Forest Service awards $3.5M road rehabilitation contract to McKenzie Construction & Site Development LLC

Contract Overview

Contract Amount: $3,493,312 ($3.5M)

Contractor: Mckenzie Construction & Site Development LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-06-23

End Date: 2026-06-30

Contract Duration: 372 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: APPALACHIAN RANGER DISTRICT ROAD REHABILITATION WEST

Place of Performance

Location: HOT SPRINGS, MADISON County, NORTH CAROLINA, 28743

State: North Carolina Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.5 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC for work described as: APPALACHIAN RANGER DISTRICT ROAD REHABILITATION WEST Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. Fixed-price contract type suggests cost certainty for the government, shifting risk to the contractor. 4. The contract duration of 372 days indicates a significant project timeline. 5. The project is located in North Carolina, potentially benefiting the local economy and workforce. 6. No small business set-aside was utilized, which may limit direct opportunities for small businesses in this specific award.

Value Assessment

Rating: good

The contract value of approximately $3.5 million for road rehabilitation appears reasonable for a project of this scope and duration. Benchmarking against similar Forest Service road construction and repair projects would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when project requirements are well-defined, as it caps costs. However, without detailed cost breakdowns or comparisons to industry standards for similar rehabilitation work, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that the Forest Service initially considered excluding certain sources but ultimately opened the competition to all eligible bidders. The specific reason for the initial exclusion is not detailed, but the final award suggests a robust competitive process was followed. The number of bidders is not provided, which would offer further insight into the level of competition.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Appalachian Ranger District will benefit from improved road infrastructure, enhancing accessibility for recreational users and operational efficiency for forest management. The project directly supports the maintenance and improvement of public lands managed by the Forest Service. The geographic impact is concentrated within the Appalachian Ranger District, likely in North Carolina. The contract is expected to create or sustain jobs in the construction sector within the project's geographic area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of competitive intensity.
The 'after exclusion of sources' clause warrants further investigation to understand potential limitations on competition.
No small business subcontracting plan is indicated, which could reduce opportunities for small business participation.

Positive Signals

Awarded through full and open competition, suggesting a fair and accessible process.
Firm fixed-price contract provides cost predictability for the government.
Project addresses critical infrastructure needs for the Forest Service.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector (NAICS 237310). This sector is characterized by significant government spending on infrastructure projects. The Forest Service, as a major land management agency, frequently contracts for road construction and maintenance to facilitate access and resource management. Comparable spending benchmarks would involve analyzing other federal, state, and local government contracts for similar road rehabilitation projects, considering factors like terrain, scope of work, and material costs.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This means that while small businesses could compete, there was no specific reservation of the contract for them. The absence of a set-aside and the lack of explicit subcontracting requirements suggest that direct opportunities for small businesses through this specific award may be limited, unless McKenzie Construction & Site Development LLC voluntarily includes them in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Forest Service contracting officer and project managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated by public contract databases where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal Highway Administration Road Construction Projects
National Park Service Infrastructure Maintenance
Bureau of Land Management Access Road Development
Department of Defense Military Base Road Repair

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Weather-related delays common in road construction projects.
Contractor performance risk, though mitigated by fixed-price structure.
Limited transparency on the number of bidders in the competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.5 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC. APPALACHIAN RANGER DISTRICT ROAD REHABILITATION WEST

Who is the contractor on this award?

The obligated recipient is MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2025-06-23. End: 2026-06-30.

What is the track record of McKenzie Construction & Site Development LLC with federal contracts?

Information regarding McKenzie Construction & Site Development LLC's specific track record with federal contracts is not provided in the given data. A comprehensive analysis would require searching federal procurement databases (like SAM.gov or FPDS) to identify past awards, performance reviews, and any history of contract disputes or terminations. Understanding their experience with similar road rehabilitation projects, particularly for agencies like the Forest Service, would be crucial for assessing their capability and reliability on this Appalachian Ranger District project. Their past performance is a key indicator of their likelihood to successfully complete this contract on time and within budget.

How does the awarded amount compare to similar Forest Service road rehabilitation projects?

The provided data does not include specific cost breakdowns or unit pricing for the $3.5 million road rehabilitation project. To benchmark this value, one would need to compare it against similar projects undertaken by the Forest Service or other land management agencies. Key comparison points would include the type of rehabilitation (e.g., resurfacing, base repair, drainage improvements), the mileage or area covered, the complexity of the terrain, and the specific materials used. Without these comparative data points, it is difficult to definitively state whether $3.5 million represents excellent, fair, or questionable value. However, the firm fixed-price nature suggests a defined scope, which aids in cost control.

What are the primary risks associated with this contract?

Primary risks for this contract include potential cost overruns if unforeseen site conditions arise (though mitigated by the fixed-price structure), delays due to weather or environmental factors impacting the Appalachian region, and contractor performance issues. Given it's a delivery order under a potentially larger IDIQ, there's also a risk related to the overall scope and management of the parent contract. Ensuring adequate oversight and clear communication channels will be vital. The 'after exclusion of sources' clause, while resolved by full and open competition, could indicate initial complexities or specific requirements that might pose execution challenges.

How effective is the Forest Service in managing road infrastructure contracts?

The effectiveness of the Forest Service in managing road infrastructure contracts can be assessed through various indicators, including project completion rates, adherence to budget, and the long-term durability of the completed work. Historically, the Forest Service manages a vast portfolio of contracts for infrastructure maintenance and development across diverse terrains and conditions. Success often depends on the quality of initial project scoping, the diligence of contract oversight, and the selection of capable contractors. Publicly available contract data and performance reports, along with IG audits, can provide insights into the agency's overall effectiveness in this area. This specific contract's success will contribute to that broader assessment.

What are the historical spending patterns for road rehabilitation within the Appalachian Ranger District?

The provided data focuses solely on this single $3.5 million award and does not offer historical spending patterns for road rehabilitation within the Appalachian Ranger District. To analyze historical spending, one would need to examine procurement records over several fiscal years, identifying all contracts related to road maintenance, repair, and construction within that specific district. This would involve looking at the total amount spent annually, the types of projects undertaken, the primary contractors utilized, and the funding sources. Such an analysis would reveal trends, identify periods of increased or decreased investment, and highlight any significant shifts in contracting strategies or priorities.

What is the significance of the 'delivery order' contract type?

A 'delivery order' signifies that this contract is a task order issued against a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQs allow agencies to procure supplies or services over a set period, with specific quantities and prices determined by individual delivery or task orders. This approach provides flexibility for the agency to order needed services as requirements arise, while establishing overall terms and conditions upfront. For this road rehabilitation project, it means the Forest Service has a framework contract in place, and this $3.5 million award represents a specific call for services under that umbrella agreement. The duration and value are specific to this order.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 12445225R0023

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2301 CALVERT ST NW, WASHINGTON, DC, 20008

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,493,312

Exercised Options: $3,493,312

Current Obligation: $3,493,312

Actual Outlays: $2,967,423

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12445224D0035

IDV Type: IDC

Timeline