We performed the audit in accordance with the Government Auditing Standards issued by the Comptroller General of the United States. Our audit covered CALEA enactment through December 2003. The DOJ OIG is required by CALEA, as amended, to report to Congress biannually on the equipment, facilities, and services that have been modified to comply with CALEA capability and capacity requirements; whether FBI payments to carriers for such modifications were reasonable and cost effective; and projections of future costs for such modifications to meet CALEA capability requirements. In this regard, carriers had made no modifications and the FBI had made no payments to carriers for modifications with the exception of an agreement with Qwest to deploy its CALEA solution in the Salt Lake City area for the Winter Olympics.

Our procedures were designed to determine the status of CALEA implementation activities. We reviewed the FBI progress of implementing CALEA since our last report. We also undertook a review of CALEA implementation since the enactment of CALEA to ascertain the major impediments to the full implementation of CALEA.

* BECAUSE THIS REPORT CONTAINED PROPRIETARY/COMMERCIAL INFORMATION, WE REDACTED (WHITED OUT) THAT INFORMATION FROM THE VERSION OF THE REPORT THAT IS BEING PUBLICLY RELEASED. WHERE SUCH INFORMATION WAS REDACTED IS NOTED IN THE REPORT.

Proprietary/Commercial Information Redacted