Full Breakdown
ICE Awards $7.3 Billion in Construction Contracts to Expand Detention Capacity
By Drooid · · How we work
Core Event: Award of Five Multi-Year IDIQ Contracts
On September 21, 2026, the Department of Homeland Security (DHS) awarded five Indefinite Delivery, Indefinite Quantity (IDIQ) contracts worth up to $7.3 billion to expand immigration detention at government-owned sites in New York, Texas, Arizona, Florida and California. The contracts cover El Paso, TX; Batavia, NY; Florence, AZ; Miami, FL; and El Centro, CA and establish a five-year framework for future construction. No construction has begun and no funds have been drawn.
Background & Context
The contracts are the first under a new building program that Project Salt Box reported on July 9. ICE previously spent just over $1 billion on 11 Navy-run warehouse conversions. After criticism of that approach, ICE shifted to building new facilities on land it already controls and began soliciting bids in July 2026.
Data & Statistics
- Total contract value: up to $7.3 billion.
- Largest single award: $2.2 billion to Rapid Deployment Inc. for El Paso.
- Other major awards: Rapid Deployment Inc. – $1.5 billion for Batavia, NY; GardaWorld Federal Services – two contracts of $1.2 billion each for Florence, AZ and Miami, FL; Rudiarius Holdings Corp. – $1.2 billion for El Centro, CA.
- Estimated cost per “secure housing unit”: $24 million–$42 million; each unit is a one-story building with 26 steel cells, day rooms, showers and support spaces.
- Program ceiling: $10 billion, leaving roughly $2.7 billion for additional sites.
Official Statements & Responses
DHS described the IDIQ awards as a “framework for future construction” that will allow ICE to issue task orders as needs are identified and appropriations become available. ICE said the first work will likely involve the standardized secure housing units, with bidders asked to price one unit at each site. Projected bed counts, total square footage and schedules were not disclosed.
Conflicting Reports & Gaps
- The contracts do not specify detainee capacity; plans show 26 cells per unit but do not state whether cells will house one or two individuals.
- The “Mega Hub DC” label applied to seven additional locations (including Honolulu, St. Thomas, U.S. Virgin Islands, and Guantánamo Bay) is mentioned without detail on intended use or funding.
- Public records list Rudiarius Holdings as a “small business” meeting a $2 billion insurance requirement, yet award documentation does not explain how that threshold was satisfied.
Why It Matters / Impact
The awards signal a shift from repurposing warehouses to constructing purpose-built detention facilities on federal land. By establishing a large-scale construction pipeline, ICE aims to increase capacity in response to legal and policy pressures that limit county-level holding of immigrants. The lack of disclosed bed counts and timelines leaves the scale of expansion uncertain, while the remaining $2.7 billion program ceiling suggests further growth could follow pending funding decisions.
What’s Next
Future work will depend on task orders issued by DHS and on congressional appropriations. ICE indicated the first task orders may involve the standardized secure housing units, but no dates have been set for ordering or construction. Next steps include detailed design finalization, procurement of required insurance, and coordination with private prison operators for potential operation of the new facilities.