RFID Passports: Outsourced and Insecure

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.

"Aside from the fact that we have fully vetted and qualified vendors, we also note that the materials are moved via a secure transportation means, including armored vehicles," GPO spokesman Gary Somerset said.

But GPO Inspector General J. Anthony Ogden, the agency's internal watchdog, doesn't share that confidence. He warned in an internal Oct. 12 report that there are "significant deficiencies with the manufacturing of blank passports, security of components, and the internal controls for the process."

The inspector general's report said GPO claimed it could not improve its security because of "monetary constraints." But the inspector general recently told congressional investigators he was unaware that the agency had booked tens of millions of dollars in profits through passport sales that could have been used to improve security, congressional aides told The Times.

Concerns that GPO has been lax in addressing security threats contrast with the very real danger that the new e-passports could be compromised and sold on the black market for use by terrorists or other foreign enemies, experts said.

"The most dangerous passports, and the ones we have to be most concerned about, are stolen blank passports," said Ronald K. Noble, secretary general of Interpol, the Lyon, France-based international police organization. "They are the most dangerous because they are the most difficult to detect."