A US disaster response contractor submitted a draft plan to White House officials that would guarantee a staggering 300% profit margin and secure a seven-year monopoly over a proposed new trucking and logistics system for Gaza, according to documents obtained by the Guardian. The proposal, from the firm Gothams LLC, was designed for implementation under Donald Trump's recently established Board of Peace, which oversees reconstruction efforts in the conflict-ravaged territory.
Exclusive Contract Terms Revealed
The draft proposal, dated November, outlines terms that would allow Gothams to collect a fee for every truck moving goods into Gaza through the Rafah border crossing, while also charging for the use of its warehousing and distribution infrastructure. The document explicitly states that the "Customer" – referring to the Board of Peace – "agrees to a minimum three (3) times return on capital expenditure." Furthermore, it calls for "exclusivity to the Contractor for seven (7) years with a three (3) year subsequent option period," effectively creating a decade-long monopoly over humanitarian logistics.
Expert Condemns "Highway Robbery" Terms
Charles Tiefer, an expert on federal contracting law who served on the Commission on Wartime Contracting in Iraq and Afghanistan, described the proposed terms as "outrageous." He stated, "There's never been a US government contract that had triple returns on capital, not in 200 years. To make 25% is considered good. Having spent three years looking at contracts in Iraq and Afghanistan, this looks like highway robbery."
Despite Gothams CEO Matthew Michelsen telling the Guardian in December that he was halting his proposal, company partner Chris Vanek, a former army officer, has been coordinating with White House officials about the Gaza Supply System (GSS) in recent weeks, according to sources familiar with the process. A Gothams spokesperson provided a quote from Vanek, who said he was asked to assist "based on my extensive experience in conflict zones, reconstruction, and disaster response" and emphasized there is "no existing agreement or contract."
White House and State Department Responses
The White House referred questions to a State Department Gaza taskforce. Eddie Vasquez, a State Department spokesperson for White House efforts on Gaza, told the Guardian: "No procurement process or contracting mechanism has been stood up as the Board of Peace was just recently formed and announced. While informal conversations may have taken place, all this remains TBD." He did not discuss the specifics of Gothams' proposal.
Massive Reconstruction Project Attracts Controversy
The scale of Gaza's reconstruction is enormous, with the United Nations estimating costs exceeding $70 billion after three-quarters of Gaza's buildings were reduced to rubble and 90% of residents displaced. 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 its executive board in January.
At the World Economic Forum in Davos, Kushner talked about "amazing investment opportunities" while unveiling the Board of Peace's master plan, which envisions rebuilding the Mediterranean coast as a tourism and commerce hub with eight planned cities, a new port, and an advanced manufacturing centre. However, any reconstruction work depends on the ability to transport materials into Gaza, where Israel controls entry and exit of goods and restricts key materials like generators and cement.
Additional Financial Proposals Surface
The Guardian has obtained another draft slide deck produced by promoters of GSS, dated January 2026, offering a return on investment of 46% to 175% to "sovereign investors" in the first year alone. Three people familiar with the process say Board of Peace and White House officials are courting investments from sovereign wealth funds, including the UAE's Mubadala, to fund reconstruction projects like the Gaza support system.
While Kushner didn't specifically refer to GSS in his Davos presentation, he called for investors to "take faith, invest in the people, try to be a part of it." White House officials – including two former "department of government efficiency" officials operating under Kushner – have been planning potential business deals for months, though no formal contracts have been established.
The Austin-based Gothams has received government contracts in the past, including recent work supporting operations at a South Florida detention centre for migrants, a tent camp dubbed "Alligator Alcatraz" that faced criticism for potential human rights violations. The firm's spokesperson later added that Vanek "has not had any discussions regarding financing, investment, or returns, and any suggestion otherwise would be inaccurate," though they did not respond directly to questions about the profit margins or proposed exclusivity agreement outlined in the November draft.
