Forest Service Awards $3.1M Road Rehab Contract to McKenzie Construction in North Carolina
Contract Overview
Contract Amount: $3,093,643 ($3.1M)
Contractor: Mckenzie Construction & Site Development LLC
Awarding Agency: Department of Agriculture
Start Date: 2025-06-23
End Date: 2026-06-07
Contract Duration: 349 days
Daily Burn Rate: $8.9K/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 - EAST
Place of Performance
Location: HOT SPRINGS, MADISON County, NORTH CAROLINA, 28743
Plain-Language Summary
Department of Agriculture obligated $3.1 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC for work described as: APPALACHIAN RANGER DISTRICT ROAD REHABILITATION - EAST Key points: 1. Contract awarded for road rehabilitation in Appalachian Ranger District. 2. McKenzie Construction & Site Development LLC is the prime contractor. 3. The contract falls under Highway, Street, and Bridge Construction. 4. Awarded via full and open competition after exclusion of sources.
Value Assessment
Rating: good
The contract value of $3.1 million appears reasonable for road rehabilitation projects of this scope. Benchmarking against similar federal highway construction contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded through full and open competition after exclusion of sources, suggesting a competitive process but with specific source limitations. This method aims for fair pricing while potentially streamlining the selection for specialized needs.
Taxpayer Impact: The $3.1 million expenditure supports infrastructure improvement, with competition aiming to ensure taxpayer funds are used efficiently for necessary road rehabilitation.
Public Impact
Improved access and safety for the Appalachian Ranger District. Potential for local economic impact through construction jobs and material sourcing. Enhanced recreational opportunities and resource management capabilities due to better road infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- Limited competition after exclusion of sources may impact price discovery.
- Contract duration of 349 days requires careful monitoring for timely completion.
Positive Signals
- Addresses critical infrastructure needs for the Forest Service.
- Awarded to a single entity, potentially simplifying project management.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Highway, Street, and Bridge Construction sector, which is a significant area of federal spending for infrastructure maintenance and development. Spending in this sector is often driven by needs for public safety and accessibility.
Small Business Impact
The data does not indicate if small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Forest Service, an agency within the Department of Agriculture, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure accountability and proper execution.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Agriculture Contracting
- Forest Service Programs
Risk Flags
- Potential for limited competition impacting final price.
- Risk of delays impacting project completion timeline.
- Need for robust oversight to ensure quality of rehabilitation work.
- Environmental impact during construction phase.
Tags
highway-street-and-bridge-construction, department-of-agriculture, nc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $3.1 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC. APPALACHIAN RANGER DISTRICT ROAD REHABILITATION - EAST
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 $3.1 million.
What is the period of performance?
Start: 2025-06-23. End: 2026-06-07.
What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' method?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are necessary for project success. Agencies may exclude sources that do not meet stringent pre-qualification criteria to ensure only qualified contractors participate, aiming for a more efficient and effective selection process for specialized projects.
How does the firm fixed price contract structure mitigate potential cost overruns for this road rehabilitation project?
A firm fixed price contract shifts the risk of cost overruns to the contractor. The contractor is obligated to complete the work for the agreed-upon price, regardless of unforeseen expenses. This provides the government with cost certainty, although it may lead to higher initial bids to account for contractor risk.
What is the anticipated impact of this road rehabilitation on the ecological health and accessibility of the Appalachian Ranger District?
Improved roads can enhance accessibility for both recreational users and resource management personnel, potentially increasing economic activity. However, construction activities themselves can pose environmental risks. Careful planning and mitigation strategies are crucial to minimize ecological disruption during and after rehabilitation.
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: 12445225R0024
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: $3,093,643
Exercised Options: $3,093,643
Current Obligation: $3,093,643
Actual Outlays: $2,613,033
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
Start Date: 2025-06-23
Current End Date: 2026-06-07
Potential End Date: 2026-06-07 00:00:00
Last Modified: 2026-03-12
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