DoD awards $44.6M for B-21 flight simulator construction, with completion expected by late 2025

Contract Overview

Contract Amount: $44,563,272 ($44.6M)

Contractor: Federal Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2022-12-05

End Date: 2025-12-23

Contract Duration: 1,114 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT B-21 ADAL FLIGHT SIMULATOR FAC

Place of Performance

Location: ELLSWORTH AFB, MEADE County, SOUTH DAKOTA, 57706

State: South Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $44.6 million to FEDERAL CONTRACTING INC for work described as: CONSTRUCT B-21 ADAL FLIGHT SIMULATOR FAC Key points: 1. The contract value represents a significant investment in advanced training infrastructure for the B-21 bomber program. 2. Construction is being managed by the Department of the Army, indicating a focus on military-specific facility development. 3. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor. 4. The project is located in South Dakota, potentially bringing economic benefits to the region. 5. The duration of the contract (1114 days) points to a complex construction project requiring substantial time for completion.

Value Assessment

Rating: good

The contract value of $44.6 million for a flight simulator facility appears reasonable given the specialized nature of the B-21 program. Benchmarking against similar large-scale military construction projects, especially those involving advanced simulation capabilities, would provide a more precise value assessment. The firm-fixed-price structure generally aims for cost certainty, but the final value is dependent on the contractor's execution and management of the project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a healthy level of competition for this specialized construction project. This competitive environment is generally favorable for price discovery and ensuring the government receives a fair market price.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through multiple bids.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel who will utilize the B-21 flight simulator for training. The contract delivers a critical piece of infrastructure necessary for the operational readiness of the B-21 bomber. The geographic impact is concentrated in South Dakota, where the construction will take place. The project will likely create temporary jobs in the construction sector in South Dakota.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the B-21 training schedule.
Cost overruns, despite the firm-fixed-price contract, if unforeseen issues arise during construction.
Ensuring the facility meets the highly specialized technical requirements for B-21 simulation.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor has a track record with federal contracting, implying some level of experience.
Project duration is clearly defined, allowing for structured planning and execution.

Sector Analysis

The construction sector is a significant part of the federal procurement landscape, encompassing a wide range of projects from infrastructure to specialized facilities. This contract falls within the niche of specialized military construction, requiring expertise in building complex training environments. Comparable spending benchmarks would involve looking at other large-scale military facility constructions or advanced simulator installations across different branches of the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The primary contractor, FEDERAL CONTRACTING INC, is not explicitly identified as a small business. Therefore, the direct impact on the small business ecosystem may be limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and engineering divisions. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified facility within the agreed-upon price and timeline. Transparency is generally maintained through federal contract databases, though specific project-level oversight details may not be publicly available.

Related Government Programs

B-21 Raider Program
Military Construction Projects
Flight Simulator Training Facilities
Department of Defense Advanced Training Systems

Risk Flags

Potential for schedule slippage impacting B-21 operational readiness.
Risk of unforeseen site conditions impacting construction costs.
Ensuring contractor possesses adequate experience with advanced simulation facility construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.6 million to FEDERAL CONTRACTING INC. CONSTRUCT B-21 ADAL FLIGHT SIMULATOR FAC

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 $44.6 million.

What is the period of performance?

Start: 2022-12-05. End: 2025-12-23.

What is the track record of FEDERAL CONTRACTING INC with similar large-scale construction projects for the Department of Defense?

FEDERAL CONTRACTING INC has a history of engaging with federal agencies, including the Department of Defense, as indicated by its presence in federal contracting databases. To assess their track record specifically for large-scale construction projects akin to flight simulator facilities, a detailed review of their past performance on similar contracts would be necessary. This would involve examining contract values, project scopes, on-time delivery rates, and any reported performance issues or awards. Without specific historical data on comparable projects, it's difficult to definitively gauge their expertise in this niche, though their selection in a full and open competition suggests they met the minimum qualifications.

How does the $44.6 million cost compare to other B-21 related infrastructure or advanced training facilities?

Direct comparisons for the B-21 flight simulator facility at $44.6 million are challenging without access to specific, publicly disclosed cost data for other B-21 related infrastructure or advanced training facilities. However, the cost appears to be within a reasonable range for specialized military construction projects. Large-scale training facilities, especially those incorporating advanced simulation technology, often carry significant price tags due to complex engineering, integration, and security requirements. To provide a more robust comparison, one would need to benchmark against similar simulator construction projects for other advanced aircraft programs within the DoD, considering factors like facility size, technological sophistication, and geographic location.

What are the primary risk indicators associated with this construction contract?

The primary risk indicators for this construction contract include potential construction delays that could impact the B-21 program's training schedule, especially given the 1114-day duration. Cost overruns, while mitigated by the firm-fixed-price structure, remain a risk if unforeseen site conditions or material price escalations occur. Technical risks are also present, ensuring the facility meets the highly specialized and evolving requirements for B-21 simulation technology. Furthermore, the geographic location in South Dakota might present logistical challenges or a smaller local labor pool, potentially affecting timelines and costs. The contractor's specific experience with advanced simulator facilities is also a key risk factor to monitor.

How effective is the firm-fixed-price contract type in managing costs for this specialized construction?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for specialized construction projects like this flight simulator facility because it shifts the majority of the cost risk to the contractor. The contractor is obligated to complete the work for the agreed-upon price, incentivizing them to control their own costs and manage the project efficiently. This provides the government with significant cost certainty. However, the effectiveness can be diminished if the initial price was not accurately estimated due to unforeseen complexities or if the contractor lacks the expertise to manage the project within that price, potentially leading to disputes or quality compromises. Robust oversight is still crucial to ensure the contractor adheres to the scope and quality requirements.

What are the historical spending patterns for flight simulator construction within the Department of Defense?

Historical spending patterns for flight simulator construction within the Department of Defense show a consistent and significant investment in training infrastructure across various aircraft platforms. These expenditures are driven by the need for realistic, safe, and cost-effective training solutions that reduce reliance on live-fly missions. Spending varies widely based on the complexity of the aircraft, the level of simulation required (e.g., basic trainers vs. advanced combat simulators), and the number of units needed. Major aircraft programs, particularly those involving new or advanced capabilities like the B-21, typically see substantial dedicated funding for simulator development and construction. Analyzing past procurements for simulators for aircraft like the F-35, B-2, or advanced helicopter programs would reveal trends in cost, technology, and contract structures.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128F21R0080

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5475 TECH CENTER DR, 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: $45,746,637

Exercised Options: $44,563,272

Current Obligation: $44,563,272

Actual Outlays: $-6,130,326

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline