Intel industry

5 Corporations Now Dominate Our Privatized Intelligence Industry

The recent integration of two military contractors into a $10 billion behemoth is the latest in a wave of mergers and acquisitions that have transformed America’s privatized, high-tech intelligence system into what looks like an old-fashioned monopoly.

In August, Leidos Holdings, a major contractor for the Pentagon and the National Security Agency, completed a long-planned merger with the Information Systems & Global Solutions division of Lockheed Martin, the global military giant. The 8,000 operatives employed by the new company do everything from analyzing signals for the NSA to tracking down suspected enemy fighters for US Special Forces in the Middle East and Africa.

The sheer size of the new entity makes Leidos one of the most powerful companies in the intelligence-contracting industry, which is worth about $50 billion today. According to a comprehensive study I’ve just completed on public and private employment in intelligence, Leidos is now the largest of five corporations that together employ nearly 80 percent of the private-sector employees contracted to work for US spy and surveillance agencies.