Treasury's Mint awards $79.5K for sintered bronze blanks, raising questions on competition and value

Contract Overview

Contract Amount: $79,509 ($79.5K)

Contractor: Abbott Furnace CO

Awarding Agency: Department of the Treasury

Start Date: 2024-01-25

End Date: 2026-09-30

Contract Duration: 979 days

Daily Burn Rate: $81/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SINTERED POWDER BRONZE BLANKS

Place of Performance

Location: SAINT MARYS, ELK County, PENNSYLVANIA, 15857

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Treasury obligated $79,508.93 to ABBOTT FURNACE CO for work described as: SINTERED POWDER BRONZE BLANKS Key points: 1. The contract's value appears modest, but the lack of competition warrants scrutiny for potential overpayment. 2. Limited competition for essential manufacturing components could indicate market concentration or insufficient outreach. 3. The firm-fixed-price structure offers cost certainty, but the absence of competitive bidding limits upside for taxpayers. 4. Performance context is minimal, with only one awardee and a fixed duration, suggesting a routine procurement. 5. This contract falls within the broader 'Copper Rolling, Drawing, Extruding, and Alloying' sector, with potential implications for related industries. 6. The absence of small business set-asides or subcontracting plans suggests this award did not prioritize small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of sintered powder bronze blanks is challenging without more specific technical requirements and market data. However, the absence of competitive bidding for a $79.5K purchase order raises concerns about whether the United States Mint secured the best possible price. Without comparison to similar contracts or market rates, it's difficult to definitively assess value for money. The fixed-price nature provides cost certainty, but the lack of competition means potential savings were likely forgone.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, indicating a sole-source or limited competition procurement. The specific justification for this approach is not provided, but it means that only one offer was solicited or considered. This lack of open competition limits the government's ability to explore alternative suppliers and potentially negotiate better terms, which can impact price discovery.

Taxpayer Impact: The absence of a competitive process means taxpayers may not have received the most cost-effective solution. Without exploring multiple bids, the risk of paying a premium for these essential components increases.

Public Impact

The United States Mint is the primary beneficiary, securing necessary materials for its operations. The contract provides sintered powder bronze blanks, crucial for minting processes. The geographic impact is localized to Pennsylvania, where the contractor, Abbott Furnace Co., is based. Workforce implications are likely internal to the contractor, supporting their manufacturing operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to inflated prices.
Limited transparency into the sole-source justification.
Potential for missed opportunities to engage with a broader supplier base, including small businesses.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awardee is a known entity, potentially with established quality and reliability.
Contract duration is defined, allowing for planned procurement.

Sector Analysis

The procurement of sintered powder bronze blanks falls under the broader materials and manufacturing sector, specifically related to non-ferrous metal processing. This niche area supports industries requiring specialized metal components. Comparable spending benchmarks are difficult to establish without more granular data on the specific type and quantity of blanks. However, the overall market for specialized metal powders and components can be competitive, making the lack of competition here noteworthy.

Small Business Impact

The data indicates no small business set-aside was applied to this contract, nor are there explicit indications of subcontracting plans for small businesses. This suggests that the procurement process did not prioritize or actively seek participation from the small business ecosystem for this specific award. Consequently, the impact on small businesses in this sector is likely minimal for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the United States Mint's internal procurement and financial management processes. As a purchase order, it is subject to standard government contracting regulations. Transparency is limited due to the sole-source nature of the award. There is no specific mention of an Inspector General's jurisdiction for this particular award, though the Treasury OIG generally oversees agency operations.

Related Government Programs

Treasury Department Procurement
United States Mint Operations
Manufacturing Materials Procurement
Non-Ferrous Metal Supply Chain

Risk Flags

Lack of Competition
Potential for Overpayment
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $79,508.93 to ABBOTT FURNACE CO. SINTERED POWDER BRONZE BLANKS

Who is the contractor on this award?

The obligated recipient is ABBOTT FURNACE CO.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $79,508.93.

What is the period of performance?

Start: 2024-01-25. End: 2026-09-30.

What is the specific technical requirement for these sintered powder bronze blanks, and how does Abbott Furnace Co.'s offering meet it?

The provided data does not detail the specific technical requirements for the sintered powder bronze blanks. It only lists the North American Industry Classification System (NAICS) code '331420' for Copper Rolling, Drawing, Extruding, and Alloying, and the Product and Service Code (PSC) is blank. Without these specifications, it's impossible to assess how Abbott Furnace Co.'s product precisely meets the Mint's needs or to compare it against potential alternatives. This lack of detail is common in high-level contract summaries but hinders in-depth technical evaluation.

Can the $79,508.93 award amount be benchmarked against similar contracts for sintered bronze blanks?

Benchmarking this specific award amount is difficult without access to a broader dataset of similar contracts for sintered powder bronze blanks. Factors such as quantity, precise alloy composition, dimensional tolerances, surface finish, and delivery schedules significantly influence pricing. The 'NOT COMPETED' status further complicates benchmarking, as competitive bids often drive prices down. A comprehensive market analysis or comparison with other government or commercial procurements for identical or highly similar items would be necessary for a robust benchmark.

What is the justification for awarding this contract on a 'NOT COMPETED' basis?

The provided data states the contract was 'NOT COMPETED,' but it does not include the specific justification. Common reasons for non-competitive awards include proprietary technology, urgent and compelling needs, sole-source capabilities of a specific contractor, or when only one responsible source exists. Without the official justification (e.g., under FAR Part 6), it is impossible to ascertain the validity of the non-competitive award and whether it was appropriate for this procurement of sintered powder bronze blanks.

What is the historical spending pattern for sintered powder bronze blanks by the United States Mint?

The provided data snippet focuses on a single award and does not offer historical spending patterns. To analyze historical spending, one would need to query contract databases for previous awards of sintered powder bronze blanks or similar materials by the United States Mint over several fiscal years. This would reveal trends in award amounts, number of bidders, contract types, and awardees, providing context for the current $79.5K award and its 'NOT COMPETED' status.

What is the track record of Abbott Furnace Co. in supplying materials to the federal government?

The provided data identifies Abbott Furnace Co. as the contractor but does not detail their track record with the federal government. To assess this, one would need to search federal procurement databases (like SAM.gov or FPDS) for previous contracts awarded to Abbott Furnace Co. This would reveal the types of goods or services they have provided, the agencies they have served, contract values, and performance history. A history of successful, timely, and cost-effective contract performance would lend confidence to this current award.

Does the 'Copper Rolling, Drawing, Extruding, and Alloying' NAICS code suggest a concentrated market for these materials?

The NAICS code 331420 covers establishments primarily engaged in rolling, drawing, extruding, or alloying copper and copper-based alloys. While this code encompasses a range of activities, the specific nature of 'sintered powder bronze blanks' suggests a more specialized segment within this broader category. A concentrated market is possible if only a few companies possess the specific capabilities and equipment required for producing these specialized blanks. The 'NOT COMPETED' status of this particular award might hint at such concentration or a lack of market research to identify alternatives.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1068 TROUT RUN RD, SAINT MARYS, PA, 15857

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $79,509

Exercised Options: $79,509

Current Obligation: $79,509

Actual Outlays: $46,194

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline