ICE is using no-bid contracts, boosting big firms, to get more detention beds

ICE is using no-bid contracts, boosting big firms, to get more detention beds

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LEAVENWORTH, Kan. — LEAVENWORTH, Kan. (AP) — Leavenworth, Kansas, occupies a mythic space in American crime, its name alone evoking a short hand for serving hard time. The federal penitentiary housed gangsters Al Capone and Machine Gun Kelly — in a building so storied that it inspired the term “the big house.”

Now Kansas’ oldest city could soon be detaining far less famous people, migrants swept up in President Donald Trump’s promise of mass deportations of those living in the U.S. illegally.

The federal government has signed a deal with the private prison firm CoreCivic Corp. to reopen a 1,033-bed prison in Leavenworth as part of a surge of contracts U.S. Immigration and Customs Enforcement has issued without seeking competitive bids.

ICE has cited a “compelling urgency” for thousands more detention beds, and its efforts have sent profit estimates soaring for politically connected private companies, including CoreCivic, based in the Nashville, Tennessee, area and another giant firm, The Geo Group Inc., headquartered in southern Florida.

That push faces resistance. Leavenworth filed a lawsuit against CoreCivic after it tried to reopen without city officials signing off on the deal, quoting a federal judge’s past description of the now-shuttered prison as “a hell hole.” The case in Leavenworth serves as another test of the limits of the Republican president’s unusually aggressive tactics to force migrant removals.

To get more detention beds, the Trump administration has modified dozens of existing agreements with contractors and used no-bid contracts. One pays $73 million to a company led by former federal immigration officials for “immigration enforcement support teams” to handle administrative tasks, such as helping coordinate removals, triaging complaints or telling ICE if someone is a risk to community safety.

Just last week , Geo Group announced that ICE modified a contract for an existing detention center in southeastern Georgia so that the company could reopen an idle prison on adjacent land to hold 1,868 migrants — and earn $66 million in annual revenue.

“Never in our 42-year company history have we had so much activity and demand for our services as we are seeing right now,” said CoreCivic CEO Damon Hininger during an earnings call last month with shareholders.

A tax-cutting and budget reconciliation measure approved last month by the House includes $45 billion over four years for immigrant detention, a threefold spending increase. The Senate is now considering that legislation.

When Trump started his second term in January, CoreCivic and Geo had around 20 idle facilities, partly because of sentencing reforms that reduced prison populations. But the Trump administration wants to more than double the existing 41,000 beds for detaining migrants to at least 100,000 beds and — if private prison executives’ predictions are accurate — possibly to more than 150,000.

ICE declared a national emergency on the U.S. border with Mexico as part of its justification for authorizing nine five-year contracts for a combined 10,312 beds without “Full and Open Competition.”

Only three of the nine potential facilities were listed in ICE’s document: Leavenworth, a 2,560-bed CoreCivic-owned facility in California City, California, and an 1,800-bed Geo-owned prison in Baldwin, Michigan.

The agreement for the Leavenworth facility hasn’t been released, nor have documents for the other two sites. CoreCivic and Geo Group officials said last month on earnings calls that ICE used what are known as letter contracts, meant to speed things up when time is critical.

Charles Tiefer, a contract expert and professor emeritus of law at the University of Baltimore Law School, said letter contracts normally are reserved for minor matters, not the big changes he sees ICE making to previous agreements.

“I think that a letter contract is a pathetic way to make big important contracts,” he said.

CoreCivic’s Leavenworth facility quickly became a priority for ICE and the company because of its central location. Leavenworth, with 37,000 residents, is only 10 miles (16 kilometers) to the west of the Kansas City International Airport. The facility would hold men and women and is within ICE’s area of operations for Chicago, 420 miles (676 kilometers) to the northeast.

“That would mean that people targeted in the Chicago area and in Illinois would end up going to this facility down in Kansas,” said Jesse Franzblau, a senior policy analyst for the National Immigrant Justice Center.

Prisons have long been an important part of Leavenworth’s economy, employing hundreds of workers to guard prisoners held in two military facilities, the nation

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