Treasury's $11.99M Contract for Base Metals Strip Awarded to PMX Industries, Inc
Contract Overview
Contract Amount: $11,986,276 ($12.0M)
Contractor: PMX Industries, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2025-02-03
End Date: 2025-03-31
Contract Duration: 56 days
Daily Burn Rate: $214.0K/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: CEDAR RAPIDS, LINN County, IOWA, 52404
State: Iowa Government Spending
Plain-Language Summary
Department of the Treasury obligated $12.0 million to PMX INDUSTRIES, INC. for work described as: PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. Key points: 1. Contract focuses on essential base metals strip for circulating coinage. 2. PMX Industries, Inc. secured the award under full and open competition. 3. The contract value is approximately $11.99 million. 4. Delivery is scheduled within a 56-day period. 5. This procurement supports the United States Mint's operational needs.
Value Assessment
Rating: good
The contract value of $11.99 million for 56 days of supply appears reasonable given the specialized nature of base metals strip for coinage. Benchmarking against similar contracts for metal processing would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to a fair market price. The use of Firm Fixed Price contract type further supports price certainty.
Taxpayer Impact: Taxpayer funds are used efficiently through competitive bidding for essential materials, ensuring value for money in coinage production.
Public Impact
Ensures a steady supply of materials for U.S. currency. Supports the operational continuity of the United States Mint. Contributes to the availability of circulating coinage for the public. Maintains the integrity and quality of U.S. currency.
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 through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Short delivery period minimizes lead time risks.
Sector Analysis
This contract falls within the manufacturing sector, specifically related to metal processing and fabrication. Spending benchmarks for similar metal supply contracts can vary significantly based on commodity prices and specific material requirements.
Small Business Impact
The data indicates that the award was made to PMX Industries, Inc. There is no specific information provided regarding small business participation or subcontracting goals in this particular award notice.
Oversight & Accountability
The United States Mint, under the Department of the Treasury, is responsible for this procurement. Standard oversight mechanisms for federal contracts, including performance monitoring and payment verification, would apply.
Related Government Programs
- Copper Rolling, Drawing, Extruding, and Alloying
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Commodity price volatility risk.
- Single-source dependency risk.
- Potential for supply chain disruption.
- Limited duration may not reflect long-term needs.
Tags
copper-rolling-drawing-extruding-and-all, department-of-the-treasury, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.0 million to PMX INDUSTRIES, INC.. PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE.
Who is the contractor on this award?
The obligated recipient is PMX INDUSTRIES, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (United States Mint).
What is the total obligated amount?
The obligated amount is $12.0 million.
What is the period of performance?
Start: 2025-02-03. End: 2025-03-31.
What is the historical price trend for the specific base metals being procured, and how does this contract price compare?
Analyzing historical price trends for copper and other base metals is crucial. This contract's price should be benchmarked against average market prices over the past 1-3 years, considering any premiums for specialized processing. Significant deviations could indicate either exceptional value or potential overpayment, warranting further investigation into market conditions and supplier costs.
What are the potential risks associated with relying on a single supplier for this critical component, especially given commodity price volatility?
Reliance on a single supplier, PMX Industries, Inc., presents risks including supply chain disruptions, price increases due to market volatility, and potential quality control issues. Mitigation strategies could involve exploring alternative suppliers for future contracts, negotiating longer-term agreements with price adjustment clauses, or maintaining strategic stockpiles of the base metals strip.
How effectively does the Firm Fixed Price (FFP) contract structure protect taxpayer interests in this volatile commodity market?
The FFP structure offers significant cost certainty for taxpayers by locking in the price at the time of award. However, in a volatile commodity market, it could also mean the government misses out on potential price decreases if market prices fall significantly before delivery. Conversely, the supplier bears the risk of price increases, which may have been factored into the initial bid.
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
Parent Company: Poongsan Corporation
Address: 5300 WILLOW CREEK DR SW, CEDAR RAPIDS, IA, 52404
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: $11,986,276
Exercised Options: $11,986,276
Current Obligation: $11,986,276
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG23D00002
IDV Type: IDC
Timeline
Start Date: 2025-02-03
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-09-23
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