The $2 million contract between United States Immigration and Customs Enforcement (ICE) and Israeli commercial spyware vendor Paragon Solutions has been paused and placed under compliance review, according to sources familiar with the matter. This development comes after the White House’s scrutiny of the contract, which marks the first test of the Biden administration’s executive order restricting the government’s use of spyware.
The one-year contract, signed on September 27, was first reported by media outlets on October 1. A few days later, on October 8, ICE issued a stop-work order for the award in order to review and verify compliance with Executive Order 14093, which was signed by President Joe Biden in March 2023. This executive order 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.
The contract between Paragon’s US subsidiary and ICE’s Homeland Security Investigations (HSI) Division 3 covers a fully configured proprietary solution, including license, hardware, warranty, maintenance, and training. While the exact details of the contract are not publicly available, it is believed to include the deployment of Paragon’s flagship product, Graphite, which is a powerful spyware tool that reportedly extracts data primarily from cloud backups.
According to a senior US administration official with first-hand knowledge of the workings of the executive order, the White House immediately engaged with DHS leadership to understand the scope of the contract and whether it adhered to the procedures and requirements of the executive order. The official, who requested anonymity, stated that a robust review of the due diligence regarding both the vendor and the tool is required to identify any concerns, such as counterintelligence, security, and improper use risks. The official also mentioned that the 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.
The senior official also stated that the outcome of the review may be that the particular vendor and tool do not violate the requirements of the executive order. However, the leadership of the department will have to make a final determination based on the information and facts gathered during the review process.
The existence of the contract between ICE and Paragon has raised concerns among civil liberties groups, with the nonprofit watchdog Human Rights Watch stating that giving ICE access to spyware risks exacerbating the department’s problematic practices. The review of the contract by the White House is a positive step towards ensuring responsible use of commercial spyware technology by the US government.
