Passport scandal leads to Virginia contractors

Posted on Friday, March 21, 2008 4:07 PM ET
Filed Under:

By Jim Popkin and Libby Leist, NBC News

Two of the government contractors who accessed Sen. Barack Obama's passport records worked for a Virginia-based firm called Stanley, Inc., the company said in a statement. A third contractor who looked at passport information for Sen. Obama and Sen. John McCain worked for a company called The Analysis Corporation, the State Department said.

"Two Stanley subcontractor employees were involved in the unauthorized access of Senator Barack Obama's passport files," a Stanley, Inc., spokeswoman said. "In each of these instances the employee was terminated the day the unauthorized search occurred."

"While this is a rare occurrence, we regret the unauthorized access of any individual's private information," Stanley spokeswoman Joelle Pozza added.

Stanley, Inc., is headquartered in Arlington, Va. The State Department awarded it a contract for $164 million in 2006, to print and mail millions of new U.S. passports. Stanley announced on Monday that it was awarded an additional $570 million contract to "continue support of the U.S. Department of State, Bureau of Consular Affairs/Passport Services Directorate."

One Stanley, Inc., contractor looked at Obama's passport records on January 9, and then a second Stanley employee accessed similar Obama records on February 21, U.S. officials familiar with the controversy told NBC News. The Stanley spokeswoman would not identify the workers or explain why they had accessed Obama's passport data. The State Department Inspector General is now investigating.

Another contractor, who worked for The Analysis Corporation of McLean, Va., gained unauthorized access on March 14 to the passport records for Obama and McCain, a State Department spokesman said. That employee's employment status is pending.

Who are these contracting firms?
Stanley manages more than 1,800 personnel who work on State Department contracts, the company said, and processes over 18 million passports annually. "Prior to employment, Stanley and its subcontractor candidates undergo several background checks, including security and credit checks. Candidates are also subjected to a government-sponsored background check. In addition, candidates receive training on the Privacy Act and are required to sign a Privacy Act acknowledgement prior to starting employment," the spokeswoman said.

She added that her firm was not involved with two other unauthorized looks at two other candidates' passport records. "At this time we are unaware of the involvement of any Stanley or subcontractor employees in the unauthorized searches of Senator John McCain's or Senator Hillary Clinton's passport files."

The Analysis Corporation is "at the forefront of the fight to safeguard national interests" and is staffed with former intelligence-community heavyweights, the firm says. Its President and CEO is John Brennan, the former head of the National Counterterrorism Center (NCTC) and the Deputy Executive Director of the Central Intelligence Agency from March 2001 to March 2003.

Stanley's 2006 Contract:
After the State Department awarded the contract to Stanley in 2006, the firm announced it would build a new facility in Hot Springs, Ark., to handle the massive contract. Arkansas governor and former Republican presidential candidate Mike Huckabee expressed his delight that the new building would be located in his state.

"We're excited to welcome the State Department and Stanley to Arkansas. After working with the company for the past year to secure this contract, we believe this will be a successful long-term public and private partnership with the people of Arkansas," Huckabee said at the time.

Political Contributions:
According to federal campaign records, Stanley's Chairman and CEO, Philip Nolan, has made political contributions to prominent Republican candidates and also gave $1,000 to Sen. Hillary Clinton's presidential campaign on Feb. 20, 2008. John Brennan, the CEO of the Analysis Corp, gave $2,300 to Sen. Obama on Jan. 28, 2008, the records show.

--This posting was updated at 7:15 pm.

Comments

I keep hearing about looking at Nolan's donations, but he's only one of the Executives at Nolan.  Aside from him, who was the other "Contractor"?  But back to Stanley, you have CFO and Executive Vice President Brian J. Clark, formerly of the Titan Corporation.  Look at him.  Ditto for EVP'sGreg M. Denkler George H Wilson.  In 1994 Wilson worked heavily on Operation Vigilant Warrior in the fall of 1994.  According to Stanley's own website:  "It was this event that stimulated the development of the Army War Reserve Deployment System (AWRDS) and subsequently the companion Automated Battlebook System (ABS). In 2000, the AWRDS/ABS application suite received a Computerworld/Smithsonian Institution Award for excellence in Information Technology Solutions for the Federal Government."  Other Executives include:  Chris J. Torti, Scott D. Chaplin and Scott D. Chaplin.  All of these would have reasons to donate heavily (or should I say "Invest"?).  One thing I learned in Corporate America is that Executives serve on multiple Corporate Boards and may have donations that are tied to other corporations.  I remember looking at Bofa and one executive was at Bofa and at Duke Energy at the same time (and that wasn't the only cross relationship).  A Starting point would be Stanley's own website at:  http://phx.corporate-ir.net/phoenix.zhtml?c=198762&p=irol-govBoard
Too bad this activity was not traced to its source before the media got a hold of it and let the incomplete information out for the public to use wrongly -- which of course they did.

