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Summary
CACI International Inc. is one of the world’s largest private intelligence services providers and is deeply involved in classified “black” operations everywhere on the globe where U.S. military forces are active. It is best known to the American public as one of two contractors involved in the U.S. government’s abuse of Iraqi prisoners at Abu Ghraib.
The best way to describe CACI is as a private supplier of signals intelligence, human intelligence, imagery, and black ops, all rolled into one enterprise. “We support all four of the intelligence community’s priority focus areas: analysis, collection, user outcomes, and management,” CACI stated in its 2006 annual report. CACI’s intelligence contracts now make up 35 percent of the company’s revenues, 95 percent of which is earned from the federal government.
Corporate Information
Longtime CEO Jack London rattled off the company’s clients in a conference call with analysts in the spring of 2007: “the Department of Defense, all the military services, the intelligence community at the strategic level. That'd be your CIA, your NRO, your NSA, DIA, and NGA.” CACI’s primary intelligence customer, he said, is the Army. “We know what's happening out there in terms of the global war on terrorism threat,” he said. “And that is primarily being supported in the military from the United States Army's perspective as well as the United States Marine Corps.”
CACI’s largest single contract, worth $450 million, is with the U.S. Army’s electronics communication command, which is responsible for electronic warfare - command, control, communications, computers, intelligence, surveillance and reconnaissance, also known as C4ISR. [1]
Other customers include the U.S. Navy’s littoral and mine warfare program, the Air Force’s Pacific Command and Control unit, and the Defense Information Systems Agency (DISA), the Pentagon unit responsible for network centric warfare. Elsewhere in the Intelligence Community (IC), CACI holds major contracts with the Department of Homeland Security and the DHS’s U.S. Customs and Border Protection agency.
But the contract that CACI will always be known for is the one to provide interrogators at Abu Ghraib (see CorpWatch analysis, below).
RUMSFELD ALLY. CACI’s services, London constantly reminded investors during the Bush era, were perfectly aligned with the Pentagon’s. “As the fight against terrorism and the Islamofascists continues, technologies will keep evolving to collect, analyze and disseminate vital intelligence to support the war fighter and the national security authorities,” he said in CACI’s fourth quarter financial report in 2006. “Information and intelligence is where the growth is likely to be for the simple reason that, in the final analysis, accurate information from quality sources, communicated through secure channels to the right people, will trump all other weapons of war. In this environment, CACI is at the forefront.” [2]
CACI’S NICHE. CACI’s most important asset is its 10,000-person workforce, two-thirds of whom hold security clearances. Of those 10,000, CACI’s website says, “about 2,000 have top-secret sensitive compartmentalized information clearances,” the highest possible clearance attainable in the Intelligence Community. CACI’s employees are stationed throughout the world, including in Iraq and Afghanistan, Kosovo, Bahrain, Kuwait, Belgium, Bosnia, Hungary, Germany, Italy, the UK and Japan. [3] Recent job postings also show that CACI performs classified work in South Korea and Colombia, where U.S. intelligence agencies have extensive electronic warfare and eavesdropping operations.
NSA/SIGNALS INTELLIGENCE. CACI has very close ties with the NSA. During an interview in July 2006 with WMAL radio in Washington, CEO Jack London elaborated. CACI, he said, helps intelligence agencies monitor Internet traffic and terrorist communications. He also described data-mining – an important task for an agency that must sift through millions of bits of date every day - as “one of our specialties.” CACI, he said, does “forensic-type work” using information from “overhead imagery, communications satellites and intercepts, pulling all these things together in a forensic way, playing the detective, if you will, and connecting the dots and being able to determine connections among organizations and among cells of people.” [4] Gail Phipps, a former NSA official who was the executive vice president of CACI International from 1999 until November 2008, refers to the new science of espionage as “exquisite intelligence.” “We need to be able to pinpoint a person or a cell and be 99 percent confident that we know where they are, and in exact time,” she says. “That’s very different from the type of analysis systems we put together in the past.” [5]
CACI International has designed an elaborate website to explain the services in provides in the area of signals intelligence. On one page, CACI boasts that it is a “dynamic provider of the nation’s SIGINT needs,” providing SIGINT services "ranging from concept development to system integration." Most of its NSA work, I was told by industry executives familiar with CACI, is done through a subsidiary called CACI Technologies. In Iraq, units from this division have provided mobile, high-performance computers to support the NSA’s interception of signals emanating from enemy weapons systems, CACI officials told a Washington-area military forum in 2004.
