Treasury's Mint Awards $343K for Machinery Repair, Lacking Competition

Contract Overview

Contract Amount: $34,361 ($34.4K)

Contractor: Andritz Schuler Incorporated

Awarding Agency: Department of the Treasury

Start Date: 2025-02-25

End Date: 2029-12-31

Contract Duration: 1,770 days

Daily Burn Rate: $19/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SCHULER MULTI SPRING COLLAR HOLDER - 2031JG25D00002

Place of Performance

Location: CANTON, WAYNE County, MICHIGAN, 48187

State: Michigan Government Spending

Plain-Language Summary

Department of the Treasury obligated $34,361 to ANDRITZ SCHULER INCORPORATED for work described as: SCHULER MULTI SPRING COLLAR HOLDER - 2031JG25D00002 Key points: 1. Contract value is $343,610. 2. No competition was utilized for this award. 3. Potential risk associated with sole-source procurement. 4. Spending falls within the Commercial and Industrial Machinery sector.

Value Assessment

Rating: questionable

The contract value of $343,610 for machinery repair appears reasonable for specialized equipment. However, without competitive bidding, it's difficult to definitively assess if this represents the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were solicited. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition could result in the government paying more than necessary for these repair services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The United States Mint relies on this specialized equipment for its operations. Ensuring fair pricing is crucial for government procurement efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Specific machinery repair service
Defined contract duration

Sector Analysis

This contract falls under the Commercial and Industrial Machinery and Equipment Repair and Maintenance sector. Spending in this area is critical for maintaining operational capacity for various government functions.

Small Business Impact

There is no indication that small businesses were involved in this sole-source procurement, missing an opportunity to support small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government obtained fair pricing and that this method was justified.

Related Government Programs

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Department of the Treasury Contracting
United States Mint Programs

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for inflated pricing
Limited vendor options
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $34,361 to ANDRITZ SCHULER INCORPORATED. SCHULER MULTI SPRING COLLAR HOLDER - 2031JG25D00002

Who is the contractor on this award?

The obligated recipient is ANDRITZ SCHULER INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34,361.

What is the period of performance?

Start: 2025-02-25. End: 2029-12-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without further documentation, it's unclear if these criteria were met, raising questions about the necessity of excluding other potential bidders and ensuring the best possible price for the government.

What is the risk of relying on a single vendor for critical machinery repair?

Relying on a single vendor for critical machinery repair poses risks such as price escalation, potential service disruptions if the vendor faces issues, and a lack of innovation. It also limits the government's ability to leverage competitive market forces to secure favorable terms and pricing, potentially impacting long-term operational costs and efficiency.

How can the effectiveness of this contract be measured without competitive benchmarks?

Effectiveness can be measured by tracking the uptime and performance of the machinery post-repair, the timeliness of service delivery, and adherence to the contract's scope of work. However, without competitive data, it's challenging to definitively assess if the cost was optimal or if alternative solutions might have been more effective or economical.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: METALWORKING MACHINERY

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Andritz AG

Address: 7145 COMMERCE BLVD, CANTON, MI, 48187

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

Financial Breakdown

Contract Ceiling: $34,361

Exercised Options: $34,361

Current Obligation: $34,361

Actual Outlays: $33,311

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG25D00002

IDV Type: IDC

Timeline