Treasury's Mint Spends $16.6M on Coinage Metal from Wieland Rolled Products
Contract Overview
Contract Amount: $16,630,342 ($16.6M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2019-02-06
End Date: 2019-03-04
Contract Duration: 26 days
Daily Burn Rate: $639.6K/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 $16.6 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. Spending focused on essential raw materials for U.S. coinage. 2. Wieland Rolled Products North America, LLC is the sole awardee. 3. The contract was awarded under full and open competition. 4. The value is moderate for a specialized industrial material supply.
Value Assessment
Rating: good
The $16.6M award for coinage metal appears reasonable given the specialized nature of the product and the firm fixed price contract type. Benchmarking against similar raw material contracts for industrial use would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method is generally effective in achieving fair market prices for goods and services.
Taxpayer Impact: Taxpayer funds are used for essential government operations, specifically the production of U.S. currency. Competition helps ensure value for money.
Public Impact
Ensures the continuous supply of metal needed for circulating U.S. coins. Supports the operational needs of the United States Mint. Impacts the availability of coinage for public transactions. The contract contributes to the domestic supply chain for critical materials.
Waste & Efficiency Indicators
Waste Risk Score: 64 / 10
Warning Flags
- Potential for price volatility in raw material markets.
- Dependence on a single supplier for this specific order.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract limits cost overruns.
- Supports a critical government function (coinage production).
Sector Analysis
The contract falls within the industrial materials and manufacturing sector, specifically for metals used in coinage. Spending benchmarks for raw material procurement can vary significantly based on commodity prices and contract scope.
Small Business Impact
The awardee, Wieland Rolled Products North America, LLC, is a large business. There is no indication of specific provisions or set-asides for small businesses in this particular contract action.
Oversight & Accountability
The United States Mint, under the Department of the Treasury, is responsible for this procurement. Standard government procurement oversight processes would apply to ensure compliance and accountability.
Related Government Programs
- Copper Rolling, Drawing, Extruding, and Alloying
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential supply chain disruption risk.
- Dependence on a single supplier for this order.
- Commodity price volatility risk for contractor.
- Limited visibility into contractor's cost structure.
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 $16.6 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 $16.6 million.
What is the period of performance?
Start: 2019-02-06. End: 2019-03-04.
What is the historical price trend for the specific alloy and form of copper provided by Wieland, and how does this contract price compare?
Analyzing historical price trends for the specific copper alloy and form is crucial. Comparing this contract's price against those trends and against prices paid by other government agencies or large private sector entities for similar materials would reveal if the government secured a competitive rate. This helps assess the overall value for taxpayer money.
What are the risks associated with relying on a single supplier for such a critical component of coinage production, even if competition was used for this specific order?
Reliance on a single supplier, even for a single delivery order, poses risks such as supply chain disruptions due to unforeseen events (e.g., natural disasters, labor issues, geopolitical instability) affecting that supplier. It could also limit future competitive opportunities if the supplier gains significant market leverage. Contingency planning and exploring alternative suppliers are important risk mitigation strategies.
How effectively does the firm fixed price contract mitigate potential cost overruns for the U.S. Mint, given the fluctuating nature of commodity prices?
A firm fixed price contract is highly effective in mitigating cost overruns for the U.S. Mint, as the price is set at the time of award and generally does not change. This shifts the risk of price fluctuations in raw materials to the contractor. However, it relies on the contractor accurately forecasting market conditions during the bidding phase.
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: $16,630,342
Exercised Options: $16,630,342
Current Obligation: $16,630,342
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG18D00001
IDV Type: IDC
Timeline
Start Date: 2019-02-06
Current End Date: 2019-03-04
Potential End Date: 2019-03-04 00:00:00
Last Modified: 2025-09-22
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