Treasury's Mint awards $37.5M contract for base metals strip to Wieland Rolled Products, emphasizing full and open competition

Contract Overview

Contract Amount: $37,525,014 ($37.5M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-12-07

End Date: 2023-02-05

Contract Duration: 60 days

Daily Burn Rate: $625.4K/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 $37.5 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. Key points: 1. Contract awarded to a single supplier for a specific material requirement. 2. Competition was open, suggesting a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Short performance period indicates a focused, immediate need. 5. Geographic location of performance is Kentucky. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of $37.5 million for base metals strip appears reasonable given the specialized nature of the product and the supplier's likely expertise. Benchmarking against similar contracts for coinage materials is challenging without more specific product details, but the fixed-price nature provides cost certainty. The award to a single entity suggests a potentially efficient procurement process if the market is concentrated or if this supplier offered the best value.

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. The presence of two bids suggests a degree of competition, though the exact number of potential bidders in this specialized market is unknown. A higher number of bidders typically leads to better price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple suppliers to offer their best pricing, potentially leading to cost savings.

Public Impact

The United States Mint benefits from a reliable supply of essential materials for circulating coinage. This contract ensures the production of physical currency for the nation. The services are delivered within Kentucky, supporting local economic activity. The contract supports the manufacturing workforce involved in producing base metals strip.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited supplier options in the specialized base metals strip market.
Reliance on a single awardee for a critical component of coinage production.

Positive Signals

Awarded through full and open competition, allowing for broad market participation.
Firm fixed-price contract provides cost predictability.
Short performance period aligns with immediate production needs.

Sector Analysis

The procurement falls within the metals and metal products manufacturing sector, specifically focusing on rolled products. The market for specialized base metals strip used in coinage is likely niche, with a limited number of qualified suppliers capable of meeting the stringent specifications required by the U.S. Mint. Comparable spending benchmarks are difficult to establish without detailed product specifications and market analysis, but the value suggests a significant volume of material.

Small Business Impact

This contract did not include a small business set-aside. Given the specialized nature of base metals strip production for coinage, it is possible that the market is dominated by larger firms with the necessary manufacturing capabilities and certifications. There is no explicit information provided regarding subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract is managed by the United States Mint, an agency within the Department of the Treasury. Oversight is likely conducted through standard contract administration processes, performance monitoring, and financial reporting. Transparency is facilitated by the public nature of federal contract awards, though specific details on internal oversight mechanisms are not provided. Inspector General jurisdiction would typically apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Circulating Coinage Production
Metals and Materials Procurement
Manufacturing Contracts

Risk Flags

Potential for supply chain disruption if the sole awardee faces production issues.
Market concentration risk in specialized materials procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $37.5 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 $37.5 million.

What is the period of performance?

Start: 2022-12-07. End: 2023-02-05.

What is the specific composition and quality standard of the base metals strip required for circulating coinage?

The provided data does not specify the exact composition or quality standards for the base metals strip. However, for circulating coinage, the U.S. Mint typically requires alloys that are durable, resistant to corrosion, and possess specific metallurgical properties suitable for high-volume minting processes. Common materials include copper, zinc, nickel, and their alloys. The exact specifications would be detailed in the contract's statement of work, ensuring the strip meets the precise requirements for striking coins, including dimensional tolerances, surface finish, and alloy purity, to guarantee the integrity and longevity of the currency.

How does the $37.5 million award compare to historical spending on similar materials by the U.S. Mint?

Without access to historical U.S. Mint procurement data for base metals strip, a direct comparison is not possible. However, the $37.5 million figure suggests a substantial procurement, likely covering a significant volume of material over the contract's duration. Factors influencing historical spending would include the volume of coinage produced annually, fluctuations in raw material prices (like copper and zinc), and changes in alloy requirements. Analyzing past contracts for similar materials, if available, would reveal trends in pricing, supplier concentration, and contract values, providing context for the current award's magnitude.

What are the key performance indicators (KPIs) used to evaluate Wieland Rolled Products North America, LLC's performance under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for a contract supplying manufactured materials like base metals strip would likely include: on-time delivery of materials, adherence to specified quality standards (e.g., alloy composition, dimensional tolerances, surface finish), material yield and consistency, and responsiveness to any technical or logistical issues. The U.S. Mint would monitor these metrics to ensure the continuous and reliable supply of coinage material, and performance would be assessed against the terms outlined in the contract's statement of work and delivery orders.

What is the market concentration for suppliers of base metals strip suitable for U.S. coinage?

The market for base metals strip specifically tailored for U.S. coinage is likely concentrated due to the stringent quality, alloy, and dimensional specifications required. While the data indicates two bids were received under full and open competition, this does not fully reveal the overall market structure. Companies like Wieland Rolled Products North America, LLC are known players in the metals industry. However, the number of firms capable of meeting the U.S. Mint's precise requirements may be limited, potentially leading to a concentrated supplier base where only a few entities possess the necessary expertise, certifications, and production capacity.

What are the potential risks associated with a firm fixed-price contract for raw materials?

A firm fixed-price (FFP) contract for raw materials like base metals strip offers cost certainty to the government, as the price is set upfront. However, potential risks include price volatility in the underlying commodities. If market prices for metals increase significantly after the contract is awarded, the supplier (Wieland Rolled Products North America, LLC) might face reduced profit margins or seek to renegotiate, although FFP contracts aim to prevent this. Conversely, if market prices decrease, the government benefits from the fixed price. Another risk is ensuring the supplier maintains quality standards under a fixed price, as they might be incentivized to cut corners if margins are tight, necessitating robust government oversight and quality assurance.

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: $37,525,014

Exercised Options: $37,525,014

Current Obligation: $37,525,014

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