Treasury's $35M contract for coinage metals awarded to Wieland Rolled Products for circulating coin production

Contract Overview

Contract Amount: $34,972,531 ($35.0M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-02-10

End Date: 2022-04-04

Contract Duration: 53 days

Daily Burn Rate: $659.9K/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 $35.0 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. Value for money assessed through competitive bidding, aiming for optimal pricing. 2. Competition dynamics indicate a robust market for specialized metal suppliers. 3. Risk indicators include potential supply chain disruptions and material price volatility. 4. Performance context relies on timely delivery of specified metal products. 5. Sector positioning places this contract within the critical metals and manufacturing industry.

Value Assessment

Rating: good

The contract value of approximately $35 million for coinage metals appears reasonable given the specialized nature of the materials and the competitive bidding process. Benchmarking against similar contracts for raw materials in defense or aerospace can provide further context, but the United States Mint's requirement for specific alloys and tolerances likely commands a premium. The firm fixed-price structure helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of two bidders (indicated by 'no': 2) implies a degree of competition, which is generally favorable for price discovery and ensuring the government receives competitive offers. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer deeper insight into the strength of the competition.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among suppliers. This ensures that the government is not overpaying for essential materials like those used in coinage.

Public Impact

The primary beneficiaries are the United States Mint and, by extension, the public who rely on circulating coinage for daily transactions. The services delivered include the provision of essential raw materials (strip and metal) for the production of circulating coins. The geographic impact is national, as the coinage produced will be distributed across the United States. Workforce implications are indirect, supporting jobs in the metals manufacturing sector and at the Mint's production facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw metal commodities impacting long-term costs.
Dependence on a limited number of specialized suppliers could create supply chain vulnerabilities.
Ensuring consistent quality and adherence to precise specifications for coinage metal is critical.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost certainty for the government.
The contractor, Wieland Rolled Products, is an established entity in the metals industry.

Sector Analysis

This contract falls within the metals and metal products manufacturing sector, specifically focusing on the supply of specialized rolled products for coinage. The market for such materials is characterized by stringent quality requirements and often involves a limited number of highly specialized producers. Comparable spending benchmarks would involve other government agencies procuring similar high-purity, custom-alloyed metals for manufacturing purposes, such as defense or aerospace components.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity capable of meeting the specialized demands. Further analysis would be needed to determine if small businesses are involved further down the supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the United States Mint, which is responsible for managing its procurement activities and ensuring contractor performance. 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 public nature of federal contract awards, though detailed performance metrics may not be publicly disclosed.

Related Government Programs

United States Mint Operations
Coinage Metal Procurement
Industrial Metals Supply Chain
Manufacturing and Production Contracts

Risk Flags

Supply Chain Risk
Commodity Price Volatility
Quality Control Requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $35.0 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 $35.0 million.

What is the period of performance?

Start: 2022-02-10. End: 2022-04-04.

What is the historical spending pattern for coinage metals by the United States Mint?

Historical spending data for coinage metals by the United States Mint reveals a consistent need for these materials to support the production of circulating currency. Over the past decade, the Mint has awarded numerous contracts for various metals, including copper, zinc, and nickel, often in specific alloys and forms like strip or blanks. The total annual expenditure can fluctuate based on coinage demand, metal market prices, and the specific contract vehicles utilized (e.g., indefinite-delivery contracts, fixed-price awards). For instance, in fiscal years with high demand for circulating coins, spending on raw materials can increase significantly. Analyzing past contract awards for similar materials, such as those for clad coinage or commemorative coins, provides a baseline for understanding the scale and frequency of these procurements. The current contract's value of approximately $35 million for strip and metal for circulating coinage appears to be within the typical range for such a requirement, especially considering the firm fixed-price nature which locks in costs.

How does the price of this contract compare to market rates for similar metals?

Benchmarking the price of this contract against prevailing market rates for similar metals requires access to real-time commodity prices and specific alloy compositions. The contract is for 'strip and metal for circulating coinage,' which implies specific purity, tolerance, and potentially alloy requirements dictated by the U.S. Mint's standards. While general commodity prices for copper, zinc, and nickel can be found, the exact 'per-unit' cost for the specialized form and quality procured by the Mint is not directly comparable to bulk industrial metal prices. However, the fact that the contract was awarded under 'full and open competition' with two bidders suggests that the pricing achieved was competitive within the specialized market for coinage metals. The firm fixed-price nature also indicates that the government secured a set price, mitigating risks associated with market volatility. A detailed comparison would necessitate obtaining the specific metal composition and form from the contract award details and comparing it against quotes from other specialized metal suppliers.

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

Wieland Rolled Products North America, LLC has a history of engaging with federal contracts, including those relevant to metal supply. While specific details of all past awards are not provided here, their involvement in supplying metals for coinage indicates a recognized capability to meet the stringent requirements of the U.S. Mint. Companies like Wieland often specialize in producing high-quality, custom-formulated metal products. Their track record with the U.S. Mint would likely include previous awards for similar materials, demonstrating reliability and adherence to specifications. A comprehensive review of their contract history within the Federal Procurement Data System (FPDS) or similar databases would reveal the extent of their federal business, including performance ratings on past contracts, any disputes or terminations, and the types of agencies they have served. Their ability to secure this recent $35 million contract suggests a positive performance history and a strong competitive position.

What are the potential risks associated with the supply of coinage metals, and how are they mitigated?

The primary risks associated with the supply of coinage metals include price volatility of underlying commodities (copper, zinc, nickel), potential supply chain disruptions (geopolitical events, natural disasters, transportation issues), and quality control failures. Price volatility is mitigated by the firm fixed-price contract structure, which locks in the cost for the duration of the delivery order, shifting the risk of price increases to the contractor. Supply chain disruptions are a persistent concern; however, the U.S. Mint likely vets its suppliers for resilience and may encourage diversification of sourcing where feasible. Quality control is paramount; the Mint imposes strict specifications for metal composition, purity, and form. Mitigation involves rigorous testing and inspection of delivered materials, and contractual clauses that allow for rejection of non-conforming products. The competitive bidding process itself can also mitigate risks by selecting contractors with proven reliability and robust quality management systems.

How does this contract contribute to the overall mission of the U.S. Mint?

This contract is fundamental to the U.S. Mint's core mission of producing and circulating coinage for the nation's economy. The Mint is responsible for manufacturing all of the United States' circulating coins and precious metal products, as well as protecting the nation's monetary assets. The 'strip and metal' procured under this contract serves as the essential raw material for minting coins that facilitate commerce and daily transactions. Without a reliable and consistent supply of high-quality metals, the Mint would be unable to fulfill its mandate. Therefore, this procurement directly supports the operational continuity and the physical output of circulating currency, ensuring that the public has access to the coinage necessary for economic activity. The efficiency and cost-effectiveness of this procurement also indirectly support the Mint's goal of operating efficiently.

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: $34,972,531

Exercised Options: $34,972,531

Current Obligation: $34,972,531

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00001

IDV Type: IDC

Timeline