DoD Awards $140M Hangar Construction Contract for B-21 Program at Ellsworth AFB
Contract Overview
Contract Amount: $139,523,501 ($139.5M)
Contractor: Conti Federal Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-05-23
End Date: 2027-07-26
Contract Duration: 1,159 days
Daily Burn Rate: $120.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT B-21 PHASE MAINTENANCE HANGAR AT ELLSWORTH AFB
Place of Performance
Location: ELLSWORTH AFB, MEADE County, SOUTH DAKOTA, 57706
Plain-Language Summary
Department of Defense obligated $139.5 million to CONTI FEDERAL SERVICES, LLC for work described as: CONSTRUCT B-21 PHASE MAINTENANCE HANGAR AT ELLSWORTH AFB Key points: 1. Significant investment in critical B-21 bomber program infrastructure. 2. Conti Federal Services, LLC, a large business, secured the contract. 3. Risk of cost overruns and schedule delays inherent in large construction projects. 4. Construction sector faces material cost volatility and labor shortages.
Value Assessment
Rating: good
The contract value of $139.5M appears reasonable for a large-scale hangar construction project supporting advanced aircraft. Benchmarking against similar military construction projects of this magnitude would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a definitive contract with a firm-fixed-price structure aims to control costs.
Taxpayer Impact: Taxpayer funds are being utilized for essential military infrastructure, supporting national defense capabilities.
Public Impact
Enhances operational readiness for the B-21 bomber fleet. Supports economic activity in South Dakota through construction jobs. Contributes to the long-term modernization of Air Force infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation due to material price fluctuations.
- Schedule slippage risk in complex construction projects.
- Dependence on a single large contractor.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract type.
- Supports a high-priority national defense asset.
Sector Analysis
This contract falls within the commercial and institutional building construction sector. Spending benchmarks for similar military construction projects, especially those involving specialized aircraft facilities, are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The contract was awarded to a large business (Conti Federal Services, LLC) and does not indicate any small business participation or set-aside. This suggests limited direct benefit to small businesses from this specific award.
Oversight & Accountability
The Department of the Army, under the DoD, is responsible for oversight. The use of a definitive contract and firm-fixed-price structure implies a degree of accountability for the contractor to deliver within the agreed terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to market volatility.
- Schedule delays impacting B-21 program timelines.
- Contractor performance risk.
- Limited small business participation.
- Dependence on specialized construction materials and labor.
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 $139.5 million to CONTI FEDERAL SERVICES, LLC. CONSTRUCT B-21 PHASE MAINTENANCE HANGAR AT ELLSWORTH AFB
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 $139.5 million.
What is the period of performance?
Start: 2024-05-23. End: 2027-07-26.
What is the projected return on investment for this hangar in terms of operational efficiency and extended aircraft lifespan?
The return on investment is primarily measured by enhanced operational readiness and the ability to maintain the B-21 bomber fleet effectively. A dedicated, state-of-the-art facility is expected to reduce maintenance downtime, improve repair efficiency, and potentially extend the operational lifespan of the aircraft by providing a controlled environment.
What are the primary risks associated with the construction timeline and potential delays?
Key risks include unforeseen site conditions, supply chain disruptions for specialized materials, weather impacts, and labor availability. Delays could stem from design changes, contractor performance issues, or regulatory hurdles. Mitigation strategies likely involve detailed scheduling, contingency planning, and robust contractor management.
How does this expenditure align with broader DoD infrastructure modernization goals and budget priorities?
This expenditure directly aligns with the DoD's strategic goal of modernizing its force structure and ensuring the readiness of next-generation platforms like the B-21. It reflects a commitment to investing in essential infrastructure that supports advanced capabilities, even amidst broader budget considerations.
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: W9128F24R0011
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11486 CORPORATE BLVD STE 190, 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: $140,197,968
Exercised Options: $139,523,501
Current Obligation: $139,523,501
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-05-23
Current End Date: 2027-07-26
Potential End Date: 2027-07-26 00:00:00
Last Modified: 2025-11-06
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