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As Defense Budget Soars Security Firms Reap Huge Profits, Go Offshore to Avoid Taxes

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Tom Burghardt
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With some 71,000 employees, most holding top secret clearances, DSS is probably the most profitable of the firm's divisions with some $32 billion in revenues, about half of Boeing's annual earnings.

According to investigative journalist and security analyst Tim Shorrock, writing on CorpWatch's Spies for Hire collaborative research web site, DSS "has close ties with the NSA and the intelligence community's signals intelligence units. It has an important office about a mile from the agency's headquarters in Fort Meade, Maryland, in an industrial park filled with NSA contractors."

And within DSS, its most important intelligence unit is the Advanced Global Services & Support division.

According to Boeing, Advanced Global Services & Support "is the advanced arm of the Global Services & Support business unit " responsible for driving the development, growth and transition of innovative, knowledge-based logistics capabilities for Global Services & Support. With a central focus on the emerging network-centric logistics marketplace, Advanced Global Services & Support is working on deploying integrated solutions for end-to-end (factory-to-foxhole) logistics. Its focus'readiness transformation'."

The unit provides "horizontal integration" for "Intelligence Community customers" such as the National Geospatial-Intelligence Agency (NGA), the Central Intelligence Agency (CIA), the Defense Intelligence Agency (DIA) and the National Security Agency (NSA).

"In December 2007à ‚¬ ³ Shorrock writes, "Boeing formed a new Intelligence and Security Systems (I&SS) division that appears to combine many of the company's services for foreign and domestic intelligence. Based in Washington, D.C., I&SS has a workforce of about 2,000 people at nine locations nationwide, and includes four program areas: Advanced Information Systems; Mission Systems; Security Solutions, which includes SBInet (the electronic wall being built on the US-Mexico border); and Advanced I&SS. According to a company press release, the new division "enables increased focus on the complex challenges faced by our homeland security and intelligence community customers. "I&SS will improve our ability to bring comprehensive, net-enabled capabilities to meet our customers' dynamic requirements'."

Much the same can be said of Boeing's imaginative use of tax-havens. According to GAO's 2008 study, Boeing maintained 38 foreign subsidiaries in major airline manufacturing hubs such as Bermuda (6); Cayman Islands (1); Gibraltar (2); Hong Kong (4); Ireland (4) Netherlands Antilles (2); Singapore (3); and U.S. Virgin Islands (16).

Spying for Dollars

Computer Sciences Corporation (CSC): One of the largest defense contractors operating under the radar, CSC is No. 9 on Washington Technology's Top 100 list of prime federal contractors with some $3,435,767,906 in revenue.

The Falls Church, Virginia-based outfit's business includes consulting, systems integration and outsourcing, and their major customers include the Defense Department, NASA, Navy, Army, Air Force, Treasury Department, Health and Human Services, the Environmental Protection Agency, Transportation Department and Department of State.

In his essential book Spies for Hire, Shorrock has described CSC as "one of the NSA's most important contractors," managing "global information networks and produces and disseminates intelligence products, including specialized expertise in the area of imagery processing and archiving."

"After 9/11à ‚¬ ³ Shorrock writes, "CSC formed a new business unit to go after homeland security and intelligence work," including contracts with the Defense Intelligence Agency.

Shorrock reveals that one of the "mission critical" consortiums that run DIA global operations "is managed by Computer Sciences Corporation (CSC). " The CSC team includes CACI International and L-3 MPRI. This last company is one of the largest private armies in the world, and would have at its disposal hundreds of paramilitary officers who would fit in exceedingly well with the DIA's secret intelligence teams in the Middle East and North Africa."

According to the firm's web site, CSC's Intelligence Analysis and Operational Support division "applies advanced information technology, expert knowledge, best practices, and business process improvement in all phases of the intelligence cycle (planning and direction, collection, processing, analysis and production, and dissemination)."

"At the enterprise level," CSC informs us, "our prowess in systems integration, engineering, and consulting help create IT infrastructures and ways of doing business that put the right tools in the right hands at the right time, so that intelligence staffs and decision makers can get on with the business of protecting the country."

With no end in sight, the data-mining growth curve continues along its merry way, integrating and analyzing the electronic communications of Americans "captured" by CIA, DIA, FBI, NCTC and NSA data miners and their partners in the telecommunications industry.

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Tom Burghardt is a researcher and activist based in the San Francisco Bay Area. In addition to publishing in Covert Action Quarterly and Global Research,, his articles can be read on Dissident Voice, The Intelligence Daily, Pacific Free Press and (more...)
 
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