Spy agency to outsource core tasks

The Defense Intelligence Agency (DIA) is preparing to pay private contractors up to $1 billion to conduct core intelligence tasks of analysis and collection over the next five years, an amount that would set a record in the outsourcing of such functions by the Pentagon's top spying agency.

The proposed contracts, outlined in a recent early notice of the DIA's plans, reflect a continuing expansion of the Defense Department's intelligence-related work and fit a pattern of Bush administration transfers of government work to private contractors.

Since 2000, the value of federal contracts signed by all agencies each year has more than doubled to reach $412 billion, with the largest growth at the Defense Department, according to a congressional tally in June.

Outsourcing particularly accelerated among intelligence agencies after the Sept. 11, 2001, attacks caught many of them unprepared to meet new demands with their existing work force.

The DIA did not specify what it wants the contractors to do but said it is seeking teams to fulfill "operational and mission requirements" that include intelligence "gathering and collection, analysis, utilization, and strategy and support." It holds out the possibility that five or more contractors may be hired and promised more details Aug. 27.

The DIA's action comes a few months after CIA Director Michael Hayden, acting under pressure from Congress, announced a program to cut the agency's hiring of outside contractors by at least 10 percent.

The CIA's effort was partly provoked by managers' frustration that officials with security clearances were frequently resigning to earn higher pay with government contractors while performing the same work, a phenomenon that led lawmakers to complain that intelligence contract work was wasting money.

"Mind-blowing," was the reaction of Rep. Jan Schakowsky, D-Ill., a member of the House Permanent Select Committee on Intelligence, when she learned of the DIA proposal. In a telephone interview, she described it as "definitely something to be concerned about."

In its notice, published on a procurement Web site, the DIA said "the total price of all work to be performed under the contract(s) will exceed $1 billion," adding that the tally "is only an estimate and there is no guarantee that any orders will be placed."

A DIA spokesman, Cmdr. Terrence Sutherland, said the primary purpose of the proposal is to ensure that adequate outside support is ready to assist the DIA, as well as Army, Navy, Marine and Air Force intelligence centers and overseas command centers.

The DIA is the country's major manager and producer of foreign military intelligence.

A former senior Pentagon intelligence official said Saturday that the DIA is struggling to do "the in-depth intelligence work required under present circumstances," and that is why it is preparing to contract for outside help.