Outsourcing passports carries risks

Bill Gertz:

The United States has outsourced the manufacturing of its electronic passports to overseas companies — including one in Thailand that was victimized by Chinese espionage — raising concerns that cost savings are being put ahead of national security, an investigation by The Washington Times has found.

The Government Printing Office's decision to export the work has proved lucrative, allowing the agency to book more than $100 million in recent profits by charging the State Department more money for blank passports than it actually costs to make them, according to interviews with federal officials and documents obtained by The Times.

The profits have raised questions both inside the agency and in Congress because the law that created GPO as the federal government's official printer explicitly requires the agency to break even by charging only enough to recover its costs.

Lawmakers said they were alarmed by The Times' findings and plan to investigate why U.S. companies weren't used to produce the state-of-the-art passports, one of the crown jewels of American border security.

"I am not only troubled that there may be serious security concerns with the new passport production system, but also that GPO officials may have been profiting from producing them," said Rep. John D. Dingell, the Michigan Democrat who chairs the House Energy and Commerce Committee.

Officials at GPO, the Homeland Security Department and the State Department played down such concerns, saying they are confident that regular audits and other protections already in place will keep terrorists and foreign spies from stealing or copying the sensitive components to make fake passports.

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Gertz has turned an investigative eye on the State Department lately and finds some interesting things to question. It is not clear how audits can keep track of passports being faked are stolen in foreign facilities.