US Contractor's Gaza Aid Proposal Guarantees 300% Profits and Seven-Year Monopoly
In a controversial development, a US disaster response firm has submitted a draft plan to White House officials that would secure extraordinary 300% profits and establish a seven-year monopoly over trucking and logistics operations for humanitarian aid entering the Gaza Strip. The proposal, obtained by the Guardian, reveals ambitious financial terms that have raised eyebrows among government contracting experts.
Gothams LLC's Lucrative Proposal Details
The Austin-based Gothams LLC drafted a comprehensive proposal that would grant the company exclusive rights to manage all trucking and logistics for aid entering Gaza through the Rafah border crossing. According to the November document, the firm would collect fees for every truck moving goods into the Palestinian territory while charging additional costs for warehousing and distribution services.
The proposal explicitly states that the "Customer" - referring to Donald Trump's Board of Peace - "agrees to a minimum three times return on capital expenditure." Furthermore, the document calls for "exclusivity to the Contractor for seven years with a three year subsequent option period," effectively creating a decade-long monopoly over critical humanitarian supply chains.
White House Connections and Ongoing Discussions
Despite CEO Matthew Michelsen's December statement that he was halting his proposal, company partner Chris Vanek has continued coordinating with White House officials about the Gaza Supply System in recent weeks. Records show ongoing discussions between administration officials and businesspeople affiliated with Trump's Board of Peace regarding the implementation of this new logistics framework.
Vanek, a former army officer with experience in conflict zones, stated through a Gothams spokesperson that he was asked to assist with planning efforts based on his expertise. "There is no existing agreement or contract, and I have provided this assistance at my own expense in support of peace efforts," the statement read. However, the spokesperson declined to address specific questions about the proposed profit margins or exclusivity agreement.
Expert Criticism and Historical Context
Charles Tiefer, a federal contracting law expert who served on the Commission on Wartime Contracting in Iraq and Afghanistan, described Gothams' proposed terms as "outrageous." He emphasized that "there's never been a US government contract that had triple returns on capital, not in 200 years."
"To make 25% is considered good," Tiefer added. "Having spent three years looking at contracts in Iraq and Afghanistan, this looks like highway robbery." The criticism comes amid revelations that Gothams has previously received government contracts, including recent work supporting operations at a controversial South Florida migrant detention center dubbed "Alligator Alcatraz."
Broader Reconstruction Context and Investment Opportunities
The proposed logistics system emerges against the backdrop of massive reconstruction needs in Gaza, where the United Nations estimates more than $70 billion will be required to rebuild. According to UN assessments, three-quarters of Gaza's buildings have been reduced to rubble, with 90% of residents displaced from their homes.
Donald Trump, who chairs the Board of Peace and has described Gaza's potential as "the Riviera of the Middle East," installed his son-in-law Jared Kushner and other allies on the board's executive committee in January. During a Davos presentation, Kushner highlighted "amazing investment opportunities" while outlining a master plan that envisions rebuilding Gaza's Mediterranean coast as a tourism and commerce hub.
Investment Prospects and Sovereign Wealth Fund Interest
Additional documents obtained by the Guardian reveal that promoters of the Gaza Supply System have prepared investment materials offering returns between 46% and 175% to sovereign investors in the first year alone. Three sources familiar with the process confirm that Board of Peace and White House officials are actively courting investments from sovereign wealth funds, including the UAE's Mubadala, to finance reconstruction projects.
While Kushner didn't specifically mention the Gaza Supply System during his Davos presentation, he strongly encouraged investors to participate in reconstruction efforts. "We need to come, take faith, invest in the people, try to be a part of it," he told the audience, emphasizing the commercial potential of Gaza's rebuilding process.
Current Status and Official Responses
White House officials referred questions about the proposal to a State Department Gaza taskforce. Eddie Vasquez, a State Department spokesperson for White House efforts on Gaza, told the Guardian that "no procurement process or contracting mechanism has been stood up as the Board of Peace was just recently formed and announced."
Vasquez added that "while informal conversations may have taken place, all this remains TBD," indicating that while discussions have occurred, no formal agreements have been established. The situation continues to develop as humanitarian needs in Gaza remain urgent, with trucks regularly lining up at the Rafah border crossing to deliver essential aid and fuel supplies.
