Treasury's Mint Spends $25.8M on Coinage Metal from PMX Industries, Inc
Contract Overview
Contract Amount: $25,854,113 ($25.9M)
Contractor: PMX Industries, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2007-10-10
End Date: 2012-09-30
Contract Duration: 1,817 days
Daily Burn Rate: $14.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: PROVIDE STRIP & METAL FOR CIRCULATING COINAGE
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52404
State: Iowa Government Spending
Plain-Language Summary
Department of the Treasury obligated $25.9 million to PMX INDUSTRIES, INC. for work described as: PROVIDE STRIP & METAL FOR CIRCULATING COINAGE Key points: 1. Significant contract value of $25.8M for essential coinage materials. 2. PMX Industries, Inc. is the sole provider for this specific metal. 3. Fixed Price with Economic Price Adjustment (EPA) contract type introduces potential cost volatility. 4. The contract spans over 4 years, indicating a long-term need for these materials.
Value Assessment
Rating: fair
The contract's fixed price with EPA suggests potential for cost increases beyond initial projections. Benchmarking against similar metal supply contracts would be necessary to fully assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, which limits competitive pressure and potentially impacts price discovery. The rationale for sole-sourcing is not detailed here.
Taxpayer Impact: The lack of competition may lead to higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Ensures the continuous supply of metal for U.S. coinage. Impacts the cost of producing circulating currency. Supports the operational needs of the United States Mint.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Economic Price Adjustment introduces cost uncertainty.
- Long contract duration increases exposure to market fluctuations.
Positive Signals
- Ensures critical supply chain for coinage.
- Established relationship with a known supplier.
Sector Analysis
This contract falls within the industrial raw materials sector, specifically focusing on metals for manufacturing. Spending benchmarks for similar metal supply contracts are difficult to ascertain without more specific material details.
Small Business Impact
The data does not indicate any specific provisions or participation by small businesses in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract is managed by the Department of the Treasury's United States Mint. Oversight would involve monitoring contract performance, adherence to terms, and managing the economic price adjustment clause.
Related Government Programs
- Copper Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Sole-source award
- Economic Price Adjustment (EPA)
- Lack of competition
- Potential for cost overruns
- Long contract duration
Tags
copper-rolling-drawing-and-extruding, department-of-the-treasury, ia, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $25.9 million to PMX INDUSTRIES, INC.. PROVIDE STRIP & METAL FOR CIRCULATING COINAGE
Who is the contractor on this award?
The obligated recipient is PMX INDUSTRIES, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (United States Mint).
What is the total obligated amount?
The obligated amount is $25.9 million.
What is the period of performance?
Start: 2007-10-10. End: 2012-09-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award is critical for understanding the necessity and potential cost implications. Without a clear justification, it's difficult to assess if competitive alternatives were explored or if unique capabilities of PMX Industries, Inc. were essential for this specific coinage metal requirement.
How has the Economic Price Adjustment (EPA) clause impacted the total contract cost over its duration?
The EPA clause allows for adjustments based on market fluctuations in raw material prices. Analyzing the actual cost paid versus the initial fixed price would reveal the extent of price increases or decreases, providing insight into the effectiveness of the EPA in managing cost volatility and its ultimate impact on taxpayer funds.
What is the benchmark cost per pound or unit for the specific metal supplied under this contract?
Establishing a benchmark cost per unit for the specific metal is crucial for evaluating the contract's value. Comparing the per-unit cost to market rates for similar metals, considering quality and delivery terms, would highlight potential overpricing or cost savings achieved through this contract.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Copper Rolling, Drawing, and Extruding
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Poongsan Holdings Corporation (UEI: 687755603)
Address: 5300 WILLOW CREEK DR SW, CEDAR RAPIDS, IA, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,854,113
Exercised Options: $25,854,113
Current Obligation: $25,854,113
Parent Contract
Parent Award PIID: TMHQ08C0005
IDV Type: IDC
Timeline
Start Date: 2007-10-10
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2010-03-13
More Contracts from PMX Industries, Inc.
- Base Metal Refinery — $33.9M (Department of the Treasury)
- Base Metal Refinery — $31.7M (Department of the Treasury)
- Provide Strip and Metal for Circulating Coinage — $30.1M (Department of the Treasury)
- Base Metal Refinery — $27.2M (Department of the Treasury)
- Provide Circulating RAW Material — $24.6M (Department of the Treasury)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)