Here are a couple of excerpts from a post at POGO regarding BAE, Joint Strike Fighter, and the failure of Defense Security Service in protecting matters of National Security.  Later it is correctly stated that there are problems with DSS’s performance as the watchdog in charge of ensuring BAE was adequately protecting classified information and includes soon to be past Director, Kathleen Watson’s inexplicable comments and excuses for her agencies failures.  Please follow the link to read the whole story and to take a look at the other excellent reports on POGO’s website.  (

Note:  This is not the only documented case of this type of problem.  I am told that there are others, involving DSS and other contractors.  -GFS


A “Black Eye” for the Pentagon’s Watchdog: The Backstory of the BAE-Joint Strike Fighter Audit Report Withdrawal

By Nick Schwellenbach

“The findings were troubling to say the least. In spring 2008, British Aerospace Enterprises, the U.K.’s largest defense contractor better known by its initials BAE, had been accused by the Pentagon watchdog agency of possibly losing classified information related to the world’s most expensive weapons program,  the Joint Strike Fighter (JSF).

This tale did not end here.”  



“On top of findings related to BAE the OIG’s report contained arguably equally troubling, yet less well-publicized findings that a little-known Pentagon agency had failed in its job to ensure that BAE was adequately protecting classified information. Questions about the effectiveness of the Defense Security Service (DSS) in overseeing contractors had been bubbling to the surface since a 2004 Government Accountability Office report—but this was the first real example of the agency’s inadequacy to come to light.”

‘In its defense, DSS Director Kathleen Watson told the OIG that “DSS has a thorough and fundamentally sound facility inspection process which was only marginally diminished by the failure to systematically collect, analyze, and retain BAE’s required reports.”’

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