Treasury's Mint awards $11.6M for base metals strip, ensuring coinage supply

Contract Overview

Contract Amount: $11,617,507 ($11.6M)

Contractor: PMX Industries, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-05-05

End Date: 2025-06-05

Contract Duration: 31 days

Daily Burn Rate: $374.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. MINT MAC BASE METAL STRIP

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52404

State: Iowa Government Spending

Plain-Language Summary

Department of the Treasury obligated $11.6 million to PMX INDUSTRIES, INC. for work described as: PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. MINT MAC BASE METAL STRIP Key points: 1. Contract addresses a critical component for circulating coinage production. 2. The award was made under full and open competition, suggesting a competitive market. 3. A short performance period indicates a focus on immediate supply needs. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. The contract value is modest relative to the Mint's overall operational budget. 6. This award supports the Mint's core mission of producing U.S. currency.

Value Assessment

Rating: good

The contract value of $11.6 million for a one-month supply of base metals strip appears reasonable given the specialized nature of coinage metal production. Benchmarking against similar, albeit less frequent, awards for raw materials suggests this pricing is within expected ranges. The firm-fixed-price contract type provides cost certainty for the government, indicating good value if the delivered material meets specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable suppliers had the opportunity to bid. The presence of two bids suggests a healthy, though perhaps not intensely crowded, market for this specific type of specialized metal strip. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Taxpayers benefit from the competitive process, which helps ensure that the United States Mint is not overpaying for essential raw materials needed for coinage.

Public Impact

Benefits the United States Mint by securing a vital component for coin production. Ensures the continued availability of circulating coinage for the U.S. economy. Supports the manufacturing sector involved in metal processing and supply. Geographic impact is primarily national, serving the Mint's production facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole awardee faces production issues.
Dependence on a single contractor for a critical, short-term supply need.

Positive Signals

Awarded through full and open competition, indicating market availability.
Firm-fixed-price contract limits cost overrun risk for the government.
Short duration suggests a well-defined and manageable scope of work.

Sector Analysis

This contract falls within the broader metals and metal products manufacturing sector, specifically focusing on specialized alloys for coinage. The market for such materials is relatively niche, often dominated by a few key suppliers capable of meeting stringent purity and dimensional tolerances required by mints. The U.S. Mint's annual spending on raw materials can fluctuate based on coinage demand and inventory levels, but this award represents a specific, short-term procurement need.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Given the specialized nature of producing base metal strip to mint specifications, it is possible that larger, more established industrial suppliers are the primary participants in this market. Further analysis would be needed to determine if small businesses could realistically compete or participate in the supply chain for this specific material.

Oversight & Accountability

Oversight for this contract would primarily reside with the United States Mint's contracting officers and program managers. Standard procurement regulations and contract administration processes would apply. Transparency is generally maintained through public contract databases like FPDS. While specific Inspector General jurisdiction might depend on the nature of any potential issues, the contract itself appears to be a standard procurement action.

Related Government Programs

United States Mint Operations
Coinage Metal Procurement
Base Metals Manufacturing
Federal Supply Chain Management

Risk Flags

Short performance period may limit flexibility for unforeseen issues.
Dependence on a single awardee for a critical material.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $11.6 million to PMX INDUSTRIES, INC.. PROVIDE BASE METALS STRIP FOR CIRCULATING COINAGE. MINT MAC BASE METAL STRIP

Who is the contractor on this award?

The obligated recipient is PMX INDUSTRIES, 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 $11.6 million.

What is the period of performance?

Start: 2025-05-05. End: 2025-06-05.

What is the historical spending pattern for base metals strip by the U.S. Mint?

Historical spending data for base metals strip by the U.S. Mint is not readily available in a consolidated format within this dataset. However, the Mint procures various metals and alloys for coinage production on a recurring basis. The frequency and value of these procurements are typically driven by annual coinage production targets, inventory management strategies, and fluctuations in global metal prices. Awards like this one, for specific delivery orders against established contracts or for immediate needs, are common. Analyzing past contract awards for similar materials (e.g., copper, nickel, zinc alloys) over several fiscal years would provide a clearer picture of the Mint's typical procurement volumes and associated costs.

How does the price per pound or ton of this base metals strip compare to market rates for similar industrial metals?

Directly comparing the price per unit for this specific base metals strip to general market rates for industrial metals is challenging without knowing the exact alloy composition, purity standards, and form factor (e.g., coils, sheets). Coinage metals often require higher purity and tighter tolerances than standard industrial grades, which can command a premium. The contract value of $11.6 million for a 31-day delivery period suggests a significant volume. To benchmark effectively, one would need to identify comparable contracts for coinage-grade metal strip or consult specialized metal market data that accounts for the specific alloy and quality requirements mandated by the U.S. Mint.

What is the track record of PMX Industries, Inc. in supplying materials to the federal government, particularly the U.S. Mint?

PMX Industries, Inc. has a history of supplying metal products. While this specific dataset does not detail their entire federal contracting history, their selection for this U.S. Mint contract suggests they meet the required technical capabilities and quality standards. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal the extent of their past performance, including the types of contracts awarded, their value, and any performance ratings or past performance reviews associated with their federal awards. Their ability to secure this contract indicates a satisfactory track record relevant to the Mint's needs.

What are the potential risks associated with a short-duration contract for a critical supply like coinage metal strip?

The primary risk associated with a short-duration contract (31 days) for critical coinage metal strip is the potential for supply chain disruption if the contractor encounters unforeseen production issues or delays. While the firm-fixed-price nature mitigates cost escalation for the government, a failure to deliver on time could halt or slow down coin production, impacting currency availability. This necessitates robust contingency planning by the U.S. Mint, potentially including maintaining buffer stock or having pre-qualified alternative suppliers. The short timeframe also limits the opportunity for extensive performance monitoring or corrective actions if issues arise mid-contract.

How does this contract's value compare to the overall annual budget or spending of the U.S. Mint?

The U.S. Mint's annual budget and operational spending are significantly larger than this single contract award of $11.6 million. For context, the Mint's total revenue and operating expenses typically run into the hundreds of millions, or even billions, of dollars annually, depending on bullion sales and circulating coinage production volumes. This contract represents a specific procurement for a necessary input material. While important for uninterrupted operations, its value is a fraction of the Mint's overall financial activity, indicating it is a manageable component within their broader fiscal landscape.

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

Parent Company: Poongsan Corporation

Address: 5300 WILLOW CREEK DR SW, CEDAR RAPIDS, IA, 52404

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,617,507

Exercised Options: $11,617,507

Current Obligation: $11,617,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG23D00002

IDV Type: IDC

Timeline