BLACKWATER MERCENARIES POISED TO GET FAT NEW PENTAGON CONTRACT FOR "DRUG WAR"

A Defense Department contract involving antidrug training missions
may test the durability of the political controversy over Blackwater
Worldwide's security work in Iraq.

The Moyock, N.C., company, which was involved in a September shooting
in Baghdad that left 17 Iraqis dead, is one of five military
contractors competing for as much as $15 billion over five years to
help fight a narcotics trade that the government says finances
terrorist groups.

Also competing for contracts from the Pentagon's Counter
Narcoterrorism Technology Program Office are military-industry giants
Raytheon Co., Lockheed Martin Corp. and Northrop Grumman Corp., as
well as Arinc Inc., a smaller aerospace and technology contractor.

The contracts are expected to be awarded as the need arises, so the
Pentagon's level of concern about employing Blackwater will likely be
measured over time and by whether the company wins leading roles or
is shut out.

Companies competing for the work might be called on to develop
detection or surveillance technology; train U.S. and foreign forces;
or provide logistics, communications and information-technology
systems, among other areas.

Blackwater faces the question of whether it is too tainted to be
tapped for such work, even though the contract doesn't involve the
kind of security detail that it performs in Iraq. The Sept. 16
shooting in Baghdad strained relations between Washington and the
Iraqi government, which alleged that the shooting was unnecessary.

The company, formerly known as Blackwater USA, maintains that its
ability to win additional government business hasn't been affected by
scrutiny from Congress, the State Department and the Justice
Department. Blackwater spokeswoman Anne Tyrrell said customers have
"confidence in our ability to perform in a capable and professional manner."

Peter Singer, a senior fellow at the Brookings Institution in
Washington, said Blackwater's troubles are not a "death knell," for
the company but said: "This extremely public kind of controversy
certainly isn't of much help in winning contracts."

Last week, Sen. Bernie Sanders, a Vermont independent who caucuses
with Democrats, and Democratic Rep. Jan Schakowsky of Illinois
introduced the "Stop Outsourcing Security Act," which would halt the
government's practice of using companies such as Blackwater to
provide private security for U.S. diplomats in Iraq.

Rep. Henry Waxman of California, chairman of the House Oversight and
Government Reform committee, continues to pursue inquiries into
Blackwater's operations in Iraq and its business practices. The
Federal Bureau of Investigation, which is probing the Sept. 16
shooting, is expected to report its findings in the coming weeks.

Tensions with Iraq over the U.S. employment of private contractors
are likely to persist. Saturday, a DynCorp International guard shot
and killed an Iraqi taxi driver in Baghdad as a convoy passed a
traffic jam. Iraq's Interior Ministry alleged that the shooting was unprovoked.

U.S. embassy spokesman Philip Reeker said DynCorp is working with the
Interior Ministry to investigate the shooting.

DynCorp spokesman Greg Lagana said that the company is investigating.
"We left the scene believing no one was injured," Mr. Lagana said.

Although the Pentagon's contracts represent a potential windfall to
the companies, they likely wouldn't come close to providing
Blackwater the same kind of cash flow that has come from the
government's spending for security work in Iraq. Since 2001, closely
held Blackwater is estimated to have been paid over $1 billion for
its government services.

Instead of giving all of the business to a single firm, the Pentagon
plans to award the antidrug work on a task-by-task basis, requiring
Blackwater and its rivals to compete constantly.

In August, the Defense Department gave each of the five companies a
$25,000 contract to look at intelligence, surveillance and
reconnaissance missions in Saharan Africa. Four more contracts have
since been awarded, but the government has classified the details.

For bigger companies such as Lockheed and Northrop, the value of the
antidrug contracts are miniscule when compared with building fighter
jets and naval ships. Yet, work such as this is increasingly
important as they seek to expand into new markets that could grow over time.

For Blackwater, which started in 1997 as a small company that trained
law-enforcement officers and others at its compound in North
Carolina, such contracts are crucial to growth. Since 2001,
Blackwater's roster of military veterans and former law enforcement
officers has swelled to more than 40,000, and it has built a fleet of
airplanes and helicopters larger than those of some of the countries
where it does business. Blackwater hopes to sell its own surveillance
airship and a custom-built armored vehicle for dangerous missions.

Under the Defense Department contract, Blackwater might end up as a
subcontractor to a rival. Lockheed lists Blackwater as one of 37
companies it might use to supply nonsecurity services such as
training personnel. Blackwater received $44 million in contracts from
Lockheed between 2005 and 2007 for work as a subcontractor on
antidrug training and border-related work in Afghanistan, according
to the Defense Department.

Richard Douglas, deputy assistant defense secretary for
counternarcotics, counterproliferation and global threats, said
Blackwater's training of Afghan antidrug forces has made them more
effective. "We've been very happy with the results of our association
with them in Afghanistan," he said.

AlterNet is making this material available in accordance with Title
17 U.S.C. Section 107: This article is distributed without profit to
those who have expressed a prior interest in receiving the included
information for research and educational purposes.