Bush Goes Private to Spy on You

Bush Goes Private to Spy on You By Tim Shorrock
Posted on December 8, 2007 by dandelionsalad
Dandelion Salad

By Tim Shorrock
AlterNet.org
CorpWatch
December 6, 2007

The Bush administration is launching a new government agency that will rely heavily on private security contractors to conduct surveillance in the U.S.


A new intelligence institution to be inaugurated soon by the Bush administration will allow government spying agencies to conduct broad surveillance and reconnaissance inside the United States for the first time. Under a proposal being reviewed by Congress, a National Applications Office (NAO) will be established to coordinate how the Department of Homeland Security (DHS) and domestic law enforcement and rescue agencies use imagery and communications intelligence picked up by U.S. spy satellites. If the plan goes forward, the NAO will create the legal mechanism for an unprecedented degree of domestic intelligence gathering that would make the United States one of the world’s most closely monitored nations. Until now, domestic use of electronic intelligence from spy satellites was limited to scientific agencies with no responsibility for national security or law enforcement.

The intelligence-sharing system to be managed by the NAO will rely heavily on private contractors, including Boeing, BAE Systems, L-3 Communications and Science Applications International Corporation (SAIC). These companies already provide technology and personnel to U.S. agencies involved in foreign intelligence, and the NAO greatly expands their markets. Indeed, at an intelligence conference in San Antonio, Texas, last month, the titans of the industry were actively lobbying intelligence officials to buy products specifically designed for domestic surveillance.

The NAO was created under a plan tentatively approved in May 2007 by Director of National Intelligence Michael McConnell. Specifically, the NAO will oversee how classified information collected by the National Security Agency (NSA), the National Geospatial-Intelligence Agency (NGA) and other key agencies is used within the United States during natural disasters, terrorist attacks and other events affecting national security. The most critical intelligence will be supplied by the NSA and the NGA, which are often referred to by U.S. officials as the “eyes” and “ears” of the intelligence community.

The NSA, through a global network of listening posts, surveillance planes, and satellites, captures signals from phone calls, email and internet traffic, and translates and analyzes them for U.S. military and national intelligence officials.

The National Geospatial-Intelligence Agency (NGA), which was formally inaugurated in 2003, provides overhead imagery and mapping tools that allow intelligence and military analysts to monitor events from the skies and space. The NSA and the NGA have a close relationship with the supersecret National Reconnaissance Agency (NRO), which builds and maintains the U.S. fleet of spy satellites and operates the ground stations where the NSA’s signals and the NGA’s imagery are processed and analyzed. By law, their collection efforts are supposed to be confined to foreign countries and battlefields.

The National Applications Office was conceived in 2005 by the Office of the Director of National Intelligence (ODNI), which Congress created in 2004 to oversee the 16 agencies that make up the U.S. intelligence community. The ODNI, concerned that the legal framework for U.S. intelligence operations had not been updated for the global “war on terror,” turned to Booz Allen Hamilton of McLean, Va., one of the largest contractors in the spy business. The company was tasked with studying how intelligence from spy satellites and photoreconnaissance planes could be better used domestically to track potential threats to security within the United States. The Booz Allen study was completed in May of that year and has since become the basis for the NAO oversight plan. In May 2007, McConnell, the former executive vice president of Booz Allen, signed off on the creation of the NAO as the principal body to oversee the merging of foreign and domestic intelligence collection operations.

The NAO is “an idea whose time has arrived,” Charles Allen, a top U.S. intelligence official, told the Wall Street Journal in August 2007 after it broke the news of the NAO’s creation. Allen, the DHS’s chief intelligence officer, will head the new program. The announcement came just days after President George W. Bush signed a new law approved by Congress to expand the ability of the NSA to eavesdrop, without warrants, on telephone calls, email and faxes passing through telecommunications hubs in the United States when the government suspects agents of a foreign power may be involved. “These [intelligence] systems are already used to help us respond to crises,” Allen later told the Washington Post. “We anticipate that we can also use them to protect Americans by preventing the entry of dangerous people and goods into the country, and by helping us examine critical infrastructure for vulnerabilities.”

