Treasury's Mint awards $24.5M contract for nonferrous metal rolling, drawing, and extruding services

Contract Overview

Contract Amount: $24,502,205 ($24.5M)

Contractor: Coins 'N Things, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2013-06-05

End Date: 2013-06-17

Contract Duration: 12 days

Daily Burn Rate: $2.0M/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 $24.5 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $24.5 million is significant within the specialized metal processing sector. 3. Delivery order issued under a larger contract vehicle, indicating potential for follow-on work. 4. The fixed-price nature of the contract shifts cost risk to the contractor. 5. The specific product code suggests a focus on specialized metal fabrication for coinage or similar applications. 6. The contractor, COINS 'N THINGS, INC., has a track record with federal agencies.

Value Assessment

Rating: good

The contract value of $24.5 million for nonferrous metal processing appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for metal rolling, drawing, and extruding is challenging without more specific details on the exact materials and tolerances required. However, the firm fixed-price structure suggests that the contractor has assessed the risks and costs associated with production, aiming for a specific profit margin. The award amount is within the expected range for large-scale federal procurement of specialized materials.

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 competition for this specialized service. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the price and ensured the government received competitive offers for the required metal processing services.

Public Impact

The United States Mint is the primary beneficiary, receiving essential materials for coin production. Services delivered include the rolling, drawing, and extruding of nonferrous metals. The contract's geographic impact is primarily linked to the contractor's operational base in Massachusetts. Workforce implications include employment opportunities at the contractor's facility for skilled metalworkers and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future delivery orders if market conditions for raw materials fluctuate significantly.
Dependence on a single contractor for a critical component of coin production could pose a supply chain risk.
Ensuring consistent quality and adherence to strict specifications for coinage metal is paramount.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm fixed-price contract shifts cost overrun risks to the contractor.
Contractor has prior federal contracting experience, suggesting familiarity with government requirements.
The contract is a delivery order under a larger contract vehicle, implying a pre-vetted and potentially cost-effective procurement method.

Sector Analysis

The nonferrous metal rolling, drawing, and extruding sector is a critical component of the manufacturing industry, supplying essential materials for a wide range of applications, including coinage, aerospace, and industrial goods. The market size for specialized metal processing is substantial, driven by demand from both government and commercial sectors. This contract fits within the broader industrial manufacturing and materials supply chain, where precision and quality are paramount. Comparable spending benchmarks are difficult to ascertain without specific material types and quantities, but federal contracts for such specialized manufacturing can range from millions to tens of millions of dollars.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The contractor, COINS 'N THINGS, INC., is listed with a 'MASSACHUSETTS' state code, but its size classification is not provided. Without specific set-aside provisions or reported subcontracting plans, the direct impact on the small business ecosystem is likely minimal, though the contractor itself may engage with small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury and the United States Mint's contracting officers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver goods meeting specified quality standards. Transparency is facilitated by the public nature of federal contract awards, allowing for review of contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Coin Production Materials
Industrial Metal Supply
Manufacturing Services
Federal Procurement of Raw Materials

Risk Flags

Supply Chain Risk
Quality Control
Price Volatility of Raw Materials

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $24.5 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 $24.5 million.

What is the period of performance?

Start: 2013-06-05. End: 2013-06-17.

What is the track record of COINS 'N THINGS, INC. with federal contracts, particularly for metal processing?

COINS 'N THINGS, INC. has a history of federal contracting, as indicated by its presence in federal procurement databases. While specific details on past metal processing contracts require deeper analysis, their award by the US Mint for nonferrous metal rolling, drawing, and extruding suggests a demonstrated capability in this area. Federal contract data often reveals patterns of performance, including on-time delivery, quality compliance, and contract modifications. A thorough review would involve examining past awards, contract values, and any reported performance issues or commendations to fully assess their track record. Their ability to secure this $24.5 million contract implies they met the stringent requirements set forth by the US Mint during the competitive bidding process.

How does the $24.5 million contract value compare to similar federal procurements for nonferrous metal processing?

Benchmarking the $24.5 million contract value requires a detailed understanding of the specific nonferrous metals, quantities, processing techniques (rolling, drawing, extruding), and quality specifications involved. Federal contracts for specialized metal fabrication can vary widely. For instance, contracts for aerospace-grade titanium might command higher prices per pound than contracts for standard aluminum alloys used in less critical applications. The US Mint's requirements for coinage metals are typically very precise regarding purity and physical properties, which can influence cost. Without access to a comprehensive database of comparable, highly specific metal processing contracts, a precise comparison is difficult. However, $24.5 million represents a significant investment, suggesting a substantial volume or complexity of work.

What are the primary risks associated with this contract for the US Mint?

The primary risks for the US Mint in this contract revolve around supply chain reliability, quality control, and potential price volatility. If COINS 'N THINGS, INC. experiences production issues, equipment failures, or labor disputes, it could disrupt the supply of essential metals needed for coin production, potentially leading to shortages. Ensuring that the processed metals consistently meet the Mint's stringent purity and dimensional tolerances is critical; deviations could render batches unusable and costly to replace. Furthermore, while the contract is fixed-price, the underlying costs of raw nonferrous metals can fluctuate. Although the contractor bears the initial risk of price increases, significant market shifts could impact the contractor's long-term viability or willingness to bid on future contracts.

How effective is the full and open competition process in ensuring value for this type of specialized manufacturing contract?

The full and open competition process is generally considered highly effective in ensuring value for specialized manufacturing contracts like this one. By allowing all qualified vendors to bid, it fosters a competitive environment that drives down prices and encourages innovation. The US Mint received bids from 7 vendors, indicating sufficient market interest and competition. This process allows the government to compare multiple proposals based on price, technical capability, and past performance, leading to the selection of the best overall value. The firm fixed-price nature of the award further enhances value by capping the government's cost exposure, provided the contractor can meet the specifications within that price.

What are the historical spending patterns for nonferrous metal processing by the US Mint or similar agencies?

Analyzing historical spending patterns for nonferrous metal processing by the US Mint or similar agencies requires access to detailed procurement data over several fiscal years. The US Mint, by its nature, consistently procures metals for coinage. Spending can fluctuate based on demand for specific denominations, the introduction of commemorative coins, and the overall economic climate affecting circulation. Agencies like the Bureau of Engraving and Printing (BEP) might also procure specialized metals for other purposes. A trend analysis would reveal if spending on such materials is increasing, decreasing, or remaining stable, and whether contract values are rising due to inflation or market demand. This specific $24.5 million award needs to be viewed within the context of the Mint's overall annual budget and procurement strategy for raw materials.

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: $24,502,205

Exercised Options: $24,502,205

Current Obligation: $24,502,205

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: TMHQ10C0044

IDV Type: IDC

Timeline