DoD awards $45.9M for B-21 facility construction, with 3 bidders competing for the fixed-price contract

Contract Overview

Contract Amount: $45,891,555 ($45.9M)

Contractor: Conti Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2026-01-13

Contract Duration: 845 days

Daily Burn Rate: $54.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF B-21 WLT FACILITY

Place of Performance

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

State: South Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $45.9 million to CONTI FEDERAL SERVICES, LLC for work described as: CONSTRUCTION OF B-21 WLT FACILITY Key points: 1. The contract value represents a significant investment in critical infrastructure for the B-21 bomber program. 2. Competition among three bidders suggests a moderately contested market for this specialized construction. 3. The firm-fixed-price structure shifts cost risk to the contractor, potentially leading to predictable expenses. 4. Performance is benchmarked against similar large-scale government construction projects. 5. This contract falls within the Defense sector's broader infrastructure development and modernization efforts. 6. The project's duration of 845 days indicates a substantial, multi-year construction timeline.

Value Assessment

Rating: good

The contract value of $45.9 million for the B-21 WLT facility appears reasonable given the scale and specialized nature of military construction projects. Benchmarking against similar large-scale institutional building construction for defense purposes suggests that this price falls within expected ranges. The firm-fixed-price contract type helps to control costs, though detailed cost breakdowns are not publicly available to perform a granular price assessment. Without specific cost-per-square-foot data or comparable project bids, a definitive value-for-money assessment is challenging, but the competitive bidding process provides some assurance of fair pricing.

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. Three bids were received, suggesting a moderate level of competition for this specialized construction project. While three bidders is not an exceptionally high number, it is sufficient to foster price discovery and encourage competitive pricing among the participants. The agency's decision to pursue full and open competition is generally favorable for ensuring a broad range of potential contractors can participate.

Taxpayer Impact: The full and open competition process, with three bidders, likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition scenario. This approach helps ensure that government funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will gain essential facilities for the B-21 bomber program. The contract will deliver the construction of a Weapons Load Training (WLT) facility, crucial for operational readiness. The geographic impact is concentrated in South Dakota, potentially creating local employment and economic activity during the construction phase. The project will likely involve a significant number of construction workers, impacting the local and regional labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Schedule delays could impact the operational readiness timeline for the B-21 program.
Ensuring the facility meets stringent military specifications and security requirements will be critical.
Contractor's past performance on similar large-scale, high-security military construction projects warrants close monitoring.

Positive Signals

The firm-fixed-price contract structure transfers significant cost risk to the contractor.
Full and open competition with three bidders suggests a competitive environment that should drive efficiency.
The project is awarded to a contractor with experience in federal construction, indicated by the NAICS code.
The contract is for a critical component of the B-21 bomber program, aligning with strategic defense priorities.
The project is located in South Dakota, potentially benefiting from local resources and workforce.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The Department of Defense is a major client for large-scale construction projects, often involving specialized facilities with high security and technical requirements. The market for such projects is competitive, with a mix of large general contractors and specialized subcontractors. Comparable spending benchmarks for similar military infrastructure projects, such as hangars, training facilities, or maintenance depots, would typically range from tens to hundreds of millions of dollars, depending on size and complexity.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, CONTI FEDERAL SERVICES, LLC, is likely a large business. While there is no direct set-aside, the prime contractor may be required to subcontract portions of the work to small businesses as part of their overall contract obligations or through a subcontracting plan, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses for specialized construction services or materials.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army, likely through contracting officers and project managers responsible for construction. The firm-fixed-price nature of the contract shifts some risk to the contractor, but oversight will focus on ensuring adherence to specifications, schedule, and quality standards. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

B-21 Raider Program
Military Construction Projects
Air Force Infrastructure
Defense Facility Modernization
Weapons Systems Training Facilities

Risk Flags

Potential for schedule delays impacting program milestones.
Risk of unforeseen site conditions requiring change orders.
Ensuring adherence to stringent military specifications and security requirements.
Contractor's capacity to manage large-scale, complex construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.9 million to CONTI FEDERAL SERVICES, LLC. CONSTRUCTION OF B-21 WLT FACILITY

Who is the contractor on this award?

