Spies for Hire: The Secret World of Intelligence Outsourcing [Bargain Price] [Hardcover]

Tim Shorrock (Author)

Book Description

Publication Date: May 6, 2008

In Spies for Hire, investigative reporter Tim Shorrock lifts the veil off a major story the government doesn't want us to know about -- the massive outsourcing of top secret intelligence activities to private-sector contractors.

Running spy networks overseas. Tracking down terrorists in the Middle East. Interrogating enemy prisoners. Analyzing data from spy satellites and intercepted phone calls. All of these are vital intelligence tasks that traditionally have been performed by government officials accountable to Congress and the American people. But that is no longer the case.

Starting during the Clinton administration, when intelligence budgets were cut drastically and privatization of government services became national policy, and expanding dramatically in the wake of 9/11, when the CIA and other agencies were frantically looking to hire analysts and linguists, the Intelligence Community has been relying more and more on corporations to perform sensitive tasks heretofore considered to be exclusively the work of federal employees. This outsourcing of intelligence activities is now a $50 billion-a-year business that consumes up to 70 percent of the U.S. intelligence budget. And it's a business that the government has tried hard to keep under wraps.

Drawing on interviews with key players in the Intelligence-Industrial Complex, contractors' annual reports and public filings with the government, and on-the-spot reporting from intelligence industry conferences and investor briefings, Spies for Hire provides the first behind-the-scenes look at this new way of spying. Shorrock shows how corporations such as Booz Allen Hamilton, Lockheed Martin, SAIC, CACI International, and IBM have become full partners with the CIA, the National Security Agency, and the Pentagon in their most sensitive foreign and domestic operations. He explores how this partnership has led to wasteful spending and threatens to erode the privacy protections and congressional oversight so important to American democracy.

Shorrock exposes the kinds of spy work the private sector is doing, such as interrogating prisoners in Iraq, managing covert operations, and collaborating with the National Security Agency to eavesdrop on Americans' overseas phone calls and e-mails. And he casts light on a "shadow Intelligence Community" made up of former top intelligence officials who are now employed by companies that do this spy work, such as former CIA directors George Tenet and James Woolsey. Shorrock also traces the rise of Michael McConnell from his days as head of the NSA to being a top executive at Booz Allen Hamilton to returning to government as the nation's chief spymaster.

From CIA covert actions to NSA eavesdropping, from Abu Ghraib to Guantánamo, from the Pentagon's techno-driven war in Iraq to the coming global battles over information dominance and control of cyberspace, contractors are doing it all. Spies for Hire goes behind today's headlines to highlight how private corporations are aiding the growth of a new and frightening national surveillance state.

Editorial Reviews

From Publishers Weekly

Even James Bond is temping these days. According to investigative journalist Shorrock, the CIA and other intelligence agencies now have more contractors working for them than they do spies of their own. Often former staff hired back at double or triple their former government salaries, these private contractors do everything from fighting in Afghanistan to interrogating prisoners, aiming spy satellites and supervising secret agents. Shorrock gives a comprehensive—at times eye-glazing—rundown of the players in the industry, and his book is valuable for its detailed panorama of 21st-century intelligence work. He uncovers serious abuses—contractor CACI International figured prominently in the Abu Ghraib outrages—and nagging concerns about corrupt ties between intelligence officials and private corporations, industry lobbying for a national surveillance state, the withering of the intelligence agencies' in-house capacities and the displacement of an ethos of public service by a profit motive. However, the bulk of the outsourcing Shorrock unearths is rather pedestrian, involving the management of mundane IT systems and various administrative services, and this exposé insinuates more skullduggery than it demonstrates. (May)
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

Review

"Tim Shorrock is walking, and mapping, a startling fault line of these crazy days: the way government is outsourcing its most basic functions at a time of peril. Replacing public service with private transactions -- often shadowy and unaccountable -- is what helped bring down Rome. Without fierce scrutiny, and the kind of sharp-eyed disclosures this book provides, it can bring down America. A must read." -- Ron Suskind, author of The One Percent Doctrine

"Spies for Hire is an excellent roadmap to the daunting new terrain of U.S. intelligence, in which the explosive growth of intelligence contracting threatens to overwhelm any possibility of independent oversight. In this groundbreaking work, Tim Shorrock explores who has benefitted, who has paid, and why it matters to us all." -- Steven Aftergood, Project on Government Secrecy, Federation of American Scientists