The story was unrooted and out there just long enough to have miserable insinuations made against one Presidential candidate, creating more of a divide among a divided political party for no reason -- or certainly not any moral or ethical reason.

And both those people who happen to be political candidates were wronged as a result, one due to the activity that occurred and one by the media.
Allowing Obama to say that his grandmother and her reaction to African Americans were like a "typical white person" is the way the media and others have acted this whole campaign.  On the other hand people want to try to blame this passport mess on Hillary.  Unbelievable...
The fact that this is a contractor to the federal government really is no big deal.  Any company that has 3,500 employees is going to have its share of idiots.  The company fired these morons and that's about the best you can do in these circumstances.  The idea that the company and its managers should be audited over this is ridiculous.  Breach of privacy is a separate issue from financial irregularity.
Several civilian contract workers look at documents that they have access to and msnbc turns it into the biggest scandal of the year.  Is there ANY evidence that the candidates have been hurt by this?  One of the msnbc reporters have called these contractors SPIES.  If someone from msnbc or almost any of the other news organizations had access to these documents, do we not think that they would use them to try to discredit one or more of the candidates?  Most of the responses from readers that I have read come from charter members of the Keith Olbermann Fan Club located in Enormous Ego, Idaho.  This story has pretty much died already, killed by the over-kill by msnbc on Thursday night.
Seems to me that C. Rice doesn't have very good control over her department employees-contracted workers or not.  First her employees all but revolt over being expected to volunteer for assignments in Iraq, now her employees are using the worst bad judgement--in an election year for heaven's sake--in "peeking" into personal information in Obama's file.  Just confirms my reasoning that if she can't manage her own house, how can she be expected to negotiate or mediate any lasting peace process around the world?  Or, stand up to the bad guys when necessary?
Amazing that the spokesman for the State Dept. couldn't even tell us who these people are or who they worked for, yet the press can find out in a matter of hours. Some obvious questions are why did the dept head of that group at state take early retirement last Feb 29? She's a former employeee in the Clinton administration and failed to pass these criminal breeches up to her superiors or even take action. An even more important question is did these 2 people have their security clearances lifted or are they on the loose to sell private info to foreign nationals - like in spys. How come the third is still employed? Crony of Bush? This is serious stuff and goes WAY beyond the "let's move on folks. Nothing to see here". How many Senators in competitive races this year have had their data screened to search for derogatory information? We have becme everything we ever accused the KGB of being in the cold war era. What a disaster!!
George Ernst, Beverly Hills, FL
It seems to me that if I am putting my trust in a person to be the Commander in Chief of the United States of Amercia then I demand full transparency.  They should have nothing to hide from the American people.  If there is nothing illicit in their passport records/ travels, then why are they not public record.  All of this conspiracy theory regarding political tactics is neither here, nor there.  If they traveled or made contacts in areas they should not have logically been...then it is logical the American people have a right to know.  Wouldn't anyone applying for a secure Federal position have to provide the same information.    
I thought fake passports were part of our 9-11 security problem and that's why we had to have another billion dollar baby born in Homeland Security!

Watergate / Passport scandal with Bill Clinton: the self-righteous Republicans seem to have started a trend here.......
As I've speculated all morning, it could be related to a clinton supporter who had a low level test to see if it could be done and not discovered, then when Obama and McCain became viable opponents, went after them. She tried to buy Mich&Fla with her rich friends too, and knew on March 12 where Obama had been. Now we know why.
Number one, these people looked at all the candidates and not just Obama. Two, who really cares! Three, people have their identities stolen everyday and the government cares not one bit. We are forced to do all the legwork to get our paperwork back in order prove who we are. But someone just looks at their information and we need a congressional investigation!!! I wish the government cared that much about me and my family.
There's more here than meets the eye, there always is, as usual down and dirty politics, don't these people know you just can't get away with it....The flood gates have been opened, let's see what spewes out.....
I think it is probably a little early for the republicans to care about Obama. But on the other hand who needs to find some quick dirt to a dying campaign.
How about all our income-taxes record has outsource to INDIA.  

