Blackwater’s quick construction and running of “R U Ready High” convinced the NTOA, an organization that trains four thousand police officers annually, to split its sixteenth annual conference between Virginia Beach and Blackwater’s Moyock compound. The event drew tactical teams and police officers from every state, Canada, Haiti, Belgium, and England. By April 2000, the NTOA had put more than one thousand officers through training at “R U Ready” as police departments across the country started more and more to hear the name Blackwater. At an NTOA soiree at the time, Prince commented that events like Columbine are “a reminder that vigilance is the price of liberty, and we need well-trained law enforcement and military. There is no shortage of evil in the world.”56
On February 1, 2000, with its name spreading across the law enforcement community, Blackwater took a huge leap forward as it landed its first General Services Administration contract, creating a government-approved list of services and goods Blackwater could sell to federal agencies and the prices it could officially charge. Winning a “GSA schedule” essentially opened Blackwater up for “long-term governmentwide contracts.”57 The schedule outlined a list of prices for use of Blackwater facilities or to use Blackwater instructors for specialty training. Use of the tactical training area cost $1,250 per day for less than twenty shooters. Use of the urban training area, of which “R U Ready High” was a component, ran $1,250 a day for less than thirty people, $1,500 a day for more. Each range could be rented out to a government agency for $50 per person per day with a $500 minimum. The schedule also provided for $1,200-a-day Blackwater instructors to teach classes in executive protection, force protection, close quarter battle, ship-boarding movement, and hostage rescue, and allowed Blackwater to sell its own specially developed targets and other training gear to whatever agency requested it. Offerings ranged from $1,335 bullet traps to $170 “pepper poppers” to $512 turning targets.58 In and of themselves, those may not seem like big ticket items, but having the GSA schedule in place essentially opened Blackwater’s doors to the entire federal government, provided it could politick well enough to score contracts. “It’s like having a Wal-Mart to the government,” explained Jamie Smith in an interview.59 Smith is a former CIA operative who spent years working for Blackwater. “Having a GSA contract allows the government to go in and buy things from you without having to go out to bid really.” The real work for companies once they win a GSA designation is greasing the wheels at various government agencies and convincing them to use the company’s services often and widely. That’s where a company’s political connections come into play. Halliburton had developed a model that Blackwater and others could mimic. As Smith said, “It’s a handshake-type thing and you say, ‘Here’s our GSA schedule, and let’s see what we can do.’” Blackwater’s first payment under its GSA contract was for $68,000 in March 2000 for “armament training devices.”60 As it happened, that was the exact amount Erik Prince would donate later that year to the Republican National State Elections Committee in an election year that would see George W. Bush take power.61
Blackwater’s original five-year GSA contract value (i.e., the government’s projection of how much business Blackwater would do with federal agencies) was estimated at a meager $125,000.62 When it was extended by five years in 2005, the estimate was pushed to $6 million.63 But all of those projections were far shy of the actual business Blackwater would win under the GSA. As of 2006, Blackwater had already been paid $111 million under the schedule. “This is a multiple-award schedule, indefinite quantity, indefinite delivery contract,” said GSA spokesman Jon Anderson. “When the contract is first awarded, we do not know whether or not agencies are going to place orders with the contractor as the contractor has to compete with other… contractors for task orders, so we set the estimated dollar value of the contract at $125,000. Blackwater was obviously very successful in their endeavors and was able to build their sales to $111 million over a six-year period.”64 By 2008, the number would reach more than a billion dollars.
In 2000, as business was picking up for Blackwater, all was not well at the Moyock compound. Al Clark, the man many credit with dreaming up the company, found himself at odds with Prince and others at the company. “As time went on, some things took place there that I didn’t really agree with, so I left to start another business,” recalled Clark, who founded Special Tactical Systems with former Blackwater employee and fellow SEAL Dale McClellan in 2000. “One of the things that started happening was Erik wanted it to be a playground for his rich friends. And I was questioned on why would I train your standard Army guy on the same level that I’d train a SEAL. And my rebuttal was, ‘Why would you base the value of someone’s life on the uniform they’re wearing, because once the bullets start flying they don’t discriminate,’ and I was basically told my standards were too high.”65
Clark says during training sessions he “gave everybody everything I had when I had them,” but he said company executives “thought there was no incentive for [clients] to come back if I gave them everything, and my argument was, they may not get a chance to come back, so while we’ve got them, we should give them everything we have. A lot of cops were paying out of their own pocket, taking their vacation time away from their families, to go to a school they thought would give them something their departments wouldn’t.” Clark was reluctant to expand much on his split with Prince, but he summed up his feelings about leaving Blackwater: “Let’s put it this way: I wanted it to be a place built by professionals for professionals, and I wanted it to be professional, and it didn’t feel to me like it was being that way.”66 Blackwater had already started down the path to success when Clark left in 2000, having landed a couple of hundred thousand dollars in payments on its GSA contract and other awards, but it wasn’t until more than a year later that the business really began to boom. That would come courtesy of two terror attacks attributed to Osama bin Laden.
Shortly after 11:00 a.m. on the morning of October 12, 2000, in the Yemeni port of Aden, a small boat approached the U.S. Navy guided missile destroyer the USS Cole, which had just finished up a routine fuel stop. As the boat neared the ship’s port side, it exploded, ripping a forty-by-forty-foot hole in the massive ship. Osama bin Laden would later take responsibility for the suicide attack that killed seventeen U.S. sailors and injured thirty-nine others. The second annual tragedy, following 1999’s Columbine massacre, that would benefit Blackwater resulted in a $35.7 million contract with the Navy, Blackwater’s ancestral branch of the military, to conduct “force protection” training.67 Traditionally, the average Navy midshipman didn’t train for a combat role, but with increased threats to the fleet, that began to change. “The attack on the USS Cole was a terrible tragedy and dramatic example of the type of threat our military forces face worldwide on a day-to-day basis, emphasizing the importance of force protection both today and in the future,” Adm. Vern Clark, the chief of Naval operations, told the Senate Armed Services Committee in May 2001. “The Navy has taken action at home and abroad to meet this challenge, undergoing a sea change in the way we plan and execute self-defense. We have enhanced the manning, training, and equipping of naval forces to better realize a war fighter’s approach to physical security, with AT/FP serving as a primary focus of every mission, activity, and event. Additionally, we are dedicated to ensuring this mindset is instilled in every one of our sailors.”68 At the time, the Navy had already committed itself to incorporating “a comprehensive plan to reduce infrastructure costs through competition, privatization, and outsourcing.”69 Among its projects was a review of some 80,500 full-time equivalent positions for outsourcing.70 While the bombing of the USS Cole significantly boosted Blackwater’s business, it would pale in comparison to the jackpot that would come courtesy of the greatest act of terror ever carried out on U.S. soil.