BEP Spends $25M on Offset Presses from Koenig & Bauer for 2032 Delivery

Contract Overview

Contract Amount: $25,026,826 ($25.0M)

Contractor: Koenig & Bauer Banknote Solutions SA

Awarding Agency: Department of the Treasury

Start Date: 2025-01-13

End Date: 2032-12-31

Contract Duration: 2,909 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OFFSET PRESSES FOR BEP FACILITIES DELIVERY ORDER

Plain-Language Summary

Department of the Treasury obligated $25.0 million to KOENIG & BAUER BANKNOTE SOLUTIONS SA for work described as: OFFSET PRESSES FOR BEP FACILITIES DELIVERY ORDER Key points: 1. Significant investment in specialized printing equipment for currency production. 2. Koenig & Bauer is a major player in banknote printing technology. 3. Long-term contract (2025-2032) suggests a need for sustained operational capacity. 4. Focus on industrial machinery manufacturing, a critical but niche sector.

Value Assessment

Rating: fair

The $25M price tag for offset presses appears substantial. Benchmarking against similar large-scale industrial machinery contracts is difficult without more specific technical details and market comparisons. The firm fixed price contract provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices, though the specialized nature of banknote presses may limit the number of viable bidders.

Taxpayer Impact: Taxpayer funds are being used for essential government printing infrastructure. Competition aims to ensure value for money, but the long-term nature and specialized equipment warrant scrutiny.

Public Impact

Ensures continued capacity for U.S. currency production. Supports the Bureau of Engraving and Printing's mission. Potential for technological upgrades in printing capabilities. Long-term commitment impacts future budget allocations for this equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lock in technology.
Specialized equipment market could have limited competition.
Potential for maintenance and operational cost overruns.

Positive Signals

Firm fixed price provides cost certainty.
Full and open competition was utilized.
Essential infrastructure for national security and economy.

Sector Analysis

The Bureau of Engraving and Printing operates within the industrial machinery manufacturing sector, specifically focusing on high-security printing equipment. Spending benchmarks for such specialized offset presses are not readily available, but this represents a significant capital investment for the agency.

Small Business Impact

This contract does not appear to directly benefit small businesses, as the awardee is a large, specialized manufacturer. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The Bureau of Engraving and Printing, part of the Department of the Treasury, is responsible for this procurement. Oversight would typically involve contract management, performance monitoring, and ensuring compliance with federal acquisition regulations throughout the contract's lifecycle.

Related Government Programs

All Other Industrial Machinery Manufacturing
Department of the Treasury Contracting
Bureau of Engraving and Printing Programs

Risk Flags

Long-term technology lock-in.
Potential for limited competition in specialized markets.
Dependency on a single supplier for critical equipment.
Risk of unforeseen technological obsolescence.
Maintenance and operational costs over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $25.0 million to KOENIG & BAUER BANKNOTE SOLUTIONS SA. OFFSET PRESSES FOR BEP FACILITIES DELIVERY ORDER

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 $25.0 million.

What is the period of performance?

Start: 2025-01-13. End: 2032-12-31.

What is the expected lifespan and technological relevance of these offset presses over the 9-year contract period?

The expected lifespan and technological relevance are critical considerations given the 9-year duration. While offset press technology is mature, advancements in digital printing and security features could emerge. The Bureau of Engraving and Printing likely assessed the technology's suitability for meeting its long-term currency production needs and security requirements before committing to this purchase.

How did the 'full and open competition' process account for the highly specialized nature of banknote offset presses?

The 'full and open competition' process likely involved clearly defining the technical specifications and performance requirements for banknote offset presses. Potential bidders would need to demonstrate specific capabilities and experience in this niche market. While the process was open, the number of qualified bidders may have been limited due to the specialized nature of the equipment, potentially influencing the final price discovery.

What are the key performance indicators (KPIs) used to measure the effectiveness and value delivered by these offset presses?

Key performance indicators would likely include print quality (resolution, registration), production speed and uptime, defect rates, operational efficiency (ink consumption, waste reduction), and adherence to security printing standards. Measuring these KPIs over the contract's duration will help assess the effectiveness of the investment and the value delivered by Koenig & Bauer Banknote Solutions SA.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › All Other Industrial Machinery Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

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: Koenig & Bauer AG

Address: 347, LAUSANNE 22

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $52,423,294

Exercised Options: $25,026,826

Current Obligation: $25,026,826

Actual Outlays: $3,509,968

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031ZA25D00001

IDV Type: IDC

Timeline