At first, I did not see the contractor connection, I don't see any mention in the article... So I went looking and found this article:
http://www.securitymanagement.com/news/stolen-contractor-laptop-compromises-131000-guardsmens-identities-006025From the article:
"But as computer security expert Larry Ponemon of the Ponemon Institute told the Tribune, the contractor violated the most commonsense data security principles.
"To physically carry 131,000 records and use your laptop as a way of manipulating that information, there is never an excuse," he said. "There is no reason that would be an acceptable security posture for any company. That's definitely an indication of bad security.""
This tells me that it was mainframe data they lost. If that is correct, they may not have much choice but to use contractors. Not the Blackwater type of contractors but us old dinosaur manframe, assembler, JCL, VSAM and IMS type contractors. Not very many of us are going to want to join... Not very many of us physically would be able to join... Yet, their legacy systems will need to be maintained for just a bit longer anyway. So they may not have much choice.