Treasury's Mint awards $13.4M contract for base metals strip, ensuring coinage supply

Contract Overview

Contract Amount: $13,430,940 ($13.4M)

Contractor: PMX Industries, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-11-04

End Date: 2025-12-05

Contract Duration: 31 days

Daily Burn Rate: $433.3K/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. MINT MAC BASE METAL STRIP

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52404

State: Iowa Government Spending

Plain-Language Summary

Department of the Treasury obligated $13.4 million to PMX INDUSTRIES, INC. for work described as: PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. MINT MAC BASE METAL STRIP Key points: 1. Contract value appears reasonable given the specialized nature of metal strip production for coinage. 2. Full and open competition suggests a healthy market for this specific material. 3. Short performance period indicates a focus on immediate supply needs rather than long-term strategic sourcing. 4. The contract supports the essential function of producing circulating coinage. 5. Geographic concentration in Iowa for production. 6. Fixed-price contract shifts risk to the contractor for cost overruns.

Value Assessment

Rating: good

The contract value of $13.4 million for base metals strip is within a reasonable range for specialized materials required for minting. Benchmarking against similar contracts for coinage metal supply is challenging due to the niche market, but the fixed-price nature suggests the government has secured a predictable cost. The award amount seems to reflect market rates for high-quality, custom-specified metal products.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The presence of multiple bidders suggests a robust market for the required base metals strip.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring the government is not overpaying for essential materials like those used in coinage.

Public Impact

The United States Mint benefits directly, ensuring a consistent supply of base metals for circulating coinage. The public benefits from the continued availability of coins for everyday transactions. Production is concentrated in Iowa, potentially supporting local manufacturing jobs and the regional economy. The contract supports the broader financial infrastructure of the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if PMX Industries faces unforeseen production issues.
Reliance on a single supplier for a critical component of coinage production during the contract period.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Fixed-price contract provides cost certainty for the government.
Short performance period minimizes long-term commitment risk.

Sector Analysis

This contract falls within the broader metals and mining sector, specifically focusing on the production of specialized alloys for coinage. The market for coinage metal strip is relatively niche, dominated by a few manufacturers capable of meeting the stringent purity and dimensional tolerances required by mints. The value of this contract is modest within the overall metals industry but critical for the government's operational needs.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the specialized nature of producing base metal strip for coinage, it is likely that larger, established manufacturers with the necessary technical capabilities and certifications were the primary bidders. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially arise in areas like raw material sourcing or logistics.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The United States Mint, as part of the Department of the Treasury, has internal oversight mechanisms. The fixed-price nature of the contract simplifies financial oversight by providing cost certainty. Transparency is maintained through public contract databases where such awards are reported.

Related Government Programs

Circulating Coinage Production
Precious Metals Management
Manufacturing and Industrial Supplies

Risk Flags

Supply Chain Risk
Single Source Dependency (during contract period)

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $13.4 million to PMX INDUSTRIES, INC.. PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. MINT MAC BASE METAL STRIP

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 $13.4 million.

What is the period of performance?

Start: 2025-11-04. End: 2025-12-05.

What is the track record of PMX Industries, Inc. with federal contracts, particularly with the United States Mint?

PMX Industries, Inc. has a history of federal contracting, though specific details on their past performance with the United States Mint require deeper database analysis. Generally, for a company to be awarded a contract for specialized materials like base metal strip for coinage, they must demonstrate a proven ability to meet stringent quality standards and delivery schedules. The award of this contract suggests they have met the necessary qualifications and performance expectations. Further investigation into their contract history, including any past performance reviews or disputes, would provide a more comprehensive understanding of their reliability.

How does the awarded price of $13.4 million compare to historical spending for similar base metals strip contracts?

Direct historical comparisons for this specific 'base metals strip for circulating coinage' are difficult to establish publicly due to the niche nature of the product and potential variations in alloy composition, quantity, and contract terms over time. However, the contract's value of $13.4 million for a one-month delivery period (November-December 2025) suggests a significant per-unit cost, reflecting the specialized manufacturing processes and quality control required. The fixed-price structure indicates the government has locked in this cost, mitigating risk of price escalation. Benchmarking against broader industrial metal supply contracts would likely show a premium for coinage-grade materials.

What are the primary risks associated with this contract and the contractor, PMX Industries, Inc.?

The primary risks associated with this contract include potential supply chain disruptions if PMX Industries, Inc. encounters unforeseen production issues or raw material shortages, which could impact the Mint's ability to produce coinage. Given the short performance period, there's also a risk of delivery delays if production or logistics are not managed efficiently. For the contractor, the risk lies in managing production costs under a firm fixed-price agreement; any increase in raw material prices or manufacturing expenses beyond their estimates would reduce their profit margin. The reliance on a single supplier for this critical material during the contract term also presents a concentration risk for the Mint.

How effective is the 'full and open competition' process in ensuring value for money for this specific type of specialized material?

The 'full and open competition' process is generally effective in ensuring value for money by fostering a competitive environment where multiple qualified vendors can bid. For specialized materials like base metals strip for coinage, this process is crucial because it encourages suppliers to offer their best pricing and terms to secure the contract. The United States Mint likely received bids from several companies capable of meeting the stringent specifications. This competition helps prevent price gouging and ensures the government obtains the material at a rate reflective of market conditions, even within a niche sector. The success of this process is contingent on the Mint clearly defining requirements and adequately soliciting potential bidders.

What are the historical spending patterns of the United States Mint for coinage materials, and how does this award fit in?

Historical spending patterns for the United States Mint on coinage materials are typically characterized by recurring awards for various metals and alloys needed for both circulating and commemorative coins. These contracts are often awarded through competitive bidding processes to ensure cost-effectiveness. This $13.4 million award for base metals strip fits into the Mint's ongoing operational budget for producing circulating currency. While the exact annual spend on base metals can fluctuate based on demand for coinage and metal market prices, such awards are a regular component of the Mint's procurement activities. Analyzing past awards for similar materials would reveal trends in pricing and supplier engagement.

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: $13,430,940

Exercised Options: $13,430,940

Current Obligation: $13,430,940

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG23D00002

IDV Type: IDC

Timeline