Virginia Firm With No Prison Experience Lands $1.2B Army Deal for Texas Tent Facility

Last month, the Trump administration made headlines by awarding a $1.2 billion contract to construct and manage what is anticipated to be the largest immigration detention facility in the country. 

This decision came as a surprise as it overlooked major private prison corporations, opting instead for a lesser-known firm from Virginia that lacks a well-defined background in this area.

The decision to assign Acquisition Logistics LLC — a small enterprise based in a modest residence near Washington, D.C. — has raised concerns among legislators, oversight organizations, and competing contractors. The Army has chosen not to disclose the contract or provide details about its selection process, referencing ongoing legal proceedings.

A new facility, named Camp East Montana, is rapidly taking shape on 60 acres of arid desert at Fort Bliss, located near the U.S.-Mexico border. Officials have announced that the camp is set to accommodate as many as 5,000 migrants, with the initial group of detainees having arrived in the past few days. Work commenced swiftly following the contract award on July 18, with the Pentagon allocating $232 million to fund the initial 1,000 beds.

Rep. Veronica Escobar, a Democrat representing the Fort Bliss area, expressed concerns about the deal. “Private facilities often prioritize profit margins over the standards typically upheld by governmental facilities,” she stated.

Acquisition Logistics, under the leadership of 77-year-old retired Navy flight officer Ken A. Wagner, has yet to secure a federal contract exceeding $16 million and lacks a public website. Records from the company indicate that previous engagements with the Defense Department included boat repairs and IT support, rather than detention management. Wagner was unresponsive to calls and emails from journalists, and there was no answer at his registered home address.

A protest has been filed by Texas-based Gemini Tech Services, a losing bidder, with the U.S. Government Accountability Office. They claim that Acquisition Logistics lacks the necessary expertise and resources to fulfill the contract. A decision is anticipated later this year.

Attorney Joshua Schnell, an expert in federal procurement, noted that the Army's lack of transparency is relatively uncommon. “The absence of clarity surrounding this contract raises valid concerns regarding the Army's decision to grant such a substantial contract to a company without any accessible information showcasing its capability to handle such a complex project,” Schnell stated.

The Fort Bliss site brings to mind historical parallels with Army-operated camps that were utilized to hold Japanese Americans during World War II. Advocacy organizations caution that military installations, which have restricted public access, may increase the potential for abuse and neglect.

The agreement requires Acquisition Logistics to manage both the construction process and aspects of security and medical care. A June request directed the contractor to refer all media and congressional inquiries to Immigration and Customs Enforcement.

The Fort Bliss camp has emerged as a focal point as the Trump administration seeks to increase detention capacity and deport millions of migrants residing in the U.S. without legal status. 

Currently, inquiries regarding the Army's selection of its partner remain unresolved.

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