ICE awards $655M construction contract to joint venture with prior detention deal ties
The contract, awarded Monday to SK2 Rudiarius LLC, covers construction at seven ICE sites including Guantánamo Bay and Honolulu through 2031. The joint venture previously helped ICE acquire warehouses, and one of its principals has faced lawsuits over unpaid loans. Specific building plans are not disclosed, though bid documents mention housing units at two locations.
The award to SK2 Rudiarius LLC marks the latest in a series of contracts tied to the "Mega Hub DC" program, which has a $10 billion ceiling. Six contracts signed this week, including this one, collectively account for nearly $8 billion of that limit, though none have committed funds yet. The joint venture's partners have prior involvement with ICE's detention expansion, including work on warehouse acquisitions and a separate $1.2 billion contract for construction in El Centro, California.
The contract covers seven sites across U.S. territories and mainland states, with bid documents specifying 26-cell housing units at Aguadilla and St. Thomas. The broader statement of work lists potential facilities ranging from clinics to firing ranges. One principal, James Grossmann, has faced multiple lawsuits over unpaid loans totaling $35 million, according to prior reporting.
This contract could significantly expand ICE's detention infrastructure across multiple regions, potentially affecting immigrant communities near the seven sites who may face increased enforcement presence. The scale of spending—nearly $8 billion committed across six contracts—may raise questions about oversight and procurement practices, particularly given the no-bid nature of some prior awards. Local economies could see construction jobs, but communities may also experience social tensions over detention expansion, especially at sensitive locations like Guantánamo Bay.