Treasury's $15.18M contract for coinage strip and metal awarded to Wieland Rolled Products

Contract Overview

Contract Amount: $15,183,161 ($15.2M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2018-10-02

End Date: 2018-11-01

Contract Duration: 30 days

Daily Burn Rate: $506.1K/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 $15.2 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. Contract awarded for essential materials for U.S. coinage production. 2. Single delivery order under a larger contract vehicle. 3. Competition level indicates potential for competitive pricing. 4. Fixed-price contract type limits cost escalation risks. 5. Short performance period suggests a focused procurement. 6. Supplier is a key player in metal rolling and processing.

Value Assessment

Rating: good

The contract value of $15.18 million for coinage strip and metal appears reasonable given the specialized nature of the materials and the supplier's role in the minting supply chain. Benchmarking against similar contracts for raw materials can be challenging due to unique specifications, but the firm fixed-price structure provides cost certainty. The award to a known entity in the industry suggests a focus on quality and reliability for a critical government function.

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 had the opportunity to bid. The presence of two bidders suggests a competitive environment, which typically benefits the government by driving down prices and encouraging innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring that the government receives the most advantageous offers. The competitive process helps to prevent overpayment and encourages suppliers to offer their best pricing.

Public Impact

Benefits the United States Mint in its production of circulating coinage. Ensures a steady supply of essential metals for currency. Supports the broader financial infrastructure of the United States. Indirectly impacts the availability of cash for consumers and businesses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole supplier faces issues.
Reliance on a single delivery order may not reflect long-term strategic sourcing.

Positive Signals

Awarded to a reputable supplier with industry experience.
Firm fixed-price contract provides budget predictability.
Competition ensures a baseline level of market validation.

Sector Analysis

The contract falls within the broader industrial sector of metal manufacturing and processing, specifically focusing on rolled metal products. This sector is crucial for supplying raw materials to various industries, including defense, construction, and consumer goods. The United States Mint relies on specialized suppliers like Wieland for high-quality metals essential for coin production, a niche but critical market segment. Comparable spending benchmarks would likely involve other large-scale metal supply contracts, though direct comparisons are difficult due to the unique specifications for coinage.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting to small businesses. The primary contractor, Wieland Rolled Products North America, LLC, is a significant industrial entity. The impact on the small business ecosystem is likely minimal for this specific award, as it focuses on large-scale industrial material supply rather than services typically contracted to smaller firms.

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 by a set date. Transparency is facilitated through public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

United States Mint Operations
Coinage Metal Procurement
Industrial Materials Supply Chain

Risk Flags

Short performance period may indicate urgent need or specific project phase.
Reliance on a single delivery order requires monitoring of overall supplier capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $15.2 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 $15.2 million.

What is the period of performance?

Start: 2018-10-02. End: 2018-11-01.

What is Wieland Rolled Products North America, LLC's track record with the U.S. Mint or other government agencies for similar materials?

Wieland Rolled Products North America, LLC is a significant player in the metals industry, known for producing high-quality rolled metal products. While specific details of their past government contracts are not immediately available in this data snippet, their specialization in copper and other alloys suggests they are well-positioned to supply the U.S. Mint. Their track record would typically be assessed through past performance evaluations during the bidding process, looking at on-time delivery, quality compliance, and responsiveness to previous government requirements. A history of successful engagements with the Mint or similar entities would indicate a lower performance risk for this contract.

How does the pricing of this contract compare to market rates for similar coinage strip and metal?

The pricing for this contract is set under a firm fixed-price (FFP) agreement, meaning the price is fixed regardless of the contractor's cost fluctuations. To assess value-for-money, one would need to compare the unit prices or total contract value against prevailing market rates for high-purity copper strip and relevant alloys used in coinage. This comparison would ideally involve benchmarking against prices from other major metal suppliers or indices for industrial metals, adjusted for specific quality standards and delivery terms required by the U.S. Mint. Given the specialized nature and quality requirements for coinage, market rates might differ from standard industrial metal prices.

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

The primary risks associated with this contract include potential supply chain disruptions (e.g., raw material shortages, production issues at Wieland), quality control failures leading to non-conforming materials, and delivery delays. Mitigation strategies are inherent in the contract structure: the firm fixed-price nature locks in costs, reducing financial risk for the government. The short performance period (30 days) limits the exposure window. Furthermore, the award under full and open competition to a known supplier suggests due diligence regarding the contractor's capability and reliability. The U.S. Mint likely has quality assurance protocols in place to inspect materials upon receipt.

How effective is the U.S. Mint's procurement process in securing essential materials like coinage strip?

The U.S. Mint's procurement process for essential materials appears generally effective, as evidenced by this contract award. Utilizing full and open competition, as indicated here, is a best practice that promotes competitive pricing and broad market access. The selection of a specialized supplier like Wieland suggests the Mint is capable of identifying and contracting with firms possessing the necessary technical expertise. The use of firm fixed-price contracts provides cost certainty for critical, time-sensitive procurements. However, a comprehensive assessment of effectiveness would require analyzing historical data on contract performance, cost savings achieved through competition, and the Mint's ability to consistently meet its production targets.

What are the historical spending patterns for coinage strip and metal by the U.S. Mint?

Historical spending patterns for coinage strip and metal by the U.S. Mint would likely show consistent, albeit variable, expenditure based on annual coinage production needs. The Mint procures these materials regularly, often through multi-year contracts or a series of delivery orders against established vehicles. Spending levels fluctuate with demand for circulating coinage, which can be influenced by economic activity, consumer behavior, and the need to replace worn currency. Analyzing past spending would reveal trends in contract values, supplier choices, and the average duration and value of such procurements, providing context for the current $15.18 million award.

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: $15,183,161

Exercised Options: $15,183,161

Current Obligation: $15,183,161

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00001

IDV Type: IDC

Timeline