Hotel U.S.A.

This is part two of a two-part series on new immigration and detention centers in the United States. Read part one of the series, "Bush's Mysterious 'New Programs'," by Nat Parry.

Some time between now and 2010, the U.S. government expects some uninvited guests -- a massive influx of undocumented immigrants. In preparation for their arrival, the Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) backed the National Intelligence Reform and Terrorism Prevention Act of 2004, which mandates 40,000 new beds and barracks for foreign-born refugees at four undisclosed locations over the next five years.

On Jan. 3, 2006, the Army Corps of Engineers (USACE) expanded an existing contract held by Halliburton subsidiary Kellogg, Brown and Root (KBR) and renewed it to accommodate up to 20,000 refugees from environmental and political disasters. A future expansion in 2008 calls for another 20,000 beds.

Detention of immigrants and other undesirables without charge is nothing new. After the Civil War, many states supplied troops and police to assist private armed guards to arrest and detain striking workers. In 1918, Attorney General Mitchell Palmer and a youthful 24-year-old J. Edgar Hoover launched raids to round up and deport alleged subversives. In the fall of 1934, striking textile workers were interned in camps at Fort MacPherson outside Atlanta, Ga. Congress approved the Internal Security Act of 1950, including FBI Director Hoover's "Security Portfolio," a plan to arrest and detain up to 20,000 dissidents. 1984 Director of Federal Emergency Management Administration (FEMA) under Ronald Reagan reconstituted a readiness exercise, Operation Night Train, code-named REX 84, a potential roundup of up tens of thousands of Central Americans residing in the United States for internment in ten military detention centers.

But the difference here is that the emergency detention and removal plans for 2006-2010 are built on a new contingency support contract. Originally awarded in 1999 by the now-defunct Immigration and Naturalization Service, the contract sought logistical support for imagined immigration events. Contingency support contracts are good business for KBR, which provides insurance for calamities that don't happen.

When George Bush and Dick Cheney moved to Washington, many Texas-based companies teed up for contract extensions and new business opportunities. Among them, KBR was viewed by many in the defense contracting industry as a capable, fast and far-reaching company. KBR has been awarded the last three expanded improved detention center contracts administered by the Army Corps. The awards often come well in advance of the expiration date.

Take the latest detention center contract between DHS/ICE and KBR: The solicitation went to 26 vendors of detention and logistical support services, 11 of them based in Texas. As with most large service contracts entailing indefinite delivery, indefinite quantity and rapid response time, Halliburton's KBR submitted the only bid for the work. While this does not constitute another "cost-plus no-bid contract," which have been cited as particularly vulnerable to abuse and fraud, the contract award to a single bidder doesn't lend itself to much competitive pricing. Contracting officer Linda Eadie of the U.S. Army Corps' Fort Worth, Texas, district, who administrated the DHS/ICE deal with KBR disagreed: "This is a cost-plus contract, but it is not a no-bid. The procurement was competitively negotiated."

During the contract negotiations, Hurricane Katrina hit the Gulf Coast. USACE learned the hard way about the limitations of the 2001-2005 contract. The existing contract responded to an "immigration emergency," not a "migration emergency." Hurricane Katrina involved "evacuees" from within the United States, and not "refugees" or immigrants from abroad. Under the contract, no task orders could be issued, with the exception of a requirement to perform readiness exercises on a moment's notice. Under that provision, DHS ordered KBR to provide temporary shelter for DHS and ICE officials in New Orleans for $7 million.