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Trump administration awards $1.2bn migrant detention contract to little-known firm

Acquisition Logistics, a small Virginia business with no prison record, selected to run Fort Bliss complex as concerns mount over secrecy and oversight.

   
August 29, 2025, 04:16
Security & Defense
Trump administration awards $1.2bn migrant detention contract to little-known firm

EL PASO (Realist English). The administration of U.S. President Donald Trump has awarded a contract worth up to $1.2 billion to a little-known small business to build and operate what is set to become the country’s largest immigration detention facility, raising questions about transparency, oversight, and experience.

The Pentagon selected Acquisition Logistics LLC, a Virginia-based firm that has never handled a federal contract larger than $16 million and has no public record of managing correctional facilities. The company lists as its headquarters a suburban house owned by its 77-year-old founder, retired Navy flight officer Ken A. Wagner, and has no functional website.

The new facility at Fort Bliss in West Texas began accepting detainees last week, even as rival bidders lodged complaints. The Army has declined to release the contract or explain why Acquisition Logistics was chosen over more than a dozen competitors. The project is part of Trump’s pledge to deport up to 10 million undocumented migrants, with the administration increasingly turning to military bases to support civilian immigration enforcement.

Construction at the 60-acre desert site, near the U.S.-Mexico border and El Paso International Airport, began within days of the Army issuing the contract in mid-July. Satellite imagery shows three massive tents, each about 250 meters long, and several smaller structures already in place. The facility, named Camp East Montana, is expected to hold up to 5,000 migrants.

Critics warn that the use of military sites recalls World War II internment camps and limits oversight. “Conditions at all detention facilities are inherently awful,” said Setareh Ghandehari of Detention Watch. “But when there’s less access and oversight, it creates the potential for even more abuse.”

A June solicitation document shows Acquisition Logistics will oversee not just construction but also security and medical services. It requires strict secrecy, directing the contractor to forward any inquiries from Congress or the press to Immigration and Customs Enforcement (ICE).

Rival bidder Gemini Tech Services has filed a formal protest, arguing Acquisition Logistics lacks the expertise and staffing for such a project. A ruling from the Government Accountability Office is expected later this year, while a parallel federal court case is pending in Washington.

The administration insists the Fort Bliss camp will provide services similar to ICE detention centers, including legal access, medical treatment, and recreation. But lawmakers remain uneasy. “It’s far too easy for standards to slip,” said Representative Veronica Escobar, whose district includes Fort Bliss.

Attorney Joshua Schnell, an expert in government contracting, echoed concerns: “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.”

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