Last month, Blackwater hired a team of former federal law enforcement officials and defense experts that it said would review the company's compliance with export laws.
Andrew Howell, Blackwater's general counsel, said, "Ongoing reviews by the Department of Justice, State and Commerce have highlighted the need for a significant and systems-wide initiative."
Another former Blackwater insider who talked with ABCNews.com said company executives made the decision to smuggle the weapons and silencers in the dog food "because it's a war over there and our guys need them."
Despite four separate federal grand jury investigations of its operations, Blackwater's contract to provide security services for the US State Department was renewed earlier this year. The contract pays Blackwater $250 million a year and runs for five years.