Treasury's $34.9M Coinage Metal Contract Awarded to Wieland Rolled Products
Contract Overview
Contract Amount: $34,908,381 ($34.9M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2022-02-10
End Date: 2022-05-13
Contract Duration: 92 days
Daily Burn Rate: $379.4K/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 $34.9 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. The contract is for essential materials to produce U.S. coinage. 2. Wieland Rolled Products North America, LLC secured the award. 3. The award was made under full and open competition. 4. The total value is approximately $34.9 million. 5. The contract duration is 92 days.
Value Assessment
Rating: good
The contract value of $34.9 million for strip and metal for circulating coinage appears reasonable given the specialized nature of the materials and the quantities required. Benchmarking against similar raw material procurements for coinage production 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 resulted in fair market pricing. The use of a firm fixed price contract further supports price certainty for the government.
Taxpayer Impact: The competitive nature of this award is expected to ensure taxpayer funds are used efficiently for essential government operations.
Public Impact
Ensures the continuous supply of metal for U.S. coins, supporting everyday transactions. Supports the operational needs of the United States Mint. The procurement process allows for broad market participation, potentially fostering innovation in metal production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Essential government function supported.
Sector Analysis
This contract falls within the broader manufacturing and materials sector, specifically focusing on non-ferrous metal rolling and processing. Spending benchmarks for similar raw material procurements for coinage are not readily available but are likely tied to global commodity prices for copper and other metals.
Small Business Impact
While the award was made to Wieland Rolled Products North America, LLC, a large business, the contract's full and open competition structure allows for potential subcontracting opportunities for small businesses within the supply chain for specialized services or components.
Oversight & Accountability
The United States Mint, under the Department of the Treasury, is responsible for this procurement. Standard government contracting oversight procedures would apply to ensure contract performance and adherence to terms.
Related Government Programs
- Copper Rolling, Drawing, Extruding, and Alloying
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential for supply chain disruption.
- Price volatility of raw materials.
- Dependence on a single awardee for a critical component.
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 $34.9 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 $34.9 million.
What is the period of performance?
Start: 2022-02-10. End: 2022-05-13.
What is the specific composition of the strip and metal provided, and how does it align with historical coinage specifications?
The specific composition of the strip and metal is crucial for ensuring the quality, durability, and security of circulating coinage. Historical coinage specifications often involve precise alloys of copper, nickel, zinc, and other metals. Understanding the exact alloy mix in this contract allows for verification against established standards and ensures the coins produced meet the required physical and chemical properties for long-term circulation and resistance to counterfeiting.
What are the potential risks associated with relying on a single supplier for such a critical component of coinage production?
While awarded under full and open competition, the delivery order structure might imply a primary supplier for a defined period. Risks include potential supply chain disruptions (e.g., raw material shortages, geopolitical issues, natural disasters affecting the supplier's operations), price volatility if market conditions change significantly during the contract, and a lack of flexibility if production needs drastically increase or decrease. Contingency planning and robust contract management are key to mitigating these risks.
How does the firm fixed price contract structure impact the government's ability to manage cost fluctuations in raw material markets?
A firm fixed price (FFP) contract provides the greatest cost certainty for the government, as the price is set and generally not subject to adjustment based on the contractor's cost experience. However, in volatile raw material markets, an FFP contract can expose the contractor to significant risk if material costs rise unexpectedly. This could potentially lead to less competitive bidding in the future if contractors perceive excessive risk, or it might incentivize contractors to build substantial contingencies into their initial bids, potentially leading to higher overall prices.
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: $34,908,381
Exercised Options: $34,908,381
Current Obligation: $34,908,381
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG18D00001
IDV Type: IDC
Timeline
Start Date: 2022-02-10
Current End Date: 2022-05-13
Potential End Date: 2022-05-13 00:00:00
Last Modified: 2026-01-07
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)