Treasury's Bureau of Engraving and Printing Awards $50.9M Contract for Currency Paper to Crane & Co., Inc
Contract Overview
Contract Amount: $50,904,279 ($50.9M)
Contractor: Crane & CO., Inc.
Awarding Agency: Department of the Treasury
Start Date: 2022-09-19
End Date: 2023-10-31
Contract Duration: 407 days
Daily Burn Rate: $125.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: WCF CURRENCY PAPER ORDER - ORDERING PERIOD FY23
Place of Performance
Location: DALTON, BERKSHIRE County, MASSACHUSETTS, 01226
Plain-Language Summary
Department of the Treasury obligated $50.9 million to CRANE & CO., INC. for work described as: WCF CURRENCY PAPER ORDER - ORDERING PERIOD FY23 Key points: 1. Significant contract value of $50.9 million for essential currency paper. 2. Crane & Co., Inc. is a long-standing supplier, indicating potential market concentration. 3. Risk of supply chain disruption if the sole supplier faces issues. 4. Sector is specialized paper manufacturing, critical for national currency production.
Value Assessment
Rating: good
The contract value of $50.9 million appears reasonable for specialized currency paper, given the supplier's established role. Benchmarking against similar high-security paper contracts would provide further validation.
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. This method is expected to yield fair pricing and ensure the government receives the best value.
Taxpayer Impact: Taxpayer funds are utilized for this essential government function, with competition aiming to ensure efficient allocation.
Public Impact
Ensures the continued production of U.S. currency, a fundamental government service. Supports a critical manufacturing capability within the United States. Potential impact on the availability of specialized paper for other high-security applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Supplier dependency
- Supply chain vulnerability
Positive Signals
- Competitive award process
- Essential government service
Sector Analysis
This contract falls within the specialized paper manufacturing sector, which is crucial for national security and economic stability. Benchmarks for similar high-security paper contracts are scarce due to the niche nature of the market.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this contract award. The specialized nature of currency paper production may limit small business participation.
Oversight & Accountability
The Bureau of Engraving and Printing, under the Department of the Treasury, is responsible for this contract. Standard procurement oversight processes would apply to ensure compliance and performance.
Related Government Programs
- Paper (except Newsprint) Mills
- Department of the Treasury Contracting
- Bureau of Engraving and Printing Programs
Risk Flags
- Sole supplier risk
- Supply chain disruption
- Potential for price increases in future contracts
- Limited visibility into alternative supplier capabilities
Tags
paper-except-newsprint-mills, department-of-the-treasury, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $50.9 million to CRANE & CO., INC.. WCF CURRENCY PAPER ORDER - ORDERING PERIOD FY23
Who is the contractor on this award?
The obligated recipient is CRANE & CO., INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).
What is the total obligated amount?
The obligated amount is $50.9 million.
What is the period of performance?
Start: 2022-09-19. End: 2023-10-31.
What is the historical pricing trend for currency paper from Crane & Co., Inc. under previous contracts?
Analyzing historical pricing data from previous contracts with Crane & Co., Inc. would reveal any significant price escalations or reductions over time. This trend analysis is crucial for assessing long-term value and identifying potential cost efficiencies or concerns that might not be apparent from a single contract award.
What are the contingency plans in place to mitigate supply chain risks associated with a single primary supplier for currency paper?
Contingency plans are vital given the critical nature of currency paper. These could include maintaining strategic reserves of paper, identifying and pre-qualifying alternative suppliers, or developing domestic manufacturing capabilities to reduce reliance on any single entity and ensure uninterrupted currency production.
How does the quality and durability of the paper supplied under this contract compare to international standards for currency paper?
Assessing the quality and durability against international standards ensures the U.S. currency maintains its integrity and longevity. This involves rigorous testing for factors like tensile strength, ink receptivity, and resistance to counterfeiting, ensuring the paper meets the demanding requirements for circulating currency.
Industry Classification
NAICS: Manufacturing › Pulp, Paper, and Paperboard Mills › Paper (except Newsprint) Mills
Product/Service Code: NONMETALLIC FABRICATED MATERIALS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Crane CO
Address: 30 SOUTH ST, DALTON, MA, 01226
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: $50,904,279
Exercised Options: $50,904,279
Current Obligation: $50,904,279
Actual Outlays: $34,857,224
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 2031ZA21D00002
IDV Type: IDC
Timeline
Start Date: 2022-09-19
Current End Date: 2023-10-31
Potential End Date: 2023-10-31 00:00:00
Last Modified: 2022-11-23
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