Treasury's Mint awarded $21.3M for base metals, with a significant portion for circulating coinage

Contract Overview

Contract Amount: $21,303,767 ($21.3M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2015-08-28

End Date: 2015-09-30

Contract Duration: 33 days

Daily Burn Rate: $645.6K/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

State: Illinois Government Spending

Plain-Language Summary

Department of the Treasury obligated $21.3 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE BASE METAL AND STRIP FOR CIRCULATING COINAGE Key points: 1. Contract value represents a substantial investment in essential coinage materials. 2. Competition dynamics suggest a potentially competitive market for specialized metal rolling. 3. Delivery order structure indicates a need for timely material provision. 4. Fixed-price contract offers cost certainty for the government. 5. Geographic concentration in Illinois for this specific material supply. 6. Focus on nonferrous metals highlights a critical input for currency production.

Value Assessment

Rating: good

The contract value of $21.3 million for base metals appears reasonable given the specialized nature of rolled products for coinage. Benchmarking against similar contracts for nonferrous metal rolling is challenging without more specific material and quantity details. However, the fixed-price nature of the award provides a degree of cost control. The awarded amount is a significant portion of the total contract value, suggesting this delivery order was a key procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderately competitive environment for this specific type of specialized metal product. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Benefits the United States Mint in its production of circulating coinage. Ensures the availability of essential base metals for currency. Supports the national monetary system by providing raw materials. Impacts the industrial sector involved in metal rolling and processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole supplier faces issues.
Dependence on a limited number of bidders could reduce future competition.
Price volatility of base metals could impact long-term cost-effectiveness.

Positive Signals

Awarded through full and open competition, indicating a healthy market.
Fixed-price contract provides budget certainty.
Delivery order structure suggests efficient procurement for immediate needs.

Sector Analysis

The contract falls within the broader industrial sector of nonferrous metal rolling, drawing, and extruding. This sector is critical for supplying raw materials to various industries, including manufacturing, construction, and in this case, government minting operations. The market size for such specialized metals can be significant, but specific data for coinage-grade base metals is niche. Comparable spending benchmarks would likely be found within defense or industrial supply contracts requiring similar material specifications.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of rolled metal products for coinage, it is likely that larger, established industrial suppliers were the primary bidders. Subcontracting opportunities for small businesses might exist within the supply chain for raw materials or specialized processing, but this is not explicitly detailed in the award information.

Oversight & Accountability

The contract was awarded by the Department of the Treasury's United States Mint, which has established procurement and oversight processes. As a delivery order under a larger contract, oversight would likely involve monitoring delivery schedules, quality control, and adherence to the fixed-price terms. Transparency is generally maintained through federal procurement databases, though specific operational details may be internal.

Related Government Programs

Circulating Coinage Production
Base Metal Procurement
Industrial Materials Supply
Manufacturing Inputs

Risk Flags

Potential for price volatility in base metal markets.
Dependence on specialized manufacturing capabilities.
Supply chain risks for critical raw materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $21.3 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 $21.3 million.

What is the period of performance?

Start: 2015-08-28. End: 2015-09-30.

What is the specific composition of the 'base metal' being procured, and how does it compare to standard coinage alloys?

The provided data specifies 'Base Metal and Strip for Circulating Coinage' but does not detail the exact alloy composition. Standard US circulating coinage alloys include copper-nickel for dimes and quarters, and a clad composition of copper and nickel surrounding a pure copper core for pennies and half-dollars. The 'base metal' likely refers to the primary metallic components such as copper, zinc, nickel, or alloys thereof, which are then processed into strips for minting. Without further detail, it's difficult to precisely benchmark this against standard alloys, but the contract's purpose implies materials suitable for high-volume, durable currency production.

How does the awarded amount of $21.3 million compare to historical spending for similar base metal procurements by the US Mint?

Historical spending data for similar base metal procurements by the US Mint is not directly available in the provided snippet. However, the $21.3 million represents a significant portion of the overall contract value (implied by the 'br' field, though its meaning is unclear). To assess historical trends, one would need to examine annual reports or procurement histories of the US Mint for base metal and strip acquisitions over several years. Factors like metal market fluctuations, changes in coinage demand, and shifts in production volume would influence year-over-year spending. A comprehensive analysis would require accessing detailed historical procurement records.

What are the key performance indicators (KPIs) or quality standards associated with the delivery of these base metals?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or quality standards for this contract. However, for coinage production, critical quality standards would typically include precise alloy composition, dimensional tolerances (thickness, width, flatness of the strip), surface finish, and absence of defects (e.g., inclusions, cracks, or inconsistencies). The US Mint would likely have detailed specifications outlining acceptable material properties and testing procedures to ensure the metals are suitable for high-speed coining operations and meet the durability requirements for circulating currency.

What is the typical lead time for producing and delivering specialized rolled metal strips for coinage?

The contract duration is listed as 33 days, with the award date of 2015-08-28 and an end date of 2015-09-30. This suggests a relatively short lead time for this specific delivery order, implying that the materials were either readily available or the production process was expedited. Typical lead times for specialized rolled metal products can vary significantly based on the complexity of the alloy, the required dimensions, and the manufacturer's production capacity. For coinage, where consistency and volume are key, manufacturers often maintain specific production lines, potentially allowing for shorter lead times once an order is placed and raw materials are secured.

Are there any known risks associated with the contractor, Wieland Rolled Products North America, LLC, in fulfilling this type of contract?

The provided data does not contain information on the contractor's track record or specific risks associated with Wieland Rolled Products North America, LLC. To assess contractor risk, one would typically review past performance evaluations, any history of contract disputes, financial stability reports, and their experience with government contracts, particularly those involving specialized materials for minting operations. Assuming this is a standard procurement, the contractor likely has relevant industry experience. However, a thorough risk assessment would require access to performance data and potentially industry-specific risk profiles.

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: $21,303,767

Exercised Options: $21,303,767

Current Obligation: $21,303,767

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TMHQ13C0001

IDV Type: IDC

Timeline