It was late 2003, and a contractor, Science Applications International Corp. (SAIC), had spent months writing 730,000 lines of computer code for the Virtual Case File (VCF), a networked system for tracking criminal cases that was designed to replace the bureau's antiquated paper files and, finally, shove J. Edgar Hoover's FBI into the 21st century.

"SAIC was at fault because of the usual contractor reluctance to tell the customer, 'You're screwed up. You don't know what you're doing. This project is going to fail because you're not managing your side of the equation,' " said Kay, who later became the chief U.S. weapons inspector in Iraq. "There was no one to tell the government that they were asking the impossible. And they weren't going to get the impossible."

"That was a little bit horrifying," said Matt Blaze, a professor of computer science at the University of Pennsylvania and a member of the review team. "A bunch of us were planning on committing a crime spree the day they switched over. If the new system didn't work, it would have just put the FBI out of business."

The conclusion: SAIC had so badly bungled the project that it should be abandoned.
"From the documents that define the system at the highest level, down through the software design and into the source code itself, Aerospace discovered evidence of incompleteness, lack of follow-through, failure to optimize and missing documentation," the report said.

Matthew Patton, a programmer who worked on the contract for SAIC, said the company seemed to make no attempts to control costs. It kept 200 programmers on staff doing "make work," he said, when a couple of dozen would have been enough. The company's attitude was that "it's other people's money, so they'll burn it every which way they want to," he said.

Patton, a specialist in IT security, became nervous at one point that the project did not have sufficient safeguards. But he said his bosses had little interest. "Would the product actually work? Would it help agents do their jobs? I don't think anyone on the SAIC side cared about that," said Patton, who was removed from the project after three months when he posted his concerns online.

Last year, FBI officials announced a replacement for VCF, named Sentinel, that is projected to cost $425 million and will not be fully operational until 2009. A temporary overlay version of the software, however, is planned for launch next year.

The project's main contractor, Lockheed Martin Corp., will be paid $305 million and will be required to meet benchmarks as the project proceeds. FBI officials say Sentinel has survived three review sessions and is on budget and on schedule.