Treasury's $13.1M Contract for Base Metal Coinage Production Awarded to PMX Industries
Contract Overview
Contract Amount: $13,094,289 ($13.1M)
Contractor: PMX Industries, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2008-08-26
End Date: 2012-09-30
Contract Duration: 1,496 days
Daily Burn Rate: $8.8K/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 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 $13.1 million to PMX INDUSTRIES, INC. for work described as: PROVIDE BASE METAL FOR CIRCULATING COINAGE. Key points: 1. The contract focuses on providing base metal for circulating coinage, a critical component of the U.S. monetary system. 2. PMX Industries, Inc. secured this delivery order, indicating their role in supplying essential materials for coin production. 3. The fixed-price contract with economic price adjustment suggests potential for cost fluctuations based on market conditions. 4. The sector is manufacturing, specifically related to metals and coinage production.
Value Assessment
Rating: good
The contract value of $13.1M over approximately 5 years appears reasonable for the supply of base metals for coinage. Benchmarking against similar metal supply contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was issued as a competitive delivery order. The specific competition method and its impact on price discovery are not detailed, but competitive processes generally aim for better pricing.
Taxpayer Impact: This contract directly impacts taxpayers by ensuring the availability of materials for producing U.S. currency, contributing to the smooth functioning of the economy.
Public Impact
Ensures the continuous supply of materials needed to mint circulating coins. Supports the U.S. Mint's operational capabilities and national currency production. Potential impact on the price of coins if metal costs fluctuate significantly. Contributes to the domestic manufacturing base for essential materials.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could lead to cost overruns if metal prices surge.
- Lack of detailed competition information makes it difficult to assess optimal price discovery.
- Dependence on a single supplier for a critical component could pose a supply chain risk.
Positive Signals
- Ensures a stable supply of essential coinage materials.
- Awarded through a competitive delivery order process.
- Supports domestic manufacturing capabilities.
Sector Analysis
This contract falls within the manufacturing sector, specifically focusing on the production of metals for coinage. Spending benchmarks for such specialized metal supply contracts are not readily available but are crucial for assessing value.
Small Business Impact
There is no specific indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Treasury, United States Mint. Oversight would typically involve monitoring contract performance, quality of materials, and adherence to delivery schedules to ensure accountability.
Related Government Programs
- Copper Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential for cost escalation due to economic price adjustment.
- Limited transparency on the competitive process and its effectiveness.
- Dependence on specific metal commodity markets.
- Supply chain vulnerability if PMX Industries faces production issues.
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 $13.1 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 $13.1 million.
What is the period of performance?
Start: 2008-08-26. End: 2012-09-30.
What is the specific composition of the base metal being supplied, and how does it align with historical coinage standards?
The data specifies 'Base Metal for Circulating Coinage' but not the exact alloy. Typically, U.S. circulating coinage uses specific copper-nickel alloys for clad coins and zinc for pennies. Understanding the precise composition is key to assessing material quality and adherence to minting standards.
How did the economic price adjustment clause impact the final cost compared to a fixed-price contract?
The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specified economic factors, usually commodity prices. Without post-award data, it's impossible to quantify the exact impact. However, EPAs can protect contractors from unforeseen cost increases while potentially leading to higher initial bids or final costs for the government.
What were the key performance metrics and quality control measures for the supplied base metal?
Key performance metrics would likely include adherence to precise metal composition, purity standards, dimensional tolerances (e.g., thickness, width of rolled metal), and timely delivery. Quality control would involve rigorous testing by the U.S. Mint upon receipt to ensure the metal meets all specifications before it can be used for coinage.
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: $13,094,289
Exercised Options: $13,094,289
Current Obligation: $13,094,289
Parent Contract
Parent Award PIID: TMHQ08C0005
IDV Type: IDC
Timeline
Start Date: 2008-08-26
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2009-06-18
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