What would happen to our Identification/social security no., The goverment should not outsources. all of that

texas....
If there is nothing "wrong" with the passport information. What's the big deal? I have to believe someone at the State Department has to look at everyones files at some point in the course of their job.
Could there be an attempt to once again side track the attention of the voters away from "real" issues ?
This entire election has stunk from the getgo. We are indeed a nation in trouble.
Obama is not a victim!!  McCain and Clinton and probably many others have been 'looked' at and perhaps scrutinized.  Msnbc's Dig Deeper, should dig deeper and stop buffering Obama.
  Wait until the Bush administration contracts out I.R.S. functions and military ops. (like US Marines protecting our foreign delegations); then well be in real trouble ... Yea, ... Oh-oh.
  Hey, Didn't the British privitise their army in the the 1700's (we should've learn from them).
First of all, I am really against privatizing everything. It's just a means to give friends lucrative deals and make them rich. Why does the state department need them to do its work? Obviously if you don't have enough staff to handle all the requests for passports etc., someone dropped the ball. They need to hire on or hire back the amount of "government employees" necessary to run the department. I am so sick and tired of contracting away every responsibility that our government has. If you listen to a Republican they will say its because private business can do it more efficiently. Hogwash...its because you've let government workers get complacent and slow and they are too protected from being replaced when performing poorly. But there is also the argument that we cannot contract out such sensitive jobs and responsibility. What's next, the social security admin. is going to contract out issuing SS cards. That will be really secure as well. Hmmm...many private companies are doing the logistical jobs of the military now. And if you figure in the no-bid awards which are grossly a pay off to the politicians friends, is it any cheaper than having govt. do it itself?
I'd like to see Obama's passport records myself. The picture with the Muslim dress hasn't left my mind yet! Where has he been is it in an anti american muslim area. especially after the anti american redrick spouted by his minister!

And aren't all three of these canidates the same ones who voted for the homeland security act that allows the government to monitor the publics calls with out a court order. Shouldn't the public they want to vote for them to be able to monitor some of their affairs.
Let's find out more about Jim H. Brabston on Stanley, Inc.'s management staff since he is the only one without a posted bio.

Virtually everyone else -- both B of D's and management -- has some Navy background.  This was a virtual cabal of ex-Naval officers who somehow created a firm to handle US Passport Office files.  While there is nothing in their bios to definitively state that these gentlemen were ONI, it does raise some suspicions anyway.  

And they only got the contract for this job in 2001 ... in other words, right at the beginning of the Bush administration.

Interesting ...
Let's not forget that this group outed an undercover CIA agent for political purposes.  This sounds like nothing compared to that, but let's check it out anyway.
I dont see what the big hooplah is, after all they are  employees of the public
I don't see it as a witch hunt at all.  This isn't the first time that private information has been tapped for political advantage (remember Watergate?).  Yes, it may merely be a case of 2 employees taking a peek at information they had no right to see, but it's definitely worth our while to get at the heart of the matter.  We've seen too much corruption to let it slide.  If you want to read a good book which addresses  campaign improprieties, pick up a copy of John Grisham's "Appeal."
Who cares?  It should be Public Information anyway...
Not everything is a conspiracy...Some people just make judgment errors. You can bet your sweet bippy that all three campaings have an arsenal of negative data just waiting for release at the right time.
Unbelievable!  Hillary's spin team was a little slow on the response this time.  If you look at all of the reports, the only two candidates' records that were looked at were McCain's and Obama's this trip.  Clinton's records were breached over a year ago.  The timing is pretty fishy too.  Hillary is about at the end of a campaign trail that is getting shorter and shorter.  I do not believe for one second that the donation to Clinton's campaign was a coincidence.  She is in typical Clinton mode now - desperation, dig dig dig, and hope you don't get caught.  Sorry, Hillary, that "Vast right-wing conspiracy" nonsense doesn't stick anymore.  And by the way, Hillary, your tea parties with the wives of other world leaders don't exactly constitute foreign policy experience.  Same crap, different day.  Since she is the last to show her tax returns for last year, don't hold your breath to see them on April 15th either.  Even though I am a registered Republican, I am voting Obama.  If she gets the nomination, I am back to voting for McCain.  She will never see my vote.
I watch MSNBC and Fox News networks and I have found that Msnbc is unbias when reporting on the presidentail race, and I found that Fox news network has the most bias reporting I have ever seen. Case and point: Obama's connections to Rev. Wright, I am so sick of hearing about Obama's minister, so what if he associates with wright, Rev Wright is not running for office, I could care less,  I want to hear about the issues like gas rices etc. Fox news has beat that dog to death. Kudos to MSNBC for your unbias reporting.
According to this Hillary Clinton is reponsible for the economy, the Iraq war . She is also blamed for 911 and everything else . This woman really has Power She has been blamed for everything in the Bush White House. You people need to get a grip!!
what is happening to us as american people, where are our values. If some one blow up america ass attempted on 911 will we stick togather instead of so much hate, money hunger and wanting to do harm to each other no matter the cost. we can assess the psyco and find excuses but a clever person that look into some one personal file is beyond my comprehension but money is alway's a gain for some lazy news reported that like smote. they need to look into their on affairs and find out what their children, their wives or their husband are doing and get out and find a real job.
And another thing:

