McKenzie Construction awarded $1.2M contract for SPACE CONVERSIONS TO OFFICES in Kansas

Contract Overview

Contract Amount: $1,202,321 ($1.2M)

Contractor: Mckenzie Construction & Site Development LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-07-08

End Date: 2026-06-30

Contract Duration: 357 days

Daily Burn Rate: $3.4K/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: SPACE CONVERSIONS TO OFFICES

Place of Performance

Location: MANHATTAN, RILEY County, KANSAS, 66502

State: Kansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.2 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC for work described as: SPACE CONVERSIONS TO OFFICES Key points: 1. Contract value of $1.2M for office conversions suggests a significant project scope. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type may offer cost certainty but could limit flexibility for unforeseen issues. 4. The project duration of 357 days points to a substantial timeline for completion. 5. The North American Industry Classification System (NAICS) code 238220 places this contract within the plumbing, heating, and air-conditioning sector. 6. The contract is for delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of $1.2M for office conversions appears to be within a reasonable range for a project of this nature, though specific benchmarks for similar 'SPACE CONVERSIONS TO OFFICES' projects are not readily available. The firm fixed-price structure suggests an attempt to control costs, but the absence of detailed cost breakdowns makes a precise value-for-money assessment challenging. Without more granular data on the scope of work and materials, it's difficult to definitively benchmark the pricing against market rates or similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that the opportunity was broadly advertised, and multiple bidders were likely considered. The presence of two bids suggests a degree of competition, but the 'exclusion of sources' clause warrants further investigation to understand if any potential bidders were intentionally excluded and why. The level of competition, while present, may not have been as robust as a purely open competition.

Taxpayer Impact: The full and open competition, even with exclusions, generally benefits taxpayers by encouraging competitive pricing. However, the exclusion of certain sources could potentially limit the lowest possible price being achieved.

Public Impact

The Agricultural Research Service (ARS) is the primary beneficiary, receiving updated office space. The project will deliver modernized office facilities, potentially improving working conditions and productivity for ARS staff. The geographic impact is localized to Kansas, where the office conversion will take place. The contract will likely involve local construction and trade labor, providing employment opportunities within the Kansas workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type requires further scrutiny to ensure fair market access.
The firm fixed-price contract may pose risks if unforeseen construction challenges arise, potentially leading to change orders.
Limited public information on the specific scope of 'SPACE CONVERSIONS TO OFFICES' makes a detailed value assessment difficult.

Positive Signals

The contract was awarded through a competitive process, indicating an effort to secure fair pricing.
The firm fixed-price contract provides cost certainty for the government, assuming no significant change orders.
The project duration is clearly defined, allowing for planning and oversight.

Sector Analysis

This contract falls within the construction services sector, specifically related to building modification and interior finishing. The NAICS code 238220 points to specialized mechanical contractors. The federal government is a significant consumer of construction services for facility maintenance, upgrades, and new builds. Benchmarking this $1.2M contract would typically involve comparing it to similar renovation or conversion projects undertaken by federal agencies or within the commercial construction market in Kansas, considering factors like square footage, complexity, and material costs.

Small Business Impact

The data indicates that small business participation is not explicitly mentioned as a set-aside or subcontracting requirement for this contract (ss: false, sb: false). This suggests that the primary award went to a large business, McKenzie Construction & Site Development LLC. Further investigation would be needed to determine if any subcontracting opportunities exist for small businesses within this project, as this is often a requirement for larger federal contracts, even if not a direct set-aside.

Oversight & Accountability

Oversight for this contract will likely be managed by the Agricultural Research Service (ARS) within the Department of Agriculture. Accountability measures are typically embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Renovations
Office Space Modernization
Construction Services for Federal Agencies
Agricultural Research Service Facilities Management

Risk Flags

Competition Exclusion Clause
Limited Scope Definition
Potential for Cost Overruns (FFP Risk)

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.2 million to MCKENZIE CONSTRUCTION & SITE DEVELOPMENT LLC. SPACE CONVERSIONS TO OFFICES

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 (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $1.2 million.

What is the period of performance?

Start: 2025-07-08. End: 2026-06-30.

What is the specific scope of work for 'SPACE CONVERSIONS TO OFFICES' under this contract?

The provided data abbreviates the scope as 'SPACE CONVERSIONS TO OFFICES.' To understand the specifics, one would need to access the full contract documentation. This typically includes detailed statements of work (SOWs) outlining the exact modifications, such as demolition, framing, electrical, plumbing, HVAC upgrades, finishes, and any IT infrastructure requirements. Without the SOW, it's difficult to ascertain the complexity and true value of the work being performed beyond a general office renovation.

How does the $1.2M contract value compare to similar office conversion projects by the Department of Agriculture?

A direct comparison of the $1.2M value to similar 'SPACE CONVERSIONS TO OFFICES' projects by the Department of Agriculture (USDA) requires access to historical contract data for comparable projects. Factors such as the size of the space being converted (square footage), the extent of the renovation (e.g., cosmetic vs. structural), and the specific location's labor and material costs would influence the price. Without this granular comparative data, it's challenging to definitively state if $1.2M represents a high, low, or average cost for such a project within the USDA.

What are the potential risks associated with the firm fixed-price contract type for this project?

The primary risk with a firm fixed-price (FFP) contract is that the contractor, McKenzie Construction & Site Development LLC, bears the burden of any cost overruns. If the project encounters unforeseen issues (e.g., discovering asbestos, structural problems, or unexpected material price increases), the contractor may incur losses unless change orders are approved. Conversely, for the government, the risk is that the contractor may cut corners on quality to maintain profitability, or that the initial price might be inflated to account for potential contractor risks. Clear SOWs and robust oversight are crucial to mitigate these risks.

What does the 'after exclusion of sources' clause in the competition type imply for taxpayer value?

The 'after exclusion of sources' clause in 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was generally open, certain potential bidders were specifically excluded from participating. The implication for taxpayer value depends heavily on the justification for these exclusions. If valid reasons existed (e.g., security concerns, past performance issues, or specific technical requirements not met by certain firms), then the competition might still yield good value. However, if sources were excluded arbitrarily or without clear justification, it could limit competition, potentially leading to higher prices than might have been achieved in a truly unrestricted open competition.

What is the track record of McKenzie Construction & Site Development LLC with federal contracts?

To assess the track record of McKenzie Construction & Site Development LLC with federal contracts, one would need to query federal procurement databases (like FPDS or SAM.gov) for their past awards. This would reveal the number of contracts they've held, their value, the agencies they've worked with, and their performance history (if recorded). Without this specific data, it's impossible to comment on their reliability, experience, or past performance in delivering federal projects, which is a key indicator of future success and value for money.

How does the project duration of 357 days align with typical office conversion timelines?

A project duration of 357 days (approximately 11-12 months) for office conversions can be considered substantial, depending on the scale and complexity of the 'SPACE CONVERSIONS TO OFFICES' project. Typical timelines can range from a few months for minor renovations to over a year for major overhauls or conversions of large spaces. This duration suggests that the project likely involves significant structural, mechanical, or electrical work, or that it's a large-footprint conversion. It allows ample time for planning, execution, and potential unforeseen delays, but also necessitates diligent project management to ensure efficiency.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12805B25Q0162

Offers Received: 2

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: $1,202,321

Exercised Options: $1,202,321

Current Obligation: $1,202,321

Actual Outlays: $532,921

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12805B24D0006

IDV Type: IDC

Timeline