Treasury's $19.7M contract for coinage metal awarded to Wieland Rolled Products for 30 days

Contract Overview

Contract Amount: $19,746,414 ($19.7M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2018-07-03

End Date: 2018-08-02

Contract Duration: 30 days

Daily Burn Rate: $658.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

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 $19.7 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. Contract value represents a significant portion of annual spending for this specific material. 2. Limited duration suggests a short-term need or a pilot program. 3. Fixed-price contract shifts cost risk to the contractor. 4. Single delivery order indicates a focused procurement action. 5. Geographic concentration in Illinois for delivery. 6. Absence of small business set-aside warrants further review of subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $19.7 million for a 30-day period appears substantial, especially considering it's for a single delivery order. Benchmarking this against historical spending for similar coinage metals is crucial. Without comparable contract data, it's difficult to definitively assess value for money. The firm fixed-price nature provides cost certainty but could lead to overpayment if market prices fluctuate favorably for the contractor.

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 specific number of bidders is not provided, but this approach generally fosters competitive pricing. The success of the competition in driving down costs would depend on the number of responsive bids received and the market's perception of fair pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best possible price through market forces.

Public Impact

Benefits the United States Mint in its production of circulating coinage. Ensures the supply of essential raw materials for coin manufacturing. Impacts the national supply chain for metals used in currency. Workforce implications are likely within the contractor's manufacturing facilities in Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition metrics (number of bidders) limits assessment of price discovery.
Potential for price volatility not captured in a short-term fixed-price contract.
Limited duration may not reflect long-term strategic sourcing needs.
Geographic concentration of delivery could pose logistical risks if disruptions occur.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm fixed-price contract provides budget certainty for the government.
Contractor is a known entity in rolled products, implying some level of expertise.
Clear description of materials ('STRIP AND METAL FOR CIRCULATING COINAGE') ensures specificity.

Sector Analysis

The market for specialized rolled metal products for coinage is a niche within the broader metals and manufacturing sector. This contract directly supports the government's essential function of currency production. Comparable spending benchmarks would involve analyzing other contracts for similar metals by the Mint or other government agencies requiring high-purity, specific-tolerance metal strips.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of small business subcontracting requirements. This suggests that the primary contractor, Wieland Rolled Products North America, LLC, is likely a large business. Further investigation into subcontracting plans would be necessary to determine the extent of small business participation in fulfilling this order.

Oversight & Accountability

Oversight for this contract would primarily reside with the United States Mint, a bureau within the Department of the Treasury. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified materials. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and oversight activities are not detailed here.

Related Government Programs

United States Mint Operations
Coinage Metal Procurement
Federal Supply Chain Management

Risk Flags

Potential for price volatility not fully mitigated by short-term fixed price.
Limited duration may not align with long-term strategic sourcing needs.
Geographic concentration poses potential supply chain disruption risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $19.7 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 $19.7 million.

What is the period of performance?

Start: 2018-07-03. End: 2018-08-02.

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

Analyzing historical spending for 'STRIP AND METAL FOR CIRCULATING COINAGE' from the United States Mint is crucial for context. While this specific contract is for $19.7 million over 30 days, understanding the annual or multi-year spend on similar materials would reveal if this is a routine procurement or an outlier. For instance, if the Mint typically spends $50-100 million annually on such metals, this $19.7M order represents a significant, but potentially standard, portion of their needs. Conversely, if annual spending is much lower, this contract might indicate a special project or a shift in sourcing strategy. Without access to historical procurement data for the Mint's metal supplies, it's challenging to definitively categorize this contract's spending level relative to past trends.

How does the unit price of this metal compare to market rates or similar government contracts?

Determining the unit price for the 'STRIP AND METAL FOR CIRCULATING COINAGE' is essential for a value-for-money assessment. The total contract value is $19,746,413.90. However, the specific quantity (e.g., pounds, tons, or square footage) of metal procured is not provided in the data. Without the quantity, calculating a per-unit cost (e.g., dollars per pound) is impossible. If this information were available, it could be benchmarked against prevailing market prices for copper and its alloys, or against similar contracts awarded by the Mint or other federal agencies. A higher-than-market unit price, even under a fixed-price contract, would indicate potentially poor value for taxpayers.

What is Wieland Rolled Products North America, LLC's track record with the US Mint and other federal agencies?

Wieland Rolled Products North America, LLC's track record is a key indicator of reliability and performance. As a supplier of coinage metal, their history with the United States Mint is particularly relevant. Information regarding past contract performance, on-time delivery rates, quality compliance, and any disputes or penalties would provide insight into their capabilities. Beyond the Mint, examining their contract history with other federal agencies, especially for similar materials or manufacturing services, can offer a broader perspective on their federal contracting performance. A history of successful, compliant contract execution suggests a lower risk for this current award, while past issues might raise concerns about potential performance or delivery problems.

What are the specific quality standards and tolerances required for this coinage metal?

The description 'STRIP AND METAL FOR CIRCULATING COINAGE' implies stringent quality standards and precise tolerances are necessary for the metal supplied by Wieland Rolled Products North America, LLC. Coinage requires specific material composition, purity levels, thickness, width, and surface finish to ensure consistent performance in minting machinery and durability in circulation. The contract likely references detailed specifications (e.g., ASTM standards, specific US Mint technical requirements) that Wieland must meet. Failure to meet these standards could result in defective coinage, production delays, and increased costs for rework or replacement. Assessing the clarity and enforceability of these quality requirements is vital for ensuring the government receives fit-for-purpose materials.

What is the strategic importance of this contract within the broader context of US currency production?

This contract is strategically important as it directly ensures the supply of essential raw materials for the production of circulating US coinage. The United States Mint relies on a consistent and high-quality supply of specific metal alloys to mint the billions of coins needed annually. This particular award, valued at nearly $20 million for a 30-day period, suggests it covers a significant portion of the Mint's immediate needs for a particular type of coinage metal. Disruptions in this supply chain could directly impact the availability of currency in circulation, affecting commerce and public confidence. Therefore, securing reliable suppliers like Wieland is critical for national economic stability.

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: 1

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: $19,746,414

Exercised Options: $19,746,414

Current Obligation: $19,746,414

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00001

IDV Type: IDC

Timeline