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Oneida Nation LLC takes action to terminate contracts with ICE

ICE Police at Immigration Detention Center. Oneida tribal leaders in Wisconsin announced they would end a contract to build ICE facilities with a the Oneida Engineering Science Construction Group and apologized saying they were previously unaware of the agreement. | Getty Images

Oneida Engineering Science Construction Group (OESC), a Limited Liability Company (LLC) of the Oneida Nation, is taking action to terminate two contracts it has with U.S. Immigration and Customs Enforcement (ICE) to provide engineering services to at least 34 ICE facilities.

The Wisconsin Examiner’s Criminal Justice Reporting Project shines a light on incarceration, law enforcement and criminal justice issues with support from the Public Welfare Foundation.

The action comes after tribal leaders only recently became aware of the contracts that OESC has through a subsidiary company: Oneida Environmental (OE) that is working in a joint venture with Stantec JV, called Oneida-Stantec JV, LLC.

In a Jan. 2 Oneida Live online meeting, Tribal Chairman Tehassi Hill said he had just learned of the ICE contracts on Monday morning, Dec. 29 through social media posts.

“I want to make sure that I clearly state that the Oneida Business Committee (OBC, the agency that runs the tribe when the tribal governing board is not in session) was not aware of this joint venture or the signing of the contract,” said Hill. “I also stand strong in my words and conviction that the business venture does not align with the nation’s values, our culture and who we are as Haudenosaunee People, and it is something the committee would have never entertained had it been made aware of this.”

Jeff House, chief executive officer (CEO) of OESC, took full responsibility for the contracts, adding  that his motives were to provide a service to ensure the ICE facilities were habitable for residents and also as a business venture to sustain the operation of the LLC’s 500 employees.

“I deeply apologize,” House said. “The decision did come to me and I green-lighted the proposals to go forward, and I know it was a huge mistake.”

House said when he made the decision he wanted  to ensure the facilities would be “up to code, making sure they meet human standards, making sure that it’s properly engineered.” And, he added, “while I don’t approve and am appalled by the ICE activities, these people are being detained and put in a facility somewhere, and what had gone through my mind was, ‘Who’s taking care of them? Who’s looking out for their best interest?’ As much as I have disdain for the ICE activities going on, that’s where my mind went, and I was flabbergasted that I didn’t reach out further and get more information.”

House said he was aware of the recent controversy involving the Prairie Band Potawatomi Nation in Kansas to terminate a subsidiary contract with ICE for designing large-scale migrant detention centers, and he applauded the Potawatomi Chairman for noting how Indian people had been treated by the federal government by being placed on reservations and drew parallels to ICE activities.

House said he hadn’t considered the history of tribes and detention when he pursued the ICE contracts, but was more focused on ensuring the ICE facilities would be humane facilities.

According to the Federal Procurement Data System for Oneida-Stantec JV LLC, the recent ICE contract signed on Dec. 26 is for $3.777 million, and another contract signed on Sept. 19 is for $2.601 million.

House said the immediate goal is to begin the process of terminating the Dec. 26 contract, but he noted that the Sept. 19 contract, initiated under the administration of former President Joe Biden, would be more complicated to terminate because work had already begun under that contract.

House emphasized the LLC  would sustain any loss or liability as it pursued the terminations.

To avoid potential liability to the tribe, Chairman Hill noted that the tribe doesn’t directly operate OESC or participate in day-to-day operations to maintain a “corporate veil.”

In a press release, the tribe explained the “corporate veil” is “a legal concept that recognizes a company as a separate legal entity distinct from its shareholders, and it protects shareholders from personal liability for the company’s debts and obligations (meaning the company itself is responsible for its own liabilities).”

However, the OBC does appoint members to the corporate board of OESC, and there are regular reports from the LLC to the OBC.

“It is important to reiterate that the Oneida Business Committee does not approve, negotiate or manage individual contracts of its subsidiaries,” said Hill, “and only provides high-level oversight.”

Hill read a recently passed OBC resolution that directs business decisions to reflect the Oneida Nation values and specifically states that “any employee or representative of Oneida Nation and its tribal corporations to disengage with all grant agreements and contracts that involve Immigration and Customs Enforcement.”

In the future, House said, he will keep the OBC informed of any gray areas of concern.

In 2025, House said, OESC processed $177 million in revenue and made $12 million in profit, most of which was reinvested in the LLC, with a small amount given to the tribe’s general fund. He estimated the valuation of the LLC as somewhere between $80-100 million.

House said one of his primary concerns in securing contracts, most of which are for engineering services, is keeping the LLC’s 500 employees on the job.

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