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How Blackwater Came to Be

By Jonas Oransky, Newser Staff

Posted Oct 13, 2007 1:49 PM CDT

(Newser) – Erik Prince, the politically savvy CEO of Blackwater USA, took advantage of a confluence of events—a rise in terrorism coupled with military cutbacks and an administration committed to outsourcing—to create one of the fastest-growing US contractors of the past decade. The Washington Post investigates the extraordinary rise of the private security firm that sees itself as a "free market version" of the armed services.

The company, which provides security for diplomats and military training services in nine countries—one security expert calls "the Cadillac of training services"—had $600 million in government contracts last year, up from $100,000 a decade ago. Prince rejects the charge that his men constitute a trigger-happy private army. "If they don't like what we're doing," he said of US officials, "then cut off that revenue stream right now."

[Images (5)]

[Videos (1)]

Blackwater USA founder Erik Prince testifies on Capitol Hill in Washington, Tuesday, Oct. 2, 2007, before the House Oversight Committee hearing examining the mission and performance of the private military... (Associated Press)

IRAQ-UNREST-US-BLACKWATER (Getty Images (by Event))

A Blackwater security contractor guards the convoy of U.S. Ambassador to Iraq Zalmay Khalilzad during a tour of Mosul, 360 kilometers (225 miles) northwest of Baghdad, Iraq, in a Sunday, Sept. 25, 2005... (Associated Press)

House Oversight Committee Chairman Rep. Henry Waxman, D-Calilf., right, accompanied by Rep. Tom Davis III, R-Va., ranking Republican on the committee, center, shakes hands with Blackwater USA founder... (Associated Press)

Blackwater USA founder Erik Prince is sworn in on Capitol Hill in Washington, Tuesday, Oct. 2, 2007, prior to testifying before the House Oversight Committee hearing examining the mission and performance... (Associated Press)

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Blackwater Founder Forms Secret Army for UAE

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