Donald Kerr, a former NRO director who is now the No. 2 at ODNI, recently explained to reporters that the intelligence community was no longer discussing whether or not to spy on U.S. citizens: “Our job now is to engage in a productive debate, which focuses on privacy as a component of appropriate levels of security and public safety,” Kerr said. ”I think all of us have to really take stock of what we already are willing to give up, in terms of anonymity, but [also] what safeguards we want in place to be sure that giving that doesn’t empty our bank account or do something equally bad elsewhere.”

What will the NAO do?

The plan for the NAO builds on a domestic security infrastructure that has been in place for at least seven years. After the terrorist attacks of Sept. 11, 2001, the NSA was granted new powers to monitor domestic communications without obtaining warrants from a secret foreign intelligence court established by Congress in 1978 (that warrantless program ended in January 2007 but was allowed to continue, with some changes, under legislation passed by Congress in August 2007).

Moreover, intelligence and reconnaissance agencies that were historically confined to spying on foreign countries have been used extensively on the home front since 2001. In the hours after the Sept. 11, 2001, attacks in New York, for example, the Bush administration called on the NGA to capture imagery from lower Manhattan and the Pentagon to help in the rescue and recovery efforts. In 2002, when two deranged snipers terrified the citizens of Washington and its Maryland and Virginia suburbs with a string of fatal shootings, the Federal Bureau of Investigation (FBI) asked the NGA to provide detailed images of freeway interchanges and other locations to help spot the pair.

The NGA was also used extensively during Hurricane Katrina, when the agency provided overhead imagery — some of it supplied by U-2 photoreconnaissance aircraft — to federal and state rescue operations. The data, which included mapping of flooded areas in Louisiana and Mississippi, allowed residents of the stricken areas to see the extent of damage to their homes and helped first-responders locate contaminated areas as well as schools, churches and hospitals that might be used in the rescue. More recently, during the October 2007 California wildfires, the Federal Emergency Management Agency (FEMA) asked the NGA to analyze overhead imagery of the fire zones and determine the areas of maximum intensity and damage. In every situation that the NGA is used domestically, it must receive a formal request from a lead domestic agency, according to agency spokesperson David Burpee. That agency is usually FEMA, which is a unit of DHS.

At first blush, the idea of a U.S. intelligence agency serving the public by providing imagery to aid in disaster recovery sounds like a positive development, especially when compared to the Bush administration’s misuse of the NSA and the Pentagon’s Counter-Intelligence Field Activity (CIFA) to spy on American citizens. But the notion of using spy satellites and aircraft for domestic purposes becomes problematic from a civil liberties standpoint when the full capabilities of agencies like the NGA and the NSA are considered.

Imagine, for example, that U.S. intelligence officials have determined, through NSA telephone intercepts, that a group of worshipers at a mosque in Oakland, Calif., has communicated with an Islamic charity in Saudi Arabia. This is the same group that the FBI and the U.S. Department of the Treasury believe is linked to an organization unfriendly to the United States.

Imagine further that the FBI, as a lead agency, asks and receives permission to monitor that mosque and the people inside using high-resolution imagery obtained from the NGA. Using other technologies, such as overhead traffic cameras in place in many cities, that mosque could be placed under surveillance for months, and — through cell phone intercepts and overhead imagery — its suspected worshipers carefully tracked in real time as they moved almost anywhere in the country.

The NAO, under the plan approved by ODNI’s McConnell, would determine the rules that will guide the DHS and other lead federal agencies when they want to use imagery and signals intelligence in situations like this, as well as during natural disasters. If the organization is established as planned, U.S. domestic agencies will have a vast array of technology at their disposal. In addition to the powerful mapping and signals tools provided by the NGA and the NSA, domestic agencies will also have access to measures and signatures intelligence (MASINT) managed by the Defense Intelligence Agency (DIA), the principal spying agency used by the secretary of defense and the Joint Chiefs of Staff.

(MASINT is a highly classified form of intelligence that uses infrared sensors and other technologies to “sniff” the atmosphere for certain chemicals and electromagnetic activity, and “see” beneath bridges and forest canopies. Using its tools, analysts can detect signs that a nuclear power plant is producing plutonium, determine from truck exhaust what types of vehicles are in a convoy, and detect people and weapons hidden from the view of satellites or photoreconnaissance aircraft.)