Does anyone find it strange that there was a million dollar Stanley stock transaction registered on March 13, 2008 ... a day before the March 14, 2008 breach of security?  

Check the financial filings on Stanley's website:  the latest one shows that Karlson was involved in a sale of over 5,000 shares of Stanley stock valued at $28 a share.

Maybe this means something, maybe not.

Does everyone think this is a conspiracy?  I mean why would wait until now to start looking into the passport files?  2 of them are low-level employess probally how they got caught.  Second one was a little higher on the totumpole, but not much.  They broke a rule, they looked into files that they did not have access to.  
Employees fired?  How about criminal charges?  Put these jokers on trial where they stand to do jail time and we'll get the truth quicker than any congressional dog-pand pony show.  And if snooping in private citizens' (supposedly) private records is not a crime it ought to be.
Your bias against Hilliary overwhelms me.
I no longer have any confidence in MSNBC or NBC in their reporting of the news.  You are worse than the Fox network.  I am switching to CBS and ABC for objective coverage. Your bias may cause me to vote for McCain in Noverber.  
.  
I cannot believe this is a story.  Like they can't find out Obama's SSN otherwise and run a credit report?  Who cares.  
You guys in the media really need to get a grip on things.  Three people in the government looked at a passport file.  Now what could they get from that??  Why not start a good investigation on something like tracking Hillary's money tree?  You have given these Democrats such a free ride on those issues.  Mr. Wright's (I won't call him Rev.) remarks about Hillary and then the picture of him with Billy Boy.  You keep giving us two plus two and we keep seeing five come up as the answer.
Security breach? You guys are watching too many movies.
Lynn-Barack's were looked at in January and again in February, and he was not made aware until yesterday.  I think there is a major collapse of management within that firm, that nothing was done to make the appropriate people aware of the problem.  Hilary did  find out much sooner after the breach.  
My biggest issue with this is as follows:  Stanley Inc, tries to downplay the situation by saying that it was low-level employees who committed the breach.  That is fine and dandy, and I am glad that there is no conspiracy by any political motivation to look into an individual's past.  However, the thing that upsets me, as I'm sure it does many, including all the presidential candidates is the fact that people that low are given access to all of these kinds of records without much regulation at all.  That is upsetting to me.  
Another thing, according to many individuals in Washington close to the situation say that the correct protocol for this kind of situation does not seem like it was correctly taken, which can highly affect the investigation by the Inspector General.  From what I understand, the main thing is that since the individuals were let go before being interviewed by the IG, the IG has no legal ability to talk (or force them to talk) with the accused.  
Thanks for keeping on this story -- I did some research last night that pointed to Stanley, but it would be good to know just where in the Consular Affairs hierarchy these individuals were working in DC. I learned that there are a ridiculous number of people, domestic and foreign, who have access to passport records. The surprising thing is that these breaches don't happen more often -- or perhaps they do and we never hear of them.
Subcontarctors? It just goes to show that there is no company either too incompetent or too cxorrupt that the Bush Adminsitration won;t award them a multi-million (or billion)dollar contract.
The whole passport system needs to be revamped.  The state department sends your passport by US Mail with no signature required.  In some cases(mine included) your personal information(such as your original birth certificate and original certified marriage license) is included in the same envelope as your passport.  Great pickings for mail thiefs.  While I went through the process of replacing my stolen passport...I was told that they could not send them with required signatures because it would drive up the cost...what a small price to pay for security....So much for border security and stopping identity theft...our government is watching out for us!!!
I have no idea if the Clintons are involved, but its not surprising that after they uncovered that Obama's files were accessed three times by 3 different people, they then uncover that Clinton's was breached LAST YEAR!!?? As a training exercise??!! COme on folks. If that were the case, then why was it kept in the dark? I would think as an FYI. Ummm. "Sen. Clinton, there was a breach during training and your personal passport info was viewed by a contracted employee within the State Dept."... If it was so innocent why hide it? Why disregard it and not bother to disclose that to the candidate?
None of this makes any sense whatsoever.
Unless you are a turtle under a rock or brain dead, nothing about this STORY rings true...
Poor, poor Barack.  We don't hear the McCain or Clinton campaigns making a major deal out of this.  Their files were reportedly looked at too...just not reported by MSNBC.  Just another example of how the whole world is against poor Barack...NOT!    
Let's see what the employees have to say after interrogating them.  Funny how the other two candidates suddenly come into the picture when yesterday the State Department only mentioned Obama.  Dig a bit deeper and who knows what you might find? (a bigger kitchen sink?)
I've had many passports throughout my life. There is NO sensitive info in your file regarding your passport.  Simply your name, age, address and the countries you visited. Being candidates for the most important job in the world, we ALREADY know this info. If a candidate traveled to some country that was suspicious, we would have already known about it from the press.  The employees should rightfully be fired for accessing the info of ANY individual out of personal interest. But there's no "breach" here.
If you were a "Tom, Dick, or Harry" ...or had a passport of your own you would KNOW the very differences between what is supplied information on the applicatiopn when submitted for a passport-vs- what is printed on the ACTUAL presented passport to you- the person- and what is shown to the Homeland Security when leaving or entering OUR good ole USA. (and) BTW...my husband is a "Tom, Dick, or Harry"...they don't know that much about your personal life...but they can match pictures to faces, and signatures. Thank you very much...
Let me give you a different slant to this issue. My question is "Why should their passport information be private?" Should not someone's travel history who is running for president and will be in control of our nuclear arsenal, CIA, Secret Service, army, air force, navy and Constitution be public. It just amazes me that the average citizen can have their phone tapped, be declared a enemy of the state by a president then be held without due process, and have their medical records accessed but the average joe has no right knowing the travel history of a potential president. Let us see the travel records.
What a bunch of conspiracy hounds!  What has the decision by the company to build in Arkansas have to do with anything.  Corporate tax burdens are low, don't blow things out of proportion.  What could possibly be in the passport records that is not already known.  What is scary is 900 FBI files turning up on your desk and you don't know how.  Now that is leverage.
re: Passportgate

They knew Obama’s dossier was illegally rifled months ago, but he was informed only yesterday.  Later, Condi admits that Hillary’s file, too, had been violated, only earlier.  Therefore those involved, as some of us might suspect, were not likely holdovers from the prior Clinton administration.  

Who then? Before we even get the question out, we’re told once again that McCain’s file was scoured too. Therefore the attack targeted all candidates equally and not just Obama.  So it’s really no big deal, after all.

Does this leak sequence and its trickle-down timing seem strange to anyone else?  It looks like a botched fabrication to me (with FEMA-like competence).  No doubt Karl Rove is sorely missed.

How long can they get away with this?
To all obama supporters, now you guys will find out his real name is BHO and he travel mainly to Africa and Muslim country. Look for Keith O and Andrea M spining this story blaming Hillary. Hey Marry(WA) have ever travel outside of USA, you need vias stamp to travel out of country (Issue by staff) and comming back, immigration dept. look at your passport. So you all Obama fan lets investigate all US immigration staff one by one to find out were BHO travelled. This really shows you how dumb Obama suppoters are.    
In the article, they could report EXACTLY how much Phillip Nolan gave to the Clinton, and Obama campaigns, but neglected to tell us how much to the McSame campaign... They Don't Even Mention McCain by Name! ] Is it that obvious that the "media" are that lockstep with the GOP that they report like this and expect people not to notice?


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Deep Background is NBC News’ investigative blog. It covers national security, terrorism, spies, Iraq, and politics, as well as government waste, fraud and abuse. It is edited by NBC News Senior Investigative Producer Jim Popkin.

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