They also help the NSA download data about insurgent movements picked up by UAVs flying overhead. That program is “effective, affordable and deployable” and provides “an incredible amount of power down to the lowest echelon” of the Army, Jeffrey Posdamer, a senior manager at CACI Technologies told the forum. The system can be used practically anywhere, and apparently has been deployed in Iraq. According to CACI’s chairman, J. P. “Jack” London, his company was instrumental in the joint tracking by the NSA and the NGA that resulted in the 2006 capture and execution of Abu Musab al-Zarqawi, the former commander of Al Qaeda in Iraq.
CACI on its intelligence offerings, from its website: “CACI has rapidly grown into a world leader in providing timely solutions to the intelligence community. Engaged across a wide range of national intelligence disciplines from the most complex space-based operations to human source intelligence, we help America's Intelligence Community collect, analyze and share global information in the war on terrorism; focus on two distinct customer categories, national strategic and law enforcement and tactical and military service; support multiple disciplines; and uncover terrorist activity by providing capabilities ranging from complex space-based operations to human source intelligence.”
CACI on signals intelligence (SIGINT), from its website: “The war on terrorism and the rapidly evolving and expanding challenges of new technologies have placed extraordinary demands on the signals intelligence community. Surging to the new threat while defeating the technology-based challenges mitigating conventional signals intelligence methods requires a company with a nuanced understanding of SIGINT methods and procedures. CACI's more than 30 years of experience with our world's best technical expertise and commitment to the SIGINT mission ensure CACI will be a dynamic provider of the nation's SIGINT needs for many years to come.”
CorpWatch Analysis
IDEOLOGY. Since 9/11, CACI defined itself as a virtual extension of the Bush administration’s foreign policy and the global war on terror. “CACI supplies one of the most vital weapons in the war on terrorism: cleared, qualified experts in intelligence gathering, analysis, operations and support,” the company declared in its [2004 annual report. “Working with the intelligence community in its mission to preeempt, disrupt, and defeat terrorism worldwide" - notice the careful placement of that word preempt, lifted directly from the Bush lexicon - "our people provide counter-terrorism intelligence analysis and terrorist targeting support. They assist with intelligence collection. And their unique skills help thwart terrorist attacks against the United States."
From the first days of the invasion of Iraq, CACI positioned itself as utility player for the Department of Defense, which provides the company with more than 70 percent of its revenue. Days before U.S. troops rolled into Iraq in 2003, London boasted to the Washington Post that CACI is “playing a role in a large choreography to make sure the president and Rumsfeld have the right information at the right time and can disseminate their decisions back to the battlefield. We’ll be ahead of the enemy’s ability to outmaneuver us.” [6] This included “enemies” at home as well.
