Treasury's $23.8M Contract for Raw Gold Awarded to Coins 'N Things, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $23,818,356 ($23.8M)
Contractor: Coins 'N Things, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2011-12-02
End Date: 2011-12-10
Contract Duration: 8 days
Daily Burn Rate: $3.0M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
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 $23.8 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. The contract value of $23.8 million for raw gold is significant, indicating substantial material needs. 2. Awarded under full and open competition, this suggests a competitive market for gold procurement. 3. The primary risk lies in potential price volatility of gold, impacting overall cost-effectiveness. 4. The sector is Nonferrous Metal Rolling, Drawing, and Extruding, with gold as a key commodity.
Value Assessment
Rating: fair
The contract value of $23.8M for raw gold is substantial. Benchmarking against market prices for gold during the contract period (December 2011) would be necessary to assess if the price was competitive. Without specific unit pricing, a direct comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing, suggesting the government likely received competitive offers for the raw gold.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the raw gold procured.
Public Impact
Procurement of precious metals like gold can have implications for market supply and demand dynamics. The contract supports industries involved in metal processing and fabrication. Transparency in government procurement of valuable commodities like gold is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Gold price volatility
- Supply chain disruptions for precious metals
Positive Signals
- Competitive bidding process
- Firm fixed price contract
Sector Analysis
The procurement falls under the Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding sector. Spending in this sector can vary widely based on industrial demand and commodity prices. The $23.8M value is significant for a single contract within this niche.
Small Business Impact
The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to determine the extent of small business involvement in the supply chain for this raw material.
Oversight & Accountability
The contract was a delivery order under a larger agreement, suggesting existing oversight mechanisms. The firm fixed price and full and open competition provide some level of accountability for cost and vendor performance.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential for price volatility in gold market
- Dependence on a single supplier if competition was limited in practice
- Geopolitical risks affecting gold supply chains
- Quality assurance of raw gold material
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 $23.8 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 $23.8 million.
What is the period of performance?
Start: 2011-12-02. End: 2011-12-10.
What was the specific price per unit of gold and how did it compare to the market rate at the time of award?
The provided data does not include the specific price per unit of gold or the exact quantity procured. To assess value, one would need to compare the total contract value against the prevailing market price for gold (e.g., London Bullion Market Association fix) on or around December 2, 2011, considering any premiums or discounts associated with the specific form and delivery terms.
What are the primary risks associated with procuring raw gold, and how were they mitigated?
The primary risks include price volatility of gold, potential supply chain disruptions, and quality control issues. Mitigation strategies could involve hedging against price fluctuations, diversifying suppliers if possible, and implementing stringent quality inspection protocols upon delivery. The firm fixed price contract offers some protection against price increases.
How effective was the full and open competition in ensuring the best value for taxpayer dollars in this gold procurement?
Full and open competition is generally effective in driving down prices by encouraging multiple bids. However, the ultimate effectiveness depends on the number and competitiveness of the bidders, the market conditions for gold at the time, and the specific requirements of the contract. Without knowing the bid landscape, it's difficult to definitively assess the value achieved.
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: 3
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: $23,818,356
Exercised Options: $23,818,356
Current Obligation: $23,818,356
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: TMHQ10C0044
IDV Type: IDC
Timeline
Start Date: 2011-12-02
Current End Date: 2011-12-10
Potential End Date: 2011-12-10 00:00:00
Last Modified: 2025-04-15
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