Treasury's Mint Awards $2.1M for Bulk Bag Stations, Boosting Packaging Efficiency
Contract Overview
Contract Amount: $2,137,618 ($2.1M)
Contractor: Oberg Industries LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-02-26
End Date: 2029-03-20
Contract Duration: 1,483 days
Daily Burn Rate: $1.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DN OY1 BULK BAG STATIONS (2 UNITS) SERVICES OBERG 2031JG23D00019 CONTRACT
Place of Performance
Location: DENVER, DENVER County, COLORADO, 80204
State: Colorado Government Spending
Plain-Language Summary
Department of the Treasury obligated $2.1 million to OBERG INDUSTRIES LLC for work described as: DN OY1 BULK BAG STATIONS (2 UNITS) SERVICES OBERG 2031JG23D00019 CONTRACT Key points: 1. Contract awarded to Oberg Industries LLC for essential packaging machinery. 2. Full and open competition ensured competitive pricing for the $2.1M award. 3. Potential risk associated with reliance on a single vendor for specialized equipment. 4. Spending falls within the Packaging Machinery Manufacturing sector.
Value Assessment
Rating: good
The $2.14 million contract for two bulk bag stations appears reasonable given the specialized nature of the equipment. Benchmarking against similar custom packaging machinery contracts would provide a more precise assessment, but the firm fixed-price structure suggests a defined cost expectation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process generally leads to better price discovery and ensures the government receives competitive pricing for its needs.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price, minimizing potential overspending and maximizing the value of taxpayer dollars for this essential equipment.
Public Impact
Enhances operational efficiency at the U.S. Mint by automating bulk bag handling. Supports the production and distribution of currency and precious metals. Ensures secure and standardized packaging of materials.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if maintenance and parts are exclusively sourced from Oberg.
- Long contract duration (over 4 years) may not fully account for technological advancements.
- Lack of explicit small business participation noted.
Positive Signals
- Awarded through full and open competition, promoting market fairness.
- Firm fixed-price contract provides cost certainty.
- Addresses a critical operational need for the U.S. Mint.
Sector Analysis
This contract falls within the Packaging Machinery Manufacturing sector, which is crucial for various industries, including government operations. Spending benchmarks for similar custom machinery can vary widely based on complexity and scale.
Small Business Impact
The data indicates that the prime contractor is Oberg Industries LLC, and there is no explicit mention of small business subcontracting goals or participation. Further investigation may be needed to ensure opportunities for small businesses were considered.
Oversight & Accountability
The contract was awarded by the Department of the Treasury to the United States Mint. Oversight would typically involve contract management by the Mint's procurement office to ensure timely delivery, adherence to specifications, and proper payment.
Related Government Programs
- Packaging Machinery Manufacturing
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential for vendor lock-in for maintenance and parts.
- Long contract duration may not capture future technological advancements.
- Lack of explicit small business subcontracting information.
- Limited detail on long-term maintenance and operational costs.
Tags
packaging-machinery-manufacturing, department-of-the-treasury, co, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.1 million to OBERG INDUSTRIES LLC. DN OY1 BULK BAG STATIONS (2 UNITS) SERVICES OBERG 2031JG23D00019 CONTRACT
Who is the contractor on this award?
The obligated recipient is OBERG INDUSTRIES 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 $2.1 million.
What is the period of performance?
Start: 2025-02-26. End: 2029-03-20.
What is the expected lifespan and maintenance cost of these bulk bag stations?
The expected lifespan and associated maintenance costs for these specific bulk bag stations are not detailed in the provided data. A thorough analysis would require reviewing the manufacturer's specifications, warranty information, and any service level agreements included in the contract. Understanding these factors is crucial for assessing the long-term value and total cost of ownership beyond the initial purchase price.
Are there any identified risks related to the operational integration of these new stations?
Potential risks related to operational integration are not explicitly detailed. However, common integration risks include compatibility issues with existing systems, the need for specialized training for personnel, and potential disruptions during the transition period. The U.S. Mint would likely have a plan to mitigate these risks through phased implementation, user training, and rigorous testing before full deployment.
How does the performance of these stations compare to previous packaging methods used by the Mint?
The provided data does not offer comparative performance metrics against previous packaging methods. However, the acquisition of new, specialized equipment suggests an anticipated improvement in efficiency, capacity, or standardization. A post-award review or operational report would be necessary to quantify the actual performance gains and confirm the effectiveness of these new stations.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Packaging Machinery Manufacturing
Product/Service Code: MATERIALS HANDLING EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2301 SILVERVILLE RD, FREEPORT, PA, 16229
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,137,618
Exercised Options: $2,137,618
Current Obligation: $2,137,618
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG23D00019
IDV Type: IDC
Timeline
Start Date: 2025-02-26
Current End Date: 2029-03-20
Potential End Date: 2029-03-20 00:00:00
Last Modified: 2026-03-18
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