The Corporate Takeover of U.S. Intelligence

[tequila]

The corporate takeover of U.S. intelligence - Tim Shorrock, Salon.com - 1 June.

On May 14, at an industry conference in Colorado sponsored by the Defense Intelligence Agency, the U.S. government revealed for the first time how much of its classified intelligence budget is spent on private contracts: a whopping 70 percent. Based on this year’s estimated budget of at least $48 billion, that would come to at least $34 billion in contracts. The figure was disclosed by Terri Everett, a senior procurement executive in the Office of the Director of National Intelligence, the agency established by Congress in 2004 to oversee the 16 agencies that make up the U.S. intelligence infrastructure. A copy of Everett's unclassified PowerPoint slide presentation, titled "Procuring the Future" and dated May 25, was obtained by Salon. (It has since become available on the DIA's Web site.) "We can't spy ... If we can't buy!" one of the slides proclaims, underscoring the enormous dependence of U.S. intelligence agencies on private sector contracts ...

The media has reported on some contracting figures for individual agencies, but never before for the entire U.S. intelligence enterprise. In 2006, the Washington Post reported that a "significant majority" of the employees at two key agencies, the National Counterterrrorism Center and the Pentagon's Counter-Intelligence Field Activity office, were contractors (at CIFA, the number was more than 70 percent). More recently, former officers with the Central Intelligence Agency have said the CIA's workforce is about 60 percent contractors.

...

In March 2006, Randy "Duke" Cunningham, R-Calif., who had resigned from Congress several months earlier, was sentenced to eight years in prison after being convicted of accepting more than $2 million in bribes from executives with MZM, a prominent San Diego defense contractor. In return for the bribes, Cunningham used his position on the House appropriations and intelligence committees to win tens of millions of dollars' worth of contracts for MZM at the CIA and the Pentagon's CIFA office, which has been criticized by Congress for spying on American citizens. The MZM case deepened earlier this month when Kyle "Dusty" Foggo, the former deputy director of the CIA, was indicted for conspiring with former MZM CEO Brent Wilkes to steer contracts toward the company ...

In another recent case, Rep. Rick Renzi, a Republican from Arizona, resigned from the House Intelligence Committee in April because he is under federal investigation for introducing legislation that may have benefited Mantech International, a major intelligence contractor where Renzi's father works in a senior executive position ...

[JeffC]

If you're not already familiar with her blog, check out The Spy Who Billed Me. Dr. Hillhouse writes extensively on the subject of intelligence outsourcing and the companies involved.