Treasury's $16.7M contract for copper rolling and drawing awarded to PMX Industries, Inc

Contract Overview

Contract Amount: $16,669,944 ($16.7M)

Contractor: PMX Industries, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2008-04-25

End Date: 2012-09-30

Contract Duration: 1,619 days

Daily Burn Rate: $10.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: PROVIDE BASE 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 $16.7 million to PMX INDUSTRIES, INC. for work described as: PROVIDE BASE METAL FOR CIRCULATING COINAGE. Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition was robust, suggesting fair pricing and market responsiveness. 3. No immediate risk indicators identified, but performance history should be monitored. 4. This contract supports the Mint's core mission of producing coinage. 5. PMX Industries, Inc. is positioned as a key supplier in the metals sector for government contracts. 6. The fixed-price structure with economic adjustment offers some protection against market volatility.

Value Assessment

Rating: good

The contract's total value of approximately $16.7 million over four years suggests a moderate annual spend. Benchmarking against similar contracts for metal processing services is challenging without more specific details on the exact specifications of the copper and the processing required. However, the competitive nature of the award implies that the pricing was likely in line with market rates at the time of bidding. The economic price adjustment clause also suggests an effort to ensure fair pricing over the contract's life.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a healthy level of competition for this type of specialized metal processing service. A competitive environment generally leads to better price discovery and ensures that the government secures services at a reasonable cost.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the United States Mint and, by extension, the public who receive circulating coinage. The services delivered include essential copper rolling, drawing, and extruding, crucial for coin production. The geographic impact is primarily national, supporting the production of currency for the entire United States. Workforce implications include skilled labor in metal processing and manufacturing at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to the economic price adjustment clause if base metal costs rise significantly.
Dependence on a single contractor for a critical component of coinage production could pose a supply chain risk if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Contract duration of over four years provides stability for both the government and the contractor.
Fixed-price contract with economic price adjustment helps manage cost fluctuations.

Sector Analysis

The contract falls within the broader industrial manufacturing and metals sector, specifically focusing on non-ferrous metal processing. This sector is characterized by specialized equipment and expertise. The United States Mint is a significant, albeit unique, consumer of processed metals for coinage. Comparable spending benchmarks would likely be found in defense or aerospace industries that also require high-purity, precisely processed metals, though the scale and specific application differ.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, PMX Industries, Inc., is likely a large business. There is no explicit information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless the prime contractor actively engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the United States Mint's contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Coinage Production
Base Metal Procurement
Manufacturing Services
Industrial Materials

Risk Flags

Potential for price fluctuations due to economic price adjustment.
Supply chain dependency on a single contractor for critical materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $16.7 million to PMX INDUSTRIES, INC.. PROVIDE BASE 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 $16.7 million.

What is the period of performance?

Start: 2008-04-25. End: 2012-09-30.

What is the historical spending pattern for copper rolling and drawing services by the United States Mint?

Historical spending data for copper rolling and drawing services by the United States Mint prior to this specific contract (2008-2012) is not readily available in the provided data snippet. However, the Mint has consistently required significant quantities of metals, including copper and its alloys, for the production of circulating coinage and commemorative medals. Spending in this category would fluctuate based on coinage demand, metal market prices, and the specific contracts awarded for processing. Analyzing past solicitations and awards for similar materials and services would be necessary to establish a comprehensive historical spending pattern. The $16.7 million awarded to PMX Industries, Inc. represents a substantial, multi-year investment in this critical supply chain component.

How does the price per unit for copper processing in this contract compare to market rates?

The provided data does not include a specific per-unit cost for the copper processing services rendered under this contract, making a direct comparison to market rates impossible. The contract value is a total amount over several years, and the 'na' field (331421) likely refers to a North American Industry Classification System (NAICS) code, not a unit of measure. To benchmark the per-unit cost, one would need to know the quantity of copper processed (e.g., by weight or volume) and the specific services performed (rolling, drawing, extruding). Without these details, assessing whether the price was competitive on a per-unit basis against prevailing market rates for similar industrial metal processing is not feasible.

What is PMX Industries, Inc.'s track record with federal contracts, particularly with the Department of the Treasury?

PMX Industries, Inc. has a history of receiving federal contracts, including those with the Department of the Treasury, as evidenced by this award. A comprehensive review of their contract history would reveal the number, value, and types of contracts awarded to them across various federal agencies. This specific contract, valued at approximately $16.7 million and spanning over four years, indicates a significant business relationship. Further analysis would involve examining past performance evaluations, any contract disputes or terminations, and the consistency of their service delivery to assess their overall track record and reliability as a federal contractor.

What are the potential risks associated with relying on PMX Industries, Inc. for copper processing for circulating coinage?

Potential risks associated with relying on PMX Industries, Inc. include supply chain disruptions, quality control issues, and price volatility. If PMX Industries faces operational challenges, natural disasters, or labor disputes, it could impact the timely delivery of processed copper, potentially affecting coinage production. Ensuring consistent quality that meets the stringent specifications of the U.S. Mint is paramount; any deviation could lead to defective coinage. Furthermore, while the contract includes an economic price adjustment, significant and rapid increases in copper prices could still strain the contract's financial parameters or lead to renegotiations. The government's mitigation strategy would involve close monitoring of the contractor's performance and maintaining contingency plans.

How does the 'COMPETITIVE DELIVERY ORDER' contract type influence price discovery and value for money?

A 'COMPETITIVE DELIVERY ORDER' (CDO) signifies that the contract was awarded after a competitive bidding process, likely against a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. This competitive nature is crucial for price discovery, as multiple vendors submit proposals, allowing the government to compare pricing and technical solutions. For taxpayers, this generally translates to better value for money because competition drives down prices and encourages efficiency. The presence of competition suggests that the awarded price reflects market conditions and that the contractor is incentivized to perform well to secure future orders. The 'delivery order' aspect implies specific quantities and delivery schedules are being ordered under the broader contract.

Industry Classification

NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Copper Rolling, Drawing, and Extruding

Product/Service Code: METAL BARS, SHEETS, SHAPES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $16,669,944

Exercised Options: $16,669,944

Current Obligation: $16,669,944

Parent Contract

Parent Award PIID: TMHQ08C0005

IDV Type: IDC

Timeline