"Tim Shorrock is a digger, and he has penetrated a secret and fascinating world to write a telling and readable book." -- Evan Thomas, editor at large of Newsweek, author of Sea of Thunder

"Tim Shorrock's well-researched and convincing book reveals how the intelligence community now subcontracts out most of its work -- 70 percent -- to private-sector companies that inevitably have their own agendas, which may or may not accord with the national interest. By laying out very specifically how all this works, Shorrock has provided a very important service to the country." -- Burton Hersh, author of The Old Boys: The American Elite and the Origins of the CIA

See all Editorial Reviews

Product Details

• Hardcover: 448 pages
• Publisher: Simon & Schuster; 1 edition (May 6, 2008)
• Language: English
• ISBN-10: 0743282248
• ASIN: B002IT5P06
• Product Dimensions: 9.2 x 6.2 x 1.4 inches
• Shipping Weight: 1.1 pounds
• Average Customer Review: 3.4 out of 5 stars  See all reviews (16 customer reviews)
• Amazon Best Sellers Rank: #1,393,844 in Books (See Top 100 in Books)
  • #28 in Books > Law > Administrative Law > Public Contract

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Most Helpful Customer Reviews

48 of 51 people found the following review helpful

4.0 out of 5 stars Useful Contribution, Neglects Outputs & Constituencies May 28, 2008

By Robert David STEELE Vivas HALL OF FAMETOP 500 REVIEWER

Format:Hardcover|Amazon Verified Purchase

Edit of 4 Jun 08 to strongly recommend Retired Reader's review as a companion to my own observations.

I sat down with this book today and found it absorbing. It is perhaps the best overview for anyone of names and numbers associated with the $60 billion (or more, perhaps as much as $75 billion) a year we waste on the 4% we can steal, and next to nothing on Open Source Intelligence (OSINT). The book loses one star for failing to integrate over 300 relevant books (see the annotated bibliographies to my first two books), and for failing to apply any visualization at all. This book is a mass of facts and figures, names and places. With or without visualization, it is a seminal reference point and recommended for all university and public libraries.

The book focuses mostly on technical waste--the inputs--and does not cover outputs nor constituencies. The reality is as General Zinni has put it so well: the IC produces 4% of what is needed, at a cost so horrendously wasteful as to warrant severe outrage among all taxpayers.

Having read the book, I can state that the author's agenda, if he has one, is to expose the risk to our civil liberties of creating a national surveillance state in which the bulk of the expertise is outside the government and subject to corruption and cronyism as well as lack of oversight.

Here are three tid-bits that strongly support the author's general intent, and some links.

1) Secret intelligence scam #1 is that there is no penalty for failure. Lockheed can build a satellite system that does not work (for NASA as well as the secret world--two different failures--or get the metrics wrong so priceless outer space research does not deploy a parachute--}and get another contract. Similarly SAIC with Trailblazer, CACI in Iraq, Blackwater murdering civilians and ramming old men in old cars out of the way, this is all a total disgrace to America.

2) "Butts in seats" means that most of our money goes to US citizens with clearances who know nothing of the real world, *and* the contractor gets 150% of their salary as "overhead." That is scam #2.

3) Scam #3 is that the so-called policy world, when it exists, does not really care what the secret world has to say, unless it justifies elective wars, secret prisons in the US (Halliburton) and so on. Dick Cheney ended the policy process in this administration. But even without Cheney and his gang of proven liars, the dirty little secret of the secret world is that a) there is no one place where all information comes together to be made sense of; and b) less than 1% of what we collect gets looked at by a human; and c) most of the policy world could care less what Top Secret Codeword information is placed before them--as Colin Powell says so memorably in his autobiography, he preferred the Early Bird compilation of news clippings.

I have been saying since 1988 that the secret emperor is not just naked, but institutionalized lunacy. Books like this are helpful, eventually the public will hear our voice.

Here are specific tid-bits that caught my attention as I went through the book.

+ Two errors in reference to me: I was neither a committee chair nor a program director. The author does quote me accurately.

