The e-mail -- first obtained by the conservative watchdog group Judicial Watch under the Freedom of Information Act -- stated that Pentagon official Douglas Feith, the undersecretary of defense for policy, approved the arrangement to award a non-competitive contract to Halliburton.

CNN: Democrats want Cheney-Halliburton probe

For the next decade he had a contract to provide towing services to his larger rival, BoatUS. But the arrangement irked him.

FORBES: Marine Dream

However, the sheer flexibility of the new arrangement may tempt a company to give the outsourcer new tasks not covered in the initial contract.

ECONOMIST: Outsourcing

These private finance initiative deals, typically involving an arrangement in which a private company provides capital in exchange for taking over a long-term contract to run services, have had a mixed reception.

BBC: State education's private ambitions