HAGERSTOWN, Md. – U.S. Immigration and Customs Enforcement has awarded a $113 million contract to a Pennsylvania-based company for the build-out and operations of a proposed immigrant detention and processing center in Washington County, federal spending records show.
The contract was awarded Friday to Gettysburg-based KVG LLC, according to USAspending.gov, with a listed end date of May 4, though it is unclear when the facility might become operational. The deal includes options that could increase its value to as much as $642 million over three years. The Baltimore Banner was first to report the award.
The award brings total federal spending on the 825,000-square-foot warehouse near Williamsport to at least $215 million. The Department of Homeland Security purchased the site in January for $102.4 million to convert it from a former logistics and distribution center – originally designed for a major retailer like Amazon – into a facility capable of holding up to 1,500 immigrants.
The project is part of ICE’s broader “re-engineering” initiative to repurpose commercial warehouses nationwide into a hub-and-spoke network of owned detention centers, aiming to significantly expand deportation capacity under President Donald Trump’s immigration enforcement priorities.
ICE has acquired at least eight such sites across states including Maryland, Pennsylvania, Arizona, Georgia, Michigan, New Jersey and Texas, with plans for dozens more and overall costs potentially reaching tens of billions of dollars.
The Williamsport facility has sparked intense local and statewide opposition. Maryland Attorney General Anthony Brown filed a lawsuit in February against DHS and ICE, alleging violations of environmental laws and a lack of required public consultation or state input in the secretive purchase.
Democratic lawmakers, including members of Maryland’s congressional delegation, have sent letters demanding transparency and protesting the plan. The ACLU of Maryland has called it “reckless and unconscionable,” warning of a massive increase in detention capacity.
Residents of Williamsport, with a population under 2,000, and surrounding Washington County have raised concerns about infrastructure strain on roads, hospitals, sewers and other services from a sudden influx tied to 1,500 detainees. Community groups have held protests, and recent observations include increased activity with unmarked vehicles and sewer upgrades at the site.
Despite the pushback, the Washington County commissioners passed a resolution supporting ICE operations, reflecting support in the largely conservative area for stronger immigration enforcement. Some residents view the facility as a potential economic boost.
KVG LLC, a veteran-owned small business with prior Department of Defense contracts for logistics, transportation and other services worldwide, could not immediately be reached for comment on the timeline or plans. DHS and ICE representatives did not respond to requests from the Banner for comment.