+ Early on I am impressed to note documented facts:

- 50% of the clandestine case officers at CIA are contractors

- 35% of the Defense Intelligence Agency workforce is contracted

- Virtually 100% of the National Reconnaissance Office (NRO) is contracted

- 70% of all US Intelligence Community funds are spent on external contracts rather than internal capabilities.

- Booz Allen Hamilton has 10,000 employees with Top Secret Codeword clearances

- Revolving door is gutting the agencies (and most retirements will take place between 2007 to 2012--we have no middle management, no bench).

- Total Information Awareness (TIA) program never died, it went underground

- Pentagon under Cheney, then Cheney-Rumsfeld, now Cheney-Gates appears committed to outsourcing everything except the shooting--this is very very bad for all of us

- SIGINT data stream is wagging the dog--three V's of unstructured data are volume, velocity, and variety (183 languages we don't speak) but the author cited General Tony Zinni, USMC (Ret) telling a conference that all the high-tech in the world cannot give him plans and intentions on the battlefield.

- History of outsourcing goes back to the Odeen (CEO BDM) report sponsored by the Defense Science Board, this was the beginning of trying to privatize everything possible. Combined with the Pentagon's inherent disrespect for the CIA, it made privatizing intelligence even more attractive.

- McConnell comes out of this book looking respectable, Woolsey and Tenet less so. Dempsey was not a Navy officer by career--they sent her to knife and fork school when she managed the Navy intelligence budget within GDIP, much as the USMC took care of Arnold Punaro who ultimately made one-star while being Staff Director of the SASC. Although the author excels at naming names, and he discusses failures where they are known, there is very little substantive understanding of how the US IC has collapsed on all fronts--personnel, budget, finance, facilities, global presence, global coverage, relevance to the customer, etcetera.

- CACI and SAIC come out of this book looking truly terrible, while ManTech and Booz Allen Hamilton come out as moderately competent. I have to remind myself that contractors are not evil--they do what we incentivize them to do, and right now it is OUT OF CONTROL.

- He names LtGen Ken Minihan, USAF, as the de facto ideologist for the intelligence-industrial complex, and provides a good review of how venture capital funds were created to focus specifically on secret contracts.

- John Brennan emerges from this book as the man behind the curtain, levering the International and National Security Alliance (INSA) to further the complex. I disagree with the author's characterization of the DNI and INSA alliance as unethical. I do however agree that it is unprofessional in that INSA is executing myopic orders and not contributing at all to the needed cross-fertilization and understanding of where the real innovation is happening, in Collective, Peace, and Commercial Intelligence (the latter the complete opposite of Contractor Intelligence, or butts in seats).

See also:
Legacy of Ashes: The History of the CIA
Blond Ghost
The Very Best Men Four Who Dared:The Early Years of the CIA
Blank Check: The Pentagon's Black Budget
Body of Secrets: Anatomy of the Ultra-Secret National Security Agency
None So Blind: A Personal Account of the Intelligence Failure in Vietnam

There are success stories. Here are two books on one such case, where the White House and the Pentagon chose not to act over four days:
First In: An Insider's Account of How the CIA Spearheaded the War on Terror in Afghanistan
Jawbreaker: The Attack on bin Laden and al-Qaeda: A Personal Account by the CIA's Key Field Commander

Bottom line books:
On Intelligence: Spies and Secrecy in an Open World
Collective Intelligence: Creating a Prosperous World at Peace

I put this book down wishing that the field of cognitive science would evolve more quickly. Our profession is in disarray, in confusion, seeking to substitute butts in seats and dollars for cultural, linguistic, historical, and other forms of context. We need several multinational life boats of change catalysts--such as a Multinational Decision Support Center in Tampa, taking over the rapidly vacating Coalition Coordinating Center, in order to create the world's first unclassified intelligence center dedicated to providing open decision support to all parties active in stabilization & reconstruction, humanitarian assistance, and disaster relief (both at home and abroad). The IC is, as I said in Forbes ASAP, Inside Out and Upside Down. This is not the contractor's fault. It is our fault. We are a Dumb Nation instead of a Smart Nation. Bad. Very bad.

