Treasury's Mint awards $30M contract for coinage metals, highlighting PMX Industries' role

Contract Overview

Contract Amount: $30,146,994 ($30.1M)

Contractor: PMX Industries, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2020-07-01

End Date: 2020-12-21

Contract Duration: 173 days

Daily Burn Rate: $174.3K/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: CEDAR RAPIDS, LINN County, IOWA, 52404

State: Iowa Government Spending

Plain-Language Summary

Department of the Treasury obligated $30.1 million to PMX INDUSTRIES, INC. for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. Contract value appears reasonable given the specialized nature of metal processing for coinage. 2. Full and open competition suggests a competitive bidding process, potentially leading to favorable pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is tied to specific metal requirements for circulating coinage, indicating a critical supply chain role. 5. This contract positions PMX Industries as a key supplier within the defense and industrial materials sector. 6. The duration of the contract is relatively short, suggesting a focus on immediate supply needs.

Value Assessment

Rating: good

The contract value of approximately $30.1 million for metal supply is within a reasonable range for specialized industrial materials. Benchmarking against similar contracts for metal rolling and processing is challenging without more specific data on metal types and quantities. However, the fixed-price nature of the award suggests that the government secured a defined cost for the specified materials, which is a positive indicator of value.

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 and considered. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and terms to secure the award. The presence of multiple bidders suggests that the market for these specialized metals is sufficiently robust to support competition.

Taxpayer Impact: A competitive bidding process for essential materials like those used in coinage helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The United States Mint benefits from a reliable supply of essential metals for producing circulating coinage. Citizens benefit indirectly through the continued availability of currency for everyday transactions. The contract supports domestic manufacturing capabilities in metal processing. The workforce involved in metal production and processing at PMX Industries benefits from this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if PMX Industries faces production issues.
Dependence on a single supplier for a critical component of coinage production.

Positive Signals

Awarded through full and open competition, indicating a healthy market.
Firm fixed-price contract limits cost escalation risks.
PMX Industries is a known entity in metal production, suggesting established capabilities.

Sector Analysis

The contract falls within the broader industrial materials and manufacturing sector, specifically focusing on metal processing. This sector is critical for national infrastructure, defense, and the production of goods, including currency. The market for specialized metals used in coinage is relatively niche, often requiring specific alloys and purity standards. Comparable spending benchmarks would typically involve other government contracts for raw materials or specialized manufacturing services.

Small Business Impact

The contract was not specifically set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless PMX Industries engages small businesses in its supply chain.

Oversight & Accountability

The United States Mint, as part of the Department of the Treasury, operates under established federal procurement regulations. Oversight is likely managed through internal quality control, contract management offices, and potentially the Treasury Inspector General for audits and investigations. Transparency is generally maintained through public contract databases like FPDS.

Related Government Programs

Coinage Metal Supply Contracts
US Mint Procurement
Industrial Materials Manufacturing
Federal Supply Chain Management

Risk Flags

Supply Chain Dependency
Quality Control Risk
Market Price Volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $30.1 million to PMX INDUSTRIES, INC.. PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE.

Who is the contractor on this award?

The obligated recipient is PMX INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

Start: 2020-07-01. End: 2020-12-21.

What is the historical spending pattern for this specific type of metal supply by the US Mint?

Analyzing historical spending patterns for coinage metals requires access to detailed procurement data over multiple fiscal years. While this specific contract is for approximately $30.1 million, understanding the Mint's typical annual expenditure for these materials would provide context on whether this award represents a significant increase or decrease in spending. Factors such as changes in coinage demand, metal market price fluctuations, and the number of active suppliers over time would influence these patterns. Without historical data, it's difficult to ascertain if this contract aligns with long-term trends or represents a deviation.

How does the price per pound or ton of the supplied metal compare to current market rates?

Determining the precise price per unit (e.g., per pound or ton) for the metals supplied under this contract is not possible with the provided data, as it lacks specific quantity details. To benchmark this against market rates, one would need to know the exact type and quantity of metals procured. Current market prices for base metals like copper and its alloys can be obtained from commodity market reports. A comparison would then involve calculating the unit price from the contract value and comparing it to these market benchmarks, adjusted for any specific alloy requirements or purity standards mandated by the US Mint.

What is PMX Industries' track record with government contracts, particularly with the US Mint?

PMX Industries, Inc. has a history of supplying metals, and their engagement with the US Mint suggests they have met the necessary qualifications and standards for coinage production. A thorough assessment of their track record would involve reviewing past performance evaluations, any documented issues or disputes on previous government contracts, and their overall reliability as a supplier. Information from sources like the Federal Awardee Performance and Integrity Information System (FAPIIS) could offer insights into their performance history and any past concerns raised by government agencies.

What are the potential risks associated with relying on PMX Industries for this critical supply?

Potential risks associated with relying on PMX Industries include supply chain disruptions due to unforeseen events (e.g., natural disasters, labor strikes, financial instability), quality control issues that could lead to non-compliant coinage, or potential price increases if market conditions change unfavorably and the fixed-price contract has limited flexibility. Furthermore, dependence on a single supplier for a critical component like coinage metal can create vulnerability. Mitigation strategies would involve robust quality assurance processes, maintaining contingency plans, and potentially diversifying suppliers for future contracts.

How does the competition level (full and open) typically influence the final price for such materials?

A 'full and open competition' process generally leads to more competitive pricing. When multiple qualified vendors are allowed to bid, they are incentivized to offer lower prices and better terms to win the contract. This contrasts with sole-source or limited competition scenarios where the government may have less leverage. For materials like those used in coinage, where specifications can be precise, a competitive environment helps ensure the government secures the best possible value for taxpayer funds by preventing price gouging and encouraging efficiency among bidders.

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: 5300 WILLOW CREEK DR SW, CEDAR RAPIDS, IA, 52404

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $30,146,994

Exercised Options: $30,146,994

Current Obligation: $30,146,994

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00002

IDV Type: IDC

Timeline