Treasury's Mint awarded $17.6M for coinage metal, with a 30-day delivery order to Wieland Rolled Products

Contract Overview

Contract Amount: $17,594,607 ($17.6M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2018-05-01

End Date: 2018-05-31

Contract Duration: 30 days

Daily Burn Rate: $586.5K/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 $17.6 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. The contract value of $17.6M for a 30-day period suggests a high per-diem rate for metal supply. 2. The sole awardee, Wieland Rolled Products, indicates potential limitations in market competition for this specific metal type. 3. A short 30-day duration may point to urgent needs or a pilot program, requiring close monitoring of performance. 4. The fixed-price contract type offers cost certainty but may not capture potential efficiencies if market prices fluctuate. 5. The 'Copper Rolling, Drawing, Extruding, and Alloying' NAICS code suggests a specialized industrial process. 6. The contract's focus on raw materials for coinage highlights its foundational role in currency production.

Value Assessment

Rating: fair

The contract value of $17.6 million for a 30-day period is substantial for a single delivery order of raw materials. Benchmarking this against similar contracts for coinage metal is difficult without more specific commodity details. However, the relatively short duration suggests a high daily expenditure, warranting scrutiny of the unit pricing and the necessity of such a rapid procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, only one award was made, which could imply that only one vendor met the specific technical requirements or offered the most competitive price. Further analysis would be needed to understand the number of proposals received and the reasons for the single award.

Taxpayer Impact: A full and open competition, even with a single award, generally provides a baseline for fair pricing. Taxpayers benefit from the assurance that the government sought competitive offers, though the lack of multiple competing bids on the final award warrants attention to ensure optimal value.

Public Impact

The primary beneficiary is the United States Mint, which receives essential raw materials for coin production. The service delivered is the provision of specific metals (likely copper alloys) required for minting circulating coinage. The geographic impact is national, as the coinage produced will be distributed across the United States. Workforce implications are indirect, supporting jobs within the metal supply and minting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility if market conditions change rapidly within the 30-day period.
Limited competition indicated by a single award despite full and open solicitation.
Short contract duration may indicate a reactive procurement rather than strategic planning.
Dependence on a single supplier for critical raw materials could pose a supply chain risk.

Positive Signals

Awarded through full and open competition, ensuring a broad initial search for vendors.
Fixed-price contract provides cost certainty for this specific procurement.
The United States Mint has a clear and essential need for these materials.

Sector Analysis

The contract falls within the industrial manufacturing and materials sector, specifically focusing on the supply of metals for coinage. The market for specialized metal alloys used in currency production is likely concentrated among a few key suppliers. The United States Mint's demand represents a significant, albeit specialized, portion of this market. Comparable spending benchmarks would relate to the procurement of industrial metals and alloys by government entities or large manufacturers.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The nature of specialized metal rolling and supply often favors larger, established industrial firms. Further investigation would be needed to determine if any small businesses were involved in the supply chain or if subcontracting goals were established.

Oversight & Accountability

Oversight for this contract would primarily reside with the United States Mint's contracting officers and program managers. Accountability measures are embedded in the contract terms, including delivery schedules and material specifications. Transparency is generally maintained through public contract databases, though detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of the Treasury Procurement
United States Mint Operations
Industrial Metals Supply Contracts
Coinage Production Materials

Risk Flags

Single Award Despite Full and Open Competition
Short Contract Duration
Potential Commodity Price Volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.6 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 $17.6 million.

What is the period of performance?

Start: 2018-05-01. End: 2018-05-31.

What specific type of copper alloy was procured, and how does its price compare to market benchmarks for the period?

The provided data indicates the NAICS code '331420' for Copper Rolling, Drawing, Extruding, and Alloying. While the exact alloy composition isn't specified, it's crucial for coinage. To assess value, the price per pound or ton of this specific alloy would need to be compared against prevailing market rates for similar copper-based materials during May 2018. Fluctuations in global commodity prices for copper and other alloying elements (like zinc or nickel) significantly impact costs. Without the precise alloy and market data for that month, a definitive value-for-money assessment is challenging, but the $17.6 million for a 30-day supply suggests a significant volume or a premium for specialized processing.

How many bids were received, and what was the competitive landscape for this specific coinage metal supply?

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that the solicitation was broadly advertised, allowing any interested and qualified vendor to submit a bid. However, the data shows only one award was made ('no': 2, likely referring to the number of awards, not bidders). This suggests that while multiple entities might have been aware of the opportunity, only one ultimately submitted a responsive and acceptable proposal, or perhaps only one met the stringent technical specifications required for coinage metal. A truly robust competition typically involves multiple competing bids leading to the award. The limited number of actual bidders, despite open competition, could point to a niche market or high barriers to entry for potential suppliers.

What is the historical spending pattern for this type of coinage metal supply by the United States Mint?

Analyzing historical spending for this specific coinage metal supply requires accessing past contract data for the United States Mint. Typically, the Mint procures such materials regularly. Examining annual spending on raw metals for coinage over several fiscal years would reveal trends in volume, pricing, and supplier relationships. Significant year-over-year increases or decreases could indicate changes in coin production targets, shifts in metal market prices, or changes in procurement strategies. Understanding this pattern helps contextualize the $17.6 million award, determining if it represents a typical, elevated, or reduced level of expenditure for this category of goods.

What are the performance risks associated with this contract, given the short duration and single supplier?

The primary performance risks center on supply chain reliability and quality assurance. With a 30-day duration and a single awardee, any disruption in Wieland Rolled Products' production or delivery capabilities could immediately halt or delay the Mint's coin production. This dependence increases vulnerability to unforeseen events like equipment failure, labor issues, or logistical problems. Furthermore, ensuring consistent quality of the metal alloy over this short, intensive period is critical; deviations could lead to defective coinage. The lack of alternative suppliers readily available under this specific award means the Mint has limited recourse if performance issues arise, necessitating close monitoring and potentially contingency planning.

Does the fixed-price contract type adequately protect the government against potential cost overruns or savings?

A Firm Fixed Price (FFP) contract, like this one, is designed to provide the government with cost certainty. The contractor assumes the risk of cost overruns. For the government, this means the $17.6 million is the ceiling price, and they will not pay more. However, if the contractor can produce the metal at a cost significantly lower than anticipated, they benefit from the profit margin. In a volatile commodity market, an FFP contract awarded when prices are expected to rise could result in the government missing out on potential savings if market prices subsequently fall. Conversely, if prices are expected to fall, the government benefits from locking in a price. The effectiveness of the FFP here depends on the accuracy of the initial price estimation relative to market conditions during the contract period.

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: $17,594,607

Exercised Options: $17,594,607

Current Obligation: $17,594,607

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00001

IDV Type: IDC

Timeline