Treasury's Mint Awards $42.5M for Base Metals Strip, Boosting Coinage Production
Contract Overview
Contract Amount: $42,554,443 ($42.6M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2023-04-18
End Date: 2023-06-05
Contract Duration: 48 days
Daily Burn Rate: $886.6K/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 $42.6 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. Key points: 1. Significant award for essential coinage materials. 2. WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC is the sole awardee. 3. Potential risk associated with single supplier for critical material. 4. Focus on manufacturing and metals sector.
Value Assessment
Rating: good
The award amount of $42.5M for base metals strip appears reasonable given the quantity and nature of the material required for circulating coinage. Benchmarking against similar contracts for raw materials would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing for the base metals strip.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for the production of circulating coinage.
Public Impact
Ensures continued production of circulating coins for the U.S. economy. Supports the supply chain for essential currency. Impacts the availability of change for consumers and businesses.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- Reliance on a single supplier for a critical component.
- Potential for price fluctuations in base metals markets.
Positive Signals
- Awarded under full and open competition.
- Supports domestic manufacturing capabilities.
Sector Analysis
This contract falls within the manufacturing sector, specifically related to metals processing and production. Spending benchmarks for raw material procurement for coinage are not readily available, but the award size is substantial.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities exist.
Oversight & Accountability
The United States Mint, under the Department of the Treasury, is responsible for this procurement. Standard oversight processes for federal contracts would apply to ensure compliance and performance.
Related Government Programs
- Copper Rolling, Drawing, Extruding, and Alloying
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Sole awardee for a critical material.
- Potential for price volatility in base metals.
- Dependence on a single supplier could lead to supply chain disruptions.
- Limited visibility into the competitive landscape beyond the initial award.
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 $42.6 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 $42.6 million.
What is the period of performance?
Start: 2023-04-18. End: 2023-06-05.
What is the long-term strategy for securing base metals for coinage to mitigate supply chain risks?
The long-term strategy likely involves diversifying suppliers, exploring alternative materials, and potentially entering into longer-term contracts to ensure a stable and cost-effective supply of base metals for coinage. Proactive market analysis and strategic sourcing are crucial to mitigate risks associated with price volatility and geopolitical factors affecting metal availability.
How does the pricing of this award compare to historical contracts for similar base metals strip?
A detailed comparison with historical contracts for similar base metals strip would require access to past procurement data. However, given the award was made under full and open competition, it suggests the pricing is considered fair market value at the time of award. Fluctuations in global metal prices could account for variations.
What are the key performance indicators (KPIs) for this contract to ensure timely delivery and quality of the base metals strip?
Key performance indicators would likely include on-time delivery rates, adherence to material specifications (e.g., alloy composition, tensile strength, surface finish), and quality control measures throughout the production process. The contract may also include clauses for defect resolution and penalties for non-compliance.
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: $42,554,443
Exercised Options: $42,554,443
Current Obligation: $42,554,443
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: 2023-04-18
Current End Date: 2023-06-05
Potential End Date: 2023-06-05 00:00:00
Last Modified: 2023-09-15
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