Treasury's $16M Contract for Ultra High Relief Packaging Awarded to JEM WOOD DESIGN, INC
Contract Overview
Contract Amount: $16,049,363 ($16.0M)
Contractor: JEM Wood Design, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2008-07-14
End Date: 2009-06-12
Contract Duration: 333 days
Daily Burn Rate: $48.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 2009 ST. GAUDENS ULTRA HIGH RELIEF PACKAGING
Plain-Language Summary
Department of the Treasury obligated $16.0 million to JEM WOOD DESIGN, INC. for work described as: 2009 ST. GAUDENS ULTRA HIGH RELIEF PACKAGING Key points: 1. Spending of $16M on specialized packaging for numismatic products. 2. Contract awarded competitively, suggesting potential for price discovery. 3. Risk of overspending on packaging for high-value collectibles. 4. Sector is coated and laminated packaging paper manufacturing.
Value Assessment
Rating: fair
The contract value of $16M for packaging seems high for the duration. Benchmarking against similar specialized packaging contracts is difficult without more detail on the specific materials and complexity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was a competitive delivery order. While competition is present, the specific method and its impact on price discovery are not detailed. The 'unknown' classification is due to the lack of clarity on the competitive process for this specific order.
Taxpayer Impact: Taxpayer funds are used for this contract. The value suggests a significant investment in product presentation and protection, the ultimate return on which is tied to sales of the collectible coins.
Public Impact
High expenditure on packaging for collectible coins could impact the profitability of numismatic programs. Ensures protection and presentation of high-value, limited-edition products. Supports the United States Mint's mission to produce and sell coins.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for packaging.
- Limited transparency on competitive process details.
- Potential for cost overruns if not managed tightly.
Positive Signals
- Competitive award process.
- Supports production of valuable numismatic items.
Sector Analysis
The coated and laminated packaging paper manufacturing sector is diverse. This contract appears to be for highly specialized, premium packaging, likely exceeding typical industry benchmarks for standard paper products.
Small Business Impact
There is no indication that small businesses were involved in this contract award. The focus appears to be on specialized capabilities rather than small business set-asides.
Oversight & Accountability
Oversight would typically be managed by the Department of the Treasury and the United States Mint. Accountability for the spending rests with these agencies to ensure the packaging meets requirements and is cost-effective.
Related Government Programs
- Coated and Laminated Packaging Paper Manufacturing
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- High dollar value for packaging.
- Lack of detailed justification for cost.
- Potential for cost to outweigh product value.
- Limited information on specific packaging requirements.
Tags
coated-and-laminated-packaging-paper-man, department-of-the-treasury, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $16.0 million to JEM WOOD DESIGN, INC.. 2009 ST. GAUDENS ULTRA HIGH RELIEF PACKAGING
Who is the contractor on this award?
The obligated recipient is JEM WOOD DESIGN, 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 $16.0 million.
What is the period of performance?
Start: 2008-07-14. End: 2009-06-12.
What specific features of the 'Ultra High Relief' packaging justify the $16M cost?
The justification for the $16M cost likely lies in specialized materials, custom design, security features, and potentially high-volume production requirements for premium collectible coins. The 'Ultra High Relief' designation suggests a need for packaging that offers superior protection and aesthetic appeal, possibly incorporating anti-counterfeiting measures or unique display capabilities.
What is the risk associated with awarding a large sum for packaging materials?
The primary risk is that the cost of packaging could disproportionately impact the profitability of the collectible coins it protects. If the packaging costs are too high relative to the sales price or demand for the coins, it could lead to financial losses for the Mint or necessitate higher prices for consumers, potentially reducing sales volume.
How effective is this packaging in enhancing the perceived value and sales of the collectible coins?
The effectiveness is likely high, as premium packaging is crucial for high-value collectibles. It enhances the perceived value, provides a sense of luxury and security, and can be a significant factor in a buyer's decision. The success of the packaging is ultimately measured by its contribution to the overall sales performance and customer satisfaction with the numismatic products.
Industry Classification
NAICS: Manufacturing › Converted Paper Product Manufacturing › Coated and Laminated Packaging Paper Manufacturing
Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 111 W MONTICELLO AVE, CHARLOTTESVILLE, VA, 05
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $16,049,363
Exercised Options: $16,049,363
Current Obligation: $16,049,363
Parent Contract
Parent Award PIID: TMHQ07C0049
IDV Type: IDC
Timeline
Start Date: 2008-07-14
Current End Date: 2009-06-12
Potential End Date: 2009-06-12 00:00:00
Last Modified: 2011-02-25
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