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
- Limited competition due to source exclusion.
- Potential for cost overruns in large-scale repair projects.
- Contract duration extends over a significant period.
Positive Signals
- Addresses urgent storm damage, ensuring operational continuity.
- Awarded to a specific LLC, potentially supporting a targeted business.
- Firm fixed price contract provides cost certainty.
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
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition.
- Potential for cost overruns due to extended duration.
- Justification for source exclusion needs verification.
- Long-term resilience not explicitly detailed.
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: 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: 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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