Treasury's Mint Awards $32.4M for Base Metals Strip, Meeting Demand for Circulating Coinage
Contract Overview
Contract Amount: $32,397,629 ($32.4M)
Contractor: Wieland Rolled Products North America, LLC
Awarding Agency: Department of the Treasury
Start Date: 2023-07-01
End Date: 2023-08-05
Contract Duration: 35 days
Daily Burn Rate: $925.6K/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 $32.4 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. Key points: 1. The contract addresses a critical need for base metals strip essential for producing circulating coinage. 2. Wieland Rolled Products North America, LLC secured the award, indicating a competitive landscape for metal suppliers. 3. The firm fixed price contract structure helps mitigate cost escalation risks. 4. This spending supports the operational continuity of the United States Mint.
Value Assessment
Rating: good
The award amount of $32.4 million for base metals strip appears reasonable given the quantity and specialized nature of the material required for coinage production. Benchmarking against similar contracts for metal rolling services 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 that multiple qualified vendors had the opportunity to bid. This competitive process is expected to drive favorable pricing and ensure the government receives good value.
Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive procurement process for a necessary government function.
Public Impact
Ensures the continued availability of coins for everyday transactions. Supports the operational capacity of the U.S. Mint to meet national demand. Contributes to the stability of the national currency supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in base metal commodities.
- Dependence on a single supplier for a critical component.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports essential government function.
Sector Analysis
This contract falls within the manufacturing and materials sector, specifically focusing on non-ferrous metal rolling. Spending benchmarks for similar government contracts involving specialized metal products would be relevant for a deeper analysis.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this award. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The United States Mint, as a bureau within the Department of the Treasury, operates under established oversight mechanisms. The competitive award process suggests adherence to procurement regulations.
Related Government Programs
- Copper Rolling, Drawing, Extruding, and Alloying
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential commodity price volatility.
- Supply chain disruptions.
- Dependence on specific metal sources.
- Ensuring consistent material quality for coinage.
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 $32.4 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 $32.4 million.
What is the period of performance?
Start: 2023-07-01. End: 2023-08-05.
What is the projected demand for circulating coinage over the next 1-2 years, and how does this contract align with that forecast?
The contract for base metals strip is designed to meet current and near-term needs for circulating coinage. While specific demand forecasts are not provided, the duration and value suggest it addresses anticipated production levels. A detailed analysis would require access to the Mint's production schedules and coinage demand projections to confirm alignment and identify potential shortfalls or surpluses.
Are there any identified risks associated with the supply chain for these base metals, such as geopolitical instability or raw material scarcity?
While the contract itself is firm fixed price, mitigating direct cost escalation, potential risks to the supply chain for base metals are always present. Geopolitical events, global demand shifts, or environmental regulations impacting mining and refining could affect raw material availability and pricing for the contractor. The government should monitor global commodity markets and supplier diversification strategies.
How does the quality and consistency of the delivered base metals strip compare to previous procurements or industry standards for coinage production?
The contract specifies requirements for base metals strip suitable for circulating coinage, implying adherence to stringent quality and consistency standards. The United States Mint likely has established quality assurance protocols and testing procedures to verify that the delivered materials meet specifications. Comparison to prior procurements would depend on historical quality data and any performance metrics tracked for Wieland Rolled Products North America, LLC.
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: $32,397,629
Exercised Options: $32,397,629
Current Obligation: $32,397,629
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: 2023-07-01
Current End Date: 2023-08-05
Potential End Date: 2023-08-05 00:00:00
Last Modified: 2025-08-13
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