Wait, so if that was a real FBI operation, how did the purchased FBI badges subsequently make it into the terrorists' hands? And we know that they did because of Farmer Brown's report; wouldn't the FBI have confiscated the badges? The Evil Dr. Mathra has suggested that the FBI sting could have been a complete fake, staged by Sarah and/or Valente to make the situation seem increasingly desperate. This would give them more of a reason to push Hawkins deeper into the cell. But even if Mathra's right, those confiscated badges could not have made it to the terrorists, because the fake FBI would have to continue to pretend to be real FBI, which means not giving the confiscated badges to the terrorists.
Now, assuming that the FBI sting was real, the question still remains: how did the terrorists get the badges in the end? It's not like the FBI could have had a chat with the CIA and said, "Oh, we screwed up your operation? Dude, sorry! Here, take the badges back and send them on their merry way and we'll pretend this never happened." First of all, the FBI and CIA don't play well together, and also, the FBI would not be happy to learn that the CIA was operating on U.S. soil. Of course, it's entirely possible that Jericho, in the grand tradition of past television shows, is playing fast and loose with that aspect of the CIA.
Now, all of the above overthinking and overanalysis could go away if we ascribed significance to Hawkins's wording that the FBI badges "were gonna be tagged" with tracking devices. It's possible, then, that the terrorists just had to find another way to get more badges, and, since Hawkins was in prison, maybe that new crop of badges didn't have a chance to get tagged and THOSE were the ones the terrorists actually ended up using.
Or, I just uncovered an FBI-badge-sized plot hole and wanked Jericho's way out of it. You're welcome, Robbie Thompson.
Back to the flashback: Hawkins yells at one of his bosses about not being told that there was an FBI informant in his cell and adds, "You know, I am damn lucky that my cover wasn't blown." Sarah sits in the room quietly. "Your cover is intact, yes?" the Old Lady asks. "We believe so, yeah," Hawkins says, still mad. "Then let's move on," she suggests, and she asks whether Hawkins has made contact with the coordinators of the attack. He hasn't, but he suggests they take down the infiltrated cells now anyway, because it will disrupt the cells' plans and maybe even delay an attack. A Dick Armitage look-alike, played by Daniel Benzali from Murder One, turns to ask how many of the bombs Hawkins can get. Judging from the Evil Dr. Mathra's screams, this actor is a big reveal. Apparently, Mathra is a big Murder One fan. Sadly, I've never seen it, so I can't share in his really loud dance of joy around the living room. Hawkins frowns at the guy, whose name turns out to be Valente, and says that he can definitely get a third of the bombs, maybe even half. The camera shows Sarah looking down, very thoughtful. Hawkins insists that it's the safest move for them to make at this stage. Sarah interjects that it still leaves a dozen bombs in play. In an undertone, Hawkins asks what she's doing. Sarah whispers, "I just think there's a way to speed this up and get all the bombs at once." Hawkins hisses back that they agreed on something else. "Do you mind?" Valente demands.