Treasury's Mint awards $25.3M contract for nonferrous metal rolling, drawing, and extruding services

Contract Overview

Contract Amount: $25,335,381 ($25.3M)

Contractor: Coins 'N Things, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2017-03-29

End Date: 2017-04-07

Contract Duration: 9 days

Daily Burn Rate: $2.8M/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: WEST POINT, ORANGE County, NEW YORK, 10996

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $25.3 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. Contract value of $25.3M for specialized metal processing indicates significant demand for these materials. 2. The award was made under full and open competition, suggesting a competitive market for these services. 3. A short performance period of 9 days suggests a focused, potentially urgent need for the services. 4. The contract type is Firm Fixed Price, which transfers risk to the contractor and provides cost certainty. 5. The contractor, COINS 'N THINGS, INC., is a new awardee for this specific product service code. 6. The geographic location of the contractor in New York may influence logistics and delivery timelines.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the exact materials and processing required. The raw dollar amount of $25.3M for a 9-day delivery order is substantial, implying a high volume or complexity of the metal processing. However, without comparable contract data for similar specialized nonferrous metal services, it's difficult to definitively assess if this represents excellent value for money. The firm fixed price structure offers cost predictability, but the overall value hinges on the quality and timeliness of the delivered materials.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a reasonable level of competition for this specialized service. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring that the government is not overpaying for goods and services.

Public Impact

The United States Mint benefits from the acquisition of specialized nonferrous metal products essential for its operations, likely coin production. The services delivered involve the rolling, drawing, and extruding of nonferrous metals, a critical step in material preparation. The geographic impact is primarily centered around the contractor's location in New York and the delivery destination, likely a Mint facility. Workforce implications are likely within the specialized manufacturing sector, requiring skilled labor for metal processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruption if the contractor faces unforeseen production issues given the short performance period.
Limited historical data on this specific contractor for this product service code raises questions about their proven ability to meet demanding requirements.
The substantial dollar value for a short duration could indicate a high-risk, high-reward scenario for the contractor.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor is located in New York, potentially offering logistical advantages for certain government facilities.

Sector Analysis

The contract falls within the broader manufacturing sector, specifically focusing on nonferrous metal processing. This niche involves specialized machinery and expertise for shaping metals like copper, nickel, and their alloys. The market size for such specialized metal fabrication can be significant, driven by demand from industries such as coinage, aerospace, electronics, and construction. The $25.3M award represents a notable transaction within this segment, highlighting the government's role as a key consumer of these industrial materials.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a small business set-aside. 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 for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the United States Mint. Accountability measures are embedded in the firm fixed price contract terms, requiring the contractor to deliver specified materials meeting quality standards. Transparency is generally provided through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Coinage Metal Procurement
Precious Metals Processing
Industrial Materials Acquisition
Manufacturing Services Contracts

Risk Flags

New Contractor for Service
Short Performance Period
Lack of Detailed Performance History

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $25.3 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 $25.3 million.

What is the period of performance?

Start: 2017-03-29. End: 2017-04-07.

What is the specific type and quantity of nonferrous metal being processed under this contract?

The provided data indicates the contract is for 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding.' However, the specific types of metals (e.g., nickel, zinc, tin alloys) and the exact quantities or dimensions are not detailed in the summary data. This information is crucial for a precise understanding of the scope and value. The United States Mint typically uses specific alloys for coinage, and the processing would be tailored to those requirements. Without this granular detail, a full assessment of value and risk is limited.

How does the $25.3M contract value compare to historical spending for similar metal processing services by the Mint?

Comparing the $25.3M award to historical spending requires access to historical contract data for the specific Product Service Code (PSC) 3341 (Nonferrous Metal Rolling, Drawing, and Extruding) or similar categories used by the United States Mint. The provided data shows this is a single delivery order with a short duration (9 days), suggesting it might be for a specific, potentially urgent, requirement rather than a long-term supply agreement. Without historical context, it's difficult to determine if this represents an increase, decrease, or typical spending level for such services. Further analysis would involve querying historical contract databases for similar awards over several fiscal years.

What are the key performance indicators (KPIs) and quality standards stipulated in the contract?

The contract is a Firm Fixed Price (FFP) award, which inherently implies strict adherence to specifications and quality standards. While the specific KPIs and quality standards are not detailed in the summary data, they would typically include requirements related to material composition, dimensional tolerances, surface finish, and timely delivery. Failure to meet these standards would likely result in contract non-compliance, potential penalties, or rejection of the delivered goods. The United States Mint, known for its high standards in coinage, would undoubtedly have rigorous quality requirements for the metals used.

What is the track record of COINS 'N THINGS, INC. with the United States Mint or similar government agencies for this type of service?

The provided data indicates this is a new award for COINS 'N THINGS, INC. under PSC 3341. Without further information on their past performance history with the US Mint or other federal agencies for similar metal processing services, it is difficult to assess their track record. A review of their contract history would be necessary to determine their reliability, quality of work, and ability to meet delivery schedules on previous government contracts. This lack of historical data for this specific service could be considered a moderate risk factor.

What is the potential impact of this contract on the supply chain for coinage metals?

This contract directly impacts the supply chain for coinage metals by ensuring the availability of processed nonferrous metals. The rolling, drawing, and extruding processes are fundamental steps in preparing metal stock for minting operations. A successful and timely execution of this contract by COINS 'N THINGS, INC. would ensure the United States Mint has the necessary raw materials to continue its production. Conversely, any delays or quality issues could potentially disrupt the coinage supply chain, affecting the availability of circulating currency.

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: $25,335,381

Exercised Options: $25,335,381

Current Obligation: $25,335,381

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: TMHQ10C0044

IDV Type: IDC

Timeline