In the 21st century, more than any other time, US agencies have relied on contractors to conduct core intelligence functions. This book charts the swell of intelligence outsourcing in the context of American political culture and considers what this means for the relationship between the state, its national security apparatus and accountability within a liberal democracy. Through analysis of a series of case studies, recently declassified documents and exclusive interviews with national security experts in the public and private sectors, the book provides an in-depth and illuminating appraisal of the evolving accountability regime for intelligence contractors.

Reveals the formidable organization of intelligence outsourcing that has developed between the U.S. government and private companies since 9/11, in a report that reveals how approximately seventy percent of the nation's funding for top-secret tasks is now being funneled to higher-cost third-party contractors. 35,000 first printing.

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.

The Department of Defense expanded significantly its contracting for intelligence services after 9/11. This increased outsourcing poses as-yet unevaluated financial, structural, and normative challenges for the defense intelligence enterprise, the executive branch, Congress, and the American people. This thesis integrates findings from economics, organizational science, legal, and military privatization literatures to create a foundation for a broader inquiry into the full implications of widespread contracting for defense intelligence services. This integrative analysis yields a framework for determining the eligibility of defense intelligence functions for private performance, and applies this framework to defense intelligence contracts that were competed during the past decade. This thesis finds that intelligence outsourcing--while a useful tool--may be financially and structurally deleterious and undermines American constitutional governance when contractors are allowed to perform inherently governmental activities. This thesis concludes with a series of policy prescriptions intended to strengthen the practice of outsourcing intelligence services within the defense intelligence enterprise.

Now in paperback, and with a new, updated Afterword, this acclaimed investigative report is the first to expose the massive outsourcing of top-secret intelligence activities in the wake of 9/11. • A major story the government doesn’t want us to know about: Almost everything about the outsourcing of spying activities is classified. Shorrock lifts the veil off this disturb- ing story for the first time. • Vital tasks outsourced: Running spy networks overseas, interrogating enemy prisoners, eavesdropping on phone calls, tracking al Qaeda operatives, analyzing intelligence— these vital tasks, traditionally performed by government, are now being outsourced to companies answerable to investors rather than to Congress. • Authoritative: Shorrock has spent four years researching this new phenomenon, drawing on interviews, government documents, and industry contacts. He takes readers inside the intelligence contracting industry, which is worth more than $50 billion a year.

The dramatic growth of government over the course of the twentieth century since the New Deal prompts concern among libertarians and conservatives and also among those who worry about government’s costs, efficiency, and quality of service. These concerns, combined with rising confidence in private markets, motivate the widespread shift of federal and state government work to private organizations. This shift typically alters only who performs the work, not who pays or is ultimately responsible for it. “Government by contract” now includes military intelligence, environmental monitoring, prison management, and interrogation of terrorism suspects. Outsourcing government work raises questions of accountability. What role should costs, quality, and democratic oversight play in contracting out government work? What tools do citizens and consumers need to evaluate the effectiveness of government contracts? How can the work be structured for optimal performance as well as compliance with public values? Government by Contract explains the phenomenon and scope of government outsourcing and sets an agenda for future research attentive to workforce capacities as well as legal, economic, and political concerns.

Though it lagged behind the privatization of military services, the privatization of intelligence expanded dramatically with the growth in intelligence activities following the September 11 attacks on the United States. Privatization of intelligence services raises many concerns familiar to the debates over private military and security companies (PMSCs). One of the key problems posed by PMSCs is their use of potentially lethal force in an environment where accountability may be legally uncertain and practically unlikely; in some circumstances, PMSCs may also affect the strategic balance of a conflict. The engagement of private actors in the collection of intelligence exacerbates the first set of problems: it frequently encompasses a far wider range of conduct that would normally be unlawful, with express or implied immunity from legal process, in an environment designed to avoid scrutiny. Engagement of such actors in analysis raises the second set of issues: top-level analysis is precisely intended to shape strategic policy -- the more such tasks are delegated to private actors, the further they are removed from traditional accountability structures such as judicial and parliamentary oversight, and the more influence those actors may have on the executive.