Treasury's $33.7M Contract for Raw Gold Awarded to Coins 'N Things, Inc
Contract Overview
Contract Amount: $33,753,342 ($33.8M)
Contractor: Coins 'N Things, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2012-03-30
End Date: 2012-04-19
Contract Duration: 20 days
Daily Burn Rate: $1.7M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
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 $33.8 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. Significant expenditure on raw materials highlights the Mint's operational needs. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract's value and duration warrant scrutiny for cost-effectiveness. 4. Focus on nonferrous metals aligns with precious metal refining and minting operations.
Value Assessment
Rating: fair
The contract value of $33.7M for raw gold is substantial. Without specific per-unit pricing or comparison data for similar raw material acquisitions, assessing its value relative to market benchmarks is difficult. The fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically fosters competitive pricing. However, the specific market dynamics for raw gold procurement and the number of bidders would determine the extent of price discovery achieved.
Taxpayer Impact: Taxpayer funds are used for this procurement. The effectiveness of the competition in securing favorable pricing directly impacts the overall value for taxpayers.
Public Impact
Ensures the supply of essential raw materials for U.S. coinage. Supports the operational capacity of the United States Mint. Potential impact on the precious metals market depending on the volume procured.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for raw gold.
- Potential price volatility of gold impacting long-term value.
- Limited insight into the specific grade and purity of gold procured.
Positive Signals
- Utilized full and open competition.
- Contract awarded for essential operational materials.
- Firm fixed-price contract provides cost predictability.
Sector Analysis
The procurement falls under the Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding sector. Spending in this area is often tied to industrial manufacturing and defense needs, though here it directly supports coinage production.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The United States Mint, as part of the Department of the Treasury, is subject to federal procurement regulations. Oversight would focus on adherence to competition rules, contract performance, and financial accountability for the funds expended.
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 the gold market.
- Lack of detailed cost breakdown for raw material.
- Limited transparency on specific quality standards and testing.
- No indication of small business participation.
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 $33.8 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 $33.8 million.
What is the period of performance?
Start: 2012-03-30. End: 2012-04-19.
What was the specific market price of gold at the time of contract award, and how does the awarded price compare to ensure value for money?
Determining the exact market price of gold on March 30, 2012, requires historical data analysis. Comparing the contract's total value ($33.7M) against the prevailing spot price for the specified quantity and purity of gold would reveal if the government secured a competitive rate. Fluctuations in gold prices could impact the long-term value realization.
What were the key performance metrics and quality assurance measures for the raw gold to mitigate risks associated with material quality?
The contract likely included specifications for the purity, form, and potentially the source of the raw gold. Quality assurance measures would involve testing and verification processes upon delivery to ensure the material meets the Mint's standards for coinage production. Failure to meet quality standards could lead to production delays or defective products.
How does this procurement align with the Mint's overall strategic goals and inventory management practices for precious metals?
This contract directly supports the Mint's core mission of producing coinage. Its alignment with strategic goals depends on the Mint's long-term demand forecasts and inventory management policies. Procuring raw materials ensures operational continuity, but the timing and quantity should reflect efficient resource allocation and risk management against price volatility.
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: 5
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: $33,753,342
Exercised Options: $33,753,342
Current Obligation: $33,753,342
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: TMHQ10C0044
IDV Type: IDC
Timeline
Start Date: 2012-03-30
Current End Date: 2012-04-19
Potential End Date: 2012-04-19 00:00:00
Last Modified: 2025-04-15
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