US Mint awards $27.2M contract for base metal refining to PMX Industries, Inc
Contract Overview
Contract Amount: $27,244,887 ($27.2M)
Contractor: PMX Industries, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2007-04-24
End Date: 2007-09-30
Contract Duration: 159 days
Daily Burn Rate: $171.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: BASE METAL REFINERY
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52404
State: Iowa Government Spending
Plain-Language Summary
Department of the Treasury obligated $27.2 million to PMX INDUSTRIES, INC. for work described as: BASE METAL REFINERY Key points: 1. The contract value of $27.2 million is significant for base metal refining services. 2. PMX Industries, Inc. secured this award through a competitive process. 3. Potential risks include supply chain disruptions or price volatility for base metals. 4. This spending falls within the manufacturing and industrial sector.
Value Assessment
Rating: good
The contract's fixed-price with economic price adjustment structure aims to balance cost control with market fluctuations. Benchmarking against similar refining contracts would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded via a competitive delivery order, indicating multiple bids were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are utilized for essential metal refining services, with competition aiming for cost-effectiveness.
Public Impact
Ensures the US Mint has necessary refined metals for coinage production. Supports industrial manufacturing and supply chains within the United States. The contract's duration and value impact the stability of the awarded vendor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment could lead to cost overruns if metal prices surge.
- Dependence on a single vendor for a critical input.
Positive Signals
- Competitive award process suggests potential for good pricing.
- Fixed-price element provides some cost certainty.
Sector Analysis
This contract is within the broader manufacturing and materials sector, specifically focusing on base metal refining. Spending benchmarks for similar refining services would be relevant for a deeper analysis.
Small Business Impact
The data does not indicate if small businesses were involved in this specific contract award or as subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The award was made by the Department of the Treasury's United States Mint, suggesting internal oversight. The competitive delivery order process implies adherence to procurement regulations.
Related Government Programs
- Copper Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential for cost increases due to economic price adjustment.
- Reliance on a single supplier for a critical material.
- Lack of specific detail on small business participation.
- Contract duration may not align with long-term strategic sourcing needs.
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 $27.2 million to PMX INDUSTRIES, INC.. BASE 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 $27.2 million.
What is the period of performance?
Start: 2007-04-24. End: 2007-09-30.
What is the historical performance of PMX Industries, Inc. in fulfilling similar government contracts?
Assessing PMX Industries, Inc.'s past performance on government contracts, particularly those involving base metal refining, is crucial. Reviewing past delivery records, quality control metrics, and any history of disputes or contract modifications would provide insight into their reliability and capability to meet the US Mint's requirements effectively and on time.
How does the economic price adjustment clause impact the final cost to taxpayers?
The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specified economic factors, typically commodity prices. While intended to protect both parties from unforeseen market shifts, it introduces uncertainty regarding the final cost. The specific indices and caps within the EPA will determine the potential upside for the contractor and the ultimate financial exposure for the taxpayer.
What are the key performance indicators (KPIs) used to measure the success of this contract?
Key performance indicators for this contract likely include on-time delivery of refined metals, adherence to specified purity and quality standards, and compliance with environmental and safety regulations. The US Mint would track metrics related to the usability of the refined metals in their production processes and potentially the cost-effectiveness achieved through the competitive award and EPA mechanism.
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: $27,244,887
Exercised Options: $27,244,887
Current Obligation: $27,244,887
Parent Contract
Parent Award PIID: TMK0202
IDV Type: IDC
Timeline
Start Date: 2007-04-24
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2010-04-09
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