Small firm wins $1.2 billion Army contract for controversial detention camp

In July 2025, the Trump administration awarded a $1.2 billion contract to a small Virginia-based company, Acquisition Logistics LLC, for the construction and operation of what is expected to be the largest immigration detention complex in the United States. Located at Fort Bliss in southwestern Texas, the facility is intended to house up to 5,000 migrants. This significant contract raised eyebrows as Acquisition Logistics LLC, specializing in military logistics, has no experience managing correctional facilities and had previously only secured federal contracts worth a maximum of $16 million. The selection process for this project did not involve larger contractors or firms known for operating private prisons, which has led to scrutiny over the decision-making process and qualifications of the chosen firm. The Pentagon has been tight-lipped regarding the specifics of the contract and the rationale behind selecting Acquisition Logistics over its competitors, some of whom have lodged complaints. Lawmakers in Congress have expressed concerns, particularly regarding Entrusting such a substantial project to a less experienced firm. Legal experts have voiced similar apprehensions, highlighting the opacity surrounding the contract and calling into question why a substantial project would be managed by a company without verifiable experience in running a complex of this nature. The facility, named Camp East Montana, will be constructed in a harsh environment characterized by extreme summer heat, which raises further humanitarian concerns regarding the living conditions for migrants housed there. Setareh Ghandehari from Detention Watch has drawn parallels to historical injustices, likening the use of military bases for detention to the internment of Japanese Americans during World War II. She and others have critiqued the conditions that are typically found in detention facilities, emphasizing the inherent issues present in privatized detention versus governmental facilities. The bidding for the project was exclusively opened to small businesses like Acquisition Logistics, benefitting from classifications as veteran and Hispanic-owned firms. Meanwhile, larger prison operators like Geo Group Inc. and CoreCivic Corp. have remained interested in government contracts for migrant housing alternatives. The Defense Department’s announcement indicated that a portion of the contract's funding, specifically $232 million, would be allocated to build the initial 1,000 beds in the tent camp. As progress continues, many are observing the potential implications of this decision on both the welfare of migrants and the overarching framework of military contracts with private companies, indicating a significant shift in how such facilities may be managed in the future.