ICE Facility Project Worth $1.3 Billion Can Advance, Court Says

The US Army is cleared to move forward with its plan to get Acquisition Logistics LLC to build a $1.3 billion Texas immigration detention facility for ICE, despite a challenge from a rival contractor.

Gemini Tech Services LLC failed to show the Army erroneously disregarded contract protest procedures when it directed the awardee to proceed with its task order, without first letting Gemini make its case against the award decision, Judge Edward J. Damich of the US Court of Federal Claims said in an opinion made public Thursday.

The Army reasonably explained that urgent and compelling circumstances concerning the government’s ability to manage “the influx of detainee apprehensions” required the awardee’s immediate performance, the court said in its decision to deny Gemini’s motion for a preliminary injunction, and to dismiss its complaint.

Gemini protested Acquisition Logistics’ selection at the Government Accountability Office in July. The project involves construction and operation of a 5,000-capacity short-term detention facility at Fort Bliss in Texas.

Gemini’s GAO protest triggered an automatic stay of performance under a contracting statute. The Army then issued an override of the stay to allow the awardee to build the facility.

Gemini then sued at the court, arguing that the Army’s determination and findings document justifying the override was flawed. The Army didn’t identify any specific disruption that would cause ICE significant adverse consequences if the court enforced the stay, Gemini said.

The court, however, sided with the Army because ICE doesn’t have enough capacity for all of its detainees. The Army said suspending task order performance would hurt ICE’s ability to manage a detention surge, which could harm national security and public safety.

The Army rationally considered reasonable alternatives to the override, the court said. There’s no incumbent contractor, for example, the Army could have considered awarding a bridge contract because the facility at issue is new, and addresses an emerging, critical national security concern, the opinion said.

Gemini argued that another Texas facility, called the Enhanced Hardened Facility, for detainees in ICE custody could be used while the GAO assessed its protest. But Gemini merely disagreed with the Army’s reasoning that EHF lacked the ability to expand, the court said, and that’s not sufficient to show the Army’s override was irrational.

Damich added that the Army closed operations for EHF Aug. 26, a decision that “blind-sided” the court. But because that facility is now closed, he said, this option isn’t a reasonable alternative.

The court also found the Army reasonably considered potential costs of the override.

The Army determined that not issuing the override could cost up to $500 million, a figure that included potential legal liabilities, increased transportation costs, and the cost of emergency, short-term detention solutions. An override would cost less, the Army concluded.

Gemini challenged the Army’s calculations, the court said, but couldn’t show the estimates were flawed, as “these humanitarian and security risks are also a legitimate part of the calculation when considering the costs of a stay of performance.”

Covington & Burling LLP represented Gemini. Vedder Price PC represented Acquisition Logistics.

The case is Gemini Tech Servs. LLC v. United States, Fed. Cl., No. 25-1337C, 9/18/25.