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Home Politics Border Crisis Sparks Unprecedented Opportunities for Private Contractors

Border Crisis Sparks Unprecedented Opportunities for Private Contractors

by Texas Recap Team
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Texas’ Operation Lone Star: A Closer Look at Funding and Contractors

Approximately 45 days after President Joe Biden took office, Texas Governor Greg Abbott initiated Operation Lone Star (OLS), marking the latest and most extensive effort in Texas to bolster border security. Less than three months later, Abbott declared a state of disaster, citing ongoing threats from migration at the Texas border. This disaster declaration has been maintained for over four years, outlasting even Abbott’s COVID-19 emergency declaration, which expired in June 2023.

Funding and Legislative Impact

In its tenure, the Texas Legislature has allocated upwards of $11 billion to support the extensive operations of OLS, primarily focused on deploying state police and National Guard troops along the border. In the current legislative session alone, an additional $6.5 billion has been proposed by House and Senate budget writers.

Procurement Practices

Using his disaster authority, Abbott has made significant changes to procurement laws, allowing state agencies involved in OLS—the Department of Public Safety (DPS), the Texas Military Department (TMD), and the Division of Emergency Management (TDEM)—to bypass competitive bidding for major contracts. This has enabled lucrative no-bid contracts with various vendors for a range of services, from transporting migrants to operating temporary processing facilities under Abbott’s controversial “catch-and-jail” strategy.

The types of equipment and resources acquired through OLS are extensive and expensive, encompassing everything from drones and helicopters to tactical vehicles and surveillance technology.

“Prosecuting people for migration is big business.”

Since 2021, spending under OLS has approached $3.5 billion via no-bid contracts and emergency orders, according to records reviewed by the Texas Observer. Furthermore, of the overall $11 billion designated for OLS, a significant portion is allocated for personnel expenses and competitively bid contracts for a state border wall.

Political Connections and Contributions

The operational structure of OLS, characterized by its lack of competitive bidding, has raised concerns about favoritism and potential corruption. Experts, including Charles Tiefer from the University of Baltimore, emphasize that avoiding competitive bidding risks financial waste and fosters opportunities for corruption, particularly when contracts go to politically connected firms.

As a result, a select group of contractors has flourished financially under OLS, contributing substantial amounts to Abbott’s campaign and to Republican political action committees, raising questions about the ethics of such funding dynamics.

Highlight on Major Contractors

Several contractors stand out in terms of their involvement and financial gain from OLS activities:

Gothams LLC

Founded during the COVID-19 pandemic, Gothams LLC quickly established contracts within Texas, initially providing COVID-19 testing kits flagged for inefficacy by the FDA. As OLS expanded, Gothams received a $43 million contract to create and manage a migrant processing facility, significantly benefiting financially from its close connections to Abbott’s administration. Their ties further expanded when the company provided travel for other GOP governors, demonstrating a circle of political patronage.

Recana Solutions

Recana Solutions has played a pivotal role in staffing processing centers for detained migrants, receiving nearly $50 million thus far. The company has been likened to private prison operators in its function and has also contributed substantial donations to lawmakers overseeing OLS.

Wynne Transportation

Wynne Transportation gained a contract for busing migrants to various U.S. cities, reportedly costing Texas taxpayers about $220 million over two years, despite limited external funding. The high expenses associated with Wynne’s services stem from the need for security personnel on each trip, which has sparked criticism for the operational conditions imposed on migrants.

Team Housing Solutions

As part of housing deployed soldiers, Team Housing Solutions has secured over $825 million in no-bid contracts from TMD to provide accommodations, including a permanent military base to support OLS operations.

The Bigger Picture: Economic and Social Implications

The OLS initiative not only enhances the militarization of the Texas-Mexico border but also cultivates a robust economic environment focused on border security expenditures. This financial ecosystem creates vested interests aiming to perpetuate the operational status quo, thus raising ethical concerns regarding governmental priorities and accountability.

As the board of contractors and political donors continues to evolve, the future of Operation Lone Star remains critical in shaping Texas’ border strategies and policies. This ongoing situation warrants continued scrutiny regarding fiscal responsibility and the potential implications for migrant populations caught in the political crossfire.

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