WASHINGTON - Public relations giant Burson-Marsteller has vast experience steering companies through tough times. But there's a limit to how much it can help Blackwater USA, a new client that's been battered by negative publicity.

The State Department, which pays Blackwater hundreds of millions of dollars to protect U.S. diplomats in Iraq, has stringent rules barring the private security contractor from discussing with the media the details of its work, according to those familiar with the arrangement.

There has been speculation about why the State Department holds the contract, too, over on DailyKos -- possibly to avoid some degree of oversight and accountability. But this time, Congress is investigating the recent shooting incident and Blackwater sent Erik Prince -- their top executive -- to speak before the investigative committee. The size of the contract they have with the State Department is fairly hefty:

The State Department is one of Blackwater's largest federal customers. Blackwater and two other private security companies protect U.S. diplomats and facilities in Iraq.

Richard Griffin, head of the State Department's Bureau of Diplomatic Security, said Tuesday that Blackwater earns about $473 million annually through the umbrella contract.

That's a lot of cash.

According to the House Oversight and Government Reform Committee, Blackwater has received federal contracts worth more than a $1 billion, with the bulk of its earnings coming from the State Department.

On Tuesday, Prince, 38, spent several hours at the witness table as Democrats on the oversight committee accused his company of being above the law and his guards of being indifferent to Iraqi casualties.

The fees Blackwater charges are excessive, they said, and Prince and his associates have become wealthy because of the war.

The overall upshot of the shooting incident has moved from what some describe as a "public relations emergency" into a "crisis" that may threaten the very existence of the company itself.

If Blackwater is to survive the crisis, Biegel¹ said, it needs to show that it's making the changes necessary to prevent a repeat of situations that have cast it in such a negative light.

"It's not simply what is said by Blackwater, but what actions beyond the initial steps are they taking," Biegel said.

Yeah, actions do speak louder than words...

Let's see if Blackwater can walk the walk.

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1. Len Biegel, a crisis-management consultant

by GreyHawk on Sat Oct 06, 2007 at 03:47:35 AM EST