Treasury's Mint Spends $11.4M on 1-Cent Blanks from Artazn LLC, a Non-Competed Contract
Contract Overview
Contract Amount: $11,441,767 ($11.4M)
Contractor: Artazn LLC
Awarding Agency: Department of the Treasury
Start Date: 2007-03-20
End Date: 2008-09-30
Contract Duration: 560 days
Daily Burn Rate: $20.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: PROVIDE 1-CENT CPZ BLANKS
Place of Performance
Location: GREENEVILLE, GREENE County, TENNESSEE, 37744
Plain-Language Summary
Department of the Treasury obligated $11.4 million to ARTAZN LLC for work described as: PROVIDE 1-CENT CPZ BLANKS Key points: 1. Significant spending on a fundamental coin component. 2. Lack of competition raises questions about price discovery. 3. Potential for higher costs due to sole-source award. 4. Contract duration spans over a year, impacting long-term value. 5. Focus on nonferrous metal rolling and extruding.
Value Assessment
Rating: questionable
The contract value of $11.4M for 1-cent blanks is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or historical pricing for similar materials.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from securing the best possible price through market competition.
Taxpayer Impact: The lack of competition could lead to taxpayers overpaying for essential minting supplies.
Public Impact
Impacts the cost of producing circulating currency. Ensures a supply of blanks for coin production. Highlights reliance on specific suppliers for critical materials.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Ensured supply of blanks
- Fixed price with economic adjustment
Sector Analysis
The contract falls under the 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding' sector. Spending benchmarks for this specific niche are hard to ascertain without more granular data, but the value suggests a significant procurement.
Small Business Impact
There is no indication that small businesses were involved in this procurement, as it was a sole-source award to ARTAZN LLC.
Oversight & Accountability
The non-competed nature of this award warrants scrutiny to ensure the government received fair value and that such sole-source decisions are justified and documented.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for inflated costs
- Limited transparency in price negotiation
Tags
nonferrous-metal-except-copper-and-alumi, department-of-the-treasury, tn, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $11.4 million to ARTAZN LLC. PROVIDE 1-CENT CPZ BLANKS
Who is the contractor on this award?
The obligated recipient is ARTAZN 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 $11.4 million.
What is the period of performance?
Start: 2007-03-20. End: 2008-09-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this justification, it's impossible to assess if the government acted appropriately in foregoing competitive bidding.
How does the per-unit cost of these blanks compare to industry benchmarks or previous procurements?
Benchmarking the per-unit cost is essential for evaluating value. Without access to specific unit pricing or comparable market data, it's difficult to determine if the $11.4 million expenditure represents an efficient use of taxpayer funds. This comparison would reveal potential overpricing or cost savings.
What measures were in place to ensure the quality and timely delivery of the blanks under this sole-source contract?
Even in sole-source situations, robust oversight is necessary. Understanding the quality assurance processes and delivery schedules ensures that the United States Mint received the materials needed for production without disruption. This includes inspection protocols and performance monitoring.
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: NOT COMPETED
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jarden Corporation (UEI: 801875980)
Address: 2500 OLD STAGE RD, GREENEVILLE, TN, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,441,767
Exercised Options: $11,441,767
Current Obligation: $11,441,767
Parent Contract
Parent Award PIID: TM04CK0254
IDV Type: IDC
Timeline
Start Date: 2007-03-20
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2009-12-12
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