Treasury's Mint Spends $2.2M on Burnisher, Lacking Competition
Contract Overview
Contract Amount: $2,216,564 ($2.2M)
Contractor: Spaleck USA, LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-02-22
End Date: 2026-09-30
Contract Duration: 951 days
Daily Burn Rate: $2.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PURCHASE A SPALECK Z-33 BURNISHER AND ASSOCIATED EQUIPMENT FOR THE PHILADELPHIA MINT
Plain-Language Summary
Department of the Treasury obligated $2.2 million to SPALECK USA, LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PURCHASE A SPALECK Z-33 BURNISHER AND ASSOCIATED EQUIPMENT FOR THE PHILADELPHIA MINT Key points: 1. High cost for specialized equipment. 2. Sole-source procurement limits price discovery. 3. Potential for better value through competitive bidding. 4. Machine tool manufacturing sector context.
Value Assessment
Rating: questionable
The $2.2 million price for a single burnisher and associated equipment appears high, especially given the lack of competitive bidding. Benchmarking against similar specialized machinery purchases is difficult without more data, but the absence of competition raises concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, SPALECK USA, LLC, was considered. This significantly limits price discovery and competition, potentially leading to a higher price than if multiple vendors had submitted bids.
Taxpayer Impact: Taxpayers may be overpaying due to the lack of competitive pressure on pricing for this specialized equipment.
Public Impact
Direct impact on the Philadelphia Mint's operational capabilities. Potential for taxpayer funds to be used inefficiently. Highlights a specific instance of sole-source contracting within a federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- High dollar value for single item
- Lack of clear justification for sole-source
Positive Signals
- Specific equipment for Mint operations
Sector Analysis
The purchase falls under Machine Tool Manufacturing. Federal spending in this sector can vary widely depending on the specific machinery and its application. Without competitive bidding, it's hard to benchmark this specific purchase against typical market rates.
Small Business Impact
The data indicates that small business participation was not a factor in this sole-source award, as the contract was not set aside for small businesses and the awardee is likely not an SMB.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price is fair and reasonable and that such awards are not becoming a pattern for necessary equipment purchases.
Related Government Programs
- Machine Tool Manufacturing
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Sole-source award lacks transparency.
- High cost for specialized equipment.
- Potential for taxpayer overpayment.
- Limited competition restricts price discovery.
- Need for justification of sole-source status.
Tags
machine-tool-manufacturing, department-of-the-treasury, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.2 million to SPALECK USA, LLC. THE PURPOSE OF THIS TASK ORDER IS TO PURCHASE A SPALECK Z-33 BURNISHER AND ASSOCIATED EQUIPMENT FOR THE PHILADELPHIA MINT
Who is the contractor on this award?
The obligated recipient is SPALECK USA, 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 $2.2 million.
What is the period of performance?
Start: 2024-02-22. End: 2026-09-30.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. Without this justification, it's difficult to assess the validity of the procurement method and its impact on value for money.
How does the $2.2 million cost compare to similar burnishing equipment purchases in the private sector or other government agencies?
Benchmarking this $2.2 million purchase is challenging without more specific details on the equipment's capabilities and the market for such specialized machinery. However, the lack of competition suggests that a thorough price analysis was likely not performed, making it difficult to ascertain if this price is competitive or inflated compared to potential market alternatives.
What is the expected operational benefit or efficiency gain from this specific burnisher that justifies the significant expenditure?
The data does not specify the operational benefits or efficiency gains expected from the SPALECK Z-33 burnisher. Understanding the unique capabilities or critical role this equipment plays in the Philadelphia Mint's processes would be necessary to evaluate if the $2.2 million investment is justified, especially in the absence of competitive pricing.
Industry Classification
NAICS: Manufacturing › Metalworking Machinery Manufacturing › Machine Tool Manufacturing
Product/Service Code: SPECIAL INDUSTRY MACHINERY
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 51 VETERANS DRIVE, LOUDON, NH, 03307
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $2,216,564
Exercised Options: $2,216,564
Current Obligation: $2,216,564
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG21D00015
IDV Type: IDC
Timeline
Start Date: 2024-02-22
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-03-19
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