Treasury's $26.3M contract for silver ounces awarded to Sunshine Minting Inc. for 729 days

Contract Overview

Contract Amount: $26,288,500 ($26.3M)

Contractor: Sunshine Minting Inc

Awarding Agency: Department of the Treasury

Start Date: 2025-02-26

End Date: 2027-02-25

Contract Duration: 729 days

Daily Burn Rate: $36.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 1 OZ UPSET SILVER - WEST POINT

Place of Performance

Location: COEUR D ALENE, KOOTENAI County, IDAHO, 83815

State: Idaho Government Spending

Plain-Language Summary

Department of the Treasury obligated $26.3 million to SUNSHINE MINTING INC for work described as: 1 OZ UPSET SILVER - WEST POINT Key points: 1. Contract value appears reasonable given the commodity and duration. 2. Full and open competition suggests potential for competitive pricing. 3. Fixed-price contract shifts performance risk to the contractor. 4. Delivery order structure allows for phased execution and payment. 5. Contractor's specialization in minting likely aligns with service needs. 6. Duration of 729 days indicates a medium-term supply requirement.

Value Assessment

Rating: good

The contract value of $26.3 million for 729 days, covering the production of silver ounces, seems within a reasonable range for a commodity-based procurement. Benchmarking against similar government contracts for precious metals or minting services would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the government has secured a defined cost, mitigating potential overruns if market prices fluctuate significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive down prices and ensure the government receives fair market value. The specific number of bidders is not provided, but the 'full and open' designation implies a robust selection environment.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best terms.

Public Impact

The primary beneficiaries are likely the United States Mint, which will receive the silver ounces for its operations. The service delivered is the production and supply of silver ounces, a key component for coinage or other minting activities. The geographic impact is primarily tied to the contractor's facilities in Idaho, but the ultimate use of the silver is federal. Workforce implications would be within the contractor's operations, potentially supporting jobs in manufacturing and precious metal handling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility of silver impacting the overall value realization if not managed effectively.
Dependence on a single supplier for a critical commodity could pose supply chain risks.
Ensuring consistent quality and purity of the silver ounces delivered is paramount.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Fixed-price contract provides cost certainty for the government.
Contractor's specialization in minting indicates relevant expertise.
Delivery order structure allows for flexibility in managing quantities and timing.

Sector Analysis

This contract falls within the fabricated metal products manufacturing sector, specifically focusing on miscellaneous items. The market for precious metals, including silver, is global and subject to significant price fluctuations. Government contracts for such commodities are often awarded through competitive bidding to secure supply and manage costs. The size of this contract, approximately $26.3 million over two years, is moderate within the context of federal procurement for raw materials or manufactured goods.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on the prime contractor, Sunshine Minting Inc. There are no explicit indications of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem would be indirect, primarily through the prime contractor's own supply chain management.

Oversight & Accountability

Oversight for this contract would primarily reside with the United States Mint, a bureau within the Department of the Treasury. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the public nature of federal contract awards. While specific Inspector General jurisdiction isn't detailed, the Treasury IG typically oversees departmental operations, including the Mint.

Related Government Programs

United States Mint Operations
Precious Metals Procurement
Commodity Supply Contracts
Manufacturing and Fabrication Services

Risk Flags

Commodity Price Volatility
Supply Chain Dependency
Quality Control for Precious Metals

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $26.3 million to SUNSHINE MINTING INC. 1 OZ UPSET SILVER - WEST POINT

Who is the contractor on this award?

The obligated recipient is SUNSHINE MINTING 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 $26.3 million.

What is the period of performance?

Start: 2025-02-26. End: 2027-02-25.

What is Sunshine Minting Inc.'s track record with federal contracts, particularly for precious metals?

Sunshine Minting Inc. has a history of federal contracting, though specific details on past performance related to large-scale silver ounce procurement are not immediately available in this summary. Their specialization in minting suggests a core competency relevant to this contract. A deeper dive into their contract history, including past performance reviews and any disputes or awards, would be necessary for a comprehensive assessment. Federal procurement databases and contract award histories would be the primary sources for this information. Understanding their experience with similar government agencies or commodity types would also be valuable.

How does the per-unit cost of silver ounces under this contract compare to market rates at the time of award?

The provided data does not include the specific quantity of silver ounces to be delivered, making a direct per-unit cost calculation impossible. To benchmark the value, one would need to know the total ounces procured and compare the resulting price per ounce against the prevailing market price of silver (e.g., COMEX futures) around the contract award date (2025-02-26). Given the fixed-price nature, the government has locked in a price, which could be advantageous or disadvantageous depending on future market movements. A thorough analysis would require access to the contract's detailed specifications and historical market data.

What are the key performance indicators (KPIs) and quality assurance measures for this contract?

While the contract type is 'FIRM FIXED PRICE' and the award is a 'DELIVERY ORDER', specific Key Performance Indicators (KPIs) and quality assurance (QA) measures are not detailed in the summary data. Typically, for such contracts, KPIs would revolve around on-time delivery, adherence to specifications (e.g., purity, weight, dimensions of silver ounces), and potentially production volume targets. QA measures would likely involve inspection and testing protocols by the United States Mint or a designated third party to verify that the delivered silver meets all contractual requirements. The contract document itself would contain these specific performance standards and QA procedures.

What is the historical spending pattern for similar silver ounce procurements by the United States Mint?

Historical spending data for similar silver ounce procurements by the United States Mint is not provided in the summary. To establish a pattern, one would need to analyze past contracts awarded by the Mint for silver bullion or coinage components. This analysis should consider contract values, quantities, durations, and the number of bidders over several fiscal years. Understanding historical spending can reveal trends in pricing, supplier relationships, and the overall demand for such materials, providing context for the current $26.3 million award.

What are the potential risks associated with a fixed-price contract for a volatile commodity like silver?

A primary risk with a fixed-price contract for a volatile commodity like silver is that the government might overpay if market prices decrease significantly after the contract is awarded. Conversely, if market prices surge unexpectedly, the contractor might face reduced profit margins or seek to renegotiate, although the fixed-price nature aims to prevent this. The contractor bears the risk of price fluctuations. Effective risk management would involve the government's procurement team conducting thorough market analysis prior to setting the fixed price and potentially including clauses for extraordinary circumstances, though these are less common in standard fixed-price agreements.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › All Other Miscellaneous Fabricated Metal Product Manufacturing

Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 750 W CANFIELD AVE, COEUR D ALENE, ID, 83815

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,288,500

Exercised Options: $26,288,500

Current Obligation: $26,288,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG24D00011

IDV Type: IDC

Timeline