"Don't Privatize Our Spies": Private contracts account for 70% of U.S. intelligence budget [View All]

[DeepModem Mom]

NYT op-ed: Don’t Privatize Our Spies
By PATRICK RADDEN KEEFE
Published: June 25, 2007


(David Suter)

....just how much of the intelligence budget goes to private contracts? Because that budget is highly classified, and many intelligence contracts are allocated without oversight or competitive bidding, it seemed we would never know. Until last month, that is: a procurement executive from the Office of the Director of National Intelligence gave a PowerPoint presentation at a conference in Colorado and let slip a staggering statistic — private contracts now account for 70 percent of the intelligence budget....

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The orthodoxy of privatization — that it’s the government that’s mired by inefficiency and a lack of competition — has been turned on its head in the intelligence industry. However patriotic, contractors must ultimately answer to their shareholders and the bottom line. There’s more than one way to read Lockheed Martin’s recent advertising slogan: “We never forget who we’re working for.”

It’s not just the money that flows out the door, either: it’s also the people, as the companies offer hefty raises to government employees who join their ranks. A recent report from the Office of the Director of National Intelligence found that “contractors recruit our own employees, already cleared and trained at government expense, and then ‘lease’ them back to us at considerably greater expense.”

This process — called “bidding back” — has created a brain drain. Two-thirds of the Department of Homeland Security’s senior officials and experts have departed for private industry. Michael Hayden, the C.I.A. director, worries that his agency has become “a farm team for these contractors.”

The revolving door helps firms score more contracts. Federal law prohibits executive branch officials from lobbying former colleagues after leaving public office — but just for the first year. Can a government acquisitions officer who might someday like a job at a contractor really evaluate the contractor’s bid objectively?...

(Patrick Radden Keefe, a fellow at the Century Foundation, is the author of “Chatter: Dispatches From the Secret World of Global Eavesdropping.”)

http://www.nytimes.com/2007/06/25/opinion/25keefe.html