Treasury's $32.1M contract for coinage metal awarded to Wieland Rolled Products North America, LLC

Contract Overview

Contract Amount: $32,166,827 ($32.2M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-11-16

End Date: 2022-03-04

Contract Duration: 108 days

Daily Burn Rate: $297.8K/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 $32.2 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. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Short performance period indicates a focus on immediate supply needs. 5. Contractor is a significant player in the metals industry, suggesting capability. 6. Geographic location of performance in Kentucky may have local economic impact.

Value Assessment

Rating: good

The contract value of $32.1 million for circulating coinage metal appears reasonable given the scale of U.S. Mint operations. Benchmarking against historical contracts for similar materials is difficult without more specific data on metal composition and quantity. However, the firm fixed-price structure provides cost certainty. The award to a single vendor suggests a focus on specific product requirements and established supply chains.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders, as noted, suggests a degree of competition, which typically benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring that the government receives competitive pricing and high-quality goods or services.

Public Impact

Benefits the United States Mint by ensuring a supply of essential metals for coin production. Services delivered include the provision of strip and metal for circulating coinage. Geographic impact is primarily at the federal level, supporting national currency production, with potential secondary impacts in Kentucky where the contractor is located. Workforce implications are likely within the contractor's operations in Kentucky and potentially within the U.S. Mint's manufacturing facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the contractor faces unforeseen operational issues.
Reliance on a single supplier for a critical component of coinage production.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type provides cost predictability.
Contractor is a known entity in the rolled products industry.

Sector Analysis

This contract falls within the broader metals and mining sector, specifically focusing on the supply of specialized rolled metal products for coinage. The U.S. Mint is a significant consumer of such materials, and the market for high-purity metals used in currency is specialized. Comparable spending benchmarks would involve looking at other contracts for precious or industrial metals by government agencies, though the specific alloy and form factor here are unique to coinage.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large, established company suggests that the primary focus was on meeting the specific technical and volume requirements of the U.S. Mint, rather than promoting small business participation in this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. 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 certain date. Transparency is facilitated by the contract award being publicly available, though detailed performance metrics and inspection reports may not be publicly disclosed.

Related Government Programs

U.S. Mint Coinage Production
Industrial Metals Procurement
Treasury Department Supply Chain Management

Risk Flags

Single Source Dependency Risk
Supply Chain Vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $32.2 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 $32.2 million.

What is the period of performance?

Start: 2021-11-16. End: 2022-03-04.

What is the specific composition and grade of the 'strip and metal for circulating coinage' being procured?

The provided data does not specify the exact composition or grade of the metal. However, circulating coinage in the United States typically utilizes alloys such as copper-nickel for dimes and quarters, and a clad composition of copper with nickel outer layers and a pure copper core for pennies (though the composition of the penny has changed over time). The U.S. Mint has specific metallurgical requirements for these alloys to ensure durability, machinability, and resistance to wear. Further details would likely be found in the contract's statement of work or technical specifications, which are not included in the provided summary data.

How does the unit price of this metal compare to market rates for similar industrial metals?

The provided data does not include a per-unit cost, only the total contract value ($32,166,826.63) and the duration (108 days). To compare unit prices, we would need to know the total quantity of metal procured (e.g., in tons or pounds). Without the quantity, calculating a meaningful per-unit cost for comparison to market rates is impossible. Market rates for industrial metals like copper and nickel fluctuate daily based on global supply and demand, commodity markets, and geopolitical factors. A precise comparison would require knowing the exact alloy, form (strip, coil, etc.), and the specific date of procurement relative to market prices.

What is the track record of Wieland Rolled Products North America, LLC with government contracts, particularly with the U.S. Mint?

Wieland Rolled Products North America, LLC is a significant player in the metals industry, known for producing rolled metal products. While the provided data indicates this specific contract award, it does not detail their broader government contracting history. Companies of this nature often supply materials to various industrial sectors, including potentially other government agencies or defense contractors. A comprehensive assessment of their track record would require searching federal procurement databases (like SAM.gov or FPDS) for past awards, performance reviews, and any history of disputes or issues with government contracts, especially those related to the U.S. Mint or similar material procurements.

What are the potential risks associated with relying on a single supplier for such a critical component of coinage?

Relying on a single supplier for critical components like coinage metal introduces several risks. The primary risk is supply chain disruption; any operational issue at the contractor's facility (e.g., labor strike, equipment failure, natural disaster, raw material shortage) could halt or delay the production of U.S. currency. This could lead to shortages of coins in circulation, impacting commerce. Another risk is reduced leverage in future negotiations; without alternative suppliers readily available, the U.S. Mint might face higher prices or less favorable terms in subsequent procurements. While full and open competition was used for this award, ensuring the contractor's capability, the long-term dependency on one source warrants careful monitoring and contingency planning.

How does the $32.1 million contract value compare to historical U.S. Mint spending on coinage metals?

The provided data offers a single contract award of $32.1 million for a specific period (November 2021 to March 2022). To compare this to historical spending, one would need to analyze the U.S. Mint's annual reports or historical procurement data. This would involve identifying the total amount spent on raw materials for coinage in previous fiscal years, noting any fluctuations due to changes in metal prices, coin production volumes, or the number and value of contracts awarded. This single contract represents a portion of the Mint's overall material costs for that period, and its significance can only be assessed within the context of total annual expenditures for coinage metals.

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: Schwenk Donau Gmbh & CO. KG

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: $32,166,827

Exercised Options: $32,166,827

Current Obligation: $32,166,827

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00001

IDV Type: IDC

Timeline