Created by contractors

The study group that established policies for the NAO was jointly funded by the ODNI and the U.S. Geological Survey (USGS), one of only two domestic U.S. agencies that is currently allowed, under rules set in the 1970s, to use classified intelligence from spy satellites. (The other is NASA, the National Aeronautics and Space Administration.) The group was chaired by Keith Hall, a Booz Allen vice president who manages his firm’s extensive contracts with the NGA and previously served as the director of the NRO.

Other members of the group included seven former intelligence officers working for Booz Allen, as well as retired Army Lt. Gen. Patrick M. Hughes, the former director of the DIA and vice president of homeland security for L-3 Communications, a key NSA contractor; and Thomas W. Conroy, the vice president of national security programs for Northrop Grumman, which has extensive contracts with the NSA and the NGA and throughout the intelligence community.

From the start, the study group was heavily weighted toward companies with a stake in both foreign and domestic intelligence. Not surprisingly, its contractor-advisers called for a major expansion in the domestic use of the spy satellites that they sell to the government. Since the end of the Cold War and particularly since the Sept. 11, 2001, attacks, they said, the “threats to the nation have changed, and there is a growing interest in making available the special capabilities of the intelligence community to all parts of the government, to include homeland security and law enforcement entities and on a higher priority basis.”

Contractors are not new to the U.S. spy world. Since the creation of the Central Intelligence Agency (CIA) and the modern intelligence system in 1947, the private sector has been tapped to design and build the technology that facilitates electronic surveillance. Lockheed, for example, built the U-2, the famous surveillance plane that flew scores of spy missions over the Soviet Union and Cuba. During the 1960s, Lockheed was a prime contractor for the Corona system of spy satellites that greatly expanded the CIA’s abilities to photograph secret military installations from space. IBM, Cray Computers and other companies built the supercomputers that allowed the NSA to sift through data from millions of telephone calls and analyze them for intelligence that was passed on to national leaders.

Spending on contracts has increased exponentially in recent years along with intelligence budgets, and the NSA, the NGA and other agencies have turned to the private sector for the latest computer and communications technologies and for intelligence analysts. For example, today about half of staff at the NSA and NGA are private contractors. At the DIA, 70 percent of the workers are contractors. But the most privatized agency of all is the NRO, where a whopping 90 percent of the work force receive paychecks from corporations. All told the U.S. intelligence agencies spend some 70 percent of their estimated $60 billion annual budget on contracts with private companies, according to documents this reporter obtained in June 2007 from the ODNI.

The plans to increase domestic spying are estimated to be worth billions of dollars in new business for the intelligence contractors. The market potential was on display in October at GEOINT 2007, the annual conference sponsored by the U.S. Geospatial Intelligence Foundation (USGIF), a nonprofit organization funded by the largest contractors for the NGA. During the conference, which took place in October at the spacious Henry B. Gonzalez Convention Center in downtown San Antonio, many companies were displaying spying and surveillance tools that had been used in Afghanistan and Iraq and were now being rebranded for potential domestic use.

BAE Systems Inc.

On the first day of the conference, three employees of BAE Systems Inc. who had just returned from a three-week tour of Iraq and Afghanistan with the NGA demonstrated a new software package called SOCET GXP. (BAE Systems Inc. is the U.S. subsidiary of the U.K.-based BAE, the third-largest military contractor in the world.)

GXP uses Google Earth software as a basis for creating three-dimensional maps that U.S. commanders and soldiers use to conduct intelligence and reconnaissance missions. Eric Bruce, one of the BAE employees back from the Middle East, said his team trained U.S. forces to use the GXP software “to study routes for known terrorist sites” as well as to locate opium fields. “Terrorists use opium to fund their war,” he said. Bruce also said his team received help from Iraqi citizens in locating targets. “Many of the locals can’t read maps, so they tell the analysts, ‘there is a mosque next to a hill,’” he explained.

Bruce said BAE’s new package is designed for defense forces and intelligence agencies but can also be used for homeland security and by highway departments and airports. Earlier versions of the software were sold to the U.S. Army’s Topographic Engineering Center, where it has been used to collect data on more than 12,000 square kilometers of Iraq, primarily in urban centers and over supply routes.

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