Today's Washington Post describes a rather interesting sort of privatization:
Under assault by insurgents and unable to rely on U.S. and coalition troops for intelligence or help under duress, private security firms in Iraq have begun to band together in the past 48 hours, organizing what may effectively be the largest private army in the world, with its own rescue teams and pooled, sensitive intelligence.
Many of the firms were hired by the U.S. government to protect its employees in Iraq. But because the contracts are managed by the Coalition Provisional Authority and the coordination between the CPA and the U.S. military is limited, and by their accounts inadequate, the contractors have no direct line to the armed forces. Most of the firms' employees are military veterans themselves, and they often depend on their network of colleagues still in uniform for coordination and intelligence.
"There is no formal arrangement for intelligence-sharing," Col. Jill Morgenthaler, a spokeswoman for the U.S. military command headquarters in Baghdad, said in an e-mail in response to questions. "However, ad hoc relationships are in place so that contractors can learn of dangerous areas or situations."