Remember when President Clinton put forward the idea of “Reinventing Government”?

It was all about how by unleashing “private sector efficiency” on government functions, with the inevitable result being better government for less money.

Leaving aside the historically dismal performance of such efforts ***cough*** Halliburton ***cough***, but one could make the argument that providing logistical service to the military, but when the part of the Office of Personnel Management responsible for security clearance investigations was spun off as a private firm, USIS, that was a core function.

It really doesn’t get any more “core” than preserving state secrets.

And now we see how “private sector efficiency” has allowed the security clearance process to descend into a morass of corruption and incompetence:

The company that conducted a background investigation on the contractor Edward J. Snowden fraudulently signed off on hundreds of thousands of incomplete security checks in recent years, the Justice Department said Wednesday.

The government said the company, U.S. Investigations Services, defrauded the government of millions of dollars by submitting more than 650,000 investigations that had not been completed. The government uses those reports to help make hiring decisions and decide who gets access to national security secrets.

In addition to Mr. Snowden, the company performed the background check for Aaron Alexis, a 34-year-old military contractor who killed 12 people at the Washington Navy Yard last year. Mr. Alexis, who died in a shootout with the police, left behind documents saying the government had been tormenting him with low-frequency radio waves.

The accusations highlight not just how reliant the government is on contractors to perform national security functions, but also how screening those contractors requires even more contractors. U.S. Investigations Service, now known as USIS, is the largest outside investigator for government security clearances. It is one of many companies that has found lucrative government work during the expansion of national security in the last decade.

From 2008 to 2012, about 40 percent of the company’s investigations were fraudulently submitted, the Justice Department said.

(emphasis mine)

It doesn’t save money.  All it does is increase the looting, and gives the looters more money to lobby for more looting.

This is disastrous for both our government and our society.