Treasury's Mint Spends $11.8M on Raw Gold Bullion from A-Mark Precious Metals
Contract Overview
Contract Amount: $11,836,651 ($11.8M)
Contractor: A-Mark Precious Metals, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2025-09-22
End Date: 2025-09-30
Contract Duration: 8 days
Daily Burn Rate: $1.5M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RAW GOLD BULLION
Place of Performance
Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401
Plain-Language Summary
Department of the Treasury obligated $11.8 million to A-MARK PRECIOUS METALS, INC. for work described as: RAW GOLD BULLION Key points: 1. Significant expenditure on a key commodity for mint operations. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to gold price volatility and supply chain. 4. Sector context is precious metals and coinage production.
Value Assessment
Rating: good
The contract value of $11.8M for raw gold bullion appears reasonable given the commodity's market price. Benchmarking against similar bulk precious metal procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically fosters competitive pricing and ensures the government receives fair market value. The award to A-Mark Precious Metals, Inc. indicates they offered the most advantageous proposal.
Taxpayer Impact: The use of full and open competition aims to maximize taxpayer value by ensuring the lowest possible price for the required gold bullion.
Public Impact
Ensures supply of essential raw material for U.S. coinage. Supports the economic activity of precious metals dealers. Potential impact on gold market prices due to large purchase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Gold price volatility
- Supply chain disruptions for precious metals
- Counterparty risk with supplier
Positive Signals
- Competitive bidding process
- Firm fixed price contract
- Clear delivery dates
Sector Analysis
The U.S. Mint procures precious metals for coinage and investment products. Spending benchmarks vary widely based on market prices and quantities, but $11.8M is a substantial, though not unprecedented, amount for raw gold.
Small Business Impact
While this specific contract was awarded to a larger entity, the broader precious metals market includes many small and medium-sized businesses that could potentially participate in future solicitations if structured appropriately.
Oversight & Accountability
The U.S. Mint, under the Department of the Treasury, has established procurement processes. Oversight would involve monitoring contract performance, delivery, and adherence to terms, with potential for audits.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Gold price volatility
- Supplier financial stability
- Supply chain integrity
- Market concentration risk
Tags
nonferrous-metal-except-copper-and-alumi, department-of-the-treasury, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $11.8 million to A-MARK PRECIOUS METALS, INC.. RAW GOLD BULLION
Who is the contractor on this award?
The obligated recipient is A-MARK PRECIOUS METALS, 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 $11.8 million.
What is the period of performance?
Start: 2025-09-22. End: 2025-09-30.
What is the historical price trend of gold during the contract period and how does it compare to the fixed price?
Analyzing the historical price trend of gold leading up to and during the contract period is crucial. A firm fixed price contract locks in the cost, which can be advantageous if gold prices rise but disadvantageous if they fall significantly. Comparing the contract price against market benchmarks at the time of award and throughout the delivery period will reveal the value realized by the government.
What are the specific risks associated with A-Mark Precious Metals, Inc. as a sole supplier for this large quantity of gold?
The primary risks associated with A-Mark Precious Metals, Inc. involve their financial stability, operational capacity to fulfill such a large order, and potential for market manipulation or price gouging if their market position is dominant. Due diligence on the company's background, financial health, and past performance is essential to mitigate these risks. Diversifying suppliers in the future could also reduce dependency.
How effectively does the U.S. Mint's procurement process ensure the highest quality gold bullion for its needs?
The U.S. Mint's procurement process likely includes stringent quality specifications and testing protocols for raw gold bullion to ensure it meets the purity and composition standards required for coinage and investment products. Full and open competition should also incentivize suppliers to meet these quality standards to win the contract. Post-delivery inspection and assaying are critical for verifying quality.
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: 429 SANTA MONICA BLVD, SANTA MONICA, CA, 90401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,836,651
Exercised Options: $11,836,651
Current Obligation: $11,836,651
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TMHQ10C0040
IDV Type: IDC
Timeline
Start Date: 2025-09-22
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-23
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