Treasury's Mint awards $19.7M contract for nonferrous metal rolling, drawing, and extruding services

Contract Overview

Contract Amount: $19,708,296 ($19.7M)

Contractor: Coins 'N Things, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2012-12-14

End Date: 2012-12-21

Contract Duration: 7 days

Daily Burn Rate: $2.8M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

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 $19.7 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. Contract value of $19.7 million indicates significant demand for specialized metal processing. 2. The award was made under full and open competition, suggesting a healthy market. 3. A short 7-day duration for this delivery order might indicate a specific, immediate need. 4. The contract's focus on nonferrous metals aligns with the Mint's production requirements. 5. The firm fixed-price structure provides cost certainty for the government. 6. The contractor, COINS 'N THINGS, INC., has secured a substantial award, implying capability.

Value Assessment

Rating: good

The contract value of $19.7 million for a 7-day delivery order appears substantial, suggesting a significant scope of work or high-value materials. Benchmarking against similar contracts for specialized metal processing is difficult without more specific details on the exact materials and processes involved. However, the firm fixed-price nature of the contract provides a clear cost ceiling. The awarded amount is a significant portion of the total contract value, indicating a substantial portion of the potential work has been awarded.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of 8 bids suggests a competitive marketplace for these specialized metal processing services. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as the government benefited from a range of offers, potentially driving down costs.

Public Impact

The United States Mint is the primary beneficiary, likely receiving essential materials for coin production or other minting operations. The services delivered involve the critical processes of rolling, drawing, and extruding nonferrous metals. The geographic impact is primarily centered around the contractor's facilities and the Mint's operational locations. Workforce implications include employment opportunities at the contractor's facility for skilled labor in metal processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw materials impacting the fixed-price contract if not adequately accounted for.
Dependence on a single contractor for a critical, albeit short-term, supply chain component.
Ensuring the quality and specifications of the nonferrous metals meet the Mint's stringent requirements.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides budget certainty for the government.
The contractor's ability to secure such a significant award suggests established capabilities and reliability.

Sector Analysis

The contract falls within the broader metals and metal products manufacturing sector, specifically focusing on nonferrous metal processing. This sector is crucial for various industrial applications, including coinage, aerospace, and electronics. The market size for specialized metal fabrication can be substantial, with numerous players ranging from large industrial conglomerates to niche processors. This contract represents a specific procurement within this sector, likely for high-purity or specially processed metals required by the U.S. Mint.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature and value of the contract, it is possible that larger, more established firms with specific expertise in nonferrous metal processing were the primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature simplifies financial oversight. Accountability is maintained through delivery schedules and quality specifications. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

U.S. Mint Operations
Precious Metals Procurement
Industrial Materials Manufacturing
Defense Logistics Agency (DLA) - Metals Procurement

Risk Flags

Potential for material price volatility
Quality control of specialized metal processing
Short contract duration may limit flexibility

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $19.7 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 $19.7 million.

What is the period of performance?

Start: 2012-12-14. End: 2012-12-21.

What is the historical spending pattern for nonferrous metal processing services by the U.S. Mint?

Analyzing historical spending for nonferrous metal processing by the U.S. Mint requires access to detailed procurement data over multiple fiscal years. While this specific $19.7 million award is for a 7-day delivery order, understanding the Mint's broader procurement strategy for such materials is crucial. Typically, the Mint procures metals like copper, nickel, and zinc for coinage. Spending patterns can fluctuate based on production demands, metal market prices, and the expiration of existing contracts. Without a longitudinal dataset, it's difficult to ascertain if this award represents a typical expenditure or an anomaly. However, the significant value suggests a substantial requirement, potentially for a large production run or a specific project necessitating high-grade nonferrous metals.

How does the awarded price compare to market rates for similar nonferrous metal processing services?

Determining if the awarded price of $19.7 million is competitive requires a detailed market analysis of nonferrous metal rolling, drawing, and extruding services. Factors such as the specific alloys, purity levels, tolerances, and production volumes would heavily influence market rates. Benchmarking would involve comparing this contract's unit costs (if calculable) against industry price indices, quotes from other suppliers for comparable services, and potentially data from similar government contracts. Given the firm fixed-price nature, the government has a defined cost ceiling. However, without granular data on the specific services rendered and the prevailing market conditions at the time of award, a definitive value-for-money assessment is challenging. The presence of 8 bids suggests market competitiveness, which generally supports favorable pricing.

What is the track record of COINS 'N THINGS, INC. with federal contracts, particularly with the U.S. Mint?

Assessing the track record of COINS 'N THINGS, INC. involves reviewing their past performance on federal contracts, including any prior awards from the U.S. Mint or other agencies requiring similar services. Key performance indicators would include on-time delivery, adherence to specifications, and any history of contract disputes or terminations. A positive performance history suggests reliability and capability, reducing performance risk for this current contract. Conversely, a history of issues might raise concerns about the contractor's ability to meet the current contract's demands. Information on past performance is often available through federal procurement databases and can be a critical factor in source selection.

What are the specific risks associated with this contract, and how are they mitigated?

Potential risks for this contract include supply chain disruptions for raw nonferrous metals, fluctuations in commodity prices impacting the fixed-price agreement, and potential quality control issues with the processed metals. Mitigation strategies might involve robust quality assurance protocols, contingency planning for material sourcing, and clear contractual terms addressing price adjustments or material substitutions if necessary. The short 7-day duration might also pose a risk if unforeseen production delays occur. The firm fixed-price structure itself mitigates the risk of cost overruns for the government, shifting that risk to the contractor.

How does this contract align with the U.S. Mint's overall mission and production goals?

This contract directly supports the U.S. Mint's mission to produce circulating coinage, bullion, and medals. The nonferrous metals processed are fundamental raw materials for these products. The specific quantity and type of metals procured through this $19.7 million award would align with the Mint's production targets for a given period. For instance, if the Mint is planning a large mintage of a particular coin, a contract of this size for specialized metal processing would be essential to meet those production goals. The efficiency and quality of the metal processing directly impact the Mint's ability to meet demand and maintain its operational objectives.

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: 8

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: $19,708,296

Exercised Options: $19,708,296

Current Obligation: $19,708,296

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: TMHQ10C0044

IDV Type: IDC

Timeline