Treasury's Mint awards $30.8M for coinage metal, with 2 bidders competing for the fixed-price order

Contract Overview

Contract Amount: $30,767,916 ($30.8M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-04-06

End Date: 2022-08-04

Contract Duration: 120 days

Daily Burn Rate: $256.4K/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 $30.8 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. The contract value represents a significant investment in essential materials for U.S. coinage. 2. Competition dynamics suggest a potentially efficient price discovery for this critical commodity. 3. The fixed-price nature of the award helps mitigate cost overrun risks for the government. 4. Performance is tied to specific delivery timelines, indicating a focus on operational continuity. 5. This contract positions the Mint to secure necessary raw materials for ongoing minting operations. 6. The relatively short duration of the order suggests a focus on immediate supply needs.

Value Assessment

Rating: good

The awarded amount of $30.8 million for circulating coinage strip and metal appears reasonable given the scale of U.S. Mint operations. Benchmarking against historical procurement data for similar metals and quantities would provide a more precise value-for-money assessment. However, the fixed-price contract structure inherently limits the government's exposure to price fluctuations, which is a positive indicator for cost control. The limited number of bidders (2) warrants further investigation into market capacity and potential barriers to entry.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Two bids were received, which suggests a moderate level of competition for this specific procurement. While two bidders are better than one, a higher number of competitors could potentially drive prices down further and offer a wider range of solutions. The agency's approach to competition appears to align with standard procurement practices.

Taxpayer Impact: The full and open competition, despite receiving two bids, aims to ensure taxpayers receive fair pricing by allowing multiple suppliers to vie for the contract. This process helps prevent single-source price gouging and promotes market efficiency.

Public Impact

The primary beneficiaries are the United States Mint and, by extension, the American public who rely on a consistent supply of coinage. The services delivered include the provision of essential raw materials (strip and metal) for producing circulating coins. The geographic impact is national, as the coinage produced will be distributed across the United States. Workforce implications are indirect, supporting jobs within the metal supply industry and at the Mint.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) could indicate potential market concentration or barriers to entry for other suppliers.
Reliance on a single delivery order for a critical material might pose a risk if supply chain disruptions occur.
The specific alloy composition and quality standards are crucial and require rigorous inspection to ensure coin integrity.

Positive Signals

Awarded under full and open competition, maximizing potential supplier engagement.
Fixed-price contract provides cost certainty and protects against unexpected price increases.
The United States Mint has a track record of managing complex material procurements.
The contractor, Wieland Rolled Products North America, LLC, is a known entity in the metals industry.

Sector Analysis

The procurement of metals for coinage falls within the broader industrial materials and manufacturing sector. This specific contract addresses a niche but critical component of the U.S. financial infrastructure. The market for specialized metal alloys suitable for coinage is likely concentrated among a few key suppliers capable of meeting the stringent quality and volume requirements. Comparable spending benchmarks would involve analyzing other government contracts for similar high-purity metal strips or large-volume industrial metal procurements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false'. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses in its broader supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the United States Mint, a bureau within the Department of the Treasury. Accountability measures are embedded in the contract terms, including specifications for material quality, delivery schedules, and payment terms tied to performance. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. The Treasury Inspector General's office may conduct audits or investigations into procurement processes if warranted.

Related Government Programs

Circulating Coinage Production
Precious Metals Procurement
Industrial Metals Supply Chain
Department of the Treasury Operations

Risk Flags

Limited Competition
Supply Chain Dependency
Quality Assurance Critical

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $30.8 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 $30.8 million.

What is the period of performance?

Start: 2022-04-06. End: 2022-08-04.

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

Historical spending data for circulating coinage strip and metal by the U.S. Mint reveals a consistent need for these materials, often procured through competitive bidding processes. Annual expenditures can fluctuate based on coinage demand, metal market prices, and the specific alloys required. For instance, prior years might show similar or higher contract values depending on market conditions and the volume of coins being produced. Analyzing multi-year trends would indicate whether this $30.8 million award is within the typical range or represents a significant deviation, potentially driven by increased production targets or volatile commodity prices. The Mint's procurement strategy often involves balancing long-term supply agreements with shorter-term delivery orders to manage costs and ensure availability.

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

Determining the precise price per unit for the metal in this contract is challenging without knowing the exact quantity (e.g., tonnage) and specific alloy composition. However, the contract value of $30.8 million for 'PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE' suggests a substantial volume. To benchmark, one would need to compare the implied price per pound or ton against prevailing market rates for industrial-grade copper alloys or other metals used in coinage, considering factors like purity, form (strip vs. raw metal), and delivery terms. Given that this is for coinage, specialized alloys might command a premium over standard industrial metals. The fact that it was competed suggests the Mint sought competitive pricing within the specialized market.

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

Wieland Rolled Products North America, LLC is a known supplier in the metals industry. Their track record with the U.S. Mint would likely include previous awards for supplying coinage strip and metal, reflecting their capability to meet the stringent specifications required. Government contract databases would detail their performance history, including on-time delivery, quality compliance, and any past disputes or issues. A review of their broader federal contracting history, beyond just the Mint, would indicate their experience with other agencies and the types of materials or services they provide. Generally, companies that repeatedly win contracts from agencies like the Mint have demonstrated a consistent ability to perform.

What are the key performance indicators (KPIs) and risks associated with this metal supply contract?

Key performance indicators for this contract likely revolve around the timely delivery of the specified metal strip and the adherence to strict quality and alloy composition standards. Failure to meet these could disrupt coin production. Risks include potential supply chain disruptions affecting raw material availability or transportation, price volatility in the underlying commodities (though mitigated by fixed-price), and quality control issues with the supplied metal. The relatively short performance period (approx. 4 months) suggests a focus on immediate needs, potentially reducing long-term supply risks but increasing the importance of prompt execution. The government's risk is also tied to the limited number of bidders, which could impact future competition.

How does this contract's value and scope compare to other U.S. Mint procurements for coinage materials?

The $30.8 million value for this specific delivery order for coinage strip and metal places it as a significant, but not necessarily unprecedented, procurement for the U.S. Mint. The Mint regularly procures large quantities of various metals (like copper, nickel, zinc, and alloys) for both circulating and commemorative coinage. Annual spending on such materials can range widely, often in the tens to hundreds of millions of dollars, depending on production volumes and market prices. This particular award seems to represent a substantial order for a specific period, likely fulfilling a key portion of the Mint's raw material needs. Comparisons would require analyzing the quantity and specific alloy details against past awards.

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: $30,767,916

Exercised Options: $30,767,916

Current Obligation: $30,767,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00001

IDV Type: IDC

Timeline