WASHINGTON — The Trump administration recently awarded a contract valued at up to $1.2 billion to construct and manage what is expected to be the largest immigration detention facility in the United States. The contract was given to Acquisition Logistics LLC, a small business with no prior experience in operating correctional facilities and a history of federal contracts not exceeding $16 million. The company operates from a modest home in suburban Virginia, owned by a 77-year-old retired Navy officer, and does not have a functioning website.
The situation has become more perplexing as the facility at Fort Bliss in west Texas has begun accepting its first detainees. The Pentagon has not disclosed the details of the contract or the reasons for selecting Acquisition Logistics over other bidders. At least one competitor has filed a complaint regarding the award.
Experts suggest that this rapid contracting process reflects the government's urgency to fulfill President Trump's commitment to detain and deport millions of undocumented migrants. This shift has seen the military increasingly involved in tasks typically managed by civilian agencies.
Rep. Veronica Escobar, a Democrat whose district includes Fort Bliss, expressed concern about the decision to entrust such a significant project to a small and inexperienced firm. "It’s far too easy for standards to slip," she said. "Private facilities far too frequently operate with a profit margin in mind as opposed to a governmental facility."
Joshua Schnell, an attorney specializing in federal contracting law, criticized the lack of transparency surrounding the contract. "The lack of transparency about this contract leads to legitimate questions about why the Army would award such a large contract to a company without a website or any other publicly available information demonstrating its ability to perform such a complicated project," he stated.
Ken A. Wagner, the president and CEO of Acquisition Logistics, has not responded to inquiries regarding the contract. The Army has declined to provide details about the agreement, citing ongoing litigation concerning the company's qualifications. The Department of Homeland Security, which oversees U.S. Immigration and Customs Enforcement (ICE), has also refrained from commenting on the detention camp.
The facility, named Camp East Montana, is being constructed in the Chihuahuan Desert, where summer temperatures can exceed 100 degrees Fahrenheit. The 60-acre site is located near the U.S.-Mexico border and the El Paso International Airport, a significant hub for deportation flights. Comparisons have been made to a controversial tent complex in Florida known as "Alligator Alcatraz," which has faced numerous complaints and was recently ordered to shut down by a federal judge.
Currently, most of the approximately 57,000 migrants detained by ICE are held in private prisons operated by companies like Geo Group and CoreCivic. As these facilities reach capacity, ICE is exploring temporary options at military bases in California, New York, and Utah.
Construction at Fort Bliss commenced shortly after the Army issued the contract on July 18. Preliminary site work began months earlier, prior to the passage of a significant tax and spending bill that allocated $45 billion for immigration enforcement. The Defense Department has indicated that the Army is financing the initial $232 million for the first 1,000 beds at the facility.
Satellite imagery shows that three large tents, each approximately 810 feet long, have been erected, along with several smaller buildings. Setareh Ghandehari, a spokesperson for the advocacy group Detention Watch, noted that the use of military bases for detention recalls the internment of Japanese Americans during World War II. She warned that military facilities are often more susceptible to abuse and neglect due to limited access for families and oversight.
The contract stipulates that Acquisition Logistics will be responsible for constructing and operating the detention center, including security and medical care. The bidding process was limited to small firms like Acquisition Logistics, which qualifies for preferential treatment as a veteran and Hispanic-owned business.
One of the losing bidders, Gemini Tech Services, has filed a protest with the U.S. Government Accountability Office, challenging the award and the expedited construction timeline. Gemini claims that Acquisition Logistics lacks the necessary experience and resources for the project. A decision from the GAO is not expected until November, and a legal appeal is also pending in federal court.
Schnell suggested that Acquisition Logistics may be collaborating with a larger contractor. Geo Group and CoreCivic have expressed interest in working with the Pentagon to house migrants. In a recent earnings call, Geo Group's CEO mentioned a partnership with an established Pentagon contractor, though the company has not disclosed the name. CoreCivic has stated it is not partnering with either Acquisition Logistics or Gemini.