The military-industrial complex has changed radically since World War II or even the height of the Cold War. The private sector is now fully ascendant. The uniformed air, land, and naval forces of the country as well as its intelligence agencies, including the CIA (Central Intelligence Agency), the NSA (National Security Agency), the DIA (Defense Intelligence Agency), and even clandestine networks entrusted with the dangerous work of penetrating and spying on terrorist organizations are all dependent on hordes of "private contractors." In the context of governmental national security functions, a better term for these might be "mercenaries" working in private for profit-making companies.

Tim Shorrock, an investigative journalist and the leading authority on this subject, sums up this situation devastatingly in his new book, Spies for Hire: The Secret World of Intelligence Outsourcing. The following quotes are a précis of some of his key findings: "In 2006… the cost of America's spying and surveillance activities outsourced to contractors reached $42 billion, or about 70 percent of the estimated $60 billion the government spends each year on foreign and domestic intelligence… [The] number of contract employees now exceeds [the CIA's] full-time workforce of 17,500… Contractors make up more than half the workforce of the CIA's National Clandestine Service (formerly the Directorate of Operations), which conducts covert operations and recruits spies abroad…

"To feed the NSA's insatiable demand for data and information technology, the industrial base of contractors seeking to do business with the agency grew from 144 companies in 2001 to more than 5,400 in 2006… At the National Reconnaissance Office (NRO), the agency in charge of launching and maintaining the nation's photoreconnaissance and eavesdropping satellites, almost the entire workforce is composed of contract employees working for [private] companies… With an estimated $8 billion annual budget, the largest in the IC [intelligence community], contractors control about $7 billion worth of business at the NRO, giving the spy satellite industry the distinction of being the most privatized part of the intelligence community…

"If there's one generalization to be made about the NSA's outsourced IT [information technology] programs, it is this: they haven't worked very well, and some have been spectacular failures… In 2006, the NSA was unable to analyze much of the information it was collecting… As a result, more than 90 percent of the information it was gathering was being discarded without being translated into a coherent and understandable format; only about 5 percent was translated from its digital form into text and then routed to the right division for analysis.

"The key phrase in the new counterterrorism lexicon is 'public-private partnerships'… In reality, 'partnerships' are a convenient cover for the perpetuation of corporate interests." (pp. 6, 13-14, 16, 214-15, 365)

Several inferences can be drawn from Shorrock's shocking exposé. One is that if a foreign espionage service wanted to penetrate American military and governmental secrets, its easiest path would not be to gain access to any official U.S. agencies, but simply to get its agents jobs at any of the large intelligence-oriented private companies on which the government has become remarkably dependent.