ICE's $2 Million Contract With a Spyware Vendor Is Under White House Review

A $2 million contract that United States Immigration and Customs Enforcement signed with Israeli commercial spyware vendor Paragon Solutions has been paused and placed under compliance review, WIRED has learned.

The White House’s scrutiny of the contract marks the first test of the Biden administration’s executive order restricting the government’s use of spyware.

The one-year contract between Paragon’s US subsidiary in Chantilly, Virginia, and ICE’s Homeland Security Investigations (HSI) Division 3 was signed on September 27 and first reported by WIRED on October 1. A few days later, on October 8, HSI issued a stop-work order for the award “to review and verify compliance with Executive Order 14093,” a Department of Homeland Security spokesperson tells WIRED.

The executive order signed by President Joe Biden in March 2023 aims to restrict the US government’s use of commercial spyware technology while promoting its “responsible use” that aligns with the protection of human rights.

DHS did not confirm whether the contract, which says it covers a “fully configured proprietary solution including license, hardware, warranty, maintenance, and training,” includes the deployment of Paragon’s flagship product, Graphite, a powerful spyware tool that reportedly extracts data primarily from cloud backups.

“We immediately engaged the leadership at DHS and worked very collaboratively together to understand exactly what was put in place, what the scope of this contract was, and whether or not it adhered to the procedures and requirements of the executive order,” a senior US administration official with first-hand knowledge of the workings of the executive order tells WIRED. The official requested anonymity to speak candidly about the White House’s review of the ICE contract.

Paragon Solutions did not respond to WIRED's request to comment on the contract's review.

The process laid out in the executive order requires a robust review of the due diligence regarding both the vendor and the tool, to see whether any concerns, such as counterintelligence, security, and improper use risks, arise. It also stipulates that an agency may not make operational use of the commercial spyware until at least seven days after providing this information to the White House or until the president's national security adviser consents.

“Ultimately, there will have to be a determination made by the leadership of the department. The outcome may be—based on the information and the facts that we have—that this particular vendor and tool does not spur a violation of the requirements in the executive order,” the senior official says.