Treasury's $22.4M Copper Contract with PMX Industries: Fixed Price with Economic Adjustment
Contract Overview
Contract Amount: $22,380,940 ($22.4M)
Contractor: PMX Industries, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2007-01-30
End Date: 2007-09-30
Contract Duration: 243 days
Daily Burn Rate: $92.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: METAL REFINERY
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52404
State: Iowa Government Spending
Plain-Language Summary
Department of the Treasury obligated $22.4 million to PMX INDUSTRIES, INC. for work described as: METAL REFINERY Key points: 1. The contract value is $22.4 million for copper processing. 2. PMX Industries, Inc. secured this competitive delivery order. 3. The contract type is Fixed Price with Economic Price Adjustment, introducing potential cost fluctuations. 4. The sector is manufacturing, specifically metal refining.
Value Assessment
Rating: fair
The contract value of $22.4 million for copper rolling, drawing, and extruding appears reasonable given the scope. However, the fixed-price with economic adjustment clause introduces uncertainty in the final cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This was a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The competitive nature should have driven a fair price, but the economic price adjustment clause could lead to costs exceeding initial estimates.
Taxpayer Impact: Taxpayer funds are utilized for this contract. While competition is present, the economic price adjustment introduces a risk of increased costs beyond the initial bid, potentially impacting the overall value for taxpayers.
Public Impact
Ensures supply of essential copper materials for the United States Mint. Supports manufacturing jobs within the metal refining sector. Potential for price increases due to economic adjustments affects budget predictability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic Price Adjustment clause may increase final cost.
- Short contract duration (243 days) may limit long-term strategic sourcing benefits.
Positive Signals
- Competitive award process.
- Clear scope of work for copper processing.
Sector Analysis
This contract falls within the manufacturing sector, specifically metal refining and processing. Benchmarks for similar copper processing contracts would be needed for a precise comparison, but the value appears substantial for specialized services.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be required to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Treasury to the United States Mint. Oversight would involve monitoring contract performance, adherence to terms, and managing the economic price adjustment.
Related Government Programs
- Copper Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential for cost overruns due to economic price adjustment.
- Limited contract duration may not reflect long-term needs.
- Lack of detail on small business participation.
- Uncertainty regarding the specific economic indices used for price adjustment.
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 $22.4 million to PMX INDUSTRIES, INC.. METAL REFINERY
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 $22.4 million.
What is the period of performance?
Start: 2007-01-30. End: 2007-09-30.
What was the historical performance of PMX Industries, Inc. on similar government contracts?
Information on PMX Industries, Inc.'s historical performance on similar government contracts is not provided in the data. A review of past performance, including on-time delivery, quality of product, and adherence to budget, would be crucial for assessing reliability and future value. This would typically be found in contract performance reports or agency procurement histories.
How were the economic price adjustment factors determined and what is the potential cost escalation?
The specific methodology for the economic price adjustment (EPA) is not detailed. Typically, EPAs are tied to indices for raw materials, labor, or energy. Understanding these indices and the formula used is critical to estimating the potential cost escalation beyond the base fixed price. Without this, the true cost to the taxpayer remains uncertain.
What was the competitive landscape for this specific copper processing requirement?
While the award was a 'COMPETITIVE DELIVERY ORDER,' the specifics of the competitive landscape are not detailed. Knowing the number of bids received, the range of proposed prices, and the reasons for selecting PMX Industries, Inc. would provide better insight into the price discovery process. This information helps confirm if the competition effectively drove the best possible price.
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: $22,380,940
Exercised Options: $22,380,940
Current Obligation: $22,380,940
Parent Contract
Parent Award PIID: TMK0202
IDV Type: IDC
Timeline
Start Date: 2007-01-30
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2010-04-09
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