Treasury's Mint Awards $33.4M for Base Metals Strip, Boosting Coinage Production
Contract Overview
Contract Amount: $33,407,507 ($33.4M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2022-10-03
End Date: 2022-11-05
Contract Duration: 33 days
Daily Burn Rate: $1.0M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Manufacturing
Official Description: PROVIDE BASE METALS STRIP 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 BASE METALS STRIP FOR CIRCULATING COINAGE. Key points: 1. The contract supports the production of circulating coinage, a critical government function. 2. Wieland Rolled Products North America, LLC secured the award, indicating potential market concentration. 3. The firm fixed price contract type helps mitigate cost overrun risks. 4. The sector is manufacturing, specifically related to metal products for coinage.
Value Assessment
Rating: good
The award amount of $33.4M for base metals strip appears reasonable given the scope of producing coinage. Benchmarking against similar raw material procurements for mints would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: The competitive award ensures taxpayer funds are used efficiently for essential coinage production.
Public Impact
Ensures a steady supply of metals for the production of U.S. currency. Supports the operational needs of the United States Mint. Impacts the availability and quality of circulating coins for the public. Contributes to the broader manufacturing and metals industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential reliance on a single supplier for critical coinage materials.
- Fluctuations in base metal prices could impact future contract costs if not managed.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type provides cost certainty.
- Supports a vital government function.
Sector Analysis
This contract falls within the manufacturing sector, specifically focusing on metal processing for coinage. Spending benchmarks for raw materials in this niche can vary significantly based on global commodity prices and demand.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate or subcontract.
Oversight & Accountability
The United States Mint, a bureau within the Department of the Treasury, is responsible for this procurement. Standard government oversight processes for contract execution and quality assurance would apply.
Related Government Programs
- Copper Rolling, Drawing, Extruding, and Alloying
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential supply chain vulnerability for base metals.
- Dependence on specific metal suppliers.
- Price volatility of raw materials.
- Need for ongoing market analysis to ensure competitive pricing.
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 $33.4 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC. PROVIDE BASE METALS STRIP 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: 2022-10-03. End: 2022-11-05.
What is the historical price trend for the specific base metals strip procured, and how does this award compare?
Analyzing historical price trends for copper and other base metals used in coinage is crucial. This award of $33.4M should be benchmarked against average market prices during the contract period and similar past procurements to assess value for money. Significant deviations could indicate either exceptional negotiation or potential overpayment.
What are the risks associated with the supply chain for these base metals, particularly concerning geopolitical factors or single-source dependencies?
The primary risk lies in potential supply chain disruptions for base metals, which can be influenced by global events, trade policies, and mining output. While this award was competitively sourced, understanding the concentration of raw material suppliers globally is important. The Mint should have contingency plans to mitigate risks of shortages or price volatility.
How effectively does this contract contribute to the Mint's overall mission of producing sufficient and high-quality coinage?
This contract is essential for the Mint's core mission. By securing the necessary base metals strip, it directly enables the production of circulating coinage. The success of this contract hinges on timely delivery and adherence to quality specifications, ensuring the public has access to adequate coinage.
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
Solicitation ID: 2031JG22R00013
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Schwenk Donau Gmbh & CO. KG
Address: 4801 OLYMPIA PARK PLZ STE 3500, LOUISVILLE, KY, 40241
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,407,507
Exercised Options: $33,407,507
Current Obligation: $33,407,507
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG23D00001
IDV Type: IDC
Timeline
Start Date: 2022-10-03
Current End Date: 2022-11-05
Potential End Date: 2022-11-05 00:00:00
Last Modified: 2023-06-22
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)