In June 2013 the most consequential intelligence leak in modern American history came not from a government employee but from a contractor. Edward Snowden held a top-secret clearance and access to the National Security Agency's surveillance programs as an employee of Booz Allen Hamilton, a publicly traded consulting firm. By his own account he had taken the job for about two months — long enough to gather the documents. [1][NPR · Wikipedia]
That a private company's employee could walk out with the NSA's secrets was not an anomaly; it was the model. In 2013, 98% of Booz Allen's $5.9 billion in revenue came from U.S. government contracts, much of it classified intelligence work. [2][CBC News · NPR]
Booz Allen Hamilton Holding Corp is itself a public company, filing annual reports with the SEC, and its federal footprint is enormous — it has even held the contracts to defend much of the civilian government's own computer networks. [SEC EDGAR]
The starkest illustration of what privatization does to accountability is CACI International. After the 2003 invasion of Iraq, the government hired CACI to supply interrogators at Abu Ghraib prison; U.S. military investigators concluded that CACI employees had conspired with soldiers to "soften up" detainees. [The Washington Post · The Intercept]
CACI, too, is a publicly traded federal contractor. [SEC EDGAR]
The same arm's-length logic built the surveillance software this book opened with. Palantir's earliest outside money came from In-Q-Tel, the CIA's own venture-capital arm — the state seeding a private company to build the tools the state would then buy back. ANALYTICAL: Across all of it runs a single structure: the government's most sensitive functions — spying, interrogation, data fusion — performed by private firms whose first legal duty is to shareholders, and whose failures surface in a civil courtroom years later rather than a chain of command in real time.
