Treasury's $21.3M Contract for Base Metal Coinage: PMX Industries Secures Supply Amidst Economic Adjustments
Contract Overview
Contract Amount: $21,268,675 ($21.3M)
Contractor: PMX Industries, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2008-06-24
End Date: 2012-09-30
Contract Duration: 1,559 days
Daily Burn Rate: $13.6K/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 $21.3 million to PMX INDUSTRIES, INC. for work described as: PROVIDE BASE METAL FOR CIRCULATING COINAGE. Key points: 1. The contract awarded to PMX Industries, Inc. for base metal for circulating coinage highlights a critical supply chain component for the U.S. Mint. 2. The fixed-price contract with economic price adjustment suggests a strategy to mitigate raw material cost volatility. 3. Competition details are limited for this delivery order, raising questions about the extent of price discovery. 4. The sector is essential government operations, directly impacting the physical currency supply.
Value Assessment
Rating: fair
The contract's fixed price with economic price adjustment is a common method for raw material procurement. Benchmarking is difficult without specific metal types and quantities, but the total value over four years suggests a moderate scale.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is a 'COMPETITIVE DELIVERY ORDER', but the specifics of the competition, such as the number of bidders and the evaluation process, are not detailed. This lack of transparency can limit robust price discovery.
Taxpayer Impact: Taxpayer funds are used to ensure the continuous supply of coinage metal. The economic price adjustment clause aims to protect against significant cost overruns due to market fluctuations.
Public Impact
Ensures the availability of physical currency for everyday transactions. Supports the U.S. Mint's mission to produce circulating coinage. Potential for price fluctuations impacting the cost of goods and services reliant on cash.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition information for the delivery order.
- Economic price adjustment clause introduces potential for cost increases.
- Dependence on a single supplier for a critical component.
Positive Signals
- Ensures supply of essential coinage material.
- Contract structure attempts to manage price volatility.
- Long-term relationship with a known supplier.
Sector Analysis
This contract falls within the manufacturing and materials sector, specifically for government-supplied essential goods. Benchmarks for base metal procurement for coinage are highly specialized and depend on global commodity markets and specific metal alloys.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, either as prime contractors or significant subcontractors. The focus appears to be on specialized industrial suppliers.
Oversight & Accountability
The U.S. Mint, under the Department of the Treasury, is responsible for this procurement. Oversight would typically involve contract management to ensure delivery schedules and quality standards are met, with potential for audits.
Related Government Programs
- Copper Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Limited transparency on competition details.
- Potential for cost increases due to economic price adjustment.
- Dependence on specific suppliers for critical materials.
- Lack of detailed cost breakdown for benchmarking.
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 $21.3 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 $21.3 million.
What is the period of performance?
Start: 2008-06-24. End: 2012-09-30.
What specific base metals are being procured, and how do their prices compare to market benchmarks?
The data does not specify the exact base metals. However, the contract includes an economic price adjustment clause, indicating that the price is tied to market fluctuations. A thorough analysis would require knowing the specific metals (e.g., copper, zinc, nickel) and comparing their contracted prices against prevailing market rates during the contract period to assess value for money.
What were the competitive factors considered for this delivery order, and did they lead to optimal price discovery?
The contract is labeled as a 'COMPETITIVE DELIVERY ORDER,' suggesting multiple bids were solicited. However, the extent of competition and the specific evaluation criteria are not detailed. Without this information, it's difficult to ascertain if the competitive process yielded the best possible price for taxpayers or if there were opportunities for further negotiation or better price discovery.
How effectively does the economic price adjustment clause protect taxpayers from excessive cost increases?
The economic price adjustment clause is designed to reflect market volatility in raw material costs. Its effectiveness in protecting taxpayers depends on the specific index or formula used for adjustment and the volatility of the underlying commodities. If the adjustment mechanism accurately tracks market prices without excessive markups, it can be effective; however, it also means taxpayers bear the risk of rising commodity prices.
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: $21,268,675
Exercised Options: $21,268,675
Current Obligation: $21,268,675
Parent Contract
Parent Award PIID: TMHQ08C0005
IDV Type: IDC
Timeline
Start Date: 2008-06-24
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2009-05-18
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