Treasury's $17.1M Contract for Coinage Metal Awarded to Wieland Rolled Products
Contract Overview
Contract Amount: $17,146,980 ($17.1M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2017-11-07
End Date: 2017-12-06
Contract Duration: 29 days
Daily Burn Rate: $591.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE.
Place of Performance
Location: EAST ALTON, MADISON County, ILLINOIS, 62024
State: Illinois Government Spending
Plain-Language Summary
Department of the Treasury obligated $17.1 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. Contract value of $17.1 million for essential coinage materials. 2. Wieland Rolled Products North America, LLC secured the award. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the 'Other' sector, specifically related to manufacturing inputs.
Value Assessment
Rating: good
The contract value of $17.1 million appears reasonable for the specified materials and duration. Benchmarking against similar contracts for raw metal supply would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The use of full and open competition is expected to yield cost savings for taxpayers by fostering a competitive environment for the supply of coinage metal.
Public Impact
Ensures the continued production of U.S. currency. Supports the supply chain for essential government functions. Impacts the availability of circulating coinage for the public.
Waste & Efficiency Indicators
Waste Risk Score: 59 / 10
Warning Flags
- Potential for price volatility in raw material markets.
- Dependence on a single supplier for a critical component.
Positive Signals
- Awarded through full and open competition.
- Clear delivery timeline specified.
- Firm fixed price contract mitigates cost overrun risk.
Sector Analysis
This contract is for raw materials essential for minting U.S. coinage. Spending in this area is typically stable, driven by the demand for currency and the cost of metals like copper.
Small Business Impact
The data does not indicate any specific provisions or impacts related to small businesses in this contract award.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's United States Mint, a federal agency with established oversight mechanisms for procurement and production.
Related Government Programs
- Copper Rolling, Drawing, Extruding, and Alloying
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Supply chain dependency
- Commodity price volatility
- Potential for future sole-sourcing if competition is not maintained
Tags
copper-rolling-drawing-extruding-and-all, department-of-the-treasury, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $17.1 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC. PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE.
Who is the contractor on this award?
The obligated recipient is WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (United States Mint).
What is the total obligated amount?
The obligated amount is $17.1 million.
What is the period of performance?
Start: 2017-11-07. End: 2017-12-06.
What is the historical price trend for the specific copper alloys used in coinage, and how does this contract's pricing compare?
Analyzing historical price trends for copper alloys is crucial for assessing the value of this contract. Fluctuations in global commodity markets directly impact raw material costs. Comparing the contract's firm fixed price against these historical benchmarks and prevailing market rates at the time of award would reveal whether the government secured a favorable deal or potentially overpaid.
What are the potential risks associated with relying on a single supplier for such a critical component as coinage metal?
Reliance on a single supplier, even one selected through competition, introduces risks such as supply chain disruptions due to unforeseen events (e.g., natural disasters, labor disputes, geopolitical issues). This could impact the continuous production of coinage. Mitigation strategies might include maintaining strategic reserves or qualifying alternative suppliers for future contracts.
How effectively does the firm fixed price structure protect taxpayer funds against potential cost escalations in raw material prices?
The firm fixed price (FFP) structure is highly effective in protecting taxpayer funds against raw material price escalations. Under an FFP contract, the contractor assumes the risk of cost increases. This means Wieland Rolled Products is obligated to deliver the specified metal at the agreed-upon price, regardless of market fluctuations, thereby shielding the government and taxpayers from unexpected cost overruns.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Copper Rolling, Drawing, Extruding, and Alloying
Product/Service Code: METAL BARS, SHEETS, SHAPES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4801 OLYMPIA PARK PLZ STE 3500, LOUISVILLE, KY, 40241
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,146,980
Exercised Options: $17,146,980
Current Obligation: $17,146,980
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG18D00001
IDV Type: IDC
Timeline
Start Date: 2017-11-07
Current End Date: 2017-12-06
Potential End Date: 2017-12-06 00:00:00
Last Modified: 2025-08-12
More Contracts from Wieland Rolled Products North America, LLC
- Provide Base Metals Strip for Circulating Coinage — $44.4M (Department of the Treasury)
- Provide Base Metals Strip for Circulating Coinage — $43.0M (Department of the Treasury)
- Provide Base Metals Strip for Circulating Coinage — $42.7M (Department of the Treasury)
- Provide Base Metals Strip for Circulating Coinage — $42.6M (Department of the Treasury)
- Provide Base Metals Strip for Circulating Coinage — $37.5M (Department of the Treasury)
View all Wieland Rolled Products North America, LLC federal contracts →
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)