Treasury's Mint Spends $21.7M on Base Metal for Circulating Coinage from Wieland Rolled Products
Contract Overview
Contract Amount: $21,681,960 ($21.7M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2015-05-26
End Date: 2015-06-30
Contract Duration: 35 days
Daily Burn Rate: $619.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROVIDE BASE METAL AND STRIP FOR CIRCULATING COINAGE
Place of Performance
Location: EAST ALTON, MADISON County, ILLINOIS, 62024, UNITED STATES OF AMERICA
State: Illinois Government Spending
Plain-Language Summary
Department of the Treasury obligated $21.7 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE BASE METAL AND STRIP FOR CIRCULATING COINAGE Key points: 1. Spending focuses on essential raw materials for coin production. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate, tied to material availability and price fluctuations. 4. Sector is manufacturing/materials, crucial for national currency.
Value Assessment
Rating: good
The contract value of $21.7M for base metal is significant. Benchmarking against similar raw material procurements would be necessary to fully assess pricing, but full and open competition suggests a reasonable price discovery process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method is generally effective in achieving competitive pricing and ensuring fair market value.
Taxpayer Impact: Taxpayer funds are used for essential government operations, specifically the production of currency. Competitive procurement aims to minimize costs and maximize value for taxpayer dollars.
Public Impact
Ensures the continuous supply of metal needed for circulating coinage. Supports the operational needs of the United States Mint. Impacts the availability and cost of coins for public use.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility in base metal markets.
- Dependence on a single supplier for a critical component.
Positive Signals
- Awarded through full and open competition.
- Contract supports a core government function.
Sector Analysis
This contract falls within the industrial materials and manufacturing sector, specifically for nonferrous metal rolling. Spending benchmarks for such raw materials can vary widely based on market conditions and specific alloy requirements.
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 United States Mint, under the Department of the Treasury, is responsible for this procurement. Standard government procurement oversight processes would apply to ensure compliance and accountability.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Contract awarded to a single vendor.
- Short contract duration may indicate episodic need rather than strategic sourcing.
- Limited detail on specific material composition.
- Potential for commodity price fluctuations impacting future contracts.
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 $21.7 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC. PROVIDE BASE METAL AND STRIP 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 $21.7 million.
What is the period of performance?
Start: 2015-05-26. End: 2015-06-30.
What was the specific base metal procured and its market price at the time of award?
The specific base metal is not detailed in the provided data, only described as 'Base Metal and Strip for Circulating Coinage'. The market price at the time of award (May 26, 2015) would require external market data research for relevant metals like copper, zinc, or nickel alloys used in coinage.
What is the risk associated with the duration of the contract and potential supply chain disruptions?
The contract duration is 35 days, which is very short and suggests it was for immediate needs or a specific batch. This short duration minimizes long-term supply chain risk for this particular award. However, the Mint's overall reliance on consistent base metal supply presents an ongoing, albeit managed, risk.
How does the fixed price contract structure impact the government's exposure to price fluctuations?
A Firm Fixed Price (FFP) contract shifts the risk of cost overruns to the contractor. For the government, this provides cost certainty, protecting against upward price volatility in the base metal market during the contract period. Conversely, if prices dropped significantly, the government would not benefit.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Global Brass and Copper Holdings, Inc. (UEI: 808499920)
Address: 427 N SHAMROCK ST, EAST ALTON, IL, 62024
Business Categories: Category Business, Labor Surplus Area Firm, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,681,960
Exercised Options: $21,681,960
Current Obligation: $21,681,960
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TMHQ13C0001
IDV Type: IDC
Timeline
Start Date: 2015-05-26
Current End Date: 2015-06-30
Potential End Date: 2015-06-30 00:00:00
Last Modified: 2015-09-16
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