By Jeremy Scahill, The Nation
http://alternet.org/waroniraq/40164/<snip>
Government records recently obtained by The Nation reveal that the Bush Administration has paid Blackwater more than $320 million since June 2004 to provide "diplomatic security" services globally. The massive contract is the largest known to have been awarded to Blackwater to date and reveals how the Administration has elevated a once-fledgling security firm into a major profiteer in the "war on terror."
Blackwater's highly lucrative "diplomatic security" contract was officially awarded under the State Department's little-known Worldwide Personal Protective Service (WPPS) program, described in State Department documents as a government initiative to protect US officials as well as "certain foreign government high level officials whenever the need arises."
A heavily redacted 2005 government audit of Blackwater's WPPS contract proposal, obtained by The Nation, reveals that Blackwater included profit in its overhead and its total costs, which would result "not only in a duplication of profit but a pyramiding of profit since in effect Blackwater is applying profit to profit." The audit also found that the company tried to inflate its profits by representing different Blackwater divisions as wholly separate companies.
The WPPS contract awarded in 2004 was divided among a handful of companies, among them DynCorp and Triple Canopy. Blackwater was originally slated to be paid $229.5 million for five years, according to a State Department contract list. Yet as of June 30, just two years into the program, it had been paid a total of $321,715,794. When confronted with this apparent $100 million discrepancy, the State Department could not readily explain it. Blackwater's two years of WPPS earnings exceed many estimates of the company's total government contracts, which the Virginian-Pilot recently put at $290 million combined since 2000. Six years ago the government paid Blackwater less than $250,000...