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  • Louis J. Freeh
  • Director FBI
  • Federal Bureau of Investigation
  • Before the Senate Committee on Appropriations, Subcommittee for the Department of Commerce, Justice, and State, the Judiciary, and Related Agencies
  • Washington, DC
  • May 17, 2001

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



Foreign Intelligence Surveillance Act
Applications Processed



Counterespionage (CE) Arrests and Locates



CE Information and Indictments



CE Convictions and Pre-trial Diversions



Joint Terrorism Task Forces



Counterterrorism (CT)-related Arrests and Locates



CT-related Information and Indictments



CT-related Convictions and Pre-trial Diversions



FBI Field Computer Intrusion (CI) Squads/Teams



National Infrastructure Protection
Center (NIPC) Crisis Action Teams Activated



NIPC Threat and Warning Notices Issued



Key Assets Identified



Infragard chapters



Infragard participants



CI-related Arrests and Locates



CI-related Information and Indictments



CI-related Convictions and Pre-trial Diversions



Health Care Fraud (HCF) Arrests and Locates



HCF Information and Indictments



HCF Convictions and Pre-trial Diversions



HCF Recoveries and Restitutions ($000)



HCF Fines ($000)



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



U.S. based drug organizations affiliated
with 13 national priority targets that were

- identified



- dismantled



Percent of La Cosa Nostra members incarcerated



Eurasian Criminal Enterprises dismantled



Asian Criminal Enterprises dismantled



Safe Streets Task Forces (SSTFs)



SSTF Arrests and Locates



SSTF Information and Indictments



SSTF Convictions and Pre-trial Diversions



Violent Gang Task Forces



Violent Gang Arrests and Locates



Violent Gang Information and Indictments



Violent Gang Convictions and Pre-trial Diversions



Violent Gangs affiliated with 7 national target
groups that were dismantled



Public Corruption (PC) Arrests and Locates



PC Information and Indictments



PC Convictions and Pre-trial Diversions



Civil Rights (CR) Arrests and Locates



CR Information and Indictments



CR Convictions and Pre-trial Diversions



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



Crimes Against Children (CAC) Resource Teams



CAC Arrests, Locates, Summons



CAC Information and Indictments



CAC Convictions and Pre-trial Diversions



Number of Missing Children Located



"Innocent Images" National Initiative (IINI)
Undercover Operations



IINI Arrests, Locates, Summons



IINI Information and Indictments



IINI Convictions and Pre-trial Diversions



Safe Trails Task Forces (STTFs)



Indian Country (IC) Arrests and Locates



IC Information and Indictments



IC Convictions and Pre-trial Diversions



[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:



Students trained, FBI Academy:

New FBI Special Agents



FBI employees (in-service, advanced)



Other federal, state, local, and international



Other students trained (regional, local):

State, local






Countries represented



Forensic examinations performed:

Federal agencies



Non-federal agencies



Fingerprint identification services:

Criminal cards processed



Civil card processed



Civil submissions with criminal records



Civil submissions using false identity



National Crime Information Center
(NCIC) transactions



National Instant Check System:

Checks performed by States



Checks performed by FBI



Persons with criminal records prevented
from purchasing firearms (FBI checks)



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.


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.


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.


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.


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.


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.

Recent Testimonies
Deciphering the Debate Over Encryption Amy Hess, Executive Assistant Director, Science and Technology Branch, Federal Bureau of Investigation, Statement Before the House Committee on Energy and Commerce, Subcommittee on Oversight and Investigation, Washington, D.C.
The Need for a Consolidated FBI Headquarters Building Richard L. Haley, II, Assistant Director, Facilities and Finance Division, Federal Bureau of Investigation, Statement Before the House Committee on Transportation and Infrastructure, Subcommittee on Economic Development, Public Buildings, and Emergency Management, Washington, D.C.
Encryption Tightrope: Balancing Americans’ Security and Privacy James B. Comey, Director, Federal Bureau of Investigation, Statement Before the House Judiciary Committee, Washington, D.C.
FBI Budget Request for Fiscal Year 2017 James B. Comey, Director, Federal Bureau of Investigation, Statement Before the House Appropriations Committee, Subcommittee on Commerce, Justice, Science, and Related Agencies, Washington, D.C.
Law Enforcement Implications of Illegal Online Gambling Joseph S. Campbell, Assistant Director, Criminal Investigative Division, Federal Bureau of Investigation, Statement Before the House Committee on Oversight and Government Reform, Washington, D.C.
Oversight of the Federal Bureau of Investigation James B. Comey, Director, Federal Bureau of Investigation, Statement Before the Senate Judiciary Committee, Washington, D.C.
Oversight of the Federal Bureau of Investigation James B. Comey, Director, Federal Bureau of Investigation, Statement Before the House Judiciary Committee, Washington, D.C.
Worldwide Threats and Homeland Security Challenges James B. Comey, Director, Federal Bureau of Investigation, Statement Before the House Committee on Homeland Security, Washington, D.C.
Threats to the Homeland James B. Comey, Director, Federal Bureau of Investigation, Statement Before the Senate Committee on Homeland Security and Governmental Affairs, Washington, D.C.
Inspector General Access Kevin L. Perkins, Associate Deputy Director, Federal Bureau of Investigation, Joint Statement with Department of Justice Associate Deputy Attorney General Carlos Uriarte Before the Senate Judiciary Committee, Washington, D.C.