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Outsourcing US Intelligence Contractors and Government Outsourcing US Intelligence 66055_Van055_Van PPuyvelde.indduyvelde.indd i 118/04/198/04/19 1:101:10 PPMM Series Editors: Richard J. Aldrich, Rory Cormac, Michael S. Goodman and Hugh Wilford This series explores the full spectrum of spying and secret warfare in a globalised world. Intelligence has changed. Secret service is no longer just about spying or passively watching a target. Espionage chiefs now command secret armies and legions of cyber warriors who can quietly shape international relations itself. Intelligence actively supports diplomacy, peacekeeping and warfare: the entire spectrum of security activities. As traditional inter- state wars become more costly, covert action, black propaganda and other forms of secret interventionism become more important. This ranges from proxy warfare to covert action; from targeted killing to disruption activity. Meanwhile, surveillance permeates communications to the point where many feel there is little privacy. Intelligence, and the accelerating technology that surrounds it, have never been more important for the citizen and the state. Titles in the Intelligence, Surveillance and Secret Warfare series include: Published: The Arab World and Western Intelligence: Analysing the Middle East, 1956–1981 Dina Rezk The Twilight of the British Empire: British Intelligence and Counter-Subversion in the Middle East, 1948–63 Chikara Hashimoto Chile, the CIA and the Cold War: A Transatlantic Perspective James Lockhart The Clandestine Lives of Colonel David Smiley: Code Name ‘Grin’ Clive Jones The Problem of Secret Intelligence Kjetil Anders Hatlebrekke Outsourcing US Intelligence: Contractors and Government Accountability Damien Van Puyvelde Forthcoming: The Snowden Era on Screen: Signals Intelligence and Digital Surveillance James Smith The CIA and the Pursuit of Security: History, Documents and Contexts Hew Dylan https://edinburghuniversitypress.com/series-intelligence-surveillance-and-secret-warfare. html 66055_Van055_Van PPuyvelde.indduyvelde.indd iiii 118/04/198/04/19 1:101:10 PPMM Outsourcing US Intelligence Contractors and Government Accountability Damien Van Puyvelde 66055_Van055_Van PPuyvelde.indduyvelde.indd iiiiii 118/04/198/04/19 1:101:10 PPMM For Ana Edinburgh University Press is one of the leading university presses in the UK. We publish academic books and journals in our selected subject areas across the humanities and social sciences, combining cutting- edge scholarship with high editorial and production values to produce academic works of lasting importance. For more information visit our website: edinburghuniversitypress.com © Damien Van Puyvelde, 2019 Edinburgh University Press Ltd The Tun – Holyrood Road, 12(2f) Jackson’s Entry, Edinburgh EH8 8PJ Typeset in 11/1 3 Adobe Sabon by IDSUK (Dataconnection) Ltd, and printed and bound in Great Britain. A CIP record for this book is available from the British Library ISBN 978 1 4744 5022 5 (hardback) ISBN 978 1 4744 5024 9 (webready PDF) ISBN 978 1 4744 5025 6 (epub) The right of Damien Van Puyvelde to be identifi ed as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988, and the Copyright and Related Rights Regulations 2003 (SI No. 2498). 66055_Van055_Van PPuyvelde.indduyvelde.indd iviv 118/04/198/04/19 1:101:10 PPMM Contents List of Figures vi Acknowledgements vii List of Abbreviations ix Introduction 1 1. Broadening Intelligence Accountability 17 2. A Shared History of Successes and Excesses 39 3. The Growth of Intelligence Contracting in the Post-Cold War Era 76 4. The Accountability Regime for Contractors during the Global War on Terrorism 118 5. Improving Government Oversight of Intelligence Contractors 161 6. The Future of Intelligence Outsourcing 194 Conclusion 225 Bibliography 233 Index 255 66055_Van055_Van PPuyvelde.indduyvelde.indd v 118/04/198/04/19 1:101:10 PPMM Figures 1.1 The intelligence accountability process. 19 4.1 CIA IG investigations concerning procurement fraud, 2001–08. 128 5.1 National Intelligence Program contract personnel full-time equivalents: by function (FY 2007). 