Treasury's $1.62M Plate Brightener Contract Awarded to Koenig & Bauer

Contract Overview

Contract Amount: $1,622,810 ($1.6M)

Contractor: Koenig & Bauer Banknote Solutions SA

Awarding Agency: Department of the Treasury

Start Date: 2021-09-30

End Date: 2028-02-29

Contract Duration: 2,343 days

Daily Burn Rate: $693/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW PLATEBRIGHT MACHINE

Plain-Language Summary

Department of the Treasury obligated $1.6 million to KOENIG & BAUER BANKNOTE SOLUTIONS SA for work described as: NEW PLATEBRIGHT MACHINE Key points: 1. The contract is for a specialized machine for electroplating, plating, polishing, anodizing, and coloring. 2. Koenig & Bauer Banknote Solutions SA is the sole awardee, indicating a lack of competition. 3. The firm fixed price contract structure aims to control costs, but the limited competition raises concerns. 4. The sector is manufacturing equipment for specialized industrial processes.

Value Assessment

Rating: questionable

The contract value of $1.62M over approximately 5.5 years needs further benchmarking against similar specialized equipment procurements. Without competitive bids, it's difficult to ascertain if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in a higher price than necessary, impacting taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding for this specialized equipment. The Bureau of Engraving and Printing relies on this machine for critical operational processes. Future procurements of similar specialized machinery should explore competitive avenues to ensure best value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Firm fixed price contract

Sector Analysis

This procurement falls within the manufacturing and industrial equipment sector. Benchmarks for specialized plating machinery are highly variable and depend on unique technical specifications.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received fair value and that competition was appropriately considered.

Related Government Programs

Electroplating, Plating, Polishing, Anodizing, and Coloring
Department of the Treasury Contracting
Bureau of Engraving and Printing Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $1.6 million to KOENIG & BAUER BANKNOTE SOLUTIONS SA. NEW PLATEBRIGHT MACHINE

Who is the contractor on this award?

The obligated recipient is KOENIG & BAUER BANKNOTE SOLUTIONS SA.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $1.6 million.

What is the period of performance?

Start: 2021-09-30. End: 2028-02-29.

What is the justification for the sole-source award, and were alternative competitive strategies explored?

The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Agencies must demonstrate that full and open competition is not feasible or not in the government's best interest. Without this justification, it's unclear if competitive options were adequately explored.

How does the $1.62M price compare to similar specialized plating equipment procured competitively?

Direct comparison is challenging without specific technical details and market data for similar specialized plating machines. However, the absence of competition inherently raises a red flag regarding potential overpricing. A competitive process would likely have driven the price down, making this $1.62M figure potentially higher than a market-tested price.

What is the long-term operational and maintenance cost associated with this machine, and how does it compare to alternatives?

The provided data does not include information on long-term operational or maintenance costs. This is a critical gap, as the total cost of ownership can significantly exceed the initial purchase price. Understanding these costs is essential for a comprehensive assessment of the contract's value and effectiveness over its lifecycle.

Industry Classification

NAICS: Manufacturing › Coating, Engraving, Heat Treating, and Allied Activities › Electroplating, Plating, Polishing, Anodizing, and Coloring

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Koenig & Bauer AG

Address: AVENUE DU GREY 55, LAUSANNE

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $1,649,810

Exercised Options: $1,622,810

Current Obligation: $1,622,810

Actual Outlays: $1,568,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline