DoD Awards $3.4M for Storm Damage Repair to McKenzie Construction, Highlighting Commercial Building Sector

Contract Overview

Contract Amount: $3,412,779 ($3.4M)

Contractor: Mckenzie Construction & Site Development LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-03

End Date: 2026-02-23

Contract Duration: 538 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X-1006 REPAIR B4215 STORM DAMAGE

Place of Performance

Location: NAVAL AIR STATION/JRB, TARRANT County, TEXAS, 76127

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $3.4 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC for work described as: X-1006 REPAIR B4215 STORM DAMAGE Key points: 1. Contract awarded to McKenzie Construction & Site Development LLC for storm damage repair. 2. The contract falls under the Commercial and Institutional Building Construction sector. 3. Full and open competition was utilized after exclusion of sources, indicating a specific procurement strategy. 4. The award value of $3.4M is a significant investment in infrastructure repair.

Value Assessment

Rating: fair

The contract value of $3.4M for storm damage repair appears reasonable given the duration of 538 days. Benchmarking against similar large-scale construction projects would provide a clearer picture of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while competition was sought, certain sources were initially excluded. This could impact price discovery and potentially lead to higher costs than a truly unrestricted full and open competition.

Taxpayer Impact: Taxpayers are impacted by the $3.4M expenditure for storm damage repair, with the efficiency of the procurement method influencing the overall value for money.

Public Impact

Ensures critical infrastructure resilience by addressing storm damage. Supports the construction sector and associated employment. Funds allocated for repairs in Texas, benefiting the local economy. Potential for future infrastructure projects within the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Commercial and Institutional Building Construction sector is vital for maintaining government facilities. Spending in this sector can fluctuate based on infrastructure needs, natural disasters, and modernization efforts. This contract represents a significant investment within this domain.

Small Business Impact

The contract was awarded to McKenzie Construction & Site Development LLC. It is noted that small business participation (sb) is false, indicating this was not a small business set-aside contract.

Oversight & Accountability

The contract's 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation warrants further review to ensure the exclusion criteria were justified and did not unduly limit competition. Oversight will be crucial to monitor project progress and adherence to the firm fixed price.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-defense, tx, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.4 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC. X-1006 REPAIR B4215 STORM DAMAGE

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 Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2024-09-03. End: 2026-02-23.

What were the specific reasons for excluding certain sources in the procurement process, and how did this impact the final contract price?

The exclusion of sources suggests a pre-qualification or specific capability requirement. The impact on price is difficult to ascertain without knowing the number and nature of excluded bidders. If highly capable firms were excluded, it could have reduced competitive pressure, potentially leading to a higher price than if all qualified firms had been allowed to bid.

What is the risk associated with the extended contract duration of 538 days for storm damage repair, particularly concerning potential cost escalations or unforeseen issues?

An extended duration increases the risk of unforeseen issues like material price fluctuations, labor availability changes, or additional damage occurring. While a firm fixed price contract offers some protection, the contractor may seek change orders for unforeseen conditions, potentially increasing costs. Effective project management and contingency planning are crucial to mitigate these risks.

How effectively does this contract address the long-term resilience of DoD infrastructure against future storm events, beyond immediate repairs?

This contract primarily focuses on immediate repairs to address existing storm damage. While essential for restoring functionality, it may not inherently incorporate long-term resilience measures unless explicitly specified in the scope of work. Assessing whether the repairs include upgrades for enhanced future storm resistance is key to understanding its long-term effectiveness.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6945021R0045

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 29162 CHAPEL PARK DRIVE #3B, WESLEY CHAPEL, FL, 33543

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

Financial Breakdown

Contract Ceiling: $3,412,779

Exercised Options: $3,412,779

Current Obligation: $3,412,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945022D0051

IDV Type: IDC

Timeline

Start Date: 2024-09-03

Current End Date: 2026-02-23

Potential End Date: 2026-02-23 00:00:00

Last Modified: 2026-01-08

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