Treasury's Mint awards $19.5M contract for nonferrous metal rolling, drawing, and extruding services

Contract Overview

Contract Amount: $19,512,365 ($19.5M)

Contractor: Coins 'N Things, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2011-03-16

End Date: 2030-05-30

Contract Duration: 7,015 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RAW GOLD

Place of Performance

Location: BRIDGEWATER, PLYMOUTH County, MASSACHUSETTS, 02324

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Treasury obligated $19.5 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. Contract value of $19.5 million over its period of performance. 2. Services procured are for nonferrous metal processing, excluding copper and aluminum. 3. Contract awarded under full and open competition. 4. The contract has a long duration of over 7,000 days. 5. Awarded by the United States Mint, a bureau within the Treasury Department. 6. The contract type is Firm Fixed Price, indicating predictable costs. 7. The contractor, COINS 'N THINGS, INC., has secured this award.

Value Assessment

Rating: fair

The contract value of $19.5 million over approximately 19 years suggests a moderate annual spend. Without specific details on the quantity or type of metal processed, a direct value-for-money assessment is challenging. However, the Firm Fixed Price structure provides cost certainty for the government. Benchmarking against similar contracts for specialized metal processing would be necessary for a more precise evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment that should theoretically lead to fair pricing. The presence of 3 bids (no) indicates some level of competition, though the exact number of bidders does not always correlate directly with the intensity of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for government spending.

Public Impact

The United States Mint benefits from a reliable supply chain for specialized metal processing. Services support the Mint's operations, potentially related to coinage or other metallic products. The contract's geographic impact is primarily tied to the contractor's operational location. Workforce implications are likely concentrated within the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7,000 days) may limit flexibility to adapt to changing market conditions or technological advancements.
Lack of specific details on the type and quantity of metal processed makes it difficult to assess the true scope and potential for cost overruns.
Firm Fixed Price contracts can sometimes lead to contractors cutting corners on quality if not adequately monitored, especially over a long period.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract provides cost certainty for the government.
The contract is for a specific, specialized industrial service, indicating a focused procurement.

Sector Analysis

This contract falls within the broader industrial manufacturing sector, specifically focusing on the processing of nonferrous metals. The market for such specialized services can be niche, with a limited number of qualified providers. The United States Mint's requirement for these specific metal processing capabilities positions this contract as a critical component of its supply chain for producing coinage or other metallic items. Comparable spending benchmarks would likely be found within industrial supply contracts for raw materials processing or specialized manufacturing.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting plans. Therefore, the direct impact on the small business ecosystem is not evident from this information. Further analysis would be required to determine if small businesses are involved as subcontractors or if the prime contractor has a history of engaging with small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the United States Mint, a bureau within the Department of the Treasury. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency would be enhanced by public contract databases and reporting requirements. The Inspector General for the Department of the Treasury would likely have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

US Mint Coinage Production
Treasury Department Supply Chain Management
Industrial Materials Procurement
Nonferrous Metal Manufacturing

Risk Flags

Long contract duration may limit flexibility and expose government to market shifts.
Lack of detailed scope for metal processing makes precise value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $19.5 million to COINS 'N THINGS, INC.. RAW GOLD

Who is the contractor on this award?

The obligated recipient is COINS 'N THINGS, 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 $19.5 million.

What is the period of performance?

Start: 2011-03-16. End: 2030-05-30.

What is the historical spending pattern for this specific contract vehicle or similar services by the US Mint?

The provided data indicates this is a single contract with a start date of 2011-03-16 and an end date of 2030-05-30, with a total value of $19,512,365.12. This suggests a consistent, long-term engagement for these services. To understand historical patterns, one would need to examine if this is a renewal of previous contracts for similar services, or if the US Mint has historically relied on multiple, shorter-term contracts for this type of metal processing. Analyzing past solicitations and award data for the US Mint's metal supply chain would reveal trends in procurement strategies, contractor performance, and pricing evolution over time. Without access to historical contract databases beyond this single award, a comprehensive pattern analysis is not possible.

How does the per-unit cost of metal processing compare to industry benchmarks, given the contract's scope?

Determining a precise per-unit cost benchmark is challenging without detailed specifications of the 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding' services. The contract value of $19.5 million over approximately 19 years (7,015 days) averages to roughly $1.02 million per year, or about $2,800 per day. However, this daily average does not reflect the actual volume or complexity of the work performed. To benchmark, one would need to know the specific types of metals, the quantities processed (e.g., by weight or volume), and the exact processes (rolling, drawing, extruding). Comparing these specifics to market rates for similar industrial services, considering factors like material type, tolerances, and production volume, would be necessary. Given the niche nature of specialized metal processing for government entities, direct public benchmarks might be scarce.

What is the track record of COINS 'N THINGS, INC. with federal contracts, particularly with the US Mint?

COINS 'N THINGS, INC. has been awarded this specific contract by the United States Mint, valued at $19.5 million and spanning from March 2011 to May 2030. This indicates a significant and long-standing relationship. To assess their broader track record, a review of federal procurement databases (like SAM.gov or FPDS) would be necessary to identify all contracts awarded to this entity across various agencies. Key metrics to examine would include the total value of contracts held, performance ratings (if available), any past performance issues or disputes, and the types of goods or services they have provided historically. A long duration on a substantial contract suggests a level of reliability and capability, but a comprehensive review is needed for a full picture.

What are the potential risks associated with the long duration of this contract (over 19 years)?

The extended duration of this contract, from 2011 to 2030 (over 19 years), presents several potential risks. Firstly, market conditions for nonferrous metals and processing technologies can change significantly over such a long period. The government may miss opportunities to leverage more cost-effective or advanced methods if locked into this contract. Secondly, contractor performance can degrade over time, or the company's financial stability could be impacted, leading to service disruptions. Thirdly, the Firm Fixed Price nature, while providing cost certainty initially, might become disadvantageous if material costs or labor rates escalate dramatically beyond initial projections, potentially leading to the contractor seeking modifications or facing financial strain. Finally, the long commitment reduces the government's flexibility to re-evaluate its needs and explore alternative solutions.

How does the 'full and open competition' award mechanism impact the value and efficiency for the taxpayer?

Awarding this contract under 'full and open competition' is generally beneficial for taxpayers. It ensures that a wide range of potential suppliers can compete, fostering a competitive environment that typically drives down prices and encourages innovation. By allowing all responsible sources to bid, the government increases the likelihood of securing the best possible value for the services required. This mechanism helps prevent monopolies or limited vendor situations that could lead to inflated costs. The fact that there were 3 bids suggests that the competition, while perhaps not extensive, was sufficient to provide a basis for price comparison and selection of a qualified offeror, ultimately aiming for efficient use of taxpayer funds.

Industry Classification

NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding

Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 350 BEDFORD ST STE 2, BRIDGEWATER, MA, 02324

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,512,365

Exercised Options: $19,512,365

Current Obligation: $19,512,365

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: TMHQ10C0044

IDV Type: IDC

Timeline