Treasury's Mint awards $21.8M contract for coinage metal to PMX Industries, Inc

Contract Overview

Contract Amount: $21,838,416 ($21.8M)

Contractor: PMX Industries, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2020-09-01

End Date: 2021-03-18

Contract Duration: 198 days

Daily Burn Rate: $110.3K/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 $21.8 million to PMX INDUSTRIES, INC. for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. Contract awarded to PMX Industries, Inc. for essential coinage metal. 2. The contract value is approximately $21.8 million. 3. The period of performance is approximately 198 days. 4. The contract was awarded under full and open competition. 5. The service is for providing strip and metal for circulating coinage. 6. The contract type is Firm Fixed Price. 7. The award was a Delivery Order.

Value Assessment

Rating: good

The contract value of $21.8 million for coinage metal appears reasonable given the scope of providing strip and metal for circulating coinage. Benchmarking against similar contracts for metal supply would provide a more precise value-for-money assessment. The firm fixed price structure suggests that the government has locked in costs, which can be advantageous if market prices for metals fluctuate upwards. However, without specific details on the type and quantity of metal, a definitive value assessment is challenging.

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 were likely solicited and had the opportunity to bid. The presence of two bidders suggests a competitive environment, which generally leads to better pricing and quality for the government. The specific number of bidders and the evaluation criteria would further clarify the extent of competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value for its spending.

Public Impact

The United States Mint benefits from this contract by securing a reliable supply of essential metals for producing circulating coinage. The services delivered include the provision of strip and metal crucial for minting coins. The geographic impact is national, as the coinage produced will be distributed across the United States. There are potential workforce implications for PMX Industries, Inc. and its suppliers, related to the production and delivery of the metal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in raw metal markets impacting the fixed price contract.
Dependence on a single supplier for a critical component of coinage production.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract provides cost certainty for the government.
PMX Industries, Inc. is a known entity in metal supply, implying some level of established capability.

Sector Analysis

The contract falls within the broader industrial sector of metal manufacturing and processing. The United States Mint is a significant consumer of specialized metals for coinage. The market for such specialized metal supply can be competitive, with several established players capable of meeting stringent quality and production requirements. This contract represents a portion of the Mint's overall spending on raw materials for coin production.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. The nature of supplying large quantities of specialized metal typically favors larger, established industrial manufacturers. Subcontracting opportunities for small businesses might exist within PMX Industries' supply chain for raw materials or specialized processing, but this is not explicitly detailed in the award information.

Oversight & Accountability

The United States Mint, as part of the Department of the Treasury, is subject to various oversight mechanisms. The award process for contracts is governed by federal acquisition regulations. Transparency is generally maintained through public contract databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise during the contract performance.

Related Government Programs

Department of the Treasury Contracts
United States Mint Procurement
Raw Material Supply Contracts
Metal Manufacturing and Processing Contracts

Risk Flags

Potential supply chain disruption risk
Quality control adherence for specialized metal alloys
Price volatility of raw materials impacting fixed-price contract

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $21.8 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 $21.8 million.

What is the period of performance?

Start: 2020-09-01. End: 2021-03-18.

What is the specific type and grade of metal being supplied under this contract?

The provided data indicates the contract is for 'STRIP AND METAL FOR CIRCULATING COINAGE.' While the exact alloy composition is not specified, circulating coinage typically uses specific alloys like copper-nickel for dimes and quarters, and clad coinage with a copper core and outer layers of cupronickel or manganese brass. The 'Copper Rolling, Drawing, Extruding, and Alloying' description for NAICS 331420 suggests that PMX Industries, Inc. is involved in the processing and potentially the creation of these specific metal alloys required by the Mint. Further details on the precise specifications would be found in the contract's statement of work.

How does the $21.8 million award compare to historical spending on coinage metal by the US Mint?

To accurately compare the $21.8 million award to historical spending, one would need to analyze the US Mint's procurement data over several fiscal years. This would involve identifying previous contracts for similar coinage metals, noting their values, and adjusting for inflation. The provided data shows this is a single delivery order with a specific performance period (2020-2021). Annual spending can fluctuate based on coinage demand, metal market prices, and the specific types of coins being produced. A comprehensive historical analysis would reveal if this award represents a typical expenditure or a significant deviation.

What are the key performance indicators (KPIs) for this contract, and how was PMX Industries, Inc. evaluated?

Key performance indicators for a contract supplying coinage metal would likely include adherence to strict material specifications (composition, purity, dimensions), on-time delivery schedules, quality control measures, and potentially price competitiveness. The evaluation process for PMX Industries, Inc. would have been based on the criteria outlined in the solicitation, which are not detailed in the provided summary. Given the 'full and open competition' award, it's probable that factors such as technical capability, past performance, and price were considered. The 'IA' (Iowa) and 'IOWA' codes might relate to the facility's location or specific certifications relevant to performance.

What is the risk associated with relying on PMX Industries, Inc. for this critical supply?

The primary risks associated with relying on PMX Industries, Inc. for this critical supply include potential disruptions in their production or supply chain, quality control failures, or significant price increases if market conditions change unfavorably for a fixed-price contract. As a single supplier for this specific award, the Mint is exposed to these risks. Mitigation strategies could include robust quality assurance checks, maintaining buffer stock, and having contingency plans for alternative suppliers, although the latter might be challenging for highly specialized coinage metals. The relatively short performance period (approx. 6.5 months) may limit the long-term exposure to these risks.

Are there any small business subcontracting requirements associated with this contract?

The provided data indicates that the 'SB' (Small Business) flag is 'false' and the 'SS' (Small Business Set-aside) flag is also 'false'. This suggests that the contract was not specifically designated as a small business set-aside. Therefore, there are no explicit mandatory small business subcontracting goals tied directly to this prime contract award. However, PMX Industries, Inc., as a large business, may voluntarily engage small businesses in its supply chain for raw materials, transportation, or other support services, but this is not a contractual requirement based on the information given.

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

Parent Company: Poongsan Corporation

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: $21,838,416

Exercised Options: $21,838,416

Current Obligation: $21,838,416

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00002

IDV Type: IDC

Timeline