The FBI is gearing up to create a massive computer database of people's physical characteristics, all part of an effort the bureau says to better identify criminals and terrorists.

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But it's an issue that raises major privacy concerns -- what one civil liberties expert says should concern all Americans.

The bureau is expected to announce in coming days the awarding of a $1 billion, 10-year contract to help create the database that will compile an array of biometric information -- from palm prints to eye scans.

Ordinarily, the FBI destroys or returns the fingerprint records that employers send it when conducting a background check. But now the FBI is offering to store those prints on behalf of employers and then notify the employer if an employee later gets arrested for committing a crime.

According to a document that was one of many declassified [PDF] by The State Department yesterday, "Former FBI Director J. Edgar Hoover had a plan to suspend the rules against illegal detention and arrest up to 12,000 Americans he suspected of being disloyal....The plan called for the FBI to apprehend all potentially dangerous individuals whose names were on a list Hoover had been compiling for years. 'The index now contains approximately twelve thousand individuals, of which approximately ninety-seven percent are citizens of the United States,' Hoover wrote in the now-declassified document. ‘In order to make effective these apprehensions, the proclamation suspends the writ of habeas corpus.'"

Local mirror of declassified document in which Hoover planned to suspend habeas corpus and arrest thousands

The FBI is embarking on a $1 billion project to build the world's largest computer database of biometrics to give the government more ways to identify people at home and abroad, the Washington Post reported on Friday.

The FBI has already started compiling digital images of faces, fingerprints and palm patterns in its systems, the paper said.