Treasury's $30.7M Contract for Coinage Metal Awarded to Wieland Rolled Products
Contract Overview
Contract Amount: $30,704,313 ($30.7M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2020-09-01
End Date: 2020-10-04
Contract Duration: 33 days
Daily Burn Rate: $930.4K/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: LOUISVILLE, JEFFERSON County, KENTUCKY, 40241
State: Kentucky Government Spending
Plain-Language Summary
Department of the Treasury obligated $30.7 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 coinage metal supply. 2. Wieland Rolled Products is a significant player in metal manufacturing. 3. Potential risk in single-source reliance for critical materials. 4. Spending falls within the broader manufacturing and materials sector.
Value Assessment
Rating: good
The contract value of $30.7M for 33 days of supply appears reasonable given the specialized nature of the product and the quantities required for national coinage. Benchmarking against similar raw material contracts for industrial use would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to a fair market price. The use of Firm Fixed Price contract type further solidifies price certainty.
Taxpayer Impact: Taxpayer funds were used efficiently through a competitive process for a necessary government function.
Public Impact
Ensures the continuous production of U.S. currency. Supports the operational needs of the United States Mint. Impacts the availability of circulating coins for the public.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single supplier for critical raw material.
- Potential for price volatility in the metals market.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the industrial manufacturing and materials sector, specifically focusing on non-ferrous metal rolling. Spending benchmarks for similar raw material procurements by government agencies would be relevant for comparison.
Small Business Impact
The data indicates this contract was awarded to a large corporation (Wieland Rolled Products North America, LLC), with no indication of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist.
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
- Supply chain concentration risk
- Commodity price volatility
- Dependence on a single supplier for critical material
Tags
copper-rolling-drawing-extruding-and-all, department-of-the-treasury, ky, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $30.7 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 $30.7 million.
What is the period of performance?
Start: 2020-09-01. End: 2020-10-04.
What is the long-term strategy for securing coinage metal to mitigate supply chain risks?
The long-term strategy for securing coinage metal involves diversifying suppliers, exploring alternative materials, and maintaining strategic stockpiles. Continuous market analysis and fostering strong relationships with multiple domestic and international producers are crucial. The Mint should also consider the geopolitical stability of sourcing regions and the environmental impact of metal extraction and processing.
How does the price of copper and other metals in this contract compare to historical averages and market trends?
The pricing of copper and other metals in this contract should be benchmarked against historical averages and current market trends. Significant deviations could indicate either exceptional value or potential overpayment. Factors like contract duration, volume, and specific alloy requirements influence the final price, necessitating a nuanced comparison rather than a simple spot price check.
What are the potential impacts on coin production if the supplier faces disruptions?
Disruptions at Wieland Rolled Products could significantly impact coin production, leading to shortages of circulating currency. Contingency plans, such as pre-qualified alternative suppliers or maintaining buffer inventory, are essential to mitigate this risk. The duration and severity of the disruption would determine the extent of the impact on the Mint's ability to meet demand.
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: $30,704,313
Exercised Options: $30,704,313
Current Obligation: $30,704,313
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG18D00001
IDV Type: IDC
Timeline
Start Date: 2020-09-01
Current End Date: 2020-10-04
Potential End Date: 2020-10-04 00:00:00
Last Modified: 2025-09-22
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)