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Q: Information on Blackwater Security Consulting pricing and costs. ( Answered 3 out of 5 stars,   0 Comments )
Subject: Information on Blackwater Security Consulting pricing and costs.
Category: Business and Money
Asked by: riskbiz-ga
List Price: $200.00
Posted: 20 May 2006 14:34 PDT
Expires: 19 Jun 2006 14:34 PDT
Question ID: 730781
I would like as much information as you can provide, with data to show
where it was obtained, on Blackwater Security Consulting (aka BSC,
Blackwater Lodge, Blackwater) pricing for security services.  It must
come from published or online, publicly available sources, and have
date on pricing/costs, contract award amounts, fees for service, etc. 
Services relating to Personal Security Detachments (PSD), bodyguard,
K9 and static or mobile security operations is desired.
Subject: Re: Information on Blackwater Security Consulting pricing and costs.
Answered By: pafalafa-ga on 20 May 2006 19:02 PDT
Rated:3 out of 5 stars

I have compiled bits and pieces of financial information related to
the security operations of Blackwater.

In general, there is no reason to expect there to be very much
information about the financial arrangements of a private firm,
particularly one as secrecy-prone as Blackwater Security.  However,
due to the controversy surrounding their operations in Iraq and New
Orleans, among other places, there is perhaps a bit more financial
information that has become available than would otherwise be the

I trust the information below fully answers your question.  

However, please don't rate this answer until you have everything you
need.  If you would like any additional information, just post a
Request for Clarification to let me know how I can assist you further,
and I'm at your service.

All the best,



The Nation magazine has run a series of investigative reports on
Blackwater, which I've linked to here, and provided relevant excerpts
on financial, contractural and operational aspects of the company:
The Nation
June 5, 2006

In the Black(water)  
Jeremy Scahill

...New Orleans has a Wal-Mart parking lot serving as a FEMA Disaster
Recovery Center with perhaps the tightest security of any parking lot
in the world. That's thanks to the more than $30 million Washington
has shelled out to the Blackwater USA security firm since its men
deployed after Katrina hit.

...Documents show that the government paid Blackwater $950 a day for
each of its guards in the area. Interviewed by The Nation last
September, several of the company's guards stationed in New Orleans
said they were being paid $350 a day. That would have left Blackwater
with $600 per man, per day to cover lodging, ammo, other overhead--and

...According to Blackwater's government contracts, obtained by The
Nation, from September 8 to September 30, 2005, Blackwater was paid
$409,000 for providing fourteen guards and four vehicles to "protect
the temporary morgue in Baton Rouge, LA."

...From September to the end of December 2005, the government paid
Blackwater at least $33.3 million--well surpassing the amount of
Blackwater's contract to guard Ambassador Paul Bremer when he was head
of the US occupation of Iraq. And the company has likely raked in much
more in the hurricane zone. Exactly how much is unclear, as attempts
to get information on Blackwater's current contracts in New Orleans
have been unsuccessful.

Blood is Thicker Than Blackwater
Jeremy Scahill, The Nation. Posted May 1, 2006

...When Helvenston set off for the Middle East, his family thought he
was going to be working on Blackwater's high-profile job of guarding
the head of the US occupation, Paul Bremer. At $21 million, it
represented the company's biggest contract in Iraq.

...According to former Blackwater officials, Blackwater, Regency and
ESS were engaged in a classic war-profiteering scheme. Blackwater was
paying its men $600 a day but billing Regency $815, according to the
Raleigh News and Observer. "In addition," the paper reports,
"Blackwater billed Regency separately for all its overhead and costs
in Iraq." Regency would then bill ESS an unknown amount for these
services. Kathy Potter told the News and Observer that Regency would
"quote ESS a price, say $1,500 per man per day, and then tell
Blackwater that it had quoted ESS $1,200." ESS then contracted with
Halliburton subsidiary KBR, which in turn billed the government an
unknown amount of money for the same security services, according to
the paper.

The Nation
October 10, 2005

Blackwater Down  
Jeremy Scahill

..."I worked the security detail of both Bremer and Negroponte," said
one of the Blackwater guys...Another complained, while talking on his
cell phone, that he was getting only $350 a day plus his per diem.

Management Advisory Report on Armed Guard Services provided by
Blackwater Security Consulting, LLC 
under Contract HSCEFC-05-JF00002
- Report Number GC-HQ-06-17

...The purpose of this memorandum is to inform you of the results of
our inquiry regarding the Federal Protective Service's (FPS's)
contract, number HSCEFC-05-J-F00002, awarded to Blackwater Security
Consulting, LLC (Blackwater Security) for Katrina-related security
services...FPS awarded Blackwater $33.3 million through December
31,2005, for guard services in Louisiana.

...FPS solicited offers from two companies listed on the General
Services Administration (GSA) Federal Supply Schedule (FSS) to provide
armed guard services for the facilities. Blackwater Security offered
services at $950 per staffday which was a five percent discount from
its FSS rate and lower than the rate from the other solicited vendor.
FPS considered this the best value to the government and believed that
Blackwater Security's past performance under other contracts and
current performance under contracts with the Department of State
demonstrated its capability to perform
under the conditions of this contract.
Washington Post 
Slain Contractors Were in Iraq Working Security Detail
By Dana Priest and Mary Pat Flaherty
April 2, 2004

...The four men brutally slain Wednesday in Fallujah were among the
most elite commandos working in Iraq to guard employees of U.S.
corporations and were hired by the U.S. government to protect
bureaucrats, soldiers and intelligence officers...The men, all
employees of Blackwater Security Consulting, were in the dangerous
Sunni Triangle area operating under more hazardous conditions --
unarmored cars with no apparent backup -- than the U.S. military or
the CIA permit.

...Blackwater has about 400 employees in Iraq...Its armed commandos
earn an average of about $1,000 a day.

...Government contracting records show Blackwater Training was paid
$13 million between April 2002 and June 2003 for security training of
Navy personnel.
April 01, 2004

...Blackwater Security was formed last year and is part of an
8-year-old security training company. Last August, the Army awarded
Blackwater a $21.3 million no-bid contract for security guards and two
helicopters for U.S. Iraq civilian administrator L. Paul Bremer,
according to the inspector general's report. The company also provides
security for food shipments in the Fallujah area...


[The following article mentions Blackwater, but most of the specific
information concerns contracts with another security firm, Zapata. 
Still, I thought the data might be of itnerest to you]
IRAQ: Civilian Contractors Working for U.S. Make a Bundle to Destroy Munitions
Winston-Salem Journal
February 13th, 2005

...Soldiers, diplomats and private contractors in Iraq are all putting
their lives on the line...But should anyone be paid $350,000 a year to
work in Iraq?  ...That's the basic labor rate for a liaison officer
under the contract that the U.S. Army Corps of Engineers awarded
Charlotte's Zapata Engineering to help dispose of captured munitions.

...The Army Corps has set aside as much as $1.47 billion for
explosives-demolition contracts with 10 private companies. Neither
Zapata nor the Army Corps of Engineers would reveal exact salaries,
but the first one-year contract the company received in September 2003
totaled $3.8 million for five management positions in Iraq.

...The single liaison officer cost taxpayers not just the $350,000 in
salary, but $850,000 in overhead, insurance and profit costs,
according to a Winston-Salem Journal analysis.

...Four project managers were budgeted for a total of $2.7 million,
which includes $275,000 in annual pay for each and a total of $1.6
million for overhead, insurance and profit.

...Those figures do not include security, food and lodging, which were
provided under separate contracts. In February 2004, the Army Corps of
Engineers awarded Zapata another one-year contract worth $32.5 million
to hire as many as 108 technicians and support staffers to oversee a
munitions depot in Iraq.

...In Zapata's $32 million contract extension, security forces
accounted for 50 of the 108 positions...

...Firms such as Blackwater Security Consulting of Moyock, N.C., have
reportedly offered as much as $1,000 a day for former
special-operations personnel to provide private security, compared
with about $150 a day that the Pentagon pays a Green Beret with 20
years of experience.


[This report simply mentions various contracts including two with Blackwater]
GAO report number GAO-04-605 
entitled 'Rebuilding Iraq: Fiscal Year 2003 Contract Award Procedures 
and Management Challenges' which was released on June 01, 2004

Contracting agency/Contractor: Department of Defense: 
Department of the Army: Army Contracting Agency/
Blackwater Security Consulting LLC; 
Purpose: Support services for protective security detail; 
Procurement method: General Services Administration (GSA) supply 
Amount obligated: $10,994,423

Contracting agency/Contractor: Department of Defense: 
Other Defense agencies and components: Defense Contract 
Management Agency/Blackwater Lodge and Training Center, Inc; 
Purpose: Private security details; 
Procurement method: New contract; 
Amount obligated: $300,000.

[Similarly, this one details contracts with the State Department,
including a large one with Blackwater]
Inventory of Active Contracts				
March 2006			
Worldwide Operations Division				

	04-D-0061	Protective Services	$229.5 million	Dec-09 expiration date	 
  Blackwater Security Consulting

That's what I've found on Blackwater, and again, given that they are a
private and (by their very nature) a secretive firm, there is not
likely to be much more available than this.

Nonetheless, if you feel there's anything more I can do for you, just let me know.



search strategy -- Searched Google and newspaper databases for various
combinations of:

"Blackwater Security OR canine OR k9" 

"Blackwater Security OR canine OR k9" site:gov

million OR billion
riskbiz-ga rated this answer:3 out of 5 stars
I would like to see publicly available contract award docs in .pdf
form, etc.  More information is out there, I have found it myself.

There are no comments at this time.

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