"I think it would call into question the role of the defense contractors," Augustyn said.
Booz Allen Hamilton, based in McLean, Va., provides consulting services, technology support, and analysis to U.S. government agencies and departments. Last year, 98 percent of the company's $5.9 billion in revenue came from U.S. government contracts. Three-fourths of its 25,000 employees hold government security clearances. Half the employees have top-secret clearances.
The company has established deep ties with the government - the kind of ties that contractors pursue and covet.
The relationship often runs both ways. Clapper is a former Booz Allen Hamilton executive. The firm's vice chairman, John "Mike" McConnell, held Clapper's position under President George W. Bush.
"That really illustrates the ingrown nature of the relationship of NSA and its contractors," said Steven Aftergood, head of the project on government secrecy at the Federation of American Scientists.
The ties between government and contract workers are so pervasive in Washington that those on each side are known by nicknames. Contractors are called "green badgers" for the color of their identification badges. Government workers, who sport blue, are known as "blue badgers."
"After 9/11, intelligence budgets were increased, new people needed to be hired," Augustyn said.
Of the 4.9 million people with clearance to access "confidential and secret" government information, 1.1 million, or 21 percent, work for outside contractors, according to a report from Clapper's office. Of the 1.4 million who have the higher "top secret" access, 483,000, or 34 percent, work for contractors.
Applying for a security clearance requires disclosing one's job history, residences, education, spouses, relatives, friends, mental health, criminal activity, finances and allegiance. Investigators then use that information to probe an applicant's last five years for confidential and secret clearance and 10 years for top secret clearance.