McKenzie Construction Awarded $8.6M Design-Build Contract for HVAC and Roof Replacement at DOL Facilities

Contract Overview

Contract Amount: $8,631,012 ($8.6M)

Contractor: Mckenzie Construction & Site Development LLC

Awarding Agency: Department of Labor

Start Date: 2024-06-27

End Date: 2027-03-19

Contract Duration: 995 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BL HOOKS 3510 - DESIGN/BUILD REPLACE HVAC AND ROOF IN GYM, DORM, AND ADMIN BLDGS THE WORK CONSISTS OF DESIGN-BUILD CONSTRUCTION FOR THE REPLACEMENT OF THE ROOFS AND HVAC SYSTEMS AT THREE BUILDINGS: BUILDING 1 (DORMITORY); BUILDING 2 (GYMNASIUM); AND

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38116

State: Tennessee Government Spending

Plain-Language Summary

Department of Labor obligated $8.6 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC for work described as: BL HOOKS 3510 - DESIGN/BUILD REPLACE HVAC AND ROOF IN GYM, DORM, AND ADMIN BLDGS THE WORK CONSISTS OF DESIGN-BUILD CONSTRUCTION FOR THE REPLACEMENT OF THE ROOFS AND HVAC SYSTEMS AT THREE BUILDINGS: BUILDING 1 (DORMITORY); BUILDING 2 (GYMNASIUM); AND Key points: 1. The contract focuses on essential building infrastructure upgrades for three key facilities. 2. Competition was limited, potentially impacting price discovery. 3. The project carries risks related to construction timelines and unforeseen site conditions. 4. Spending falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $8.6M appears reasonable for a design-build project involving HVAC and roof replacement across three buildings. Benchmarking against similar projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This approach may have restricted the pool of bidders and potentially influenced the final price compared to unrestricted full and open competition.

Taxpayer Impact: The use of limited competition warrants scrutiny to ensure taxpayers received the best value. The final price should be compared against market rates for similar services.

Public Impact

Improved facility conditions for dormitory, gymnasium, and administration buildings. Potential for enhanced energy efficiency through new HVAC systems. Modernized infrastructure supporting the Department of Labor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Potential for project delays impacting facility availability.
Scope creep risk in design-build projects.

Positive Signals

Addresses critical infrastructure needs.
Consolidates design and construction responsibilities.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector that often involves significant capital investment for facility maintenance and upgrades. Benchmarks for similar HVAC and roofing projects can vary widely based on building size, complexity, and location.

Small Business Impact

The contract was awarded to McKenzie Construction & Site Development LLC, a specific company. There is no explicit indication of small business participation or subcontracting goals within the provided data.

Oversight & Accountability

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause suggests a specific justification was made for limiting the competition. Oversight should ensure this justification was valid and that the procurement process was fair and transparent.

Related Government Programs

Commercial and Institutional Building Construction
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Long project duration increases risk of cost escalation and delays.
Potential for scope creep in design-build contracts.
Lack of transparency regarding source exclusion justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $8.6 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC. BL HOOKS 3510 - DESIGN/BUILD REPLACE HVAC AND ROOF IN GYM, DORM, AND ADMIN BLDGS THE WORK CONSISTS OF DESIGN-BUILD CONSTRUCTION FOR THE REPLACEMENT OF THE ROOFS AND HVAC SYSTEMS AT THREE BUILDINGS: BUILDING 1 (DORMITORY); BUILDING 2 (GYMNASIUM); AND

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 Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2024-06-27. End: 2027-03-19.

What was the specific justification for excluding sources in this full and open competition?

The provided data states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' but does not detail the specific justification. Typically, such exclusions require a documented rationale, such as specialized capabilities, urgent needs, or specific regulatory requirements, to ensure fair competition principles are upheld while addressing unique project demands.

How does the $8.6M contract value compare to industry benchmarks for similar design-build HVAC and roofing projects?

Without detailed project specifications (e.g., square footage, system complexity, specific materials), a precise benchmark is difficult. However, $8.6M for replacing HVAC and roofs across three distinct buildings (dorm, gym, admin) suggests a substantial investment. A thorough cost analysis comparing it to similar government or private sector projects of comparable scope and location is recommended.

What are the potential risks associated with the 995-day duration of this contract?

A duration of 995 days (approximately 2.7 years) for a design-build HVAC and roofing project presents risks including potential cost escalation due to inflation, material price volatility, and extended labor costs. It also increases the likelihood of unforeseen site conditions or design challenges emerging over time, potentially impacting the firm fixed price.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: 1605AE-23-R-00010

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 29162 CHAPEL PARK DR, WESLEY CHAPEL, FL, 33543

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: $8,631,012

Exercised Options: $8,631,012

Current Obligation: $8,631,012

Actual Outlays: $7,100,941

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline