Treasury's Mint awards $42.7M contract for base metals strip to Wieland Rolled Products, emphasizing firm fixed price

Contract Overview

Contract Amount: $42,748,967 ($42.7M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-01-04

End Date: 2023-03-05

Contract Duration: 60 days

Daily Burn Rate: $712.5K/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 $42.7 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 $42.7M for essential coinage materials. 2. Competition was full and open, suggesting a competitive bidding process. 3. Firm fixed price contract type limits cost escalation risks. 4. Short performance period (60 days) indicates a focused, immediate need. 5. Wieland Rolled Products is the sole awardee for this specific delivery order. 6. Geographic focus on Kentucky for delivery.

Value Assessment

Rating: good

The contract value of $42.7 million for base metals strip appears reasonable given the critical nature of coinage production. Benchmarking against similar contracts for raw materials is challenging without more specific material composition and volume data. However, the firm fixed price structure provides cost certainty for the government, mitigating risks associated with market fluctuations in metal prices. The short duration suggests efficient procurement for an immediate need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of two bids suggests a degree of competition, which is generally favorable for price discovery and achieving market-based pricing. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for government procurements.

Public Impact

Benefits the United States Mint in its mission to produce circulating coinage. Ensures a supply of essential base metals strip for coin manufacturing. Impacts the national supply chain for currency production. Supports manufacturing operations within Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole awardee faces production issues.
Dependence on a single supplier for a critical component of coinage.

Positive Signals

Firm fixed price contract provides cost predictability.
Short performance period minimizes long-term commitment risk.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the broader metals and mining sector, specifically focusing on rolled products used in manufacturing. The United States Mint's demand for base metals strip is a niche but critical component of the national economy, directly tied to currency production. Comparable spending benchmarks would typically be found within government contracts for raw materials or industrial supplies, though specific data for coinage strip is not readily available.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be indirect, potentially through subcontracting opportunities if Wieland Rolled Products engages them. Without explicit subcontracting plans, the direct benefit to the small business ecosystem from this specific award is likely minimal.

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 firm fixed price contract terms, requiring delivery of specified materials by a set date. Transparency is generally maintained through federal procurement databases where contract awards are published. The Inspector General for the Department of the Treasury would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

United States Mint Operations
Coinage Metal Supply Contracts
Industrial Metals Procurement

Risk Flags

Supply chain dependency on a single awardee.
Potential for price volatility in base metal markets impacting contractor's margin.
Short performance period may indicate urgent need or limited scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $42.7 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 $42.7 million.

What is the period of performance?

Start: 2023-01-04. End: 2023-03-05.

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 contract award is for $42.7 million with a short 60-day performance period, understanding the Mint's typical annual expenditure on such materials would provide crucial context. Factors influencing historical spending include changes in coinage demand, fluctuations in metal commodity prices, and the duration and value of previous contracts. Without a longitudinal dataset, it's difficult to determine if this $42.7 million award represents a typical, increased, or decreased level of spending for the period it covers. Further analysis would involve querying federal procurement databases for all contracts awarded by the Mint for 'base metals strip' or similar classifications over the past 5-10 years, noting award amounts, contract types, and durations to identify trends and average annual spending.

How does the price per unit of this base metals strip compare to market rates or similar government contracts?

Determining the precise price per unit for this base metals strip contract is challenging without knowing the exact quantity (e.g., tonnage or square footage) of material being procured. The total award is $42.7 million. If we assume this is for a significant volume of metal, the unit price would need to be benchmarked against current market prices for relevant base metals (like copper, nickel, zinc alloys) and against prices paid in comparable government contracts. The 'na' field indicates 'Copper Rolling, Drawing, Extruding, and Alloying' and 'nd' specifies 'Copper Rolling, Drawing, Extruding, and Alloying', suggesting a copper-based alloy. Market prices for these metals fluctuate daily. A firm fixed price contract, especially under full and open competition, suggests the government aimed to secure a competitive rate. However, without the specific quantity or detailed material specifications, a direct per-unit cost comparison to market rates or other contracts is not feasible from the provided data alone.

What is Wieland Rolled Products North America, LLC's track record with the US Mint and other federal agencies?

Wieland Rolled Products North America, LLC's track record with the US Mint and other federal agencies is a key indicator of their reliability and performance. As the sole awardee for this specific delivery order, their ability to meet the stringent requirements for coinage materials is paramount. A review of federal procurement databases (like FPDS or SAM.gov) would reveal the extent of their past contract history. This includes the number and value of previous awards, the types of goods or services provided, and any performance ratings or past performance evaluations. Understanding their history with the Mint specifically, and with other agencies for similar industrial materials, can help assess their capacity, quality control, and adherence to delivery schedules, thereby informing the overall risk assessment of this current contract.

What are the potential risks associated with a sole awardee for this critical coinage material?

The primary risk associated with having a sole awardee for a critical component like base metals strip for circulating coinage is supply chain vulnerability. If Wieland Rolled Products North America, LLC experiences unforeseen production issues, labor strikes, natural disasters, or financial difficulties, it could lead to a disruption in the supply of essential metals to the US Mint. This could, in turn, impact the Mint's ability to produce coinage, potentially leading to shortages of currency. While the contract is for a short duration (60 days), any interruption during this period could still have ripple effects. Mitigation strategies might include close monitoring of the supplier's operational status, maintaining strategic reserves of raw materials, and having contingency plans in place, although the latter is more difficult with a sole awardee for a specific delivery order.

How does the firm fixed price (FFP) contract type influence the value and risk for this procurement?

The Firm Fixed Price (FFP) contract type significantly influences both the value and risk profile of this procurement. For the government (US Mint), FFP offers the highest degree of cost certainty. The price is set at the outset and generally does not change, regardless of the contractor's actual costs. This protects the taxpayer from potential cost overruns and market volatility in metal prices, which can be substantial. The value is enhanced because the government knows its exact expenditure. However, this shifts the risk to the contractor, Wieland Rolled Products. They bear the responsibility for managing their costs effectively to ensure profitability. If their costs exceed the fixed price, their profit margin shrinks or they could incur a loss. This risk allocation incentivizes the contractor to be efficient and manage resources tightly, potentially leading to better overall value if they succeed.

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

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: $42,748,967

Exercised Options: $42,748,967

Current Obligation: $42,748,967

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