Treasury's Mint awards $31.3M for base metals strip, impacting coinage production

Contract Overview

Contract Amount: $31,326,374 ($31.3M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-10-13

End Date: 2022-12-05

Contract Duration: 53 days

Daily Burn Rate: $591.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

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 $31.3 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. Key points: 1. Contract value of $31.3M for essential coinage materials. 2. Procurement supports the United States Mint's operational needs. 3. Delivery order awarded under a larger contract vehicle. 4. Fixed-price contract type aims to control costs. 5. Contract duration of 53 days indicates a short-term need. 6. Supplier is a specialized rolled products manufacturer.

Value Assessment

Rating: good

The contract value of $31.3 million for base metals strip appears reasonable given the specialized nature of the product and the supplier's role in coinage production. Benchmarking against similar contracts for coinage materials is challenging due to the specific alloy and form factor required. However, the firm fixed-price structure suggests an expectation of cost certainty for the government. The relatively short duration of the delivery order implies efficient fulfillment of a specific need.

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 presence of two bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the number of interested parties would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition for essential materials like base metals strip helps ensure that taxpayer dollars are used efficiently by fostering a competitive bidding process that drives down prices.

Public Impact

Benefits the United States Mint by ensuring a supply of materials for circulating coinage. Supports the production of coins essential for everyday commerce. Geographic impact is primarily national, supporting the U.S. monetary system. Workforce implications are likely within the supplier's manufacturing facilities and the Mint's operational staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole supplier faces issues.
Reliance on a single delivery order for a critical component could pose a risk if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm fixed-price contract provides cost certainty for the government.
Supplier is a specialized manufacturer with expertise in rolled products.

Sector Analysis

The procurement of base metals strip for circulating coinage falls within the broader metals and mining sector, specifically focusing on specialized metal products. The United States Mint is a significant consumer of such materials for its coin production. Comparable spending benchmarks are difficult to establish without more granular data on metal alloys and market prices for similar industrial-grade metal strips. This contract represents a specific, high-value transaction within this niche market.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The primary contractor, WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC, is likely a large business. Therefore, this specific award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the United States Mint's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified materials. Transparency is facilitated through public contract databases where such awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Coinage Metal Supply Contracts
Precious Metals Procurement
Manufacturing and Industrial Supplies

Risk Flags

Short contract duration may indicate urgent need or limited scope.
Reliance on a single supplier for critical materials.
Limited number of bidders (2) in a full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $31.3 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 $31.3 million.

What is the period of performance?

Start: 2022-10-13. End: 2022-12-05.

What is the historical spending pattern for base metals strip by the United States Mint?

Analyzing historical spending patterns for base metals strip by the United States Mint requires access to detailed procurement data over multiple fiscal years. While this specific delivery order amounts to $31.3 million, understanding the broader trend involves examining the frequency, value, and duration of previous contracts for similar materials. Factors such as changes in coinage demand, metal market fluctuations, and shifts in manufacturing processes can influence historical spending. Without a comprehensive dataset, it's difficult to ascertain if this $31.3 million award represents an increase, decrease, or typical level of spending for this category of materials. Further investigation into the Mint's annual reports and contract databases would be necessary to establish a reliable historical context and identify any significant deviations or patterns.

How does the price per unit of this base metals strip compare to market rates for similar materials?

Determining the price per unit for this base metals strip and comparing it to market rates is challenging without specific details on the alloy composition, dimensions, and quantity per unit. The contract data provided does not include unit pricing or the exact volume of material procured. Market rates for base metals fluctuate daily based on global commodity prices, manufacturing costs, and demand. To perform a meaningful comparison, one would need to identify the precise material specifications (e.g., copper alloy percentage, thickness, width) and then research current spot prices or contract prices for industrial quantities of those specific materials. Given the specialized nature of coinage strip, it may command a premium over standard industrial metals. A thorough analysis would involve obtaining detailed quotes from multiple suppliers for comparable materials.

What is the track record of WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC in fulfilling government contracts, particularly for the United States Mint?

WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC's track record in fulfilling government contracts, especially for the United States Mint, is a key indicator of performance risk. Accessing historical contract data for this vendor would reveal their past performance ratings, on-time delivery rates, and any instances of contract disputes or terminations. A history of successful, timely deliveries of high-quality materials suggests a lower risk profile. Conversely, a pattern of performance issues could indicate potential challenges in meeting the current contract's requirements. Specific details regarding past performance on similar coinage material contracts would be most relevant. Without this historical data, assessing the contractor's reliability remains speculative.

What are the potential risks associated with relying on a single delivery order for such a critical component?

Relying on a single delivery order for a critical component like base metals strip for circulating coinage introduces several potential risks. Firstly, any delay or disruption in the supplier's production or delivery schedule could directly impact the Mint's ability to produce coins, potentially leading to shortages in currency circulation. Secondly, if unforeseen quality issues arise with the delivered materials, rectifying the situation might be time-consuming and costly, especially if alternative suppliers cannot be quickly engaged. Thirdly, the short duration of the delivery order (53 days) suggests a specific, potentially urgent need; any failure to meet this timeline could have immediate operational consequences. Robust contingency planning and close monitoring of the supplier's performance are crucial to mitigate these risks.

How does the 'full and open competition' process for this contract ensure value for taxpayers?

The 'full and open competition' process is designed to ensure value for taxpayers by maximizing the pool of potential bidders, thereby fostering a competitive environment. This approach encourages vendors to offer their best pricing and terms to secure the contract. The presence of two bidders in this instance suggests that the competition, while perhaps not extensive, did occur. A competitive process typically leads to price discovery, where the market determines a fair price for the goods or services. This contrasts with sole-source or limited competition scenarios, which may result in higher costs due to reduced market pressure. Therefore, by adhering to full and open competition, the government aims to achieve a more cost-effective outcome for the acquisition of these essential base metals strips.

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: $31,326,374

Exercised Options: $31,326,374

Current Obligation: $31,326,374

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