167 vi 66055_Van055_Van PPuyvelde.indduyvelde.indd vivi 118/04/198/04/19 1:101:10 PPMM Acknowledgements This book would not have been possible without fi nancial support from Aberystwyth University (Postgraduate Research Studentship and Caroline Adams Travel Bursary), the British International Studies Association (Founders Fund Award), and the University of Texas at El Paso. I am truly indebted to all these sources of funding. This project started as an essay inspired by a discussion with Peter Jackson ten years ago. Since then, a number of colleagues and friends have been kind enough to provide guidance and sup- port. Alastair Finlan and Gerry Hughes commented on early drafts as they shepherded me through my PhD thesis. Peter read the full manuscript and provided useful comments. Richard Aldrich, Stephen Coulthart, Rhodri Jeffreys-Jones, Michael Landon-Murray, Liam Mcvay, Roberto Noriega, Mark Phythian and the anony- mous reviewers offered comments that helped me improve various sections. My friend, the late Chikara Hashimoto, was essential in shaping my understanding of intelligence practices. His passion for the study of intelligence was boundless and contagious! Field research in the United States was essential to the com- pletion of this project. I am indebted to all the individuals who agreed to share their knowledge and experiences with me. Loch K. Johnson welcomed me in Athens, GA, in July 2011. His schol- arly contribution to the fi eld of intelligence studies, our conversa- tions about intelligence oversight, and his generosity are a source of inspiration. I also thank Etienne Linard and Cameron Roberts for hosting me in Washington, DC. Over the course of this project, I worked at Aberystwyth Uni- versity, the University of Texas at El Paso and the University of vii 66055_Van055_Van PPuyvelde.indduyvelde.indd viivii 118/04/198/04/19 1:101:10 PPMM Outsourcing US Intelligence Glasgow. The research communities at these institutions and the broader community of intelligence scholars across the world always provided an inspiring, friendly and supportive environ- ment. Thanks go to all the colleagues and friends who shared some thoughts and drinks along the way, and to my family for their unconditional support. viii 66055_Van055_Van PPuyvelde.indduyvelde.indd viiiviii 118/04/198/04/19 1:101:10 PPMM Abbreviations ACLU American Civil Liberties Union ASBCA Armed Services Board of Contracts Appeal BENS Business Executives for National Security CBO Congressional Budget Offi ce CIA Central Intelligence Agency CIFA Counterintelligence Field Activity COR Contracting Offi cer’s Representative COTR Contracting Offi cer’s Technical Representative CRS Congressional Research Service D/CIA Director of the Central Intelligence Agency DFARS Defense Acquisition Regulation Supplement DCI Director of Central Intelligence DIA Defense Intelligence Agency DNI Director of National Intelligence DoD Department of Defense DOS Department of State FAIR Federal Activities Inventory Reform FAR Federal Acquisition Regulation FISC Foreign Intelligence Surveillance Court FISA Foreign Intelligence Surveillance Act FOIA Freedom of Information Act FTE Full Time Equivalent GAO General Accounting Offi ce; Government Accountability Offi ce HPSCI House Permanent Select Committee on Intelligence HUMINT Human Intelligence I&A Offi ce of Intelligence and Analysis IC Intelligence Community ICD Intelligence Community Directive ix 66055_Van055_Van PPuyvelde.indduyvelde.indd ixix 118/04/198/04/19 1:101:10 PPMM Outsourcing US Intelligence IG Inspector General IMINT Imagery Intelligence INSA Intelligence and National Security Alliance INSCOM US Army Intelligence and Security Command IOB Intelligence Oversight Board IT Information Technology ITAR International Traffi c in Arms Regulation MASINT Measurement and Signature Intelligence MEJA Military Extraterritorial Jurisdiction Act MID Military Intelligence Division MIP Military Intelligence Program NGA National Geospatial-Intelligence Agency NIE National Intelligence Estimate NIP National Intelligence Program NRO National Reconnaissance Offi ce NSA National Security Agency NSC National Security Council ODNI Offi ce of the Director of National Intelligence OFPP Offi ce of Federal Procurement Policy OIG Offi ce of Inspector General OLC Offi ce of Legal Counsel OMB Offi ce of Management and Budget OSINT Open Source Intelligence OSS Offi ce of Strategic Services PDB President’s Daily Brief PIAB President’s Intelligence Advisory Board PSC Private Security Company QIC In-Q-Tel Interface Center R&D Research and Development SAIC Science Applications International Corporation SIGINT Signals Intelligence SSCI Senate Select Committee on Intelligence UCMJ Uniform Code of Military Justice US United States USC United States Code USML United States Munitions List VCF Virtual Case File x 66055_Van055_Van PPuyvelde.indduyvelde.indd x 118/04/198/04/19 1:101:10 PPMM Introduction Today, close to a million contractors hold a security clearance in the United States. This is a quarter of all cleared personnel, and more than the total population of the District of Columbia, where most major federal government institutions are located. Tens of thousands of contractors contribute to core intelligence functions like collection and operations, analysis and production, and even mission management.1 This situation is not new, but has gained visibility in the last decade since interactions between the US intel- ligence community
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