City staff officials on Tuesday are expected to recommend that the Killeen City Council reject a nearly $4.5 million bid to build another corporate hangar at Killeen-Fort Hood Regional Airport.

The Federal Aviation Administration “has offered the city a (Military Airport Program) grant in an amount up to $4,553,070 to fund a portion of the new corporate hangar,” according to city documents. “The consultant and staff’s recommendation was to award the construction contract to Bounds Commercial Construction. However, due to delays in FAA grant funding, the contractor could not extend their bid. Therefore, the consultant and staff’s recommendation is to reject the bid.”

Bounds Commercial Construction submitted a $4,474,726.63 bid for the construction of an 8,000-square-foot hangar. The total project cost, according to the city, is estimated to be $5,741,967. After the FAA grant is applied, the city would use $1,188,897 for aviation funds for the match and “ineligible portions,” which includes interior framing and completing the 2,000-square-foot office space at the hangar.

The FAA Military Airport Program is available to civil airport sponsors of joint-use military airfield or former military airfields to help in the transition from military to civilian aviation operations, according to the city.

Staff members, according to city documents, will recommend during the Killeen City Council meeting re-bidding the project.

On Monday, city and other officials hosted a ribbon-cutting ceremony at a 22,000-square-foot hangar at Killeen-Fort Hood Regional Airport. It is leased by CSI Aviation, an air transportation and air charter company that’s operated a temporary hangar at the airport since 2019.

The meeting is scheduled for 5 p.m. at City Hall, 101 N. College St.