CIFA. Until recently, one of CACI’s key Pentagon clients was the Counterintelligence Field Activity office (CIFA), which uses CACI’s “Highview” document and records management software to “help combat the growing foreign adversary intelligence collection threat.” In 2005, Rumsfeld’s office rewarded CACI for its contribution to the war effort with two contracts worth nearly $20 million to streamline its IT operations. The two one-year projects supported the Pentagon’s transformation initiatives and allowed Rumsfeld’s staff to manage its classified and unclassified computer networks supporting homeland security and the war on terror. [7]
MANICHEAN VIEW OF THE WORLD. London’s political philosophy closely matched the imperial visions of Rumsfeld and the neocons he brought into the Pentagon. His world is a Manichean one, divided between the United States and the forces of evil. He stands out among his peers in the business of intelligence for his fanatical views on terrorism and his almost religious allegiance to the Bush-Cheney agenda of pre-emptive war and global military dominance. Like George Bush, he sees evil lurking throughout the developing world, where he points to a “rising environment” of extremist individuals and organizations. “It seems that nobody (in the Middle East) has organizational self-control; everything flips into an aggressive violent reaction,” he told Washington’s WMAL radio in 2006. [8]
In 2002, London came up with a “simpler way” to define the “asymmetric warfare” practiced by the Palestinians and other Arab groups in their resistance to the United States and Israel: “Not fighting fair.” He added: “Precisely, asymmetric warfare means facing a cunning and conniving adversary of inferior strength, who finds ways to exploit vulnerabilities to radical extreme, and frequently with frightening psychological effect.” In a speech to the Northern Virginia Technology Council, which has honored him twice for his contributions to IT, London laid out his analysis of the “war on terror.” Today, he said, “instead of warring against a single empire, we’re facing” not only Al Qaeda but “groups like the Islamic Resistance Group, or Hamas; the Islamic Jihad; Hizbullah; the Liberation Tigers of Sri Lanka” – as if they were all connected. He informed his audience that “some of the Al Qaeda leadership is now believed to be in Lebanon with the Hizbullah.” If so, that would be news to U.S. intelligence, which has never mentioned any such connection.
London locates the origins of today’s troubles to the Iranian revolution of 1979, and argues that the current confrontation between the United States and Islamic groups in the Middle is “not only a global war but a culture clashing kind of situation.” He seems easily frightened by the prospect of even peaceable protest. In 2006, alerted by a friend, he watched a website broadcast from London of a demonstration by Moslems carrying “incredible placards and posters” about “what Islam meant and how it was going to resist Western culture, and ‘don’t pick on us.’ It was a very scary kind of thing. That’s a small group of people, but it’s an idea that is taking hold and getting some traction and is a serious concern for us going forward.” CACI’s position as a contractor in the Intelligence Community, he went on, is to “provide solutions that the politicians and military organizations can use to either suppress or redirect some of those aggressive energies.” [9]
HISTORY. CACI didn’t start out as an intelligence company. From the time of its founding in 1962 until the late 1990s, CACI grew primarily by selling proprietary software, including an optical scanning technology it developed for the Navy, to various agencies of the federal government, including the Departments of Justice, Commerce and Transportation. In 1972, the company moved its headquarters from California to Washington, D.C., and hired London, a former Navy pilot, as a program manager. A year later, it shortened its name from California Analysis Center Inc. to CACI International. London moved steadily up the company’s ranks and was named president and CEO in 1984. He moved methodically to capture software markets in the areas of law enforcement and the military. He also gave the company its motto: “Ever Vigilant.”
CACI’s optical scanning technology has been a particularly profitable niche. Used extensively by the Justice Department and the FBI, it can scan up to 26 million documents a month, transform the data into digitized information, translate foreign text into English, and then search for concepts and ideas within the data. “What it does is eliminate the need for a person to actually look at the stuff and try to interpret it,” says Dave Dragics, CACI’s vice president for investor relations. “So they can do analysis a lot quicker than they did before.” [10] After U.S. forces invaded Afghanistan in 2001, CACI’s technology was used to read and analyze the thousands of Al Qaeda documents found in caves and other hiding places, CACI has said. [11]
London first began eyeing the intelligence market in the late 1990s, when his company identified defense outsourcing as a “business opportunity trend line” and made a specific decision to move into the area of classified intelligence contracts. [12] As he bought into the intelligence market, London began hiring as advisers people with extensive experience in defense and covert operations. His first big catch was Richard Armitage, who served on CACI’s board of directors from 1999 to 2001. At the time, Armitage was a member of the Pentagon’s Defense Policy Board and had recently joined the private sector after a long career in defense, intelligence and covert operations.
Once CACI was committed to defense, it changed the makeup of its board of directors. London’s board recruits included retired Navy Admiral Gregory G. Johnson, the former commander in Chief of NATO forces in Southern Europe; Arthur Money, a former assistant secretary of defense for command, control, communications and intelligence; Larry Welch, the former chief of staff of the Air Force and former Commander in chief of the Strategic Air Command; former NSA deputy director Barbara McNamara; and retired Army General Hugh Shelton, the former chairman of the Joint Chiefs of Staff. (Shelton’s “unsurpassed knowledge of our military markets and clients will be extremely valuable as an asset to CACI,” London told investors after his appointment in 2007. Shelton was also a director of Anteon before it was sold to General Dynamics.)
DEFENSE INTELLIGENCE AGENCY & THE REVOLVING DOOR. Meanwhile, as the Defense Intelligence Agency expanded its outsourced activities during the Rumsfeld years, CACI concentrated heavily on building relationships with that agency. In January 2006, CACI appointed Lowell Jacoby, a former Navy admiral and former DIA director, to be executive vice president for strategic intelligence opportunities. A year later, CACI hired Louis Andre, Jacoby’s chief of staff at the DIA, to be Jacoby’s deputy – in effect, transferring the former top two officials at the DIA to CACI. (Andre’s official title is senior vice president of intelligence business strategy.)
ABU GHRAIB. CACI got involved in Abu Ghraib through an IT contract it obtained when it acquired a company called Premier Technology Group in 2003. PTG was formed in the late 1990s by a group of former Army intelligence officers who had worked in Bosnia. By acquiring PTG, Defense News reported, CACI expanded its activities “to a whole host of tactical units in country and in other theaters of operations” around the world. [13] Best of all for CACI, PTG had existing contracts with the Pentagon for intelligence analysis and security services, IT, training, program management and logistics, and 360 employees with high-level security clearances.
At the time of CACI’s acquisition, all of PTG’s contracts were being administered by the Department of Interior. Two of the contracts, one worth $19.9 million, the other $21.8 million, required CACI to supply “screening, interrogation and support functions” and “human intelligence” at an unspecified site in Iraq. Because CACI was also being asked to screen Iraqis captured by U.S. forces, the contracts also called for biometric software that could identify suspects through facial characteristics and fingerprints. According to Frank Quimby, a Department of Interior press officer, the Army justified these IT requests because “enormous amounts of information had to be integrated in order to prepare for interrogations and make maximum use of the information gathered.” [14] It was through this convoluted – and virtually untraceable – route that CACI ended up at Abu Ghraib prison. Altogether, CACI hired 31 interrogators under its two IT contracts.
The interrogators arrived at the prison at a critical time. For the first few months after U.S. forces took control of the prison, U.S. military intelligence officers conducted interrogations. But their efforts didn’t yield the kind of information on the insurgency sought by Rumsfeld and Cambone. Their solution, Seymour Hersh reported in The New Yorker, “was to get tough with those Iraqis in the Army prison system who were suspected of being insurgents.” Cambone ordered Major General Geoffrey Miller, the commander of the detention center at Guantanamo, to visit Baghdad to review interrogation procedures.
His solution “was to ‘Gitmoize’ the prison system in Iraq – to make it more focused on interrogation” by using techniques of sleep deprivation, exposure to extreme temperatures and placing prisoners in stress positions for lengthy periods of time. Miller and his new recruits, Hersh wrote, brought “unconventional methods to Abu Ghraib.” [15] CACI was brought in precisely at the time that Miller’s “unconventional methods” were being introduced. (NOTE: for the full story of CACI and Abu Ghraib, consult Chapter Eight ("The Pure Plays") of Tim Shorrock, SPIES FOR HIRE: The Secret World of Outsourced Intelligence.
Recent Contracts/Events
In August 2008, CACI made a strategic appointment to its board of directors by adding James L. Pavitt, the former Deputy Director of Operations for the Central Intelligence Agency. According to CACI, “Mr. Pavitt brings more than 30 years of experience in the Intelligence Community, with proven expertise in homeland security and counterterrorism, as well as financial risk assessment, defense, and information technology. As the CIA's Deputy Director for Operations, Mr. Pavitt managed the agency's globally deployed personnel and nearly half of its multibillion-dollar budget. He also served as the head of America's Clandestine Service, leading the CIA's operational response to the attacks of September 11, 2001. As Chief of the CIA's Counterproliferation Division, he managed and directed intelligence operations against global proliferation networks. From 1990-1993, Mr. Pavitt served as Senior Intelligence Advisor on the National Security Council team for President George H.W. Bush…Since 2004, Mr. Pavitt has served as a Principal of the Scowcroft Group in Washington, D.C., which provides clients with assistance and advice for dealing in the international arena. In this role, he provides strategic advice and risk assessments to clients in the fields of homeland security, counterterrorism, financial services, defense, and information technology. Mr. Pavitt also serves on the board of directors of the Patriot Defense Group, LLC and Advanced Blast Protection, Inc. as well as the advisory board of Olton Solutions, Ltd, a company based in the United Kingdom.
Said CEO Jack London: Pavitt’s “30 years of intelligence experience will be critical to our Board as we guide CACI's ongoing growth as a premier provider of distinctive intelligence offerings and innovative professional services and information technology solutions. We will especially rely on his expertise as we continue to evolve the unique CACI tools and resources we provide to help the government analyze data and ascertain and counter terrorist threats."
Said CEO Jack London: Pavitt’s “30 years of intelligence experience will be critical to our Board as we guide CACI's ongoing growth as a premier provider of distinctive intelligence offerings and innovative professional services and information technology solutions. We will especially rely on his expertise as we continue to evolve the unique CACI tools and resources we provide to help the government analyze data and ascertain and counter terrorist threats."
SOURCES
Most of the sourcing for this profile came from Tim Shorrock, ''Spies for Hire: The Secret World of Intelligence Outsourcing'' (Simon & Schuster/2008). Other sources are as follows:
[1] Ellen McCarthy, “Intelligence Work Comes to CACI Via Acquisitions,” Washington Post, July 8, 2004.
[2] 2006 CACI International Earnings Conference Call, August 17, 2006.
[3] These figures, and the statistics on clearances, were provided by CACI officials during a conference call with analysts on March 8, 2007.
[4] A sound clip of this interview was posted for a time on CACI’s website, www.caci.com.
[5] CACI presentation to Friedman Billings Ramsey conference on defense investing, March 8, 2007.
[6] “Thousands of private contractors support US forces in Persian Gulf,” Washington Post, March 3, 2003.
[7] “Rumsfeld’s office streamlines its IT,” UPI, November 10, 2005.
[8] “Dr. London’s radio interview with Brian Roberts,” on CACI’s website at http://www.caci.com/announcement/radio_interview_7-06.shtml
[9] “Dr. London’s radio interview with Brian Roberts,” on CACI’s website at http://www.caci.com/announcement/radio_interview_7-06.shtml.
[10] Company presentation, Friedman Billings Ramsey investor conference, Washington, D.C., March 1, 2006.
[11] See the transcript of CACI’s analyst conference call of February 28, 2007.
[12] Conference call with investors, May 5, 200X.
[13] CACI International Earnings conference call, April 22, 2004.
[14] Telephone interview with Dept of Interior, 2004.
[15] Seymour Hersh, “The Gray Zone: How a secret Pentagon program came to Abu Ghraib,” The New Yorker, May 15, 2004.



