Debunking the Hasbara: U.S.-Funded IDF Infrastructure Projects – Who actually benefits?

Summary

The recent Haaretz investigation revealed that the United States is financing a slew of construction projects for the Israel Defense Forces – including new air force facilities for refueling tankers and heavy lift helicopters, a headquarters complex for the Shayetet 13 naval commando unit, and many other base upgrades – all paid for with U.S. military aid. These projects, funded through Foreign Military Financing (FMF), are publicly bid and awarded via SAM.gov (the federal contracts portal). Below we break down the specific contracts behind these projects, identifying the contractors and contract values (and any known subcontractors), to see who actually benefits from these U.S.-funded deals.

Air Force Infrastructure for New Aircraft (KC-46 Tankers & CH-53K Helicopters)

KC-46A Tanker Bed-down: To accommodate Israel’s incoming Boeing KC-46A aerial refueling tankers, the U.S. Army Corps of Engineers is managing a design-bid-build project to construct the necessary aviation facilities. The solicitation calls for new hangars, fuel storage, maintenance facilities and supporting infrastructure at “Site 20115” in Israel. The contract magnitude is between $25 million and $100 million. Crucially, only U.S. firms or U.S.-led joint ventures are eligible to win this contract, since it is financed by U.S. FMF aid. In practice this means an American construction firm will be the prime contractor. (As of mid-2025, this contract was still in the solicitation phase with award expected soon.)

CH-53K Helicopter Facilities: Similarly, the U.S. is funding construction of infrastructure for the Israeli Air Force’s new CH-53K heavy transport helicopters. An Army Corps RFP issued in 2025 seeks to “establish and adapt aviation and maintenance infrastructure” at an airbase in Israel for the CH-53K squadron. This is a massive project – the estimated value ranges from $100 million up to $250 million, reflecting extensive hangars, runways, fuel systems, and maintenance buildings required for the large “King Stallion” helicopters. By law (Arms Export Control Act §42), Foreign Military Financing contracts must be awarded to U.S. companies unless a special waiver is obtained. No such waiver was approved here, so **offers from non-U.S. firms were deemed *“ineligible for award”***. In other words, the prime contractor will be an American company selected through the Corps of Engineers bidding process.

Contractors: While the tanker and helicopter bed-down contracts have not been publicly awarded yet, we can anticipate the likely players based on similar past projects. In recent years, a handful of U.S. construction firms have dominated these IDF base contracts. For example, Conti Federal Services (Edison, NJ) built hardened hangars for F-35 jets under a $69.4 million FMS contract awarded in 2018, and in 2021 Conti won an even larger $84.4 million contract to construct additional aircraft shelters and flight facilities in Israel. Another frequent awardee is Oxford Federal LLC (a U.S. small business based in Wyoming/Colorado) – Oxford received a $25.9 million contract to build new ammunition storage magazines in Israel (awarded 2019), as well as smaller Corps contracts for things like runway renovations and site development (e.g. a $7.7M award for “Site 13900” in 2019). We can expect similar firms to bid on the KC-46 and CH-53K projects. The tender requirements explicitly note that U.S. contractors must adhere to both American and Israeli building codes and security standards during construction, underscoring the close involvement of both countries in these projects.

New Shayetet 13 Naval Commando Base (Atlit)

One of the eye-opening projects identified is a new headquarters and facilities for Shayetet 13, Israel’s elite naval commando unit, at Atlit on the northern coast. This project – also funded by U.S. aid – includes constructing command buildings, training infrastructure, and a pier/dock for naval vessels. Although the Haaretz article did not name contractors, we now know some details from contract records:

• In April 2022, Conti Federal Services was awarded a $17.8 million design-bid-build contract for pier construction at an Israeli naval base. This pier is believed to be part of the Shayetet 13 base upgrade. Conti’s own press release notes they are building “a pier for the Israeli naval bases in northern Israel” as part of ongoing FMF projects. This suggests Conti (an American firm) is the prime contractor for that portion of the commando base infrastructure.
• Additional contracts for buildings and site development at Atlit have likely been issued through the Corps’ Israel program as well. For instance, the U.S. has a Combined Joint Operations Center (CJOC) project in Israel (Conti received a $2.5M task order in 2025 for a CJOC facility), which could be related to joint U.S.-Israel command needs and possibly located at the new base. While details are sparse, it’s clear multiple U.S.-led contracts are executing the Shayetet 13 headquarters plan.

In short, the Shayetet 13 base construction is being built by U.S. contractors with U.S. tax dollars, just like the air force projects. American firms are responsible for delivering everything from the buildings to the piers, under U.S. Army Corps oversight. The entire project is funded by U.S. security assistance.

Other U.S.-Funded IDF Construction Projects

Beyond the headline items above, the United States has quietly poured hundreds of millions into various IDF infrastructure projects over the past decade. Tenders unearthed by Haaretz showed around 20 distinct construction projects funded through FMF in recent years. Here are a few notable examples, with contract details:

• Hardened Aircraft Shelters (F-35 program): In July 2018, the Army Corps awarded Conti Federal a $69.4 million firm-fixed-price contract to build hardened aircraft shelters at an airbase in Israel. These fortified hangars were built in southern Israel to house the Israeli Air Force’s new F-35 “Adir” fighters. (Conti later delivered at least 8 such shelters by 2021, and additional shelter contracts have been let – e.g. a 2020 award of ~$91M to CDM Constructors, and the $84M Conti contract in late 2021 – to expand Israel’s fighter infrastructure.)
• Airfield Runway and Taxiway Upgrades: Several contracts have addressed air base improvements. In 2019, Conti Federal received a $15.3 million FMS contract to renovate an IDF base’s runway and even upgrade an on-base kitchen facility. More recently, in 2024 Conti won a task order (under a larger IDIQ) to repave a critical fighter jet taxiway (Site 20019) in Israel for $1.7 million. Essentially, U.S. funds have paid to modernize runways, aprons, and support infrastructure at multiple Israeli airfields.
• Ammunition Storage and Military Logistics: As mentioned, Oxford Federal built new ammo storage bunkers under a $25.9M contract. Oxford also handled other small projects like Site 13900 (exact nature undisclosed, ~$7.7M) and a $11.5M design-build contract for miscellaneous IDF sites in 2020. These likely included warehouse facilities, security fencing, and other base support buildings funded by FMF. (Notably, “Site 911”, a mysterious 5-story underground facility built earlier by the Corps near Tel Aviv, had an estimated $100M U.S. budget as well – indicative of the scale of U.S. construction aid even in prior years.)
• Training and Ops Facilities: U.S. FMF has also financed specialized training bases and command centers. For example, earlier U.S. projects built urban warfare training centers and an intelligence campus in the Negev for the IDF (following the Wye River Memorandum). While those were a separate tranche of aid in the 2000s, it set the precedent for today’s continued U.S.-funded construction. Recent contracts like the CJOC ($2.5M) suggest ongoing U.S. involvement in command/control facility construction for Israel’s military.

According to a U.S. Army Corps briefing, as of a few years ago over $450 million in construction was ongoing under the Israel FMF program, with tens of millions more in pre-award pipeline. The “pipeline” of future projects – including large initiatives like the KC-46 and CH-53K bases – means the total U.S. investment in Israeli military infrastructure is rapidly climbing into the billions of shekels (as Haaretz reported).

Who Really Benefits? – Contractors vs. Local Economy

Pro-Israel lobbyists often argue that these aid-funded projects “ultimately fund American businesses and help the U.S. economy.” It is true that American companies are the prime contractors by design: FMF construction contracts “must be awarded to American companies” under program rules. This ensures U.S. firms like Conti, Oxford, etc., book the revenue and are responsible for project delivery. Contracts also stipulate the U.S. primes should perform at least 25% of the work with their own staff (often in managerial or technical roles) so that they “benefit financially from the program” and are not mere pass-through brokers.

However, claiming this arrangement broadly “helps the American economy” is misleading. In practice, the majority of the actual construction work is done in Israel by Israeli subcontractors and workers, not by American labor. U.S. firms understandably do not ship over large crews from the States for these projects; instead they partner with capable local Israeli construction companies to carry out the on-site building. The U.S. contractor typically provides project management, design oversight, and specialized expertise, but hires local subcontractors for concrete work, electrical, plumbing, earthmoving, etc. As a 2017 legal briefing on the program noted, “teaming arrangements with Israeli subcontractors will be vital” for U.S. primes, and indeed many Israeli firms are eager to team up and get a piece of the work. This means a significant portion of each contract’s value flows into the Israeli economy – paying Israeli construction crews, subcontractor firms, materials suppliers, and so on (even though the prime contract is in U.S. dollars to an American company).

Furthermore, the purpose of these projects is to build up military facilities in Israel, not in the United States. The end result of the spending is enhanced bases and infrastructure for the IDF. Apart from the profits earned by a handful of U.S. defense contractors and construction firms, American taxpayers see little direct economic return. The “benefit” accrues primarily to Israel’s military capabilities (and secondarily to the Israeli construction sector via subcontracts). Even security measures channel money locally – for example, on past Corps projects in Israel, Israeli companies and personnel had to be used for on-site security and certain design tasks. (On the Corps’ secret “Site 911” bunker job, an Israeli architect firm was commissioned and Israeli Air Force veterans were hired as guards, while the contract forbade employment of Palestinian workers on the site.) Policies like that ensure that, beyond the American prime’s involvement, most of the labor and ancillary spending stays in-country in Israel.

Bottom line: The contract data confirms that U.S. military aid is financing an extensive construction program for Israel’s benefit – from airbases and training facilities to headquarters and bunkers. Yes, U.S. contractors such as Conti Federal, Oxford Federal, and others are winning the prime contracts (in line with FMF rules), but these projects are not a broad boon to the average American worker or the U.S. economy at large. Rather, they function as a taxpayer-funded subsidy to Israel’s defense infrastructure, with American firms taking a cut for managing the builds and Israeli subcontractors carrying out much of the physical construction. The claim that “our aid just comes back to American companies” paints an incomplete picture – in reality, a few U.S. companies profit, while the strategic and economic gains (new facilities, local jobs, etc.) accrue chiefly to Israel.

Sources: Official contract announcements and solicitations on Defense.gov and SAM.gov; Haaretz reporting (O. Yaron); contractor press releases; and U.S. Army Corps program briefings detailing the Israel FMS construction program. Each of these publicly available documents reinforces the details of who is building what – and on whose dime – in these U.S.-funded projects. The evidence makes clear that while American companies serve as the funnel for the funds, the ultimate beneficiary of these contracts is the Israeli military, not the U.S. economy.