There was a definite method to BushCo's madness: Namely, hire subcontractors to evade the laws that prevent the DoD and the CIA from taking part in torture and assassination. From The Nation:

The source, who has worked on covert US military programs for years, including in Afghanistan and Pakistan, has direct knowledge of Blackwater's involvement. He spoke to The Nation on condition of anonymity because the program is classified. The source said that the program is so "compartmentalized" that senior figures within the Obama administration and the US military chain of command may not be aware of its existence.

At a covert forward operating base run by the US Joint Special Operations Command (JSOC) in the Pakistani port city of Karachi, members of an elite division of Blackwater are at the center of a secret program in which they plan targeted assassinations of suspected Taliban and Al Qaeda operatives, "snatch and grabs" of high-value targets and other sensitive action inside and outside Pakistan, an investigation by The Nation has found. The Blackwater operatives also assist in gathering intelligence and help run a secret US military drone bombing campaign that runs parallel to the well-documented CIA predator strikes , according to a well-placed source within the US military intelligence apparatus.

Sure sounds like Cheney's still got his moles deep inside, doesn't it?

The White House did not return calls or email messages seeking comment for this story. Capt. John Kirby, the spokesperson for Adm. Michael Mullen, Chair of the Joint Chiefs of Staff, told The Nation, "We do not discuss current operations one way or the other, regardless of their nature." A defense official, on background, specifically denied that Blackwater performs work on drone strikes or intelligence for JSOC in Pakistan. "We don't have any contracts to do that work for us. We don't contract that kind of work out, period," the official said. "There has not been, and is not now, contracts between JSOC and that organization for these types of services." The previously unreported program, the military intelligence source said, is distinct from the CIA assassination program that the agency's director, Leon Panetta, announced he had canceled in June 2009.

"This is a parallel operation to the CIA," said the source. "They are two separate beasts." The program puts Blackwater at the epicenter of a US military operation within the borders of a nation against which the United States has not declared war--knowledge that could further strain the already tense relations between the United States and Pakistan. In 2006, the United States and Pakistan struck a deal that authorized JSOC to enter Pakistan to hunt Osama bin Laden with the understanding that Pakistan would deny it had given permission. Officially, the United States is not supposed to have any active military operations in the country.

Blackwater, which recently changed its name to Xe Services and US Training Center, denies the company is operating in Pakistan. "Xe Services has only one employee in Pakistan performing construction oversight for the U.S. Government," Blackwater spokesperson Mark Corallo said in a statement to The Nation, adding that the company has "no other operations of any kind in Pakistan."

A former senior executive at Blackwater confirmed the military intelligence source's claim that the company is working in Pakistan for the CIA and JSOC, the premier counterterrorism and covert operations force within the military. He said that Blackwater is also working for the Pakistani government on a subcontract with an Islamabad-based security firm that puts US Blackwater operatives on the ground with Pakistani forces in counter-terrorism operations, including house raids and border interdictions, in the North-West Frontier Province and elsewhere in Pakistan. This arrangement, the former executive said, allows the Pakistani government to utilize former US Special Operations forces who now work for Blackwater while denying an official US military presence in the country. He also confirmed that Blackwater has a facility in Karachi and has personnel deployed elsewhere in Pakistan. The former executive spoke on condition of anonymity.

His account and that of the military intelligence source were borne out by a US military source who has knowledge of Special Forces actions in Pakistan and Afghanistan. When asked about Blackwater's covert work for JSOC in Pakistan, this source, who also asked for anonymity, told The Nation, "From my information that I have, that is absolutely correct," adding, "There's no question that's occurring."