Treasury's Mint Awards $677K for Industrial Machinery Parts to SECO/WARWICK Corp
Contract Overview
Contract Amount: $67,754 ($67.8K)
Contractor: Seco/Warwick Corporation
Awarding Agency: Department of the Treasury
Start Date: 2024-11-14
End Date: 2025-04-30
Contract Duration: 167 days
Daily Burn Rate: $406/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BEARING, GASKET, WATER JACKET, RING HEAT EXCHANGER, ETC.
Place of Performance
Location: MEADVILLE, CRAWFORD County, PENNSYLVANIA, 16335
Plain-Language Summary
Department of the Treasury obligated $67,753.72 to SECO/WARWICK CORPORATION for work described as: BEARING, GASKET, WATER JACKET, RING HEAT EXCHANGER, ETC. Key points: 1. SECO/WARWICK Corporation secured a $677,537 contract for industrial machinery parts. 2. The contract was not competed under Simplified Acquisition Procedures (SAP), raising questions about price discovery. 3. The award is for 'All Other Industrial Machinery Manufacturing' parts, including bearings and gaskets. 4. The contract duration is 167 days, ending April 30, 2025.
Value Assessment
Rating: questionable
The contract value of $677,537 for industrial machinery parts appears high given the lack of competitive bidding. Benchmarking against similar contracts for specialized parts is difficult without more detail on the specific components and their complexity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED UNDER SAP,' indicating a limited competition approach. This method may not have yielded the best possible price for taxpayers as alternative suppliers were not actively sought or compared.
Taxpayer Impact: The lack of full and open competition could result in a higher cost to taxpayers than if the contract had been more widely solicited.
Public Impact
Taxpayers may be paying a premium for essential industrial machinery parts due to limited competition. The United States Mint relies on these parts for its operations, making timely delivery crucial. Transparency in procurement processes is vital for public trust and efficient government spending.
Waste & Efficiency Indicators
Waste Risk Score: 40 / 10
Warning Flags
- Limited competition
- Lack of price benchmark
- Potential for overpayment
Positive Signals
- Specific need for parts
- Defined delivery timeline
Sector Analysis
The 'All Other Industrial Machinery Manufacturing' sector encompasses a wide range of specialized equipment. Government spending in this area often involves unique components where competitive benchmarking can be challenging, but transparency is still paramount.
Small Business Impact
There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities for small business participation were overlooked.
Oversight & Accountability
The procurement process, particularly the 'NOT COMPETED UNDER SAP' designation, warrants further oversight to ensure fair pricing and adherence to procurement regulations. Accountability for the chosen procurement method should be clear.
Related Government Programs
- All Other Industrial Machinery Manufacturing
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in procurement justification
- No clear small business participation
Tags
all-other-industrial-machinery-manufactu, department-of-the-treasury, pa, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $67,753.72 to SECO/WARWICK CORPORATION. BEARING, GASKET, WATER JACKET, RING HEAT EXCHANGER, ETC.
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 $67,753.72.
What is the period of performance?
Start: 2024-11-14. End: 2025-04-30.
What specific industrial machinery parts are included in this $677,537 contract, and what is their criticality to the Mint's operations?
The data lists 'BEARING, GASKET, WATER JACKET, RING HEAT EXCHANGER, ETC.' as included parts. These components are essential for the maintenance and operation of industrial machinery. Their criticality lies in ensuring the continuous functioning of equipment used by the United States Mint, potentially for production or facility support, though specific operational details are not provided.
What justification was provided for not competing this contract under SAP, and what steps were taken to ensure a fair and reasonable price?
The provided data states 'NOT COMPETED UNDER SAP' without further justification. Typically, such a designation implies a specific reason, such as urgency, sole-source availability, or a value below SAP thresholds where competition is waived. Without this justification, it's unclear what steps were taken to ensure a fair and reasonable price beyond the vendor's quote.
How does the $677,537 award for these industrial parts compare to industry benchmarks for similar procurements, especially given the limited competition?
Direct comparison to industry benchmarks is difficult without detailed specifications of the parts and their quantities. However, the absence of competitive bidding suggests that the price may not have been optimized. A benchmark analysis would require comparing the unit costs of these specific parts against publicly available pricing or quotes from other qualified suppliers in the 'All Other Industrial Machinery Manufacturing' sector.
Industry Classification
NAICS: Manufacturing › Industrial Machinery Manufacturing › All Other Industrial Machinery Manufacturing
Product/Service Code: BEARINGS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 18360 TECHNOLOGY DR FL 3, 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: $67,754
Exercised Options: $67,754
Current Obligation: $67,754
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2024-11-14
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2026-04-01
More Contracts from Seco/Warwick Corporation
- Task Order 2031jg21d00039-2031jg23f00386-Ph Mint Furnace Rebuild (QTY 2) — $2.6M (Department of the Treasury)
- Seco Services AF-5 Rebuild Tuning Contract 2031JG21D00039 AT PH Mint — $17.0K (Department of the Treasury)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)