Treasury's $19.9M Coinage Material Contract Awarded to Wieland Rolled Products
Contract Overview
Contract Amount: $19,888,014 ($19.9M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2008-09-26
End Date: 2012-09-30
Contract Duration: 1,465 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 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 $19.9 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE BASE MATERIAL FOR CIRCULATING COINAGE Key points: 1. Contract awarded for nonferrous metal rolling for coinage. 2. Wieland Rolled Products North America, LLC is the sole awardee. 3. Spending spans 4 years, indicating a long-term need. 4. Fixed price with economic price adjustment contract type. 5. Potential for price fluctuations due to economic adjustments.
Value Assessment
Rating: good
The contract value of $19.9M over 4 years appears reasonable for specialized metal rolling services. Benchmarking against similar contracts for nonferrous metal processing would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a competitive delivery order, suggesting some level of competition existed, though the specific awardee is Wieland. The limited nature implies it might be a specific requirement or a pre-qualified vendor.
Taxpayer Impact: Taxpayer funds are used for essential coinage production materials. The economic price adjustment clause introduces potential variability in the final cost.
Public Impact
Ensures the supply of materials for U.S. coinage. Supports the operational needs of the United States Mint. Impacts the availability and cost of circulating currency. Economic price adjustments could affect the overall cost to taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause introduces cost uncertainty.
- Limited competition details provided.
Positive Signals
- Ensures critical supply chain for coinage.
- Long-term contract provides stability.
Sector Analysis
The contract falls under the 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding' sector. Spending benchmarks for this niche industry are difficult to ascertain without more specific data on material types and volumes.
Small Business Impact
No information is available regarding small business participation in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The United States Mint, under the Department of the Treasury, is responsible for this contract. Oversight would focus on material quality, delivery schedules, and adherence to the economic price adjustment formula.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Economic Price Adjustment (EPA) clause can lead to cost overruns.
- Limited competition may not yield the best price.
- Lack of detail on specific metals procured.
- Potential for supply chain disruptions affecting material availability.
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 $19.9 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 $19.9 million.
What is the period of performance?
Start: 2008-09-26. End: 2012-09-30.
What specific nonferrous metals are being procured and what are their market price volatilities?
The data specifies 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding.' Without explicit identification of the metals (e.g., nickel, zinc alloys), it's challenging to assess market price volatilities. The economic price adjustment clause suggests these metals are subject to market fluctuations, impacting the contract's final cost and taxpayer burden.
How was the 'limited' competition determined, and what was the pricing discovery process?
The 'limited' competition designation suggests that not all potential suppliers were solicited, or that specific criteria narrowed the field. The pricing discovery process likely involved competitive bids from a select group of qualified vendors. Understanding the rationale for limiting competition is crucial to ensure fair pricing and prevent potential overpayment.
What is the historical performance of Wieland Rolled Products North America, LLC on similar government contracts?
Assessing Wieland's past performance on comparable government contracts is essential for evaluating risk and ensuring value. A review of their track record would reveal their reliability in terms of quality, on-time delivery, and cost control. Positive past performance would increase confidence in this award, while negative performance would raise concerns.
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: $19,888,014
Exercised Options: $19,888,014
Current Obligation: $19,888,014
Parent Contract
Parent Award PIID: TMHQ08C0006
IDV Type: IDC
Timeline
Start Date: 2008-09-26
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2011-03-30
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