It's official now. According to the Office of the Director of National Intelligence, The US intelligence apparatus could not function without contractors.
Tim Shorrock posted a very interesting article today on Salon, "The Corporate Takeover of U.S. Intelligence." Shorrock's big scoop is that, according to the DNI, private contractors make up 70% of the nation's intelligence budget. This jaw-dropping figure was revealed by Terri Everett, a senior DNI procurement executive, in an unclassified presentation at a conference for contractors sponsored by the DIA. As part of the PowerPoint presentation, the DNI admitted a core truth in a catchy phrase they're probably already regretting: "We Can't Spy...If We Can't Buy."
The presentation did tow the party line when it came to outsourcing of core functions. They listed non-core functions as in-house during the Cold War and now as outsourced and skipped over the embarrassing facts about core functions. The reality is that core human intelligence functions are outsourced by the CIA and on Thursday USA Today reported that CIA Director Hayden is, "planning to eliminate 10% of outside contractors who are currently providing support for "core missions."
Now it's doubtful that the Agency will be able to eliminate even 10% of these contractors since the contractors run entire branches of the Agency and will undoubtedly let their COTRs know in uncertain terms that the jobs cannot be done with fewer personnel. Pressure to get the tasks accomplished will most likely rule, but 10% cuts sound good.
Hayden, with the help of USA TODAY, was putting his best spin on the Agency's devastating spy drain, citing "accomplishments" of his first year at the helm which included "Hiring about 15% of its workforce in the past two months.
- The agency has emphasized adding new operatives." Read: they're replacing people as fast as they can and they really need to make up for the big loss in case officers.
- The CIA has gotten younger [read: as in the most inexperienced cadre of case officers ever.]
- And the Agency has changed "job requirements of some intelligence analysts, requiring them to work in the field alongside spies and to 'drive the collection' of secret information." Read: this is the boss' bright idea that's instead of driving intel collection will more likely drive the remaining decent case officers nuts and into the private sector.
"An in-house study of [sic] showed that contractors are not overused, Hayden said, but that large-scale hiring of contractors since September 2001 produced some 'inefficiencies.'" Read: efficiencies as in "We can't spy...if we can't buy."




Fourth Generation Warfare Evolves, Fifth Emerges (pdf) Changes in the political, economic, social, and technical spheres are making it possible for a super-empowered small group to use new technologies to challenge nation-states.
Posted by: Uncle $cam | June 01, 2007 at 16:49
opps... left out: Colonel T.X. Hammes, U.S. Marine Corps, Retired
Posted by: Uncle $cam | June 01, 2007 at 16:55
Judge Halts Award Of Iraq Contract
A federal judge yesterday ordered the military to temporarily refrain from awarding the largest security contract in Iraq. The order followed an unusual series of events set off when a U.S. Army veteran filed a protest against the government practice of hiring what he calls mercenaries, according to sources familiar with the matter.
Posted by: Uncle $cam | June 02, 2007 at 00:00
That 70% figure is extremely disturbing, but probably not altogether accurate, given that a large chunk of their funding is "black". Additionally, the intelligence budget contains so many functions that aren't truly "intelligence related" - IT support, janitorial, accounting, office clerks, facility maintenance, etc. How much of that 70% is made up of these support functions?
Oh, and Uncle $cam, there's a huge difference between the thugs the robber barons hired as strike breakers and modern PMC's. I didn't know about the anti-Pinkerton Act, though, so I need to research that. Overall, though, I doubt the lawsuit gets very far, as the government will most likely invoke some of the various "national security" clauses to have it quashed.
Posted by: Erik Rader | June 02, 2007 at 09:52