Treasury's $33.4M contract for coinage metals awarded to Wieland Rolled Products for essential minting operations

Contract Overview

Contract Amount: $33,437,780 ($33.4M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-02-11

End Date: 2022-06-04

Contract Duration: 113 days

Daily Burn Rate: $295.9K/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 $33.4 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 and firm fixed-price structure. 2. Competition dynamics indicate a robust market for specialized metal suppliers. 3. Risk indicators are low due to established contractor and clear product specifications. 4. Performance context is critical for maintaining the nation's coin supply chain. 5. Sector positioning highlights the strategic importance of domestic metal production for coinage.

Value Assessment

Rating: good

The contract value of approximately $33.4 million for coinage metals appears reasonable given the specialized nature of the materials and the firm fixed-price agreement. Benchmarking against similar contracts for raw materials used in minting operations would provide a more precise value-for-money assessment. However, the competitive award process suggests that the pricing was vetted against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a healthy, albeit potentially concentrated, market for this specific type of coinage metal. The competitive process is expected to drive fair pricing and ensure the government receives quality materials.

Taxpayer Impact: A competitive award process benefits taxpayers by fostering price discovery and ensuring that the government is not overpaying for essential materials like those used in coin production.

Public Impact

The United States Mint benefits directly, ensuring a consistent supply of high-quality metals for coin production. Citizens benefit from the uninterrupted availability of circulating coinage for everyday transactions. The contract supports domestic manufacturing capabilities within the metals industry. The workforce in Kentucky, where the contractor operates, may see indirect benefits through continued operations and employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole awarded supplier faces unforeseen operational issues.
Fluctuations in raw material commodity prices could impact future contract costs if not adequately hedged.

Positive Signals

Award to an established supplier with a track record in metal rolling and production.
Firm fixed-price contract provides cost certainty for the government.
Competitive award process ensures market validation of pricing and quality.

Sector Analysis

The contract falls within the broader industrial metals and manufacturing sector, specifically focusing on specialized rolled products for coinage. The market for such materials is characterized by stringent quality requirements and often involves a limited number of highly capable suppliers. The United States Mint is a significant, though not the sole, consumer of such specialized metals, making this contract crucial for its operational continuity.

Small Business Impact

This contract does not appear to have a small business set-aside. Analysis of subcontracting opportunities for small businesses would require further investigation into Wieland Rolled Products' procurement practices. Without specific set-aside requirements, the direct impact on the small business ecosystem is likely minimal, though indirect opportunities may exist.

Oversight & Accountability

Oversight is primarily managed by the United States Mint, which is responsible for ensuring adherence to contract specifications and delivery schedules. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is facilitated through public contract award data, though detailed performance metrics are typically internal.

Related Government Programs

United States Mint Operations
Circulating Coinage Production
Industrial Metals Procurement

Risk Flags

Supply Chain Dependency
Commodity Price Fluctuation Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $33.4 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 $33.4 million.

What is the period of performance?

Start: 2022-02-11. End: 2022-06-04.

What is Wieland Rolled Products' track record with the US Mint or similar government entities for supplying coinage metals?

Wieland Rolled Products North America, LLC has a history of supplying metals to various industries. While specific details on their past contracts with the US Mint for coinage metals are not immediately available in this dataset, their selection for this significant contract suggests they meet the stringent quality and production standards required. Government contractors often undergo rigorous vetting processes, including past performance reviews. Further investigation into federal procurement databases like FPDS or SAM.gov could reveal the extent and nature of their prior engagements with the US Mint or other federal agencies, providing a clearer picture of their reliability and experience in fulfilling similar requirements.

How does the pricing of this contract compare to historical spending on similar coinage metal contracts?

Direct comparison of this contract's pricing ($33.4 million) to historical spending requires access to detailed historical data for coinage metal procurement by the US Mint. Factors such as the specific metal composition (e.g., copper-nickel, zinc), market fluctuations in commodity prices (e.g., copper, nickel), contract volume, and the specific requirements of the 'strip and metal for circulating coinage' can significantly influence price. The firm fixed-price nature of this award suggests that the price was set at the time of contract negotiation. Analyzing year-over-year or contract-over-contract price trends for identical or comparable metal specifications would be necessary to determine if this award represents favorable or unfavorable pricing relative to historical benchmarks.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract revolve around supply chain reliability and potential price volatility of raw materials. If Wieland Rolled Products experiences production issues or delays, it could impact the US Mint's ability to produce circulating coinage, affecting the national money supply. Mitigation strategies likely include the firm fixed-price structure, which shifts some price risk to the contractor, and performance clauses within the contract that incentivize timely delivery and quality. The US Mint may also maintain strategic reserves of metals or have contingency plans with alternative suppliers, although this specific contract was awarded competitively. The contractor's established presence and the competitive award process also serve as risk mitigators, suggesting a vetted and capable supplier.

How effective is the competitive process in ensuring value for money for this specific type of specialized metal procurement?

The competitive process for this contract, awarded under 'full and open competition' with two bidders, is generally effective in ensuring value for money for specialized metal procurement. It allows the US Mint to solicit bids from qualified suppliers and select the one offering the best combination of price, quality, and delivery. The presence of multiple bidders, even if limited to two, creates a market dynamic that pressures suppliers to offer competitive pricing. The firm fixed-price (FFP) contract type further enhances value by locking in costs, preventing unexpected overruns. However, the effectiveness can be influenced by the number of potential bidders in the market for highly specialized materials; if the market is inherently small, the competitive pressure might be less intense than in broader markets.

What are the historical spending patterns of the US Mint for coinage metals, and how does this contract fit within them?

Historical spending patterns for US Mint coinage metals are influenced by annual demand for circulating coins, which fluctuates based on economic activity, population growth, and the lifespan of existing currency. The Mint procures metals like copper, nickel, zinc, and their alloys in large quantities. Contracts are typically awarded through competitive bidding, often on a firm fixed-price basis. This $33.4 million contract for 'strip and metal for circulating coinage' appears to be a significant, but likely recurring, expenditure aligned with the Mint's core mission. To understand its place in historical patterns, one would need to examine annual reports or procurement data to see the total annual spend on metals and how this contract's value compares to previous awards for similar materials over time.

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: $33,437,780

Exercised Options: $33,437,780

Current Obligation: $33,437,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00001

IDV Type: IDC

Timeline