Treasury's Mint awarded Olin Corp $31.5M for copper rolling, drawing, and extruding services

Contract Overview

Contract Amount: $31,501,190 ($31.5M)

Contractor: Olin Corporation - Winchester

Awarding Agency: Department of the Treasury

Start Date: 2007-02-27

End Date: 2007-09-30

Contract Duration: 215 days

Daily Burn Rate: $146.5K/day

Number of Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: Other

Official Description: BASE METAL REFINERY

Place of Performance

Location: EAST ALTON, MADISON County, ILLINOIS, 62024

State: Illinois Government Spending

Plain-Language Summary

Department of the Treasury obligated $31.5 million to OLIN CORPORATION - WINCHESTER for work described as: BASE METAL REFINERY Key points: 1. Contract value appears reasonable given the specialized nature of copper processing. 2. Olin Corporation, a known entity in ammunition and chemical manufacturing, likely brings established expertise. 3. Contract duration was relatively short, suggesting a specific, time-bound need. 4. Performance context is limited due to the lack of detailed performance metrics. 5. This contract falls within the broader industrial manufacturing and materials sector for the government. 6. The award was made under a specific product code, indicating a targeted procurement.

Value Assessment

Rating: good

The contract value of $31.5 million for copper processing services seems within a reasonable range for specialized industrial materials. Benchmarking against similar government contracts for metal fabrication or processing would provide a more precise value-for-money assessment. However, given the specific nature of rolling, drawing, and extruding copper, the price appears to reflect the technical requirements and material costs involved. Without detailed performance data, a definitive assessment of exceptional value is difficult, but the price does not immediately suggest overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. The absence of information on the solicitation method (e.g., full and open, sole source, limited competition) prevents an assessment of how many bidders participated or the extent of market engagement. This lack of transparency makes it difficult to determine if the government secured the best possible pricing and terms through robust competition.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Limited or no competition can lead to higher prices and reduced innovation, while robust competition generally drives down costs and improves service quality for the government.

Public Impact

The United States Mint benefits from the supply of processed copper, essential for its coinage operations. Services delivered include specialized copper rolling, drawing, and extruding, meeting specific material requirements. The geographic impact is primarily within the United States, supporting domestic industrial capabilities. Workforce implications are likely within Olin Corporation's manufacturing facilities, utilizing skilled labor in metal processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to gauge contractor efficiency.
Limited information on competition raises questions about potential price optimization.
Short contract duration might indicate a need for ongoing, potentially separate, procurements.

Positive Signals

Award to Olin Corporation suggests leveraging an established industrial supplier.
Specific product code indicates a targeted and potentially efficient procurement process.
Contracting with a known entity can reduce onboarding and initial risk.

Sector Analysis

This contract falls within the industrial manufacturing and materials sector, specifically focusing on non-ferrous metal processing. The market for specialized copper fabrication is competitive, with several firms capable of providing such services. Government spending in this area is often driven by defense, infrastructure, and minting needs. Comparable spending benchmarks would typically involve analyzing contracts for raw material processing, metal fabrication, and specialized component manufacturing across various federal agencies.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Without this information, it is difficult to assess the impact on the small business ecosystem. Typically, larger industrial contracts may include provisions for small business participation, but this specific award's details are not available.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the United States Mint, responsible for monitoring performance and compliance. Accountability measures are usually tied to contract terms and deliverables. Transparency is dependent on the public availability of contract details, which can vary. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Industrial Base
Industrial Materials Procurement
Manufacturing Services
Non-Ferrous Metals
United States Mint Operations

Risk Flags

Potential for price volatility in copper commodity markets.
Risk of quality defects in specialized metal processing.
Dependence on contractor's supply chain for raw materials.
Short contract duration may indicate limited scope or need for follow-on actions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $31.5 million to OLIN CORPORATION - WINCHESTER. BASE METAL REFINERY

Who is the contractor on this award?

The obligated recipient is OLIN CORPORATION - WINCHESTER.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2007-02-27. End: 2007-09-30.

