Treasury's Bureau of Engraving and Printing awards $74.7M for paper, with Crane & Co. Inc. as the sole supplier
Contract Overview
Contract Amount: $74,675,898 ($74.7M)
Contractor: Crane & CO., Inc.
Awarding Agency: Department of the Treasury
Start Date: 2022-09-13
End Date: 2023-05-30
Contract Duration: 259 days
Daily Burn Rate: $288.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ECF ORDERING THREE FY23
Place of Performance
Location: DALTON, BERKSHIRE County, MASSACHUSETTS, 01226
Plain-Language Summary
Department of the Treasury obligated $74.7 million to CRANE & CO., INC. for work described as: ECF ORDERING THREE FY23 Key points: 1. Significant contract value of $74.7 million for specialized paper. 2. Crane & Co., Inc. is a long-standing supplier, indicating potential market concentration. 3. Risk of supply chain disruption due to reliance on a single provider. 4. Sector focus on paper manufacturing, essential for currency production.
Value Assessment
Rating: fair
The contract value of $74.7 million for paper is substantial. Benchmarking against similar contracts for specialized paper is difficult without more granular data on paper type and specifications. However, the firm fixed price suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the fact that Crane & Co., Inc. is the awarded vendor suggests they may be the primary or only capable supplier for this specific type of paper.
Taxpayer Impact: Taxpayer funds are being used for this essential government procurement. The competitive process aims to ensure fair pricing, but the ultimate cost-effectiveness depends on the market's competitive landscape for this niche product.
Public Impact
Ensures the continued production of U.S. currency and other government documents. Supports a critical domestic manufacturing capability for specialized paper. Potential impact on the availability and cost of currency if supply is interrupted.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole supplier reliance
- Potential for price increases in future contracts
- Supply chain vulnerability
Positive Signals
- Full and open competition utilized
- Firm fixed price contract
- Domestic supplier
Sector Analysis
This contract falls within the paper manufacturing sector, specifically for high-security paper used in currency. Spending benchmarks for this niche are hard to establish publicly, but the Bureau of Engraving and Printing is a major consumer of such materials.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The nature of specialized currency paper production often requires significant capital investment and established expertise, which may limit small business participation.
Oversight & Accountability
The Bureau of Engraving and Printing, under the Department of the Treasury, is responsible for this procurement. Standard government oversight processes for contract management and performance monitoring would apply.
Related Government Programs
- Paper (except Newsprint) Mills
- Department of the Treasury Contracting
- Bureau of Engraving and Printing Programs
Risk Flags
- High reliance on a single supplier.
- Potential for supply chain disruption.
- Lack of transparency on specific paper quality and pricing benchmarks.
- Limited visibility into small business participation.
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 $74.7 million to CRANE & CO., INC.. ECF ORDERING THREE 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 $74.7 million.
What is the period of performance?
Start: 2022-09-13. End: 2023-05-30.
What is the specific type and quality of paper procured, and how does it compare to commercial paper standards?
The data indicates the procurement is for 'Paper (except Newsprint) Mills' under NAICS code 322121. While the specific technical specifications are not detailed here, currency paper requires unique security features, durability, and composition not found in standard commercial paper. These specialized requirements necessitate a distinct manufacturing process and likely contribute to higher costs compared to non-security paper.
What is the long-term strategy for ensuring a competitive and resilient supply chain for this critical paper?
Given the reliance on Crane & Co., Inc., the Bureau of Engraving and Printing should explore strategies to foster competition or ensure supply chain resilience. This could involve market research into potential new entrants, investing in R&D for alternative materials or suppliers, or negotiating longer-term agreements with built-in price review mechanisms to mitigate future cost increases.
How does the awarded price compare to historical pricing for similar paper orders from Crane & Co., Inc. or other potential suppliers?
Without access to historical pricing data for this specific paper type and quantity, a direct comparison is not possible. The 'br' field shows $288,324, which might represent a previous award or benchmark, but its context is unclear. A thorough analysis would require comparing this award to previous contracts with Crane & Co., Inc. and any other bids received during the full and open competition.
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: $74,675,898
Exercised Options: $74,675,898
Current Obligation: $74,675,898
Actual Outlays: $56,724,000
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: 2022-09-13
Current End Date: 2023-05-30
Potential End Date: 2023-05-30 00:00:00
Last Modified: 2023-07-18
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