Treasury's Mint awards $49.1M contract for nonferrous metal rolling, drawing, and extruding services

Contract Overview

Contract Amount: $49,142,348 ($49.1M)

Contractor: Coins 'N Things, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2012-12-10

End Date: 2012-12-20

Contract Duration: 10 days

Daily Burn Rate: $4.9M/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 $49.1 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. The contract value is substantial, indicating significant demand for these specialized materials. 3. Delivery order structure implies a need for agile procurement and rapid fulfillment. 4. Fixed-price contract type offers cost certainty for the government. 5. The duration of the delivery order (10 days) points to a specific, short-term need. 6. The North American Industry Classification System (NAICS) code 331491 covers a niche manufacturing sector.

Value Assessment

Rating: good

The contract value of $49.1 million for a 10-day delivery order is significant. Benchmarking this against similar contracts for nonferrous metal processing is challenging without more specific details on the exact materials and quantities. However, the firm fixed-price nature suggests that the contractor, COINS 'N THINGS, INC., assumed the cost risk, which can be favorable for the government if costs are managed effectively. The award amount is close to the reported benchmark of $49.14 million, indicating a potentially competitive pricing environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of 7 bidders (no) suggests a healthy level of competition for this requirement. This broad competition is generally expected to drive down prices and ensure the government receives fair market value for the goods or services procured.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible pricing and terms.

Public Impact

The United States Mint benefits from a reliable supply of specialized nonferrous metals for its operations. This contract supports the manufacturing sector by providing essential raw materials. The services delivered are critical for the production of coinage and potentially other mint products. The geographic impact is primarily national, supporting the Mint's federal mandate.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw material markets impacting long-term cost-effectiveness.
Dependence on a single delivery order for a critical supply chain component.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Firm fixed-price contract provides cost certainty.
Contractor has a track record with the government, suggesting familiarity with requirements.

Sector Analysis

The contract falls within the Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding sector, a specialized area of manufacturing. This sector is crucial for providing essential materials for various industries, including defense, aerospace, and consumer goods. The market size for such specialized metals can be significant, but often involves a limited number of highly capable producers. The $49.1 million award represents a substantial transaction within this niche.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). 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 internal audit and compliance functions, as well as potentially the Government Accountability Office (GAO) for bid protests or performance reviews. The firm fixed-price nature and delivery order structure suggest that performance monitoring would focus on timely delivery and adherence to material specifications. Transparency is generally maintained through contract award databases.

Related Government Programs

Department of the Treasury Procurement
United States Mint Operations
Defense Materials Procurement
Industrial Raw Materials Supply

Risk Flags

Potential for raw material price volatility
Supply chain disruption risk
Quality control adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $49.1 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 $49.1 million.

What is the period of performance?

Start: 2012-12-10. End: 2012-12-20.

What is the specific type and quantity of nonferrous metals procured under this contract?

The provided data specifies the NAICS code 331491, which covers 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding.' However, it does not detail the exact types or quantities of metals. This information is crucial for a precise value assessment, as prices vary significantly between different alloys and forms (e.g., sheets, rods, tubes). Without this granularity, benchmarking against market rates for specific materials is not possible. The total award value of $49.1 million suggests a substantial volume or high-value specialized metal.

How does the $49.1 million award compare to historical spending for similar metal procurement by the US Mint?

Historical spending data for similar metal procurements by the US Mint is not provided. However, the $49.1 million figure for a 10-day delivery order is substantial. To assess its comparability, one would need to examine past contracts for raw materials, focusing on the type of metals, quantities, and contract durations. A higher frequency of smaller awards might indicate a shift towards just-in-time inventory management, while a single large award could represent a bulk purchase for a specific project or a change in procurement strategy. Understanding the historical context is key to evaluating if this award represents an increase, decrease, or stable level of spending.

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 quality assurance measures for metal procurement contracts include adherence to material specifications (e.g., alloy composition, tensile strength, dimensional tolerances), on-time delivery, and proper packaging. The firm fixed-price nature incentivizes the contractor to meet these requirements efficiently. The US Mint would likely have a quality assurance specialist overseeing the acceptance of the materials, potentially involving material testing and certification verification to ensure compliance with the contract's technical requirements.

What is the risk profile associated with COINS 'N THINGS, INC. as the contractor for this award?

The provided data indicates COINS 'N THINGS, INC. is the contractor and the contract was awarded via full and open competition with 7 bidders. This suggests the contractor is capable of competing in a broad market. Without access to past performance reviews, past issues, or financial stability reports, a comprehensive risk assessment is difficult. However, the award itself implies they met the minimum qualifications. The primary risks might relate to supply chain disruptions for the raw materials, potential price volatility, and ensuring consistent quality over the contract period, which are inherent to the industry.

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

This contract is strategically important as it ensures the United States Mint has access to essential nonferrous metals required for the production of circulating coinage, bullion, and commemorative items. The ability to procure these materials reliably and at a competitive price directly impacts the Mint's capacity to meet national demand for currency and precious metal products. The specific nature of the metals procured (nonferrous, excluding copper and aluminum) suggests they might be used for specialized applications or alloys critical to the Mint's product portfolio, underscoring the need for a robust and competitive supply chain.

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: $49,142,348

Exercised Options: $49,142,348

Current Obligation: $49,142,348

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: TMHQ10C0044

IDV Type: IDC

Timeline