12 of 13 people found the following review helpful

4.0 out of 5 stars Excellent Subject, Many Facts, But Not Impartial October 8, 2008

By David M. Dougherty VINE™ VOICE

Format:Hardcover|Amazon Verified Purchase

Author Shorrock does the nation a great service in providing a basis for discussion of the out-sourcing of intelligence and IT support functions to private industry by federal agencies. For this I would have given him five stars, but it is evident his theme is that such out-sourcing is generally a subversion of the proper function of government and its control by representatives of the people. To this end, he seems to select those incidents that favor his viewpoint, rather than presenting the situation in an impartial manner for the reader to draw his own conclusions. By this I do not mean that the author should not present his own analysis and conclusions -- only that the facts should not be presented with perjorative adjectives and snide comments concerning personal and corporate motives. As an ex-intelligence officer, I certainly would have moved into a private corporation where my skills could have been used to help fulfill the security mission of the Federal Government had personal circumstances not intervened, and I like to think my motives would have been more aligned with satisfaction in accomplishing the mission than for personal profit.

At any rate, this is an important work, and my views of Shorrock's book are almost isomorphic with those contained in the reviews by Steele and "Retired Reader."

With respect to the issue of private corporations being restricted to not breaking the law (either international, US, or any any other country's), one must realise that the gathering of covert HUMINT essentially ALWAYS involves breaking someone's laws. If a contractor is expressly forbidden to do this or is to be held accountable for such trangressions, then contractors cannot perform positive intelligence gathering functions. Unfortunately, at the present time the CIA and all other agencies involved in covert intelligence gathering are clearly incapable of fulfilling their missions in this regard without using private contractors. Regardless of the reasons for this lack of in-agency capability, to eliminate private contractors as the author seems to desire, would be to put America's security at grave risk.

There are solutions to this problem, but the author seems more intent on promoting his leftist agenda than in addressing the issues with the clear goal of improving America's intelligence. Yes, the use of private contractors has gone too far, but what level of private contracting and for what functions would be appropriate? And how do we get to that appropriate level? Alas, these questions were missing in this book, and unfortunately I have not found them yet in any other.

Lastly, allow me to register my disappointment with the reaction to this book. To date, there have been only six reviews and judging from the ratings pro and con on the reviews, I would estimate that the number of readers of the reviews are not more than forty. That's pretty insignificant when one considers the importance of the book's topic, and shows the lack of public interest in this subject. Something is terribly wrong with the US reading public when banal books like those by Friedman and Zakaria promoting the U.S.'s submission to international organizations and globalism receive thousands of reviews and ratings and books on the condition of the CIA and intelligence out-sourcing draw almost no interest.

23 of 30 people found the following review helpful

5.0 out of 5 stars Required Reading for An Alert and Knowledgeable Citizenry May 12, 2008

By Ishmael

Format:Hardcover

Rather than reinvent the wheel, I'm going to quote liberally from an excellent full-length review of this book from blogger Meteor Blades at Daily Kos:

"Spies for Hire is one of those books so brimful of detail, including mergers and acquisitions by intelligence companies, that one wishes for coded links and two or three charts illustrating the career trajectories and corporate genealogy of a couple dozen of the key players."

Another reviewer told an unsourced anecdote about an intelligence contractor who was downsized into driving a limo. Well, consider the story of neocon visionary Stephen Cambone. A charter member of PNAC, Cambone was appointed as the undersecretary of defense for intelligence at the Pentagon, a position of immense power and influence, which was forged from the conflict between Rumsfeld and the CIA.

"Among his other duties was overseeing "Copper Green," the interrogations, much of them by private contractors, of Iraqi prisoners at Abu Ghraib. Cambone was so widely despised and feared at the Pentagon that an Army general had jokingly said that "if he had one round left in his revolver, he would take out Steve Cambone," according to the Washington Post's Thomas Ricks."

When Rumsfeld was forced out of his job, his loyal retainer, Cambone was shown the exit a few months later, in January of 2007. However, Cambone did not end up driving a limousine:

"In January 2008, the Pentagon's Counter-Intelligence Field Agency granted a $30 million contract to the Missions Solutions Group of QinetiQ North America...Just two months before that contract was awarded, QinetiQ hired a new vice president for strategy. His name is Stephen Cambone."

So, why is this book a must-read? I'll leave you with one more quote from a different source:

"In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together."
--Dwight D. Eisenhower