# ICE Projects Face Scrutiny in Arizona, Maryland

GAO reports that ICE’s planned warehouse conversions in Hagerstown, Maryland, and Surprise, Arizona, are largely on hold amid legal challenges. As of September 24, 2026, two associated delivery orders showed $426.4 million obligated and $28.3 million in reported outlays, with no order-level breakdown or contract numbers provided. Separately, GardaWorld Federal Services plans to build and expand detention facilities in Surprise and Florence, Arizona, under ICE contracts valued at more than $1.5 billion combined; three Arizona U.S. House members are seeking information about those projects. The signals describe distinct procurement activity, and do not establish that the Arizona contracts are affected by the warehouse-conversion legal challenges.

- The reported gap between obligations and outlays, combined with the hold on the warehouse conversions, is relevant to contractors assessing project schedules and funding exposure; the available information does not identify the delivery orders or provide a project-level breakdown.
- The Arizona construction and expansion contracts represent a substantial detention-facility opportunity involving GardaWorld Federal Services. Contractors assessing related work should distinguish these projects from the warehouse conversions and account for the reported congressional information requests.
- Contract numbers, award dates, and procurement contacts are not provided, limiting firms’ ability to identify specific solicitations or verify the status of individual awards.

**Jurisdictions:** federal
**Industries:** Construction & Infrastructure, Public Safety
**Topics:** Physical Infrastructure
**Published:** October 07, 2026

### Government Entities
- U.S. Immigration and Customs Enforcement (ICE)
- U.S. Government Accountability Office (GAO)
- U.S. House of Representatives

### Vendors
- GardaWorld Federal Services ()

### Key Quotes
> GAO says ICE’s plans to convert two warehouses in Hagerstown, Maryland, and Surprise, Arizona, are largely on hold because of legal challenges.
> — Original poster

### Sources
- [Two ICE Warehouse Conversions Are Largely on Hold. Their Contracts Show $28.3 Million in Outlays](https://www.reddit.com/r/fednews/comments/1wwexdc/two_ice_warehouse_conversions_are_largely_on_hold) - reddit-fednews
- [Dem lawmakers demand info on ICE projects in AZ | Exclusive](https://www.azcentral.com/story/news/politics/immigration/2026/10/07/democratic-lawmakers-demand-info-arizona-ice-detention-projects/92125499007) - azcentral.com and The Arizona Republic