Transportation contract for Texas awarded to McKenzie Construction & Site Development LLC for over $7.4M

Contract Overview

Contract Amount: $7,483,220 ($7.5M)

Contractor: Mckenzie Construction & Site Development LLC

Awarding Agency: Department of Transportation

Start Date: 2024-11-12

End Date: 2025-08-30

Contract Duration: 291 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TX FW TECH MULTI(1) VARIOUS ROUTES & PARKING

Place of Performance

Location: GROVES, JEFFERSON County, TEXAS, 77619

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $7.5 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC for work described as: TX FW TECH MULTI(1) VARIOUS ROUTES & PARKING Key points: 1. Contract value appears reasonable given the scope of highway, street, and bridge construction. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The definitive contract type with a firm fixed price indicates a clear understanding of project scope and cost. 4. Project duration of 291 days is standard for this type of infrastructure work. 5. The contract is positioned within the broader highway construction sector, a significant area of federal spending. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of approximately $7.48 million for highway, street, and bridge construction in Texas appears to be within a reasonable range for such projects. Benchmarking against similar federal contracts for infrastructure development in the region would provide a more precise assessment of value for money. The firm fixed-price nature suggests that costs were well-defined upfront, which can be advantageous for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. With four bidders participating, the level of competition was moderate. This suggests that while multiple companies were interested, the market may not be saturated, potentially influencing the final price. The agency received a competitive number of proposals, which generally aids in price discovery.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to offer their best pricing, likely resulting in a more cost-effective outcome compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the residents and businesses in Texas who will benefit from improved transportation infrastructure. Services delivered include construction and site development for highways, streets, and bridges. The geographic impact is concentrated in Texas, specifically within the Dallas-Fort Worth area. The contract will likely support jobs in the construction sector, including skilled labor and project management within the awarded firm and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price structure.
Dependence on a single prime contractor, McKenzie Construction & Site Development LLC, for overall project delivery.
Risk of delays due to weather or supply chain issues impacting construction timelines.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
Defined project scope and duration indicate clear expectations.
Award to a company with experience in site development and construction.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the nation's infrastructure. Federal spending in this area is substantial, driven by the need to maintain and upgrade transportation networks. Comparable spending benchmarks would involve analyzing the average cost per mile of highway construction or per square foot of bridge repair, adjusted for regional economic factors and project complexity. The market size for such construction is significant, with numerous firms competing for federal and state contracts.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the prime contract was awarded to a larger entity, McKenzie Construction & Site Development LLC. While this may limit direct opportunities for small businesses as prime contractors on this specific award, it does not preclude them from potentially subcontracting with the prime. The overall impact on the small business ecosystem depends on the prime contractor's subcontracting practices.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration (FHWA) within the Department of Transportation. Accountability measures are typically embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract award databases like SAM.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or closeout.

Related Government Programs

Federal Highway Administration Programs
National Highway System
Infrastructure Investment and Jobs Act Funding
State and Local Transportation Grants

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting delivery schedule.
Contractor performance below expectations.
Inadequate oversight leading to quality issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.5 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC. TX FW TECH MULTI(1) VARIOUS ROUTES & PARKING

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 Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2024-11-12. End: 2025-08-30.

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 detailed in the provided data snippet. To assess their performance, one would typically review their contract history, including past performance evaluations, any instances of contract disputes or terminations, and their experience with similar-sized and scoped projects. Databases like the Federal Procurement Data System (FPDS) or SAM.gov would be primary sources for this information. A review of their past federal awards would indicate their familiarity with federal acquisition regulations and performance expectations.

How does the awarded price compare to similar highway construction projects in Texas?

Without specific cost data for comparable projects, a direct price comparison is challenging. However, the contract value of $7.48 million for highway, street, and bridge construction in Texas can be benchmarked against average costs per mile or per project for similar infrastructure work in the region. Factors such as the complexity of the terrain, the scope of work (e.g., new construction vs. repair), material costs, and labor rates in the specific Texas locality would influence these comparisons. The firm fixed-price nature suggests the agency aimed for cost certainty, but a detailed cost-benefit analysis would require access to more granular project data and market cost indices.

What are the primary risks associated with this definitive contract?

The primary risks associated with this definitive contract, despite its firm fixed-price nature, include potential scope creep if project requirements are not rigidly managed, unforeseen site conditions that could lead to change orders and cost increases, and contractor performance issues. Delays due to weather, material availability, or labor shortages are also inherent risks in construction projects. The government's risk is mitigated by the competitive bidding process and the defined contract terms, but diligent oversight is crucial to manage these potential issues effectively.

How effective is the full and open competition process in ensuring value for this type of construction?

The full and open competition process is generally considered highly effective in ensuring value for construction contracts. By allowing all responsible sources to bid, it fosters a competitive environment that incentivizes contractors to offer their most competitive pricing and propose efficient solutions. The presence of four bidders in this case suggests a reasonable level of competition, which should help in achieving a fair market price. However, the effectiveness also depends on the clarity of the solicitation documents and the agency's ability to evaluate proposals objectively to select the best value, not just the lowest price.

What is the historical spending trend for highway construction by the Department of Transportation?

Historical spending trends for highway construction by the Department of Transportation (DOT) are generally substantial and have seen fluctuations influenced by federal funding cycles, economic conditions, and legislative initiatives like the Infrastructure Investment and Jobs Act. The DOT, primarily through the Federal Highway Administration (FHWA), allocates billions annually towards maintaining and improving the nation's highways, bridges, and tunnels. Spending typically increases during periods of heightened infrastructure investment focus. Analyzing multi-year spending data would reveal patterns related to specific program areas, geographic distributions, and the impact of major funding bills on overall expenditure levels.

Are there any specific performance metrics or KPIs defined for this contract?

The provided data snippet does not specify the performance metrics or Key Performance Indicators (KPIs) for this contract. However, for a definitive contract of this nature, performance is typically measured against adherence to the project schedule, quality of workmanship, compliance with safety standards, and successful completion of defined construction milestones. The firm fixed-price structure implies that meeting these objectives within the agreed-upon budget and timeline is paramount. The Federal Highway Administration would likely have established specific deliverables and acceptance criteria within the contract's statement of work.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 6982AF24B000012

Offers Received: 4

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: $7,483,220

Exercised Options: $7,483,220

Current Obligation: $7,483,220

Actual Outlays: $7,483,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline