Verb. Also as noun; formication. Creation of uneccessary and cumbersome paperwork that makes a job more costly and less effective. Formication is only one 'letter' away from someone getting screwed. Formicate is a highly suggestive term and may be used as an office pseudonym for mock progress.
"The project was going nicely and smoothly until middle management formicated it, and now has been stuck in the hopper for over six months."