Treasury's Mint Awards $4.5M Contract for SF Carton Line to Farason Corporation
Contract Overview
Contract Amount: $4,494,926 ($4.5M)
Contractor: Farason Corporation
Awarding Agency: Department of the Treasury
Start Date: 2024-09-26
End Date: 2027-09-25
Contract Duration: 1,094 days
Daily Burn Rate: $4.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FARASON MACHINERY CONTRACT - SF CARTONING LINE REPLACEMENT
Place of Performance
Location: COATESVILLE, CHESTER County, PENNSYLVANIA, 19320
Plain-Language Summary
Department of the Treasury obligated $4.5 million to FARASON CORPORATION for work described as: FARASON MACHINERY CONTRACT - SF CARTONING LINE REPLACEMENT Key points: 1. Contract Value: $4.5 million for a SF cartoning line replacement. 2. Competition: Awarded under full and open competition. 3. Risk: Firm fixed price contract mitigates cost overrun risk. 4. Sector: Packaging Machinery Manufacturing.
Value Assessment
Rating: good
The contract is a firm fixed price delivery order, which provides cost certainty. Benchmarking against similar packaging machinery contracts would be beneficial for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that likely led to a fair market price discovery.
Taxpayer Impact: The firm fixed price structure protects taxpayers from potential cost escalations during the contract period.
Public Impact
Ensures operational continuity for the United States Mint's packaging needs. Supports domestic manufacturing within the packaging machinery sector. Provides essential equipment for mint operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if maintenance/support is not competitive.
- Dependence on a single vendor for critical operational equipment.
Positive Signals
- Firm fixed price contract limits cost uncertainty.
- Full and open competition suggests market-driven pricing.
Sector Analysis
The packaging machinery manufacturing sector is crucial for efficient production and logistics across various industries. This contract aligns with typical investments in upgrading essential operational equipment.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, which is common for large capital equipment procurements. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract is a delivery order under a larger framework, suggesting it has undergone some level of review. Oversight will be critical to ensure timely delivery and performance according to specifications.
Related Government Programs
- Packaging Machinery Manufacturing
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential for vendor lock-in for future support.
- Dependence on a single supplier for critical equipment.
- Long-term operational effectiveness relies on proper installation and training.
- Risk of unforeseen integration challenges with existing systems.
Tags
packaging-machinery-manufacturing, department-of-the-treasury, pa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $4.5 million to FARASON CORPORATION. FARASON MACHINERY CONTRACT - SF CARTONING LINE REPLACEMENT
Who is the contractor on this award?
The obligated recipient is FARASON CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (United States Mint).
What is the total obligated amount?
The obligated amount is $4.5 million.
What is the period of performance?
Start: 2024-09-26. End: 2027-09-25.
What is the expected lifespan and technological relevance of the SF cartoning line being procured?
The expected lifespan and technological relevance are key factors in assessing the long-term value of this $4.5 million investment. Understanding the expected operational life and how the new line compares to current industry standards will determine if the Mint is acquiring a solution that meets its needs for the foreseeable future or if it risks obsolescence.
Are there any performance metrics or service level agreements tied to this contract to ensure optimal operation?
Performance metrics and service level agreements (SLAs) are crucial for ensuring the SF cartoning line operates efficiently and reliably. Without clearly defined SLAs, the Mint may face challenges in holding Farason Corporation accountable for uptime, maintenance response times, and overall equipment effectiveness, potentially impacting mint operations.
What is the process for managing potential future modifications or upgrades to this cartoning line?
The process for managing future modifications or upgrades is important for adaptability. Clarity on how changes will be requested, priced, and implemented, especially under a firm fixed price contract, will prevent disputes and ensure the equipment can be updated to meet evolving operational requirements without undue cost or delay.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Packaging Machinery Manufacturing
Product/Service Code: SPECIAL INDUSTRY MACHINERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 735 FOX CHASE STE 110, COATESVILLE, PA, 19320
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,494,926
Exercised Options: $4,494,926
Current Obligation: $4,494,926
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TMHQ17C0041
IDV Type: IDC
Timeline
Start Date: 2024-09-26
Current End Date: 2027-09-25
Potential End Date: 2027-09-25 00:00:00
Last Modified: 2026-04-10
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