The New York Times The New York Times Business October 13, 2002  

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America's For-Profit Secret Army

By LESLIE WAYNE

With the war on terror already a year old and the possibility of war against Iraq growing by the day, a modern version of an ancient practice — one as old as warfare itself — is reasserting itself at the Pentagon. Mercenaries, as they were once known, are thriving — only this time they are called private military contractors, and some are even subsidiaries of Fortune 500 companies.

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The Pentagon cannot go to war without them.

Often run by retired military officers, including three- and four-star generals, private military contractors are the new business face of war. Blurring the line between military and civilian, they provide stand-ins for active soldiers in everything from logistical support to battlefield training and military advice at home and abroad.

Some are helping to conduct training exercises using live ammunition for American troops in Kuwait, under the code name Desert Spring. One has just been hired to guard President Hamid Karzai of Afghanistan, the target of a recent assassination attempt. Another is helping to write the book on airport security. Others have employees who don their old uniforms to work under contract as military recruiters and instructors in R.O.T.C. classes, selecting and training the next generation of soldiers.

In the darker recesses of the world, private contractors go where the Pentagon would prefer not to be seen, carrying out military exercises for the American government, far from Washington's view. In the last few years, they have sent their employees to Bosnia, Nigeria, Macedonia, Colombia and other global hot spots.

Motivated as much by profits as politics, these companies — about 35 all told in the United States — need the government's permission to be in business. A few are somewhat familiar names, like Kellogg Brown & Root, a subsidiary of the Halliburton Company that operates for the government in Cuba and Central Asia. Others have more cryptic names, like DynCorp; Vinnell, a subsidiary of TRW; SAIC; ICI of Oregon; and Logicon, a unit of Northrop Grumman. One of the best known, MPRI, boasts of having "more generals per square foot than in the Pentagon."

During the Persian Gulf war in 1991, one of every 50 people on the battlefield was an American civilian under contract; by the time of the peacekeeping effort in Bosnia in 1996, the figure was one in 10. No one knows for sure how big this secretive industry is, but some military experts estimate the global market at $100 billion. As for the public companies that own private military contractors, they say little if anything about them to shareholders.

"Contractors are indispensible," said John J. Hamre, deputy secretary of defense in the Clinton administration. "Will there be more in the future? Yes, and they are not just running the soup kitchens."

That means even more business, and profits, for contractors who perform tasks as mundane as maintaining barracks for overseas troops, as sophisticated as operating weapon systems or as secretive as intelligence-gathering in Africa. Many function near, or even at, the front lines, causing concern among military strategists about their safety and commitment if bullets start to fly.

The use of military contractors raises other troubling questions as well. In peace, they can act as a secret army outside of public view. In war, while providing functions crucial to the combat effort, they are not soldiers. Private contractors are not obligated to take orders or to follow military codes of conduct. Their legal obligation is solely to an employment contract, not to their country.

Private military contractors are flushing out drug traffickers in Colombia and turning the rag-tag militias of African nations into fighting machines. When a United Nations arms embargo restricted the American military in the Balkans, private military contractors were sent instead to train the local forces.

At times, the results have been disastrous.

In Bosnia, employees of DynCorp were found to be operating a sex-slave ring of young women who were held for prostitution after their passports were confiscated. In Croatia, local forces, trained by MPRI, used what they learned to conduct one of the worst episodes of "ethnic cleansing," an event that left more than 100,000 homeless and hundreds dead and resulted in war-crimes indictments. No employee of either firm has ever been charged in these incidents.

In Peru last year, a plane carrying an American missionary and her infant was accidentally shot down when a private military contractor misidentified it as on a drug smuggling flight.

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TRW Seen Near Deal To Sell Auto Unit For About $5 Billion  (August 27, 2002)  $

Northrop Said to Consider Raising Bid for TRW  (June 26, 2002)  $

TRW to Shed Unit Amid Hostile Takeover Threat  (June 20, 2002)  $

A Unit of BAE May Extend Offer for TRW  (June 10, 2002)  $



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Mark H. Milstein/Atlantic News Service
An instructor from MPRI teaches members of the Croatian militia the use of tanks. The company, with more than 10,000 former military personnel, is one of several for-profit military contractors hired by the Pentagon.


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