Treasury's $19.4M Contract for Raw Gold with Coins 'N Things, Inc. Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $19,405,380 ($19.4M)
Contractor: Coins 'N Things, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2010-09-28
End Date: 2030-05-30
Contract Duration: 7,184 days
Daily Burn Rate: $2.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RAW GOLD
Place of Performance
Location: BRIDGEWATER, PLYMOUTH County, MASSACHUSETTS, 02324
Plain-Language Summary
Department of the Treasury obligated $19.4 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. Significant contract value of $19.4 million for raw gold. 2. Competition method is 'Full and Open', suggesting potential for competitive pricing. 3. Contract duration extends to 2030, raising questions about long-term price stability. 4. The sector involves nonferrous metal processing, a specialized area.
Value Assessment
Rating: questionable
The contract value of $19.4 million for raw gold is substantial. Without specific unit pricing or comparison to market rates for gold at the time of award, assessing value for money is difficult. The long duration to 2030 also introduces price volatility risks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it hard to fully assess the competitive pressure on pricing.
Taxpayer Impact: The impact on taxpayers depends on whether the awarded price reflects fair market value for the raw gold procured over the contract's extended term.
Public Impact
Taxpayers are funding the procurement of a valuable commodity, gold. The long contract duration could expose the government to significant price fluctuations in the gold market. Transparency in the pricing mechanism for this commodity contract is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (until 2030) for a volatile commodity.
- Lack of specific unit cost data for value assessment.
- Potential for price escalation over the contract term.
Positive Signals
- Awarded under full and open competition.
- Contract is for a critical material (gold) for mint operations.
Sector Analysis
The procurement falls under the nonferrous metal processing sector. Government spending in this area is typically driven by specific needs for materials in manufacturing or production, such as coinage. Benchmarks are difficult without specific commodity market data.
Small Business Impact
The data indicates the awardee is 'COINS 'N THINGS, INC.' and that small business participation was not a factor ('sb': false). Further investigation would be needed to determine if small businesses were excluded or if the nature of the requirement precluded their participation.
Oversight & Accountability
The extended duration of the contract warrants oversight to ensure continued fair pricing and performance. Regular reviews of market conditions for gold and the contractor's adherence to terms are essential for accountability.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Long contract duration for a volatile commodity.
- Lack of detailed unit cost data for granular value assessment.
- Potential for price escalation or overpayment due to market fluctuations.
- Limited insight into the specific competitive bids received.
- No indication of small business subcontracting goals or achievements.
Tags
nonferrous-metal-except-copper-and-alumi, department-of-the-treasury, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $19.4 million to COINS 'N THINGS, INC.. RAW GOLD
Who is the contractor on this award?
The obligated recipient is COINS 'N THINGS, 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 $19.4 million.
What is the period of performance?
Start: 2010-09-28. End: 2030-05-30.
What was the specific pricing mechanism used for this raw gold contract, and how does it account for market volatility?
The contract type is 'FIRM FIXED PRICE', which suggests a set price agreed upon at the time of award. However, for a volatile commodity like gold, this can be problematic over a long duration. It's unclear if the fixed price was determined based on a specific market index at award, or if it represents a static price for the entire period, which would be unusual and potentially disadvantageous.
What is the risk associated with the long contract duration (until 2030) for a commodity like gold?
The primary risk is price volatility. Gold prices can fluctuate significantly due to economic conditions, geopolitical events, and market speculation. A fixed-price contract extending nearly two decades could result in the government paying far above or below the prevailing market rate at different points, leading to potential financial losses or missed opportunities.
How effective is 'Full and Open Competition' in ensuring value for money for a commodity like raw gold?
While 'Full and Open Competition' is a strong procedural safeguard, its effectiveness for commodities like gold depends on the specifics of the solicitation and award. It ensures multiple vendors can bid, potentially driving down initial prices. However, the long-term nature of this contract and the inherent volatility of gold mean that the initial competitive price might not represent the best value over the entire contract period without mechanisms to adjust for market changes.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
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
Address: 350 BEDFORD ST STE 2, BRIDGEWATER, MA, 02324
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,405,380
Exercised Options: $19,405,380
Current Obligation: $19,405,380
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: TMHQ10C0044
IDV Type: IDC
Timeline
Start Date: 2010-09-28
Current End Date: 2030-05-30
Potential End Date: 2030-05-30 00:00:00
Last Modified: 2025-04-15
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