Treasury's $17.46M Contract for Coinage Metal Awarded to PMX Industries Amidst Competitive Bidding
Contract Overview
Contract Amount: $17,459,578 ($17.5M)
Contractor: PMX Industries, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-12-21
End Date: 2007-09-30
Contract Duration: 283 days
Daily Burn Rate: $61.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: PROVIDE BAES 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 $17.5 million to PMX INDUSTRIES, INC. for work described as: PROVIDE BAES METAL FOR CIRCULATING COINAGE Key points: 1. The contract value is $17.46 million for circulating coinage metal. 2. PMX Industries, Inc. secured this delivery order through a competitive process. 3. The fixed-price contract with economic price adjustment introduces potential cost volatility. 4. The sector is primarily manufacturing/materials for government operations.
Value Assessment
Rating: good
The contract's fixed-price with economic price adjustment (EPA) is common for raw material procurements where market fluctuations are expected. The benchmark for similar metal rolling and extruding contracts would need to consider the specific alloy and processing requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This was a competitive delivery order, indicating multiple vendors likely had the opportunity to bid. The competitive nature should have driven a reasonable price discovery, though the EPA clause introduces some uncertainty.
Taxpayer Impact: Taxpayers benefit from competition driving down initial prices, but the EPA clause means actual costs could fluctuate based on market conditions for metals.
Public Impact
Ensures the supply of essential metal for U.S. coinage. Supports the operational needs of the United States Mint. Potential impact on the price of coins if metal costs rise significantly.
Waste & Efficiency Indicators
Waste Risk Score: 61 / 10
Warning Flags
- Economic Price Adjustment (EPA) clause can lead to cost overruns if metal prices surge.
- Short contract duration (283 days) may limit long-term price stability.
Positive Signals
- Awarded via competitive delivery order, suggesting fair market pricing.
- Clear end-use for essential government function (coinage).
Sector Analysis
This contract falls within the broader manufacturing and materials sector, specifically focusing on metal processing for coinage. Benchmarks for similar government contracts involving specialized metal rolling and extruding would be relevant for a deeper cost analysis.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or if PMX Industries, Inc. itself is a small business. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's United States Mint, a federal agency with established procurement processes. Oversight would focus on contract performance, adherence to specifications, and management of the EPA clause.
Related Government Programs
- Copper Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Economic Price Adjustment (EPA) clause introduces cost uncertainty.
- Short contract duration may not allow for long-term cost optimization.
- Potential for price volatility in raw material markets (copper, zinc).
- Lack of explicit small business participation data.
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 $17.5 million to PMX INDUSTRIES, INC.. PROVIDE BAES 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 $17.5 million.
What is the period of performance?
Start: 2006-12-21. End: 2007-09-30.
What is the historical performance of PMX Industries, Inc. on similar government contracts, particularly regarding adherence to specifications and delivery schedules?
Assessing PMX Industries' past performance is crucial for understanding their reliability. Reviewing previous contracts, especially those involving metal processing for government use, would reveal their track record. Key metrics to examine include on-time delivery rates, quality control successes or failures, and any disputes or contract modifications. This historical data provides a strong indicator of their capability to fulfill the current contract effectively and efficiently.
How sensitive is the total contract value to fluctuations in copper and zinc prices, given the EPA clause?
The sensitivity of the contract value to metal price fluctuations depends on the specific base prices set in the contract and the agreed-upon adjustment formula. If the contract is heavily weighted towards the market price of copper and zinc, and these commodities experience significant volatility, the final cost could deviate substantially from the initial $17.46 million estimate. A detailed review of the EPA's indexing mechanism and historical commodity price trends is necessary to quantify this risk.
What was the competitive landscape for this specific type of coinage metal processing, and were there other qualified bidders?
Understanding the competitive landscape is vital for validating the 'full-and-open' designation and assessing the effectiveness of the price discovery process. Investigating the number of bids received and the qualifications of other potential bidders would reveal if the market for this specialized metal processing is robust or limited. A narrow field of competitors, even in a formally competitive process, might suggest less aggressive pricing and potentially higher costs for the government.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Copper 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: 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: $17,459,578
Exercised Options: $17,459,578
Current Obligation: $17,459,578
Parent Contract
Parent Award PIID: TMK0202
IDV Type: IDC
Timeline
Start Date: 2006-12-21
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2008-12-29
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