Treasury's Mint Spends $17.7M on Coinage Metal, Awarded via Competitive Order
Contract Overview
Contract Amount: $17,663,227 ($17.7M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2008-05-23
End Date: 2012-09-30
Contract Duration: 1,591 days
Daily Burn Rate: $11.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Manufacturing
Official Description: PROVIDE BASE MATERIAL 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 $17.7 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE BASE MATERIAL FOR CIRCULATING COINAGE Key points: 1. Spending focuses on raw materials for U.S. coinage. 2. Competition was present, but the contract type allows for price adjustments. 3. Risk of price volatility exists due to economic price adjustment clause. 4. The sector is manufacturing, specifically nonferrous metal rolling.
Value Assessment
Rating: good
The total award value of $17.7 million over approximately 4 years appears reasonable for bulk metal supply. Pricing is fixed with economic adjustments, suggesting an attempt to balance cost certainty with market fluctuations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded as a competitive delivery order, indicating multiple vendors were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the essential metal needed for circulating coinage.
Public Impact
Ensures the availability of raw materials for U.S. currency. Supports the operational needs of the United States Mint. Impacts the supply chain for coinage production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could lead to higher costs if metal prices surge.
- Dependence on a single supplier for a critical component.
- Potential for supply chain disruptions affecting coinage production.
Positive Signals
- Competitive award process likely secured favorable initial pricing.
- Contract duration provides stability for the Mint's operations.
- Clear definition of the product (nonferrous metal rolling).
Sector Analysis
This contract falls within the manufacturing sector, specifically metal rolling and processing. Spending benchmarks for raw materials for coinage can vary significantly based on global metal prices and demand.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was managed by the Department of the Treasury's United States Mint, a federal agency with established procurement processes. Oversight would involve monitoring contract performance and adherence to terms.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Price volatility risk due to economic price adjustment.
- Potential supply chain disruptions.
- Dependence on specific metal commodity markets.
- Limited visibility into small business participation.
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 $17.7 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC. PROVIDE BASE MATERIAL 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 $17.7 million.
What is the period of performance?
Start: 2008-05-23. End: 2012-09-30.
What was the specific economic index or formula used for price adjustments in this contract?
The contract specifies 'economic price adjustment,' which typically ties price changes to a recognized industry index or a pre-defined formula. Without the full contract details, the exact mechanism remains unspecified. This could involve indices for base metal prices, energy costs, or other relevant economic factors impacting production.
How did the final price compare to the initial bid and market prices at the time of award?
Comparing the final price to initial bids and prevailing market rates is crucial for assessing value. Given the economic price adjustment, the final cost could deviate from the initial fixed price. Analyzing post-award price fluctuations against market trends would reveal the effectiveness of the adjustment clause in managing costs.
What is the typical lead time and reliability of supply for this type of coinage metal from the awarded vendor?
Understanding the vendor's historical performance regarding lead times and supply reliability is key to assessing risk. Consistent delivery of quality materials is essential for uninterrupted coinage production. Any deviations could signal potential disruptions and impact the Mint's ability to meet demand.
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: $17,663,227
Exercised Options: $17,663,227
Current Obligation: $17,663,227
Parent Contract
Parent Award PIID: TMHQ08C0006
IDV Type: IDC
Timeline
Start Date: 2008-05-23
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2011-03-30
More Contracts from Wieland Rolled Products North America, LLC
- Provide Base Metals Strip for Circulating Coinage — $44.4M (Department of the Treasury)
- Provide Base Metals Strip for Circulating Coinage — $43.0M (Department of the Treasury)
- Provide Base Metals Strip for Circulating Coinage — $42.7M (Department of the Treasury)
- Provide Base Metals Strip for Circulating Coinage — $42.6M (Department of the Treasury)
- Provide Base Metals Strip for Circulating Coinage — $37.5M (Department of the Treasury)
View all Wieland Rolled Products North America, LLC federal contracts →
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)