What is Olin Corporation's track record with federal contracts, particularly for metal processing?

Olin Corporation, through its various divisions, has a significant history of federal contracting. While the provided data focuses on a specific copper processing contract with the US Mint, Olin is widely known for its ammunition (Winchester) and chemical manufacturing operations, which have also involved substantial government contracts, particularly with the Department of Defense. Their experience in large-scale manufacturing suggests a capacity to handle complex industrial requirements. A deeper dive into their contract history would reveal the types of goods and services provided, award values, and performance ratings across different agencies. This specific contract's value of $31.5 million for copper processing indicates a specialized capability beyond their more commonly known defense-related outputs.

How does the $31.5 million contract value compare to similar government procurements for copper processing?

Benchmarking the $31.5 million contract value requires comparing it to similar government contracts for specialized copper processing, such as rolling, drawing, and extruding. Without access to a comprehensive database of comparable federal procurements, a precise comparison is challenging. However, considering the specialized nature of these processes and the potential volume required by the US Mint, this figure appears to be within a plausible range for industrial material supply. Factors influencing price include the specific alloy, tolerances, volume, and delivery timelines. If this contract represented a significant portion of the Mint's annual copper needs, the value would be substantial. Conversely, if it was for a smaller, specialized run, the value might be higher on a per-unit basis.

What are the primary risks associated with this type of industrial materials contract?

The primary risks associated with this industrial materials contract include potential supply chain disruptions for raw copper, fluctuations in commodity prices impacting cost, and quality control issues in the processing (rolling, drawing, extruding) that could affect the final product's suitability for minting. Performance risks involve meeting stringent specifications and delivery schedules. There's also a risk related to the contractor's financial stability or operational capacity, although awarding to an established entity like Olin mitigates this to some extent. Furthermore, geopolitical factors affecting copper sourcing or trade could introduce unforeseen challenges. Ensuring consistent quality and timely delivery are paramount for the US Mint's operations.

How effective was this contract in meeting the US Mint's needs for processed copper?

The provided data does not include specific performance metrics or end-user feedback from the US Mint regarding the effectiveness of this contract. Therefore, a definitive assessment of its success in meeting needs is not possible. Effectiveness would typically be measured by the quality of the processed copper (e.g., adherence to specifications, absence of defects), the timeliness of delivery, and whether the contract supported the Mint's production targets for coinage. The short duration (approximately 7 months) suggests it may have been for a specific project or a limited supply requirement rather than ongoing, long-term needs. Without post-award evaluations or performance reports, its effectiveness remains unknown.

What were historical spending patterns for copper processing by the US Mint prior to this contract?

The provided data focuses solely on this specific $31.5 million contract awarded in 2007. It does not offer insights into the US Mint's historical spending patterns for copper processing before or after this period. To understand historical spending, one would need to analyze procurement data for the US Mint over multiple fiscal years, identifying contracts for similar services (copper rolling, drawing, extruding) and their associated values. This would reveal trends in contract volume, average award amounts, and the primary contractors utilized. Such an analysis could highlight whether this $31.5 million award was typical, unusually large, or part of a broader shift in procurement strategy.

What is the significance of the product service code (PSC) '331421' in relation to this contract?

The Product Service Code (PSC) '331421' specifically denotes 'Copper Rolling, Drawing, and Extruding.' This code is crucial as it precisely categorizes the services procured under this contract, indicating that the US Mint required specialized manufacturing processes for copper. This level of specificity in PSCs helps government agencies track spending on particular types of goods and services, enabling better analysis of procurement patterns and market intelligence. For this contract, it confirms the focus was not on raw copper purchase but on the value-added manufacturing processes applied to copper to create specific forms or materials needed for coinage or other minting-related products.

Industry Classification

NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Copper Rolling, Drawing, and Extruding

Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS

Contractor Details

Address: 427 N SHAMROCK ST, EAST ALTON, IL, 13

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,501,190

Exercised Options: $31,501,190

Current Obligation: $31,501,190

Parent Contract

Parent Award PIID: TMK0203

IDV Type: IDC

Timeline