White House Reviewing ICE’s $2 Million Deal with Spyware Provider

A recent development has put a $2 million contract between United States Immigration and Customs Enforcement (ICE) and Israeli commercial spyware vendor Paragon Solutions on hold. The contract, signed by ICE’s Homeland Security Investigations Division 3 and Paragon’s US subsidiary in Chantilly, Virginia, has been paused for compliance review following the issuance of a stop-work order by HSI to ensure adherence to Executive Order 14093.

This scrutiny from the White House represents a significant test for the Biden administration’s commitment to restricting the government’s utilization of spyware technology. The executive order, signed by President Joe Biden in March 2023, aims to regulate the government’s use of commercial spyware while emphasizing responsible practices that align with the protection of human rights.

The contract in question includes a "fully configured proprietary solution" encompassing licenses, hardware, warranty, maintenance, and training. However, it remains unclear whether the deployment involves Paragon’s flagship product, Graphite, a potent spyware tool known for extracting data primarily from cloud backups.

A senior US administration official, speaking on the condition of anonymity, revealed that discussions with DHS leadership are ongoing to evaluate the contract’s compliance with the executive order’s requirements. Paragon Solutions has yet to provide a comment on the ongoing review of the contract.

The executive order mandates a thorough due diligence process concerning both the vendor and the technology to identify any potential risks related to counterintelligence, security, or improper use. Furthermore, agencies are prohibited from operationalizing commercial spyware until at least seven days after notifying the White House or obtaining consent from the president’s national security adviser.

Ultimately, the fate of the ICE-Paragon contract hinges on a decision by departmental leadership based on the information and facts presented. The senior official emphasized the necessity of ensuring that the vendor and tool in question do not violate the stipulations outlined in the executive order.

This development underscores the administration’s commitment to upholding national security while balancing the responsible use of surveillance technology in alignment with human rights principles. The outcome of the compliance review will shed light on the government’s approach to regulating the procurement and deployment of commercial spyware within federal agencies.