"According to Janine, whose unflinching social anthropological work I have respected for years, three out of four people doing the work of the federal government today are actually private contractors. Think about that a minute...That means private company employees -- with less stringent conflict of interest requirements and also not generally obligated to adhere to the Freedom of Information Act -- increasingly have become the government and now substantially rule the roost.
When I directed the Center for Public Integrity earlier in this decade, we discovered a mercenary culture far more extensive than I had ever imagined. For example, in 2002, in a report entitled "Making a Killing: The Business of War", we identified 90 private military companies operating in the world, hired by governments or corporations. In early 2003, we reported that nine out of 30 members of the Defense Policy Board, then chaired by Richard Perle, had ties to defense companies with $76 billion in Pentagon contracts in just the preceding two years. In late 2003, the Center issued "Windfalls of War", first revealing that Kellogg, Brown & Root, then a subsidiary of Vice President Dick Cheney's former company, Halliburton, was the top recipient of U.S. war contracts in Afghanistan and Iraq. That report, which won the first George Polk award for online reporting and was produced by 20 researchers, writers and editors, also revealed that the most of the major contractors had close employee or Board ties to the executive branch for Republican and Democrat administrations and cumulatively they had contributed many millions of dollars to the political process.
Fascinated and alarmed by the Tammany Hall feeling of political favoritism or cronyism I was getting, we launched into another epic investigation and published "Outsourcing the Pentagon: Who's Winning the Big Contracts" in the fall of 2004. We examined 2.2 million contract actions over six fiscal years, totaling $900 billion in authorized expenditures, and discovered that no-bid contracts had accounted for more than 40 percent of Pentagon contracting, $362 billion in taxpayer money to companies without competitive bidding. In other words, the multi-billion dollar no-bid contracts Halliburton had received actually weren't such an aberration, unfortunately."
http://www.huffingtonpost.com/charles-lewis/shadow-elite-outsourcing_b_420752.html
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