Treasury's Mint awards $30.2M for coinage metal, with 2 bidders competing for the fixed-price order

Contract Overview

Contract Amount: $30,195,079 ($30.2M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-07-12

End Date: 2022-10-04

Contract Duration: 84 days

Daily Burn Rate: $359.5K/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 $30.2 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 fixed-price contract, limiting cost overrun risks. 2. Competition dynamics show a limited but present bidding environment for specialized metal supply. 3. Risk indicators include potential supply chain disruptions for critical coinage materials. 4. Performance context is tied to the timely delivery of essential metals for U.S. currency. 5. Sector positioning places this contract within the broader industrial metals and manufacturing sector.

Value Assessment

Rating: good

The contract's firm fixed-price structure suggests a commitment to cost control. Benchmarking against similar contracts for specialized metal supply would be necessary for a definitive value assessment. However, the relatively short duration and specific material requirement indicate a focused procurement likely aimed at meeting immediate production needs.

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 bids. With two bidders participating, the competition level suggests a moderately competitive environment for this specialized product. This level of competition is generally favorable for price discovery and achieving reasonable market prices.

Taxpayer Impact: The presence of multiple bidders, even if limited to two, provides some assurance that taxpayer funds are being used efficiently by preventing a single supplier from dictating terms.

Public Impact

Benefits the United States Mint in its mission to produce coinage for circulation. Delivers essential raw materials (strip and metal) required for manufacturing U.S. coins. Geographic impact is primarily national, supporting the U.S. monetary system. Workforce implications are indirect, supporting manufacturing jobs within the metals industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in raw metal markets impacting future contract costs.
Dependence on a limited number of suppliers for critical coinage materials.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks for this order.
Awarded under full and open competition, suggesting a competitive bidding process.
Supplier is a known entity in rolled metal products, implying some level of established capability.

Sector Analysis

This contract falls within the industrial metals and manufacturing sector, specifically focusing on the supply of specialized copper-based materials. The market for coinage metals is relatively niche, often involving a limited number of suppliers capable of meeting stringent quality and production standards. Comparable spending benchmarks would relate to other government or commercial contracts for high-purity metal strip.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary awardee is likely a larger entity, and the direct impact on the small business ecosystem for this specific procurement is minimal.

Oversight & Accountability

Oversight for this contract would typically reside with the United States Mint's contracting officers and potentially the Department of the Treasury's Inspector General. Transparency is facilitated through contract award databases. Accountability measures are inherent in the firm fixed-price contract terms and delivery schedules.

Related Government Programs

Coinage Metal Supply Contracts
United States Mint Procurement
Industrial Metals Procurement

Risk Flags

Supply Chain Risk
Material Quality Assurance
Delivery Schedule Adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $30.2 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 $30.2 million.

What is the period of performance?

Start: 2022-07-12. End: 2022-10-04.

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

Historical spending on coinage metal supply by the U.S. Mint can fluctuate based on demand for circulating coinage and the specific metals required. While this specific contract is for $30.2 million, past awards for similar materials like copper and nickel alloys have varied significantly year over year. For instance, in fiscal years with higher coin production targets, the Mint might award multiple contracts totaling tens of millions of dollars for raw materials. Conversely, in lower-demand years, spending could be considerably less. Analyzing multi-year spending trends requires access to historical contract databases and production forecasts, which can reveal patterns related to metal price cycles and minting volumes. The current award represents a significant, but not necessarily unprecedented, investment in essential production inputs.

How does the price per pound or ton of this coinage metal compare to market rates?

Determining the precise price per unit for this contract is challenging without knowing the exact quantity of metal supplied. However, the contract value of $30.2 million for 'strip and metal' suggests a substantial volume. To benchmark this against market rates, one would need to identify the specific alloy composition and form (e.g., coil, sheet) and compare its price to prevailing commodity prices for copper and other alloying elements, adjusted for manufacturing processes and purity requirements. Given that this is a specialized material for coinage, it often commands a premium over standard industrial grades due to stringent quality controls and specifications. A firm fixed-price contract implies the supplier has factored in market fluctuations, but a detailed analysis would require comparing the implied unit price to current market indices for similar high-grade metal products.

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

Wieland Rolled Products North America, LLC, is a known supplier in the metals industry. While specific details of their past performance with the U.S. Mint for coinage metal supply require deeper database searches, companies of this nature often have a history of fulfilling large industrial supply contracts. Their track record with government agencies would likely involve adherence to delivery schedules, quality specifications, and contractual terms. A review of federal procurement data would reveal the extent and nature of their previous awards, including any performance issues or commendations. For this specific contract, the award suggests they met the qualifications and competitive requirements set forth by the Mint.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

The primary performance indicators for this contract would revolve around the timely delivery of the specified 'strip and metal' in accordance with the quality standards outlined in the contract. Key performance metrics likely include adherence to the delivery schedule (between July 12, 2022, and October 4, 2022), material conformity to specifications (e.g., alloy composition, dimensional tolerances, surface finish), and potentially responsiveness to any inquiries or issues raised by the U.S. Mint. Performance measurement would involve inspection and acceptance of delivered materials by the Mint's quality assurance personnel. Failure to meet these KPIs could result in penalties or contract termination, as is standard for firm fixed-price agreements.

Are there any identified risks associated with the supply chain for this specific type of coinage metal?

Yes, there are inherent risks associated with the supply chain for specialized coinage metals. These include potential disruptions in the global supply of raw materials like copper, which can be subject to price volatility and geopolitical factors. Furthermore, the manufacturing process for high-purity metal strip requires specialized facilities and expertise, meaning the number of qualified suppliers may be limited. This concentration increases vulnerability to production issues, labor disputes, or logistical challenges faced by the supplier. The U.S. Mint likely mitigates these risks through careful supplier vetting, maintaining adequate inventory levels, and potentially diversifying its supplier base over the long term, although this specific award went to one entity.

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: $30,195,079

Exercised Options: $30,195,079

Current Obligation: $30,195,079

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00001

IDV Type: IDC

Timeline