Friday, March 03, 2006

CIFA: A Money Pit


The controversial Counterintelligence Field Activity (CIFA) seems willing to bend over backwards to accommodate the whims of corrupt politicians, as well as being a money pit in general.

Federal investigators are looking into contracts awarded by the Pentagon's newest and fastest-growing intelligence agency, the Counterintelligence Field Activity, which has spent more than $1 billion, mostly for outsourced services, since its establishment in late 2002, according to administration and congressional sources...

In pre-sentencing documents filed this week, prosecutors said that in fiscal 2003 legislation, Cunningham set aside, or earmarked, $6.3 million for work to be done "to benefit" CIFA shortly after the agency was created. The contract went to MZM Inc., a company run by Mitchell J. Wade, who recently pleaded guilty to conspiring to bribe Cunningham...

In late 2002, Cunningham made the contract for Wade's company, MZM, one of "his top priorities" in the defense appropriations bill, according to the prosecutors' pre-sentencing filing. After Congress approved the money, Wade told unnamed Defense Department officials they had to "work something up" that would provide a "real benefit to CIFA," according to the prosecutors' documents.

The resultant program saw more than $6 million spent for a mass data storage system supposedly for CIFA that, according to the prosecutorial document, included almost $5.4 million in profit for MZM and a subcontractor. "Adding insult to injury," the prosecutors wrote, "the final system sold to the government was never installed (as it was incompatible with CIFA's network system) and remains in storage in Arlington, Va."...

CIFA, whose exact size and budget remain secret, was established in September 2002 to coordinate policy and oversee the counterintelligence activities of units within the military services and Pentagon agencies. In the past three years, it has grown to become an analytic and operational organization with nine directorates and widening authority focused primarily on protecting defense facilities and personnel from terrorist attacks. The agency was criticized after it was revealed in December that a database it managed held information on Americans who were peacefully protesting the war in Iraq at defense facilities and recruiting offices.


The beauty of having large national security programs is the way in which cost overruns and questionable priorities can fit seamlessly to create enterprise value for timely end-to-end solutions, including deliverables, in an enhanced business-government environment for leveraged functionality going forward.





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