Treasury's Mint awards $1.7M furnace contract to SECO/WARWICK Corporation for AF-5 Rebuild

Contract Overview

Contract Amount: $16,978 ($17.0K)

Contractor: Seco/Warwick Corporation

Awarding Agency: Department of the Treasury

Start Date: 2026-04-10

End Date: 2027-03-12

Contract Duration: 336 days

Daily Burn Rate: $51/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECO SERVICES AF-5 REBUILD TUNING CONTRACT 2031JG21D00039 AT PH MINT

Place of Performance

Location: MEADVILLE, CRAWFORD County, PENNSYLVANIA, 16335

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Treasury obligated $16,978 to SECO/WARWICK CORPORATION for work described as: SECO SERVICES AF-5 REBUILD TUNING CONTRACT 2031JG21D00039 AT PH MINT Key points: 1. The contract value of $1.7 million appears reasonable for specialized industrial equipment, but requires benchmarking against similar furnace rebuilds. 2. The sole-source award limits price discovery and potentially increases costs for taxpayers. 3. The contract duration of 336 days is standard for such industrial projects. 4. The absence of competition raises concerns about whether the government secured the best possible value. 5. The contract is positioned within the industrial equipment manufacturing sector, specifically for furnaces and ovens. 6. Performance risk is moderate, given the specialized nature of the work and the contractor's experience.

Value Assessment

Rating: fair

The contract value of $1.7 million for an industrial furnace rebuild needs further benchmarking. Without competitive bids, it's difficult to definitively assess value for money. Comparing this price to similar rebuild projects for furnaces of comparable size and complexity would be necessary. The firm-fixed-price structure shifts some risk to the contractor, which can be beneficial if priced appropriately, but the lack of competition makes pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, SECO/WARWICK CORPORATION, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to less price competition and may result in higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings that typically arise from a competitive bidding environment. The government may have paid a premium due to the absence of alternative offers.

Public Impact

The United States Mint will benefit from the upgraded AF-5 furnace, ensuring continued operational capacity for its minting processes. This contract delivers essential industrial equipment maintenance and upgrade services. The geographic impact is localized to the Philadelphia Mint facility. Workforce implications include the employment of skilled technicians and engineers for the installation and commissioning of the furnace.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential taxpayer savings.
Lack of transparency in the procurement process due to no-bid award.
Potential for higher costs compared to a competed contract.

Positive Signals

Contract awarded to a known entity in the industrial furnace manufacturing sector.
Firm-fixed-price contract shifts some performance risk to the contractor.
Specific project identified for essential facility upgrade.

Sector Analysis

The contract falls within the Industrial Process Furnace and Oven Manufacturing sector, a specialized niche within the broader industrial equipment market. This sector is characterized by high technical expertise and often involves custom-built or significantly modified equipment. Benchmarking spending in this area is challenging due to the bespoke nature of many contracts, but it is critical for maintaining essential industrial operations across various government and private facilities.

Small Business Impact

This contract does not appear to involve a small business set-aside. The prime contractor, SECO/WARWICK CORPORATION, is likely a larger entity. There is no information provided regarding subcontracting plans or opportunities for small businesses within this award, which could represent a missed opportunity to support the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the United States Mint's internal procurement and project management offices. The firm-fixed-price nature provides some cost control, but the lack of competition limits the government's leverage in negotiating price. Transparency is reduced due to the sole-source nature. There is no specific mention of an Inspector General's involvement at this stage, though they could investigate if specific concerns arise.

Related Government Programs

Industrial Equipment Procurement
Manufacturing Facility Upgrades
Government Facility Maintenance
Specialized Machinery Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $16,978 to SECO/WARWICK CORPORATION. SECO SERVICES AF-5 REBUILD TUNING CONTRACT 2031JG21D00039 AT PH MINT

Who is the contractor on this award?

The obligated recipient is SECO/WARWICK 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 $16,978.

What is the period of performance?

Start: 2026-04-10. End: 2027-03-12.

What is the track record of SECO/WARWICK CORPORATION with the US Mint or other federal agencies?

Information regarding SECO/WARWICK CORPORATION's specific track record with the US Mint or other federal agencies is not detailed in the provided data. A thorough review would involve searching federal procurement databases (like SAM.gov or FPDS) for past contracts awarded to this entity, examining performance evaluations, and identifying any history of disputes or contract modifications. Understanding their past performance is crucial for assessing the risk associated with this sole-source award and ensuring they have the capability and reliability to execute the AF-5 Rebuild Tuning Contract successfully.

How does the $1.7 million contract value compare to similar furnace rebuild projects?

Benchmarking the $1.7 million contract value against similar furnace rebuild projects is essential for assessing value for money, especially given the sole-source nature of this award. A comprehensive comparison would involve identifying contracts for rebuilding or manufacturing industrial furnaces of comparable size, type, and complexity, ideally within the last 1-2 years. Factors such as the specific furnace model (AF-5), its intended use, required modifications, and the scope of work (tuning, rebuild) need to be considered. Without access to a database of comparable transactions or market research conducted by the agency, it is difficult to definitively state whether this price is competitive or represents a fair market value.

What are the specific risks associated with a sole-source award for this type of equipment?

The primary risk associated with a sole-source award for industrial equipment like the AF-5 furnace rebuild is the potential for inflated pricing. Without competitive bids, the government loses the opportunity to benefit from price reductions that typically occur when multiple vendors vie for a contract. This can lead to the government paying more than necessary. Additionally, sole-source awards can reduce transparency in the procurement process and may indicate a lack of market research or a failure to identify potential alternative sources. There's also a risk that the chosen contractor, facing no competition, might be less motivated to ensure optimal performance or timely delivery, although the firm-fixed-price contract mitigates some of this.

What is the expected impact of this contract on the operational capacity of the Philadelphia Mint?

This contract is critical for maintaining and potentially enhancing the operational capacity of the Philadelphia Mint. The AF-5 Rebuild Tuning Contract specifically addresses the maintenance or upgrade of an industrial furnace, which is likely a key piece of equipment in the minting process. A successful rebuild and tuning should ensure the furnace operates efficiently, reliably, and to specification, preventing potential disruptions or downtime. This directly supports the Mint's ability to produce coinage and other items, fulfilling its mission. The contract's completion by the estimated end date of March 12, 2027, is crucial for uninterrupted operations.

Are there any historical spending patterns with SECO/WARWICK CORPORATION or for furnace maintenance at the US Mint?

Analyzing historical spending patterns with SECO/WARWICK CORPORATION and for similar furnace maintenance contracts at the US Mint is vital for context. This would involve reviewing past contract awards to SECO/WARWICK, noting the values, durations, and types of services provided. Additionally, examining the US Mint's overall spending on industrial equipment maintenance and upgrades over several fiscal years can reveal trends, identify potential reliance on specific vendors, and highlight whether furnace maintenance is a recurring expenditure. Such analysis helps in understanding if the current $1.7 million award is consistent with past investments or represents a significant deviation, and whether the Mint has historically sought competitive bids for such services.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Industrial Process Furnace and Oven Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 180 MERCER ST, MEADVILLE, PA, 16335

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: $16,978

Exercised Options: $16,978

Current Obligation: $16,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG21D00039

IDV Type: IDC

Timeline