Treasury's Mint awards $44.4M contract for base metals strip to Wieland Rolled Products, highlighting a key supplier for circulating coinage

Contract Overview

Contract Amount: $44,357,886 ($44.4M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-02-14

End Date: 2023-04-05

Contract Duration: 50 days

Daily Burn Rate: $887.2K/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 $44.4 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. Key points: 1. The contract value of $44.4 million represents a significant investment in the raw materials necessary for coin production. 2. Wieland Rolled Products North America, LLC secured this award, indicating their established position in supplying essential metals to the government. 3. The 'full and open competition' suggests a robust bidding process, potentially leading to competitive pricing for the government. 4. This award falls under the 'Copper Rolling, Drawing, Extruding, and Alloying' category, crucial for the physical composition of coins. 5. The short performance period (February 2023 - April 2023) suggests a focused need for immediate supply rather than long-term material provision. 6. The contract's purpose is to provide base metals strip specifically for circulating coinage, directly impacting the availability of currency.

Value Assessment

Rating: good

The award of $44.4 million for base metals strip appears reasonable given the specialized nature of the material and its application in coinage. Benchmarking against similar contracts for metal supply to government mints is challenging without more specific data on alloy composition and quantity. However, the fixed-price nature of the contract provides cost certainty. The awarded amount is significantly higher than the reported 'base metals strip' benchmark of $887,158, but this likely reflects a different scale or type of material. Further analysis would require comparing the specific alloy, quantity, and quality standards against market rates for similar industrial metal products.

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 allowed to bid. The presence of two bids suggests a competitive environment, though the exact number of solicitations and the range of bids are not detailed. A competitive process generally benefits the government by fostering price discovery and encouraging vendors to offer their best terms. The fact that a specific award was made implies that the competition yielded a satisfactory outcome for the United States Mint.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. This process helps prevent overpayment and ensures the government receives the best value for its investment in essential materials.

Public Impact

The primary beneficiaries are the citizens who rely on a consistent supply of circulating coinage for everyday transactions. The services delivered include the provision of specialized base metals strip, a critical component in the minting process. The geographic impact is national, as the coinage produced will be distributed across the United States. Workforce implications are indirect, supporting jobs within the metals supply chain and the United States Mint's operational capacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in base metals markets impacting future contract costs.
Dependence on a single supplier for a critical component of circulating coinage.
Ensuring consistent quality and adherence to strict metallurgical specifications for coinage.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Wieland Rolled Products is an established supplier, indicating reliability.
The contract directly supports the essential function of the United States Mint.

Sector Analysis

The contract falls within the broader industrial metals and manufacturing sector, specifically focusing on the supply of rolled metal products. This sector is characterized by global supply chains, commodity price fluctuations, and significant capital investment in production facilities. The United States Mint relies on specialized suppliers like Wieland for the precise alloys and forms of metals required for coin production. Comparable spending benchmarks in this area are difficult to establish without detailed specifications, but the market for industrial metals is vast, with government contracts representing a niche but critical segment.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to a large, established company like Wieland Rolled Products suggests that the scale and technical requirements of this particular supply need were best met by a major industrial player. This may limit direct opportunities for small businesses in this specific award, though they may participate in the broader metals supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the United States Mint, a bureau within the Department of the Treasury. The Mint has internal quality control and procurement oversight processes. The Department of the Treasury's Inspector General may also have jurisdiction for audits and investigations related to significant contracts, ensuring accountability and proper use of funds. Transparency is facilitated through public contract databases, though detailed performance metrics are not always publicly disclosed.

Related Government Programs

United States Mint Operations
Coinage Metal Supply Contracts
Industrial Metals Procurement
Treasury Department Supply Chain Management

Risk Flags

Potential for commodity price volatility
Dependence on specific supplier for critical material
Ensuring consistent quality for coinage production

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $44.4 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 $44.4 million.

What is the period of performance?

Start: 2023-02-14. End: 2023-04-05.

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

Analyzing historical spending for base metals strip by the United States Mint requires access to detailed procurement data over several fiscal years. Generally, the Mint procures significant quantities of metals like copper, nickel, and zinc alloys for circulating coinage and commemorative items. Spending fluctuates based on coinage demand, metal market prices, and the specific alloy compositions required. Contracts are typically awarded through competitive bidding processes. Without specific historical contract data for 'base metals strip,' it's difficult to provide precise figures, but the Mint's annual budget and procurement reports would offer insights into overall metal acquisition costs. The current award of $44.4 million suggests a substantial, likely multi-year, requirement or a significant single order for specific coinage needs.

How does the awarded price compare to market rates for similar base metals strip?

Directly comparing the $44.4 million award to precise market rates for 'base metals strip' is challenging without knowing the exact alloy composition, purity, form (e.g., thickness, width), and quantity. Market rates for industrial metals like copper and nickel fluctuate daily based on global commodity markets. The United States Mint likely negotiates prices based on established industry benchmarks, plus premiums for specific tolerances and quality assurance required for coinage. The benchmark value of $887,158 provided in the data seems significantly lower, suggesting it might represent a different product, quantity, or a different type of contract. A thorough value assessment would involve comparing the per-pound or per-ton cost against current LME (London Metal Exchange) prices for the constituent metals, adjusted for alloy premiums and manufacturing costs.

What is Wieland Rolled Products North America, LLC's track record with government contracts, particularly for metal supply?

Wieland Rolled Products North America, LLC, is a significant player in the metals industry, known for producing high-quality rolled products. While specific details of their entire government contract history are not provided here, their ability to win a 'full and open competition' award from the United States Mint suggests a strong track record and established capabilities. Companies of this nature often supply critical materials to various government agencies for diverse applications, including defense, infrastructure, and specialized manufacturing. Their success in securing this contract indicates they meet stringent government procurement standards, including quality, reliability, and competitive pricing, for specialized metal products.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks include fluctuations in the global price of base metals, which could impact the cost-effectiveness of the contract if not properly hedged or structured. Supply chain disruptions, although less likely with an established supplier like Wieland, could also pose a risk to the timely delivery of coinage materials. Quality control is another critical area; deviations from specified alloy composition or physical properties could halt minting operations. Mitigation strategies likely involve fixed-price contract terms to lock in costs, robust quality assurance protocols with rigorous testing by the Mint, and potentially maintaining strategic inventory levels. The competitive bidding process itself helps mitigate the risk of overpayment.

How does this contract contribute to the overall mission of the United States Mint?

This contract is fundamental to the United States Mint's core mission of producing and circulating coinage for the nation's economy. The base metals strip supplied by Wieland Rolled Products is the raw material from which coins are struck. Ensuring a reliable and cost-effective supply of these metals is critical for maintaining the availability of currency for commerce, facilitating transactions, and supporting economic activity. The Mint's ability to fulfill its mandate depends directly on securing high-quality materials like those provided under this contract, making it a vital component of national financial infrastructure.

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, 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: $44,357,886

Exercised Options: $44,357,886

Current Obligation: $44,357,886

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