Treasury's Mint Spends $27.5M on Gold Raw Material from A-Mark Precious Metals
Contract Overview
Contract Amount: $27,542,298 ($27.5M)
Contractor: A-Mark Precious Metals, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2007-12-28
End Date: 2008-01-07
Contract Duration: 10 days
Daily Burn Rate: $2.8M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GOLD RAW MATERIAL
Place of Performance
Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401
Plain-Language Summary
Department of the Treasury obligated $27.5 million to A-MARK PRECIOUS METALS, INC. for work described as: GOLD RAW MATERIAL Key points: 1. Significant expenditure on a key commodity. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Fixed-price contract may limit upside risk for the government. 4. Sector is manufacturing of fabricated metal products, with gold as a primary input.
Value Assessment
Rating: good
The contract value of $27.5M for gold raw material appears reasonable given the commodity's market fluctuations. Benchmarking against similar large-scale precious metal procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. The fixed-price nature of the contract further supports price discovery and limits potential cost overruns.
Taxpayer Impact: The use of competitive bidding for a significant commodity purchase aims to ensure taxpayer funds are used efficiently, securing the best possible price for the gold.
Public Impact
Impacts the supply chain for precious metals used by the U.S. Mint. Ensures availability of gold for coinage and other government purposes. Reflects government's role in managing strategic material reserves.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Commodity price volatility risk.
- Supplier concentration risk if A-Mark is a key supplier.
Positive Signals
- Competitive award process.
- Firm fixed-price contract.
Sector Analysis
This contract falls within the fabricated metal products manufacturing sector, specifically dealing with precious metals. Spending benchmarks for raw material procurement in this sector are highly variable due to market prices.
Small Business Impact
The data does not indicate any specific provisions or impacts related to small business participation in this contract.
Oversight & Accountability
The contract was awarded by the U.S. Mint, a bureau within the Department of the Treasury, suggesting established oversight mechanisms for procurement processes.
Related Government Programs
- All Other Miscellaneous Fabricated Metal Product Manufacturing
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Commodity price volatility.
- Potential for supply chain disruptions.
- Dependence on a single supplier for a critical raw material.
- Contract duration relative to market price fluctuations.
Tags
all-other-miscellaneous-fabricated-metal, department-of-the-treasury, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $27.5 million to A-MARK PRECIOUS METALS, INC.. GOLD RAW MATERIAL
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 $27.5 million.
What is the period of performance?
Start: 2007-12-28. End: 2008-01-07.
What was the specific quantity of gold purchased under this contract?
The provided data does not specify the exact quantity of gold purchased. The contract value is $27,542,297.86, and the NAICS code suggests it falls under 'All Other Miscellaneous Fabricated Metal Product Manufacturing'. Further details on the specific product code or quantity would be needed for a precise assessment.
How did the contract price compare to the spot price of gold at the time of award?
The data does not include the spot price of gold at the time of award (December 2007). To assess value, a comparison of the contract price against historical gold prices during that period would be necessary. The firm fixed-price nature suggests a negotiated price based on anticipated market conditions.
What is the strategic importance of this gold procurement for the U.S. Mint?
This procurement is likely for the U.S. Mint's production of circulating coinage, bullion coins (like American Eagles), or potentially for maintaining strategic reserves. Ensuring a stable supply of gold is crucial for these functions, impacting both monetary policy and national assets.
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: SIMPLIFIED ACQUISITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Spectrum Group International Inc. (UEI: 806666475)
Address: 100 WILSHIRE BLVD FL 3, SANTA MONICA, CA, 36
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,542,298
Exercised Options: $27,542,298
Current Obligation: $27,542,298
Timeline
Start Date: 2007-12-28
Current End Date: 2008-01-07
Potential End Date: 2008-01-07 00:00:00
Last Modified: 2008-07-09
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