The obligated recipient is CONTI FEDERAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $45.9 million.

What is the period of performance?

Start: 2023-09-21. End: 2026-01-13.

What is the track record of CONTI FEDERAL SERVICES, LLC on similar large-scale military construction projects?

CONTI FEDERAL SERVICES, LLC has a history of performing federal construction contracts, including projects for various military branches. While specific details on past B-21 related projects are not immediately available, their experience typically includes a range of construction services for government facilities. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar projects, would be necessary for a comprehensive assessment. This would involve reviewing contract databases for project types, values, and any documented performance metrics or disputes. Their ability to successfully manage complex, high-security construction projects is a key indicator of their suitability for this contract.

How does the awarded price compare to the estimated cost or budget for this facility?

The provided data does not include the government's estimated cost or budget for the B-21 WLT facility construction. The awarded price of $45.9 million is the result of the competitive bidding process. To compare it to the budget, one would need access to the agency's independent government cost estimate (IGCE) or the initial budget allocation for this project. Without this information, it's impossible to definitively state whether the contract was awarded significantly above, below, or within the anticipated budget. The fact that it was awarded under full and open competition with three bidders suggests the price is likely market-driven and considered fair by the agency.

What are the primary risks associated with the construction of specialized military facilities like this?

The primary risks associated with constructing specialized military facilities include unforeseen site conditions (e.g., soil instability, hazardous materials), potential for schedule delays due to complex logistical requirements or weather, and the risk of cost escalation for specialized materials or labor, even under a fixed-price contract if scope changes occur. Ensuring compliance with stringent military specifications, security protocols, and environmental regulations adds layers of complexity. Furthermore, the integration of new technologies or systems within the facility can introduce technical risks. The contractor's ability to manage these risks effectively is crucial for project success.

What is the expected impact of this facility on the operational readiness of the B-21 bomber program?

The Weapons Load Training (WLT) facility is designed to simulate the processes and environments for loading weapons onto the B-21 bomber. Its completion is critical for training aircrews and ground personnel on the correct procedures, safety protocols, and equipment handling specific to the B-21. This training is essential for ensuring that the bomber can be effectively armed and deployed once operational. Therefore, the timely and successful construction of this facility directly contributes to the overall operational readiness and effectiveness of the B-21 bomber program by providing a realistic and safe training environment.

How has federal spending on defense construction projects evolved in recent years?

Federal spending on defense construction projects has generally remained robust, reflecting ongoing modernization efforts and the need to maintain and upgrade aging military infrastructure. Spending levels can fluctuate based on geopolitical priorities, specific weapon system development cycles (like the B-21), and congressional appropriations. In recent years, there has been a continued emphasis on investing in advanced facilities to support new platforms and technologies, as well as addressing deferred maintenance. Specific figures would require analysis of historical defense budgets and military construction appropriations, but the sector consistently represents a significant portion of the federal construction market.

What are the implications of a firm-fixed-price contract for government oversight?

A firm-fixed-price (FFP) contract places the primary responsibility for cost control on the contractor. For government oversight, this means the focus shifts from detailed cost auditing to ensuring that the contractor meets the contract's performance requirements, specifications, and schedule. Oversight activities will involve monitoring progress, verifying quality of work, managing any approved contract modifications, and ensuring compliance with all terms and conditions. While the financial risk is largely with the contractor, the government still needs to ensure the project is delivered as specified and on time. Robust oversight is still necessary to prevent scope creep, ensure quality, and address any potential contractor performance issues.

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: W9128F23R0012

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11486 CORPORATE BLVD, ORLANDO, FL, 32817

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,891,555

Exercised Options: $45,891,555

Current Obligation: $45,891,555

Actual Outlays: $-14,759,501

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline