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

State: North Carolina Government Spending

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

Positive Signals

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

Risk Flags

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: ConstructionHighway, Street, and Bridge ConstructionHighway, Street, and Bridge Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, 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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