The federal government is making progress on developing a surveillance system that would pair computers with video cameras to scan crowds and automatically identify people by their faces, according to newly disclosed documents and interviews with researchers working on the project. The Department of Homeland Security tested a crowd-scanning project called the Biometric Optical Surveillance System - or BOSS - last fall after two years of government-financed development. Although the system is not ready for use, researchers say they are making significant advances. That alarms privacy advocates, who say that now is the time for the government to establish oversight rules and limits on how it will someday be used. In a sign of how the use of such technologies can be developed for one use but then expanded to another, the BOSS research began as an effort to help the military detect potential suicide bombers. But in 2010, the effort was transferred to the Department of Homeland Security to be developed for use instead by the police in the United States. The effort to build the BOSS system involved a two-year, $5.2 million federal contract given to Electronic Warfare Associates, a Washington-area military contractor with a branch office in Kentucky. Significant progress is already being made in automated face recognition using photographs taken under ideal conditions, like passport pictures and mug shots. The Federal Bureau of Investigation is spending $1 billion to roll out a Next Generation Identification system that will provide a national mug shot database to help local police departments verify identities.