Treasury's $22.2M contract for nonferrous metal rolling awarded to Coins 'N Things, Inc. after full and open competition

Contract Overview

Contract Amount: $22,222,305 ($22.2M)

Contractor: Coins 'N Things, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2012-03-28

End Date: 2012-04-11

Contract Duration: 14 days

Daily Burn Rate: $1.6M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RAW GOLD

Place of Performance

Location: BRIDGEWATER, PLYMOUTH County, MASSACHUSETTS, 02324

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Treasury obligated $22.2 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a robust market for nonferrous metal products. 3. Risk indicators appear low given the short duration and fixed-price nature. 4. Performance context is a short-term delivery order, not a long-term program. 5. Sector positioning within manufacturing and metal processing. 6. Contract awarded to a single entity, suggesting specific capabilities required.

Value Assessment

Rating: good

The contract value of $22.2 million for a 14-day delivery order appears reasonable given the nature of specialized metal products. Benchmarking against similar contracts for nonferrous metal processing is challenging without more specific product details. However, the firm fixed-price structure suggests that the contractor assumed the risk for cost overruns, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 5 bids suggests a healthy level of competition for this requirement. This broad competition is generally expected to drive prices down and ensure the government receives competitive offers.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the most competitive pricing available in the market for these specialized metal products.

Public Impact

The United States Mint is the primary beneficiary, receiving essential metal products for its operations. Services delivered include the provision of nonferrous metals, likely for coinage or other minting purposes. Geographic impact is primarily national, supporting the Mint's operations across the US. Workforce implications are likely within the specialized manufacturing sector of the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw material costs not fully captured in fixed-price contract.
Dependence on a single supplier for a critical, albeit short-term, need.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm fixed-price contract shifts cost risk to the contractor.
Short delivery order duration minimizes long-term exposure and market risk.
Awarded to a company with a specific North American Industry Classification System (NAICS) code relevant to the product.

Sector Analysis

This contract falls within the broader manufacturing sector, specifically focusing on the nonferrous metal rolling, drawing, and extruding industry. This industry is crucial for supplying raw materials to various sectors, including defense, aerospace, and consumer goods. The market size for such specialized metal products can be significant, driven by demand for high-purity and precisely manufactured materials. Comparable spending benchmarks would depend heavily on the specific type and quantity of nonferrous metal required.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The award went to 'Coins 'N Things, Inc.', which, without further data, is presumed to be a larger entity. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Treasury and the United States Mint contracting officers. Accountability measures are embedded in the firm fixed-price contract terms and delivery schedule. Transparency is facilitated by the public nature of contract awards, though specific performance details may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

US Mint Coinage Production
Precious Metals Procurement
Manufacturing and Industrial Supplies

Risk Flags

Potential for price volatility in raw materials
Dependence on specific supplier capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $22.2 million to COINS 'N THINGS, INC.. RAW GOLD

Who is the contractor on this award?

The obligated recipient is COINS 'N THINGS, 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 $22.2 million.

What is the period of performance?

Start: 2012-03-28. End: 2012-04-11.

What is the specific type and grade of nonferrous metal procured under this contract?

The contract specifies 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding' under NAICS code 331491. However, the exact type and grade of metal are not detailed in the provided data. This could range from various alloys of nickel, zinc, tin, or other non-copper/aluminum metals. The specific grade would be critical for understanding its application, such as for circulating coinage, commemorative medals, or other minting products, and would influence its market value and the technical specifications required from the supplier.

How does the awarded price compare to historical spending for similar materials by the US Mint?

Direct comparison of the $22.2 million award to historical spending is difficult without knowing the precise material, quantity, and specifications. The contract duration was only 14 days, indicating a delivery order rather than a long-term supply agreement. Historical data would need to be filtered for similar metal types, quantities, and contract types (e.g., delivery orders vs. base contracts) to establish a meaningful benchmark. The firm fixed-price nature suggests the contractor bore the risk of price fluctuations during this short period.

What are the potential risks associated with procuring specialized metals through a single delivery order?

The primary risks associated with procuring specialized metals via a single, short-duration delivery order include potential supply chain disruptions if the awarded contractor faces unforeseen issues, and the possibility of not securing the most advantageous pricing if market conditions change rapidly. However, the firm fixed-price structure mitigates cost overrun risks for the government. The limited duration also reduces the government's exposure to long-term market volatility or obsolescence of the material.

What is the track record of 'Coins 'N Things, Inc.' in fulfilling government contracts, particularly for metal products?

The provided data indicates 'Coins 'N Things, Inc.' was awarded this contract. To assess their track record, one would need to examine their past performance history with the US government or other entities. This would involve looking at previous contract awards, on-time delivery rates, quality of goods/services provided, and any past disputes or contract terminations. Without access to a broader contract database or performance reports, a detailed assessment of their specific track record for metal products is not possible from this data alone.

How does the competition level (5 bidders) impact the perceived value for money in this contract?

Having five bidders for this contract suggests a reasonably competitive market for the specified nonferrous metal products. A higher number of bidders generally leads to more competitive pricing as companies vie for the award. This level of competition increases the likelihood that the government secured a fair market price. It also indicates that the requirement was well-defined enough to attract multiple capable suppliers, reducing the risk of a sole-source or limited-source situation where pricing might be less favorable.

Industry Classification

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

Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 350 BEDFORD ST STE 2, BRIDGEWATER, MA, 02324

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,222,305

Exercised Options: $22,222,305

Current Obligation: $22,222,305

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: TMHQ10C0044

IDV Type: IDC

Timeline