[Infowarrior] - Outsourced passport work scrutinized

[Richard Forno]

rticle published Mar 26, 2008
Outsourced passport work scrutinized


http://washingtontimes.com/apps/pbcs.dll/article?AID=/20080326/NATION/866727
364/1001&template=printart

March 26, 2008

By Bill Gertz - The inspector general of the Government Printing Office
today said his office is conducting an "end-to-end" review of the agency's
production of electronic passports.

GPO Inspector General J. Anthony Ogden said the review is part of the
office's work plan and will look at the outsourcing of some passport
components, such as computer chips embedded in travel documents.

The comments follow a report in today's editions of The Washington Times
quoting congressional and GPO officials who raised security questions about
the use of foreign contractors in the process.

"We do pay close attention to the issue of passport manufacturing. It is a
high priority of this office," Mr. Ogden said in an interview.

Mr. Ogden said his office's plan includes the review "to help improve the
process of manufacturing passports. That's no secret."

The Washington Times reported that the GPO had contracted with two European
companies to produce computer chips with a wire antenna assembled at a plant
in Thailand. The company in Thailand, Smartrac, charged in a court filing in
Netherlands last year that its technology was stolen by China.

The outsourcing has raised concerns among investigators over the security of
passports. GPO and State Department officials have sought to play down
security concerns and have said they conduct regular checks of overseas
manufacturers.

Mr. Ogden said deficiencies in passport manufacturing detailed in an Oct. 12
report cited by the paper were related to older, non-electronic passports.

He declined to specify what the deficiencies are but said the agency has
been responsive in addressing many of the problems.

"We work with the agency, and that agency has been very receptive," he said.

Mr. Ogden also said he did not tell congressional investigators he was
unaware of large profits being made by the GPO, although he declined to
detail his discussions. He referred questions about the GPO's business
practices to other GPO officials but noted that there may be differences
over what is defined as profits.

Documents and interviews with Bush administration officials said the GPO
made about $100 million in profits on the production of electronic passports
since 2006 and their sale to the State Department far beyond the costs.

The profits are raising questions among congressional investigators about
whether the GPO is complying with laws that limit its business activities to
recovering printing costs on a break-even basis.