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Weak oversight of the FBI's Trilogy information technology modernization project resulted in more than 1,200 missing pieces of equipment worth more than $7.6 million and more than $10 million in questionable expenditures, according to a new report from the Government Accountability Office.

The FBI's process for appraising and authorizing contractors' invoices, in which the General Services Administration also played a role, failed to provide adequate verification that goods and services actually were received, the report said.

"Given the poor control environment and the fact that GAO reviewed only selected FBI payments to Trilogy contractors, other questionable contractor costs may have been paid that have not been identified," the report released Monday stated. "[T]he lack of accountability for Trilogy equipment calls into question FBI's ability to adequately safeguard its existing assets as well as those it may acquire in the future."

The report (GAO-06-306) comes on the heels of last week's announcement that Lockheed Martin Corp. will be the prime contractor for the project's successor, Sentinel.

If the control weaknesses are not corrected, future contracts, including Sentinel, risk being exposed to improper payments, GAO said.

The Trilogy project, initiated in 2001 at an estimated cost of $380 million, was the FBI's largest ever information technology upgrade and was successful in modernizing the agency's IT infrastructure, but failed in upgrading its investigative systems.

The project's costs escalated to about $537 million, milestones were missed and implementation of its investigative application, known as Virtual Case File, was scaled back in July 2004.

Two of the companies partnering with Lockheed on the $305 million six-year contact for Sentinel -- CACI Inc. and Computer Sciences Corp. -- are cited in the GAO Trilogy audit for receiving payments for questionable charges.

These include CACI's $52,000 purchase of 30,000 custom-made ink pens and 30,000 highlighters for Trilogy training sessions, and $3 million paid to an event planning company. They also include CSC's purchase of 19 first-class airline tickets without proper justification, at a cost of $20,000.

CSC said in a statement that the company was pleased to successfully finish installing the Trilogy infrastructure and that last-minute travel changes were necessary because of shifts in the project's schedules and requirements.

All travel and purchase of equipment and services was approved in advance by the FBI and GSA, the company said.

CACI spokeswoman Jody Brown said in a statement that the company stands by its decision to respond to the FBI's requirements and is confident that it took appropriate action.

Science Applications International Corp., the company that received much of the blame for mismanagement of the Virtual Case File project, declined a request for comment.

The GAO report stated that the FBI was able on its own to identify 37 pieces of Trilogy equipment valued at $167,000 that were either lost or stolen.

Other questionable costs and missing assets for Trilogy described in the GAO report included:

• $5.5 million in other inadequately supported direct costs

• $2.1 million in potential labor overcharges

• $1.96 million in inadequately supported subcontractor labor costs

• $400,000 in excess overtime charges

• $49,800 in excessive air travel costs

• $26,300 in duplicated subcontractor labor invoice payments

The GAO report included 27 recommendations intended to help the FBI and GSA improve their invoice review controls, address the questionable billing issues and the help the FBI account for its assets.

The FBI agreed with the GAO findings. GSA accepted all but one of the recommendations, but expressed concern over some of the findings.

COMMENTS

• Boy is this rich!!! Once again, boatloads of money go out to agencies that can't rub two nickels together but other agencies get stuck holding an empty sack. No computers, no high-speed lines, no vehicles, no training ... the sordid list goes on. The sad fact is another inbred finalist in HQ goes unpunished and will probably get a promotion out of the deal. GovExec.com reader Posted March 28, 2006 4:01 PM
• Once again, the bureau has proven the old adage that FBI stands for "Famous But Incompetent!" GovExec.com reader Posted March 24, 2006 10:22 AM
• Great story GovExec.com , you know what buttons to push on me. Who was managing this contract? Will he/she be disciplined, hopefully fired? I hope their boss will not be there any longer either, responsibility, if the FBI has any, flows up-hill. I say to the FBI director, Sir, we in the Air Force have a "Little Blue Book," from the days of General Fogleman. I suggest you get a copy, read it through a couple times; then make, "United States Air Force Core Values," a little book that everyone in the FBI reads, keeps on his/her person, and follows throughout the rest of their career. If you do not have integrity first, believe in service before self, and strive to have excellence in all you do, you definitely do not belong in public service, and I am insulted to pay taxes to pay your salary. GovExec.com reader Posted March 22, 2006 7:11 PM