$1.2 Billion DOD Contract for Detention Camp Raises Questions

The federal government has opened a massive new immigration detention camp in the Texas desert. Mystery surrounds the detention camp however as many question how the project was awarded to an obscure company with no record of operating detention facilities.

In July 2025, the Trump administration granted a contract worth up to $1.2 billion to Acquisition Logistics LLC, which is a small Virginia-based business that had never previously managed a contract larger than $16 million.

Acquisition Logistics LLC appears to have no online presence and lists its headquarters as that of a suburban home owned by a 77-year-old retired Navy officer. As well, it has no publicly available experience running correctional or detention facilities.

Despite the mysterious nature of the contractor, the Pentagon does not plan to release the contract or explain why Acquisition Logistics LLC was selected over more than a dozen competitors. It’s also reported that at least one rival bidder has filed a formal complaint.

The new facility located at Fort Bliss near El Paso opened last week with 1,000 beds, and there are plans to expand to 5,000 by 2027. With the expansion, it would become the largest immigration detention facility in the U.S.

The facility is part of President Donald Trump’s (R) hardline pledge to deport an estimated 10 million migrants living in the U.S. without permanent legal status, which is a campaign that has grown increasingly reliant on military resources.

Rep. Veronica Escobar (D), who has been heavily critical of the president’s immigration policy, toured the detention camp and questioned the idea of entrusting such a facility to a small and inexperienced contractor.

“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.”

Attorney Joshua Schnell, who is an expert in federal contracting, echoed the Texas Democrats’ 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,” Schnell warned.