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I actually wouldn't be surprised if it were.

"Hey $ATT_EXECUTIVE - see what happened to [Qwest's CEO] Joe Nacchio? Good. Now go splice me some fiber or you'll be joining him."

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I would be surprised. Both Ma Bell and the clandestine service are always looking for ways to move more money in more directions. A typical scenario: from NSA to some secret shell company, from there to ATT for the project, from there to a favored systems integrator to run the project, from there to the agent-in-charge's nephew for unspecified services, from there back to the shell company, etc.

The penalty would probably be worse if a commercial company did work for free for the government. It's a big no-no. You can't even give government employees things like lunch during a working lunch meeting unless it's a low enough amount and they provide some way for the govies to optionally pay.

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