Treasury's $33.7M contract for coinage metal awarded to Wieland Rolled Products North America, LLC

Contract Overview

Contract Amount: $33,723,786 ($33.7M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-03-23

End Date: 2022-07-09

Contract Duration: 108 days

Daily Burn Rate: $312.3K/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: LOUISVILLE, JEFFERSON County, KENTUCKY, 40241

State: Kentucky Government Spending

Plain-Language Summary

Department of the Treasury obligated $33.7 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. 2. Single award indicates a focused procurement strategy for this specific material. 3. Fixed-price contract type aims to control costs for the government. 4. Short performance period suggests a need for immediate material supply. 5. Procurement falls under the broader category of industrial materials for minting operations. 6. Geographic location of the contractor in Kentucky may influence logistics and delivery times.

Value Assessment

Rating: good

The contract value of $33.7 million for circulating coinage metal appears reasonable given the specialized nature of the product and the quantities likely involved. Benchmarking against similar contracts for raw materials can be challenging due to market fluctuations and specific alloy requirements. However, the firm fixed-price structure suggests an effort to lock in costs, which is generally favorable for the government. The award to a single entity for this specific material implies a potentially competitive bidding process that resulted in a preferred offer based on technical and price factors.

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 had the opportunity to bid. The fact that it resulted in a single award suggests that either only one vendor met the stringent technical requirements, or one vendor offered a significantly superior proposal in terms of price and performance. The presence of competition, even if it leads to a single award, is a positive sign for price discovery and ensures the government is receiving a competitive offer.

Taxpayer Impact: Full and open competition, even with a single award, provides assurance that the government explored the market and secured a price reflective of competitive pressures. This approach helps prevent overpayment and ensures taxpayer funds are used efficiently.

Public Impact

Benefits the United States Mint by ensuring a consistent supply of essential metals for coin production. Facilitates the production of circulating coinage, which is vital for everyday commerce and transactions. Impacts the manufacturing sector by providing business to a specialized metal supplier. Supports the national economy by enabling the continued operation of the U.S. Mint.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole awardee faces production issues.
Reliance on a single supplier could limit future negotiation leverage.
Market price volatility for copper and other alloying metals could impact long-term cost-effectiveness if not adequately hedged.

Positive Signals

Award to an established supplier with likely proven capabilities in metal rolling.
Firm fixed-price contract provides cost certainty for this procurement.
Short performance period indicates a focus on meeting immediate production needs.

Sector Analysis

This contract falls within the industrial materials and manufacturing sector, specifically focusing on non-ferrous metal rolling. The United States Mint is a significant consumer of specialized metals for coinage. Comparable spending benchmarks would involve other government agencies or large industrial consumers procuring similar high-quality rolled metals, though the exact specifications for coinage are unique. The market for such specialized metals is often dominated by a few key players capable of meeting stringent quality and production standards.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be indirect, potentially through subcontracting opportunities if Wieland Rolled Products North America, LLC utilizes smaller suppliers for raw materials or specialized services. However, the core contract itself does not appear to be designed to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the United States Mint, a bureau within the Department of the Treasury. Accountability measures would be embedded in the contract terms, including specifications for material quality, delivery schedules, and payment terms. Transparency is generally maintained through public contract databases like FPDS. Inspector General jurisdiction would typically cover investigations into fraud, waste, or abuse related to federal contracts.

Related Government Programs

United States Mint Operations
Coinage Metal Procurement
Industrial Materials Supply Chain
Treasury Department Procurement

Risk Flags

Potential for supply chain concentration risk with a single awardee.
Market volatility of raw materials could impact long-term value if not managed.
Dependence on specific alloy composition requires stringent quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $33.7 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 $33.7 million.

What is the period of performance?

Start: 2022-03-23. End: 2022-07-09.

What is the historical spending pattern for circulating coinage metal by the U.S. Mint?

Analyzing historical spending patterns for circulating coinage metal by the U.S. Mint is crucial for understanding long-term cost trends and identifying potential fluctuations in demand or pricing. While specific historical data for this exact contract is not provided, the U.S. Mint has consistently procured large quantities of metals like copper, zinc, and nickel for coin production. Spending in this category can vary year-to-year based on coinage demand, metal market prices, and the specific alloys used for different denominations. For instance, shifts in the price of copper or zinc on global commodity markets can significantly impact the total expenditure. Furthermore, the Mint may engage in multi-year contracts or multiple smaller awards depending on market conditions and strategic sourcing decisions. Understanding these historical patterns helps in evaluating the current contract's value and forecasting future budgetary needs.

How does the price of copper and other metals influence the cost of this contract?

The price of copper and other metals, such as zinc and nickel (depending on the specific alloy for circulating coinage), directly influences the cost of this contract. Wieland Rolled Products North America, LLC, as the supplier, would have based their bid on prevailing market rates for these commodities at the time of bidding, potentially incorporating hedging strategies to mitigate price volatility. Fluctuations in global commodity markets, driven by factors like supply and demand, geopolitical events, and economic conditions, can significantly impact the raw material cost. Since this is a firm fixed-price contract, the U.S. Mint has largely shielded itself from short-term price increases. However, if metal prices were to decrease substantially after the contract award, the government might be paying a premium compared to the spot market. Conversely, if prices surged, the fixed-price nature protects the government from unexpected cost overruns.

What are the technical specifications and quality control measures for the coinage metal supplied under this contract?

The technical specifications and quality control measures for the coinage metal are paramount to ensure the integrity and durability of the circulating coins produced. While the specific details are not provided in the summary data, contracts of this nature typically include stringent requirements for the metal's composition (alloy percentages), purity, physical properties (e.g., tensile strength, hardness, ductility), and dimensional tolerances. The U.S. Mint would likely mandate adherence to specific industry standards (e.g., ASTM) and may require detailed certificates of analysis from the supplier. Quality control measures would involve rigorous testing by both the contractor (Wieland Rolled Products North America, LLC) and potentially independent third-party inspectors or the Mint itself upon receipt of the material. Non-compliance with these specifications could lead to rejection of the material, delays in production, and potential penalties for the contractor.

What is the track record of Wieland Rolled Products North America, LLC in supplying metals to government agencies?

Wieland Rolled Products North America, LLC is a known entity in the metals industry, and their track record in supplying metals, particularly to government agencies, is a key factor in contract awards. While specific past government contracts are not detailed here, companies of this nature often have experience supplying materials for various industrial and infrastructure projects. Their ability to secure a contract with the U.S. Mint suggests they possess the necessary certifications, quality management systems, and production capacity to meet federal procurement standards. A review of their past performance, including on-time delivery, quality adherence, and responsiveness to issues, would have been part of the U.S. Mint's evaluation during the full and open competition process. Their established presence in the market implies a level of reliability and expertise.

How does this contract compare to other federal procurements for industrial metals?

This contract for circulating coinage metal is a specialized procurement within the broader category of federal industrial metal purchases. Compared to large-scale procurements for construction materials (e.g., steel for bridges) or defense applications (e.g., specialized alloys for aircraft), this contract is likely smaller in overall dollar value but highly specific in its material requirements. The U.S. Mint demands precise alloys and finishes for coinage that differ from general industrial use. Benchmarking would focus on contracts for similar high-purity, rolled non-ferrous metals. The competitive landscape for such specialized materials might be more limited than for common industrial metals, potentially influencing pricing and award dynamics. The firm fixed-price nature is common across many federal contracts to ensure cost control.

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: $33,723,786

Exercised Options: $33,723,786

Current Obligation: $33,723,786

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00001

IDV Type: IDC

Timeline