Treasury's Mint awards $29.9M contract for nonferrous metals, with 6817 days duration

Contract Overview

Contract Amount: $29,936,863 ($29.9M)

Contractor: Coins 'N Things, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2011-09-30

End Date: 2030-05-30

Contract Duration: 6,817 days

Daily Burn Rate: $4.4K/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 $29.9 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. Contract value of $29.9M over nearly 19 years suggests a long-term strategic need for nonferrous metals. 2. The firm fixed-price structure aims to control costs, but the extended duration may introduce price volatility risks. 3. Full and open competition indicates a potentially robust market for these specialized metal products. 4. The contract's significant duration (6817 days) warrants close monitoring for performance and potential scope creep. 5. This award positions the United States Mint to secure essential materials for its operations. 6. The contract's focus on nonferrous metals aligns with industrial supply chain needs.

Value Assessment

Rating: fair

The contract value of $29.9 million spread over approximately 19 years results in an average annual spend of roughly $1.57 million. Without specific benchmarks for nonferrous metal procurement by mints or similar government entities, it's challenging to definitively assess value for money. The firm fixed-price contract type provides cost certainty for the government, but the extended period could lead to above-market rates if metal prices fluctuate significantly. Further analysis would require comparable contract data for similar materials and durations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 3 bids (no indicates number of bids) indicates a degree of market interest. This competitive process is generally favorable for price discovery and achieving market-based pricing, as vendors are incentivized to offer competitive terms to win the award.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiary is the United States Mint, which will receive a consistent supply of nonferrous metals essential for its coinage and medal production. The contract ensures the availability of raw materials for the manufacturing of circulating currency and commemorative items. The geographic impact is primarily national, supporting the Mint's operations across its facilities. Workforce implications are likely within the metals manufacturing and supply chain sectors, potentially supporting jobs in these industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration of nearly 19 years increases the risk of price escalation beyond market norms.
Firm fixed-price contracts over long periods can become disadvantageous if material costs decrease significantly.
Lack of specific performance metrics or detailed scope in the provided data makes assessing performance risk difficult.
The PSC code is missing, hindering a precise understanding of the specific materials being procured and their market context.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
Firm fixed-price contract type provides budget certainty for the procuring agency.
The contract award indicates the government has secured a necessary supply chain for critical materials.
The long duration suggests a stable, long-term requirement, potentially leading to economies of scale for the supplier.

Sector Analysis

The procurement of nonferrous metals falls within the broader industrial and manufacturing sector, specifically related to metal rolling, drawing, and extruding. This sector is crucial for supplying raw materials to various industries, including defense, automotive, aerospace, and coinage. The market size for nonferrous metals is substantial globally, with prices often dictated by commodity markets. This contract represents a specific, long-term demand from a government entity within this sector.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's Inspector General, responsible for ensuring efficiency and preventing fraud, waste, and abuse. The firm fixed-price nature and long duration necessitate regular performance reviews and monitoring of market prices to ensure continued value. Transparency is generally maintained through contract databases like FPDS, where this award is recorded.

Related Government Programs

Department of Defense Nonferrous Metal Procurement
General Services Administration (GSA) Industrial Materials Contracts
US Mint Production Materials
Federal Supply Schedule (FSS) for Metals

Risk Flags

Long contract duration may lead to price escalation risk.
Lack of specific performance metrics in data.
Missing PSC code hinders detailed market analysis.
Potential for material obsolescence over contract life.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $29.9 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 $29.9 million.

What is the period of performance?

Start: 2011-09-30. End: 2030-05-30.

What is the historical spending pattern for nonferrous metals by the United States Mint?

Historical spending data for nonferrous metals by the United States Mint is not directly available in the provided snippet. However, the current contract's value of $29.9 million over nearly 19 years suggests an average annual expenditure of approximately $1.57 million for these materials. To understand historical patterns, one would need to analyze past contracts for similar materials, looking at their duration, value, and the number of competitive bids received. This would help determine if current spending is consistent with past procurement strategies or represents a significant shift in volume or cost.

How does the per-unit cost of these nonferrous metals compare to market rates?

The provided data does not include specific details on the types or quantities of nonferrous metals being procured, nor does it offer unit pricing. Therefore, a direct comparison of per-unit cost to market rates is not possible. To perform this analysis, detailed specifications of the metals (e.g., alloys, purity, form) and their corresponding prices under this contract would be required. Benchmarking would then involve comparing these prices against current commodity market indices for similar metals and consulting industry pricing guides.

What are the specific risks associated with a firm fixed-price contract lasting nearly 19 years?

A firm fixed-price (FFP) contract lasting nearly 19 years carries significant risks, primarily related to price volatility and potential obsolescence. If the market price of nonferrous metals increases substantially over the contract's life, the government could end up paying significantly above current market rates. Conversely, if prices decrease, the contractor benefits from higher margins. Furthermore, the long duration increases the risk that the specified materials or manufacturing processes might become outdated or less efficient compared to newer alternatives that emerge over time. The government also loses flexibility to adapt to changing technological needs or material requirements.

What is the track record of 'COINS 'N THINGS, INC.' in fulfilling government contracts, particularly for metals?

The provided data identifies 'COINS 'N THINGS, INC.' as the contractor but does not offer details on their track record with government contracts. To assess their performance history, one would need to consult government contract databases (like FPDS or SAM.gov) to review past awards, contract values, performance evaluations, and any history of disputes or terminations. Information on their experience specifically with nonferrous metal procurement for entities like the US Mint would be crucial for evaluating their capability and reliability.

How does the competition level (3 bids) for this contract compare to similar procurements in the nonferrous metals sector?

The fact that this contract received 3 bids under full and open competition suggests a moderate level of interest from the market. Whether this is high or low depends on the specific niche of nonferrous metals and the complexity of the requirements. For highly specialized or commodity metals with numerous suppliers, 3 bids might be considered low. However, for more niche alloys or specific processing requirements, 3 bids could indicate healthy competition. A comparative analysis would involve examining other similar government contracts for nonferrous metals to establish a benchmark for the typical number of bids received.

What are the potential implications of the long contract duration (6817 days) on the contractor's ability to maintain quality?

The extended duration of 6817 days (approximately 19 years) poses potential challenges for maintaining consistent quality. Over such a long period, there's a risk of personnel turnover within the contractor's organization, potentially leading to a loss of institutional knowledge and skills. Equipment used for production might age or require upgrades, impacting manufacturing consistency. Furthermore, changes in quality control standards or testing methodologies over nearly two decades could necessitate adjustments. The government would need robust quality assurance and oversight mechanisms in place throughout the contract's life to mitigate these risks and ensure ongoing compliance with specifications.

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: $29,936,863

Exercised Options: $29,936,863

Current Obligation: $29,936,863

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: TMHQ10C0044

IDV Type: IDC

Timeline