am hopeful that we can continue to depend upon
your support.
Again, I thank you for this
opportunity to appear before the Subcommittee.
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