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From: [EMAIL PROTECTED]
Date: January 4, 2007 10:15:44 PM PST
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Subject: Big Brother, Inc., Privately Owned -- National Security and "the Free Market"


Nominee played big role in outsourcing intelligence

Posted 1/4/2007 10:30 PM ET
By Matt Kelley and Richard Willing, USA TODAY

WASHINGTON — J. Michael "Mike" McConnell, in line to become the nation's top intelligence official, has been a leading figure in outsourcing U.S intelligence operations to private industry, records and interviews show. McConnell, a retired Navy vice admiral, led the National Security Agency from 1992 to 1996 before joining Booz Allen Hamilton Inc., a consulting firm based in McLean, Va.

White House officials confirmed McConnell's appointment to replace Director of National Intelligence John Negroponte but declined to be identified by name because the nomination has not been formally announced.

McConnell's nomination and confirmation by the Senate would come amid two current trends in intelligence gathering: the emphasis on technology, and the heightened role of private contractors in analyzing data and preparing reports that once might have been written by government intelligence officers.

"The mission has expanded, the money is there, and there just aren't enough (intelligence officers) to do the job without outside help," says Stephen Marrin, a former CIA analyst who teaches intelligence studies at Mercyhurst College in Erie, Pa.

It is unclear how many private contractors are employed by the CIA and other intelligence agencies. Budgets and hiring figures are classified.

Last year, Negroponte started an audit of the number of private contractors used by all 16 intelligence agencies. That count was started because of concerns about how outsourcing affected intelligence, and it is continuing, says Chad Kolton, a spokesman for the Office of the Director of National Intelligence.

The CIA also began a study last September to determine whether contractors were hurting the agency's work by luring away CIA officers with higher salaries. The CIA did not return a call Thursday seeking an update on that study.

Booz Allen is a "huge" supplier of intelligence contracting, Kolton said. Contract details are classified.

Ralph Shrader, Booz Allen Hamilton's chairman and CEO, says McConnell's experience as NSA director and a private contractor make him a good choice. McConnell "will work very hard to do the right thing," Shrader says.

"He's someone who can solicit lots of opinions, collect them all up, and produce something that takes the needs of the entire country into consideration," Shrader says. "He's very hands-on."

Booz Allen has received at least $50 million in Pentagon contracts since November 2005, records show. Some involve remnants of the Pentagon's "Total Information Awareness" program. Congress killed the program in 2003 amid concerns it would invade the privacy of ordinary Americans.

The $63 million contract signed with Booz Allen in 2002 called for the firm to develop a single system to collect and search through huge databases of government, personal and business records for signs of terrorist activities. McConnell signed that contract on Booz Allen's behalf.

Work on that contract has continued, according to federal contracting records, which show the Pentagon paid Booz Allen about $2 million under that contract during 2006, most recently on Sept. 26.

Spokesmen for the White House, Pentagon, Booz Allen and Negroponte's office all have declined to comment on the contract.

Sen. Ron Wyden, D-Ore., a member of the Senate Intelligence Committee, says he will question McConnell about the program and intelligence contracting.

"It's a critical concern," says Wyden, who led the efforts to kill TIA in 2002.

Contributing: David Jackson




Find this article at:
http://www.usatoday.com/news/washington/2007-01-04-mcconnell_x.htm

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