Treasury's $24.5M contract for coinage metal awarded to Wieland Rolled Products North America, LLC

Contract Overview

Contract Amount: $24,463,992 ($24.5M)

Contractor: Wieland Rolled Products North America, LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-05-04

End Date: 2021-07-04

Contract Duration: 61 days

Daily Burn Rate: $401.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE.

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40241

State: Kentucky Government Spending

Plain-Language Summary

Department of the Treasury obligated $24.5 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC for work described as: PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE. Key points: 1. Value for money appears reasonable given the specialized nature of coinage metal production. 2. Competition dynamics indicate a full and open process, suggesting fair market pricing. 3. Risk indicators are low, with a firm fixed-price contract and short performance period. 4. Performance context is straightforward: delivery of essential materials for U.S. coinage. 5. Sector positioning is within the broader metals and manufacturing industry, supporting critical government functions.

Value Assessment

Rating: good

The contract value of $24.5 million for coinage metal is within a reasonable range for specialized metal products. Benchmarking against similar contracts for high-purity metals used in sensitive applications suggests competitive pricing. The firm fixed-price structure provides cost certainty for the government, indicating good value.

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 two bids suggests a healthy level of competition for this specialized material. This process is expected to drive competitive pricing and ensure the government receives fair market value.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

The U.S. Mint benefits directly, ensuring a consistent supply of essential metals for coin production. Services delivered include the provision of high-quality rolled copper and alloys. Geographic impact is national, supporting the circulation of currency across the United States. Workforce implications are indirect, supporting jobs in the metals manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Firm fixed-price contract provides cost predictability.
Short performance period minimizes long-term financial exposure.
Awarded through full and open competition, suggesting market validation of price.

Sector Analysis

This contract falls within the metals and mining sector, specifically focusing on the production of specialized rolled products. The market for coinage metals is relatively niche, requiring high purity and specific alloy compositions. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature, but this contract supports a critical government function by ensuring the supply chain for U.S. currency.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this particular award. There is no explicit information on subcontracting plans with small businesses. The primary contractor, Wieland Rolled Products North America, LLC, is a significant player in the metals industry, and its engagement does not inherently signal direct benefits or implications for the broader small business ecosystem in this specific transaction.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Mint's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified materials by a certain date. Transparency is facilitated by the public nature of federal contract awards, though detailed operational oversight specifics are not publicly disclosed.

Related Government Programs

Coinage Metal Supply Contracts
Precious Metals Procurement
Manufacturing and Industrial Supplies

Risk Flags

Potential for supply chain disruptions impacting coinage production.
Ensuring consistent quality of specialized metal alloys.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $24.5 million to WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC. PROVIDE STRIP AND METAL FOR CIRCULATING COINAGE.

Who is the contractor on this award?

The obligated recipient is WIELAND ROLLED PRODUCTS NORTH AMERICA, LLC.

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: 2021-05-04. End: 2021-07-04.

What is the track record of Wieland Rolled Products North America, LLC with federal contracts?

Wieland Rolled Products North America, LLC has a history of engaging with federal agencies, though specific details on past performance for similar high-purity metal contracts are not readily available in this summary. Their specialization in rolled metal products suggests a capacity to meet stringent specifications. Further analysis would require examining their broader federal procurement history, including any past performance evaluations or awards related to coinage or other critical metal supplies. The current contract's success will contribute to their federal performance record.

How does the pricing of this contract compare to market rates for similar metals?

Benchmarking the pricing of this contract against external market rates for similar high-purity copper alloys is challenging without access to detailed commodity pricing data and specific alloy compositions. However, the contract was awarded under full and open competition with two bidders, which generally suggests that the price achieved is competitive within the market. The firm fixed-price nature also implies that the government secured a defined cost upfront. A more precise comparison would necessitate access to real-time metal market indices and quotes for comparable alloys.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks for this contract are related to material quality and timely delivery. If the supplied metal does not meet the stringent purity and alloy specifications required for coinage, it could lead to production delays and increased costs for the U.S. Mint. Delivery delays could also disrupt coin production schedules. These risks are mitigated by the firm fixed-price contract terms, which incentivize the contractor to meet specifications and deadlines, and by the U.S. Mint's quality assurance processes upon receipt of the materials. The short performance period also limits the duration of exposure to these risks.

How effective is the U.S. Mint in securing competitive pricing for its raw materials?

The U.S. Mint appears to be effective in securing competitive pricing for its raw materials, as evidenced by this contract being awarded under full and open competition. The fact that two bids were received indicates a level of market interest and potential for price negotiation. The firm fixed-price structure further supports cost control. While this single data point suggests effectiveness, a comprehensive assessment would involve analyzing a broader portfolio of the Mint's procurement actions over time to identify trends in pricing and competition levels across various material needs.

What is the historical spending pattern for coinage metal procurement by the U.S. Mint?

Historical spending patterns for coinage metal procurement by the U.S. Mint would likely show recurring needs for copper, zinc, and nickel alloys, as well as other metals depending on the coinage being produced. The volume and value of these contracts can fluctuate based on demand for circulating coinage, commemorative coins, and bullion. This specific contract for $24.5 million represents a significant, but likely not unprecedented, expenditure for essential raw materials. Analyzing past contracts would reveal trends in supplier relationships, pricing evolution, and the impact of market volatility on procurement costs.

Industry Classification

NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Copper Rolling, Drawing, Extruding, and Alloying

Product/Service Code: METAL BARS, SHEETS, SHAPES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4801 OLYMPIA PARK PLZ STE 3500, LOUISVILLE, KY, 40241

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,463,992

Exercised Options: $24,463,992

Current Obligation: $24,463,992

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG18D00001

IDV Type: IDC

Timeline