Treasury's Mint spent $22.9M on copper processing, with Olin Corp. delivering services over 159 days

Contract Overview

Contract Amount: $22,868,409 ($22.9M)

Contractor: Olin Corporation - Winchester

Awarding Agency: Department of the Treasury

Start Date: 2007-04-24

End Date: 2007-09-30

Contract Duration: 159 days

Daily Burn Rate: $143.8K/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 $22.9 million to OLIN CORPORATION - WINCHESTER for work described as: BASE METAL REFINERY Key points: 1. The contract value appears reasonable given the specialized nature of copper refining and processing. 2. Olin Corporation, a known entity in ammunition and chemical manufacturing, likely leveraged existing capabilities. 3. The short duration suggests a specific, time-bound need rather than a long-term strategic requirement. 4. Performance context is limited due to the lack of detailed outcome metrics in the provided data. 5. This contract falls within the broader industrial and manufacturing support sector for federal agencies.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the quantity and quality of copper processed. However, $22.9 million for 159 days of specialized metal processing suggests a significant operational scale. Comparing it to similar contracts for large-scale metal refining or manufacturing would be necessary for a more precise value assessment. The absence of detailed performance metrics makes a definitive value-for-money judgment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not specified in the provided data. Without knowing if it was competed, and if so, how many bidders participated, it's impossible to assess the impact on price discovery. A full and open competition would typically lead to more competitive pricing than a sole-source or limited solicitation.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Strong competition generally drives down costs, ensuring that federal funds are used more efficiently. Limited or no competition can lead to higher prices and reduced accountability.

Public Impact

The United States Mint benefited from the processing of essential copper materials for its operations. Services delivered included copper rolling, drawing, and extruding, crucial for minting processes. The geographic impact is localized to Illinois, where Olin Corporation's facility is situated. Workforce implications are likely within Olin Corporation's existing manufacturing and processing roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition process hinders assessment of fair pricing.
Limited performance data makes it difficult to evaluate the effectiveness and efficiency of the services rendered.
The contract's short duration might indicate a reactive procurement rather than proactive planning, potentially missing cost-saving opportunities.

Positive Signals

Olin Corporation is an established entity, suggesting a degree of reliability in service delivery.
The contract was awarded by the Department of the Treasury, indicating a level of federal oversight.
The specific nature of the service (copper processing) points to a targeted need being met.

Sector Analysis

This contract falls within the industrial manufacturing and materials processing sector. The market for specialized metal refining and fabrication is often characterized by a few large, established players capable of handling large-scale government contracts. The value of such contracts can vary significantly based on the type of metal, the complexity of the processing required, and the volume of material handled. Federal spending in this area supports critical infrastructure and manufacturing capabilities.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it offer information on subcontracting. Therefore, the direct impact on the small business ecosystem is unclear. Typically, large prime contracts may include subcontracting goals, which could benefit small businesses if actively pursued.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury and the United States Mint. Accountability measures would be tied to the contract's terms and conditions, including delivery schedules and quality specifications. Transparency is limited by the available data, but contract awards are generally subject to federal procurement regulations and reporting requirements.

Related Government Programs

Defense Industrial Base (DIB) Manufacturing Support
Critical Materials Procurement
Government-Owned, Contractor-Operated (GOCO) Facilities Support
Industrial Base Modernization Programs

Risk Flags

Lack of competition data
Limited performance metrics
Short contract duration may indicate reactive procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $22.9 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 $22.9 million.

What is the period of performance?

Start: 2007-04-24. End: 2007-09-30.

What was the specific quantity and grade of copper processed under this contract?

The provided data does not specify the exact quantity or grade of copper processed. It only indicates the service type as 'Copper Rolling, Drawing, and Extruding' and the contract value. To fully assess the value and efficiency of this contract, detailed information on the volume of copper handled and its specifications would be necessary. This level of detail is often found in the contract's statement of work or performance reports, which are not included here.

How does the per-day cost of this contract compare to industry benchmarks for similar copper processing services?

Calculating a precise per-day cost requires dividing the total contract value ($22,868,408.50) by the contract duration (159 days), yielding approximately $143,826 per day. Benchmarking this figure against industry standards for copper rolling, drawing, and extruding is difficult without more specific information on the scale and complexity of the operations performed. Factors such as the specific alloys, tolerances, and finishing requirements significantly influence pricing in the metal processing industry. A direct comparison would necessitate access to detailed cost data from comparable commercial or government contracts.

What was Olin Corporation's track record with the US Mint or similar federal agencies prior to this award?

The provided data does not include information on Olin Corporation's prior contract history with the US Mint or other federal agencies. Olin Corporation is a known entity in the manufacturing sector, particularly in ammunition and chemicals. A comprehensive assessment of their track record would involve reviewing past performance evaluations, any documented issues or commendations on previous federal contracts, and their overall experience in fulfilling government requirements related to metal processing.

Were there any performance issues or disputes reported during the execution of this contract?

The available data does not contain any information regarding performance issues, disputes, or contract modifications during the execution of this $22.9 million contract. Typically, such details would be found in contract performance reports, agency inspection records, or Inspector General audits. Without access to these records, it is presumed that the contract was executed without significant reported problems, but this cannot be definitively confirmed.

What is the historical spending trend for copper processing services by the US Mint?

The provided data only includes a single contract award for copper processing services to Olin Corporation. It does not offer a historical perspective on the US Mint's spending for such services. To analyze historical spending trends, one would need to examine procurement data over multiple fiscal years, identifying all contracts related to copper processing, their values, durations, and awarded contractors. This would help determine if this $22.9 million contract represents a typical expenditure or an outlier.

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: $22,868,409

Exercised Options: $22,868,409

Current Obligation: $22,868,409

Parent Contract

Parent Award PIID: TMK0203

IDV Type: IDC

Timeline