Treasury's Mint Awards $2.29M Contract for Autotuber Machines to Farason Corp

Contract Overview

Contract Amount: $2,293,962 ($2.3M)

Contractor: Farason Corporation

Awarding Agency: Department of the Treasury

Start Date: 2025-06-02

End Date: 2027-09-25

Contract Duration: 845 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WP AUTOTUBER 2 REPLACEMENT

Place of Performance

Location: COATESVILLE, CHESTER County, PENNSYLVANIA, 19320

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.3 million to FARASON CORPORATION for work described as: WP AUTOTUBER 2 REPLACEMENT Key points: 1. Contract awarded to Farason Corporation for WP AUTOTUBER 2 REPLACEMENT. 2. Total contract value is $2,293,962. 3. The contract duration is 845 days. 4. The awarding agency is the Department of the Treasury, specifically the United States Mint. 5. The procurement type is Full and Open Competition.

Value Assessment

Rating: good

The contract value of $2.29M for packaging machinery seems reasonable given the duration and specialized nature of the equipment. Benchmarking against similar specialized machinery procurements would provide further clarity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under Full and Open Competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive nature of this award suggests taxpayers are likely receiving fair value for the funds expended on this essential packaging machinery.

Public Impact

Ensures continued operation of the United States Mint's packaging processes. Supports the production and distribution of coins and medals. Maintains operational efficiency for the Mint's manufacturing facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and Open Competition utilized.
Firm Fixed Price contract type.
Clear delivery order for specific equipment.

Sector Analysis

The procurement falls under the Packaging Machinery Manufacturing sector. Spending in this sector is often driven by industrial modernization and operational efficiency needs, with contract values varying based on equipment complexity and volume.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award, as the contractor is Farason Corporation, and no small business set-aside was noted.

Oversight & Accountability

The United States Mint, under the Department of the Treasury, is responsible for this procurement. Standard federal procurement oversight applies, ensuring compliance with regulations and fair competition.

Related Government Programs

Packaging Machinery Manufacturing
Department of the Treasury Contracting
United States Mint Programs

Risk Flags

Potential long-term sole-source dependency for maintenance/parts.
Lack of specific performance metrics in provided data.
Limited insight into the competitive landscape beyond the initial award.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.3 million to FARASON CORPORATION. WP AUTOTUBER 2 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 $2.3 million.

What is the period of performance?

Start: 2025-06-02. End: 2027-09-25.

What is the specific function of the 'WP AUTOTUBER 2' and how critical is it to the Mint's operations?

The 'WP AUTOTUBER 2' likely refers to a specific piece of automated packaging machinery used for tubular packaging. Its criticality would depend on whether it's a unique or essential component in the Mint's production line for coins or medals, impacting the speed and efficiency of their packaging processes.

Are there any potential risks associated with relying on a single supplier for replacement parts or maintenance of this specific machinery?

While the initial award was competitive, long-term reliance on Farason Corporation for maintenance or proprietary parts could pose a risk. The Mint should ensure clear terms for future support and consider the availability of alternative service providers or parts to mitigate potential price gouging or supply chain disruptions.

How does the cost of this contract compare to industry benchmarks for similar packaging machinery over its lifespan?

Without specific details on the machinery's capabilities and the contract's inclusions (e.g., installation, training, warranties), a direct benchmark is difficult. However, the $2.29M over approximately 2.5 years suggests a significant investment, necessitating comparison with similar high-volume, specialized industrial equipment procurements to assess value.

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: $2,293,962

Exercised Options: $2,293,962

Current Obligation: $2,293,962

Actual Outlays: $1,461,250

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