You know, it's almost like the administration didn't quite think this through.

Or more likely, as has been the case before, simply don't think laws should apply to them.

Crooks and Liars » Blackwater security,‘unlawful combatants’?:

"In light of the growing scandal surrounding Blackwater private security forces in Iraq, and efforts on the part of the Maliki government to expel the contractors from the country, Bush administration attorneys are apparently contemplating an awkward legal question: are Blackwater guards who’ve killed Iraqi civilians our own “unlawful combatants”?

As a rule, it’s a label given to terrorists caught in war zones without uniforms. It may be provocative, but there are U.S. officials who believe the name may apply to Blackwater."

Makes sense to me. I still don't get why we're not supposed to call them mercenaries.