DoD Awards $111M for B-21 Facilities Construction, Highlighting Firm Fixed Price Contract
Contract Overview
Contract Amount: $111,141,773 ($111.1M)
Contractor: Federal Contracting Inc
Awarding Agency: Department of Defense
Start Date: 2022-06-30
End Date: 2025-10-11
Contract Duration: 1,199 days
Daily Burn Rate: $92.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT B-21 MPF/FTD FACILITIES
Place of Performance
Location: ELLSWORTH AFB, MEADE County, SOUTH DAKOTA, 57706
Plain-Language Summary
Department of Defense obligated $111.1 million to FEDERAL CONTRACTING INC for work described as: CONSTRUCT B-21 MPF/FTD FACILITIES Key points: 1. Significant investment in critical infrastructure for the B-21 bomber program. 2. Federal Contracting Inc. secured the award, indicating a competitive landscape. 3. The firm fixed price contract type aims to control costs and manage risk. 4. Construction sector spending benchmarks suggest this project is substantial.
Value Assessment
Rating: good
The contract value of $111.14M for commercial and institutional building construction appears reasonable for a project of this scale and complexity, especially given the firm fixed price structure which shifts risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust price discovery process and a competitive bidding environment. This method is generally expected to yield fair and reasonable pricing.
Taxpayer Impact: The firm fixed price contract aims to provide cost certainty for taxpayers, minimizing the risk of cost overruns for this significant infrastructure investment.
Public Impact
Enhances national security by supporting the development and deployment of the B-21 bomber. Creates jobs in the construction sector and related industries in South Dakota. Represents a substantial commitment to modernizing military infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 93 / 10
Warning Flags
- Potential for schedule delays in large-scale construction projects.
- Reliance on a single contractor for a critical facility.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Full and open competition likely secured competitive pricing.
- Strategic investment in advanced military capabilities.
Sector Analysis
This contract falls within the commercial and institutional building construction sector. Spending in this sector can vary widely based on project scope, location, and economic conditions. The $111M value is significant for a single project.
Small Business Impact
The data indicates the award went to a prime contractor, Federal Contracting Inc. There is no explicit information on subcontracting opportunities for small businesses within this award notice.
Oversight & Accountability
The Department of the Army's oversight is crucial for ensuring the timely and cost-effective completion of this facility. Contract type and competition method suggest initial oversight measures are in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for construction cost overruns despite FFP.
- Schedule slippage impacting B-21 program timeline.
- Quality control issues in construction.
- Dependence on contractor's financial stability.
Tags
commercial-and-institutional-building-co, department-of-defense, sd, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.1 million to FEDERAL CONTRACTING INC. CONSTRUCT B-21 MPF/FTD FACILITIES
Who is the contractor on this award?
The obligated recipient is FEDERAL CONTRACTING INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $111.1 million.
What is the period of performance?
Start: 2022-06-30. End: 2025-10-11.
What are the key performance indicators (KPIs) for this construction project, and how will the Department of the Army monitor progress against them?
Key performance indicators would likely include adherence to schedule, quality of construction, safety compliance, and budget management. The Department of the Army would typically monitor progress through regular site inspections, progress reports from the contractor, milestone reviews, and potentially independent third-party assessments to ensure the project meets all specified requirements and remains on track.
What are the potential risks associated with the firm fixed price contract for this large-scale construction project, and what mitigation strategies are in place?
Risks with FFP include the contractor potentially cutting corners on quality or safety to maintain profitability if costs escalate unexpectedly. Mitigation strategies could involve robust contract language, detailed specifications, stringent quality assurance/quality control processes, regular progress monitoring, and clear communication channels to address issues proactively before they impact the project significantly.
How does the successful completion of these B-21 facilities contribute to the overall effectiveness and operational readiness of the Air Force's next-generation bomber program?
These facilities are essential for the assembly, testing, maintenance, and operational basing of the B-21 bomber. Their successful and timely completion directly impacts the program's schedule, enabling the Air Force to achieve initial operational capability and maintain the aircraft effectively, thereby ensuring the bomber's strategic contribution to national defense.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W9128F21R0032
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5475 TECH CENTER DR STE 300, COLORADO SPRINGS, CO, 80919
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $111,429,379
Exercised Options: $111,141,773
Current Obligation: $111,141,773
Actual Outlays: $11,309,673
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-06-30
Current End Date: 2025-10-11
Potential End Date: 2025-10-11 00:00:00
Last Modified: 2025-09-16
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