Treasury's Mint contract for nonferrous metals awarded to COINS 'N THINGS, INC. for $32.9M

Contract Overview

Contract Amount: $32,933,113 ($32.9M)

Contractor: Coins 'N Things, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2012-12-05

End Date: 2012-12-20

Contract Duration: 15 days

Daily Burn Rate: $2.2M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

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 $32.9 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. Contract awarded for specialized metal rolling and drawing services. 2. The contract value represents a significant investment in raw materials for minting operations. 3. Competition dynamics suggest a potentially competitive bidding process for this type of specialized material. 4. The short duration of the delivery order may indicate a need for immediate material supply. 5. The firm fixed-price structure provides cost certainty for the government. 6. The contractor, COINS 'N THINGS, INC., is positioned within the nonferrous metals sector.

Value Assessment

Rating: good

The contract value of $32.9 million for nonferrous metals is substantial. Benchmarking against similar contracts for specialized metal products is challenging without more specific details on the exact alloys and processing required. However, the firm fixed-price nature suggests that the pricing was determined upfront, and the government secured a defined cost for the specified materials and services. The award to COINS 'N THINGS, INC. indicates they were deemed to offer the best value at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more competitive price, maximizing the value of taxpayer dollars spent on these essential minting materials.

Public Impact

The United States Mint benefits directly through the acquisition of necessary nonferrous metals for coin production. This contract supports the ongoing operations and supply chain for the nation's coinage. The geographic impact is primarily national, ensuring the availability of currency. Workforce implications may include employment within COINS 'N THINGS, INC. and its supply chain, as well as within the Mint's production facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw metal markets impacting future contract costs.
Dependence on a single supplier for critical materials could pose a supply chain risk if not managed carefully.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost certainty and budget predictability.
The contractor has a track record of supplying materials, suggesting operational capability.

Sector Analysis

The contract falls within the broader metals and mining sector, specifically focusing on nonferrous metal processing. This sector is crucial for various manufacturing industries, including coinage, aerospace, and electronics. The market for specialized metal rolling and drawing is often characterized by a mix of large industrial suppliers and niche processors. The value of this contract, while significant for the Mint, represents a small fraction of the overall industrial metals market.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of specialized metal processing and the contract value, it is likely that larger, established firms were the primary participants in the competition. Further analysis would be needed to determine if small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature simplifies some aspects of financial oversight. Accountability is maintained through delivery schedules and material specifications. Transparency is generally provided through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of the Treasury Procurement
United States Mint Operations
Raw Material Acquisition Contracts
Nonferrous Metals Supply Chain

Risk Flags

Potential supply chain vulnerability
Price volatility of raw materials

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $32.9 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 $32.9 million.

What is the period of performance?

Start: 2012-12-05. End: 2012-12-20.

What is the specific type of nonferrous metal being procured and its intended use in minting?

The contract specifies 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding.' This broad category likely includes metals such as nickel, zinc, tin, lead, and potentially precious metals or alloys thereof, depending on the specific requirements for different denominations of currency or commemorative coins. The rolling, drawing, and extruding processes are essential for shaping these metals into usable forms, such as blanks (planchets) that are then struck into coins. The exact composition and form would be detailed in the contract's statement of work, which is not provided here but is critical for understanding the precise material value and processing involved.

How does the $32.9 million contract value compare to historical spending on similar materials by the US Mint?

Without access to historical spending data specifically for nonferrous metals from the US Mint, a direct comparison is difficult. However, $32.9 million is a substantial sum, suggesting a significant volume or high-value material procurement. The US Mint's annual budget and operational scale would provide context; if this represents a typical annual spend for such materials, it indicates consistent demand. If it's an outlier, it might signify a large one-time project, a change in material costs, or a shift in production volume. Analyzing past contracts for similar metals (e.g., nickel for clad coinage, zinc for base metal) would be necessary for a robust historical benchmark.

What are the key performance indicators (KPIs) and quality assurance measures for this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for such a contract would include on-time delivery of materials, adherence to specified metal composition and purity standards, and compliance with dimensional tolerances after rolling, drawing, or extruding. Quality assurance would likely involve material testing and certification by the contractor, with potential government inspection and verification upon receipt. Failure to meet these standards could result in contract penalties, rejection of materials, or termination, depending on the severity of the non-conformance.

What is the risk profile associated with COINS 'N THINGS, INC. as a contractor for this type of material?

The risk profile for COINS 'N THINGS, INC. would depend on several factors not fully detailed here, such as their financial stability, past performance on similar contracts, and their capacity to meet the demanding specifications of the US Mint. The fact that they were awarded a $32.9 million contract under full and open competition suggests they met the government's criteria for responsibility and capability at the time of award. However, potential risks could include supply chain disruptions, quality control issues, or price volatility if the contract involved variable material costs. A review of their contract history and any past performance evaluations would provide a more comprehensive risk assessment.

What is the strategic importance of this contract to the US Mint's overall mission?

This contract is strategically vital as it ensures the reliable supply of essential raw materials required for the production of circulating coinage and potentially commemorative items. The US Mint's mission includes producing and circulating the nation's currency and protecting its assets. Without a consistent and high-quality supply of nonferrous metals, the Mint could face disruptions in coinage production, impacting the availability of money for commerce and potentially affecting public confidence. Therefore, securing this supply chain through competitive contracting is fundamental to fulfilling its core mandate.

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: 7

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: $32,933,113

Exercised Options: $32,933,113

Current Obligation: $32,933,113

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: TMHQ10C0044

IDV Type: IDC

Timeline