Treasury's $22.2M Coinage Metal Contract Awarded to Wieland Rolled Products
Contract Overview
Contract Amount: $22,204,120 ($22.2M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2008-03-25
End Date: 2012-09-30
Contract Duration: 1,650 days
Daily Burn Rate: $13.5K/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: EAST ALTON, MADISON County, ILLINOIS, 62024
State: Illinois Government Spending
Plain-Language Summary
Department of the Treasury obligated $22.2 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE STRIP + METAL FOR CIRCULATING COINAGE Key points: 1. The contract for circulating coinage metal was awarded to a single supplier, raising questions about competition. 2. The fixed-price contract with economic price adjustment introduces potential cost volatility. 3. The duration of the contract (over 4 years) suggests a long-term need for these materials. 4. The spending falls under the 'Nonferrous Metal Rolling, Drawing, and Extruding' sector.
Value Assessment
Rating: fair
The contract's fixed price with economic price adjustment makes direct comparison difficult. However, the awarded amount of $22.2 million over 1650 days suggests a daily spend of approximately $13,457.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a competitive delivery order, but the data suggests it may have been awarded under a limited competition scenario, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential coinage metal. The economic price adjustment clause could lead to higher costs if metal prices increase significantly.
Public Impact
Ensures the continuous supply of metal necessary for producing U.S. currency. Supports the operational needs of the United States Mint. The contract's value contributes to the industrial base for metal processing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for a critical material.
- Economic price adjustment introduces cost uncertainty.
Positive Signals
- Ensures supply of essential coinage material.
- Contract awarded to a known entity in the industry.
Sector Analysis
This contract falls within the nonferrous metal rolling, drawing, and extruding sector. Spending benchmarks for this specific niche are difficult to ascertain without more granular data, but the value appears moderate for a multi-year federal supply contract.
Small Business Impact
The contract was awarded to Wieland Rolled Products North America, LLC, a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The United States Mint, under the Department of the Treasury, is responsible for this contract. Standard procurement oversight processes would apply, but specific details on enhanced oversight for this contract are not provided.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential lack of robust competition.
- Cost uncertainty due to economic price adjustment.
- Long contract duration without clear competition strategy.
- Limited transparency on specific award justification.
Tags
nonferrous-metal-except-copper-and-alumi, department-of-the-treasury, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $22.2 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC. PROVIDE STRIP + METAL FOR CIRCULATING COINAGE
Who is the contractor on this award?
The obligated recipient is WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (United States Mint).
What is the total obligated amount?
The obligated amount is $22.2 million.
What is the period of performance?
Start: 2008-03-25. End: 2012-09-30.
What was the rationale for limiting competition for this essential coinage metal supply?
The specific rationale for limiting competition is not detailed in the provided data. Typically, limited competition might be justified by factors such as unique capabilities of the supplier, urgent needs, or specific technical requirements that only one or a few sources can meet. Further investigation into the solicitation documents would be needed to confirm the exact justification.
How has the economic price adjustment clause impacted the total cost of the contract compared to a fixed price?
The economic price adjustment (EPA) clause allows for changes in the contract price based on fluctuations in the cost of raw materials, in this case, the metals used for coinage. Without knowing the baseline fixed price and the actual market price movements during the contract period, it's impossible to quantify the exact impact. However, EPAs are intended to protect both the contractor from losses due to rising costs and the government from paying inflated prices if costs decrease.
What is the long-term strategy for ensuring competitive sourcing of coinage metal beyond this contract?
The provided data does not detail the long-term sourcing strategy for coinage metal. Agencies typically conduct market research and plan future procurements to ensure adequate competition and value. It would be beneficial to understand if the Mint is exploring alternative suppliers or different contract structures for future needs to foster a more competitive environment.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
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: KPS Capital Partners, LP (UEI: 071159078)
Address: 427 N SHAMROCK ST, EAST ALTON, IL, 13
Business Categories: Category Business, Labor Surplus Area Firm, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $22,204,120
Exercised Options: $22,204,120
Current Obligation: $22,204,120
Parent Contract
Parent Award PIID: TMHQ08C0006
IDV Type: IDC
Timeline
Start Date: 2008-03-25
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2011-03-30
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