Treasury's Mint awarded $15.1M for fabricated metal products, with 2 bids received

Contract Overview

Contract Amount: $15,099,372 ($15.1M)

Contractor: A-Mark Precious Metals, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2008-12-02

End Date: 2008-12-11

Contract Duration: 9 days

Daily Burn Rate: $1.7M/day

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE RAW GOLD MATERIAL

Place of Performance

Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $15.1 million to A-MARK PRECIOUS METALS, INC. for work described as: PROVIDE RAW GOLD MATERIAL Key points: 1. The contract value of $15.1M for fabricated metal products appears substantial for the specified duration. 2. With only two bids, the competition dynamics suggest potential for limited price discovery. 3. The fixed-price contract type may offer cost certainty but could limit flexibility for evolving needs. 4. The award date in 2008 indicates this is a historical contract, requiring context from that period. 5. The product code '332999' points to a niche manufacturing sector, potentially limiting the bidder pool. 6. The contract's focus on 'All Other Miscellaneous Fabricated Metal Product Manufacturing' requires further detail to assess specific value.

Value Assessment

Rating: fair

Benchmarking the value of $15.1M for 'All Other Miscellaneous Fabricated Metal Product Manufacturing' is challenging without specific product details. Given the limited competition (2 bids), it's difficult to definitively assess if the pricing was optimal. However, for a contract awarded in 2008, the amount suggests a significant procurement. Further analysis would require understanding the exact nature of the fabricated metal products and their market value at the time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed with a limited number of bidders, specifically two. This level of competition is below what is typically seen in full and open solicitations. While two bidders can still lead to competitive pricing, it increases the risk that the government may not have received the most advantageous offer possible compared to a scenario with more robust competition.

Taxpayer Impact: With only two bidders, taxpayers may have missed out on potentially lower prices that could have been achieved through a more competitive bidding process. This limited competition could translate to a higher overall cost for the government.

Public Impact

The primary beneficiaries are likely the contractor, A-Mark Precious Metals, Inc., and potentially the United States Mint through the acquisition of necessary fabricated metal products. The services delivered involve the manufacturing of miscellaneous fabricated metal products, crucial for various government operations. The geographic impact is primarily centered in California, where the contractor is located. Workforce implications would be within the manufacturing sector, specifically in fabricated metal product production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) raises concerns about achieving the best possible price for taxpayers.
The broad 'miscellaneous fabricated metal product' category lacks specificity, making value assessment difficult.
Awarded in 2008, the contract's relevance and pricing benchmarks may be outdated.
The contractor's primary business focus may not align directly with this specific type of fabricated metal product manufacturing.

Positive Signals

The contract was awarded under a Firm Fixed Price (FFP) type, providing cost certainty for the government.
The contractor, A-Mark Precious Metals, Inc., was selected, implying they met the necessary qualifications.
The contract was awarded by the Department of the Treasury, a major federal agency.

Sector Analysis

The contract falls under the 'All Other Miscellaneous Fabricated Metal Product Manufacturing' sector (NAICS 332999). This is a broad category encompassing a wide range of metal products not elsewhere classified. The market size for such specific, miscellaneous items can be fragmented. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the fabricated metal products. The United States Mint, as the procuring agency, likely required specialized components or equipment within this manufacturing domain.

Small Business Impact

There is no indication that this contract was a small business set-aside, as 'ss' is false and 'sb' is false. Therefore, small businesses were likely not specifically targeted for this procurement. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless A-Mark Precious Metals, Inc. actively engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Treasury, specifically the United States Mint. Accountability measures would be tied to the terms of the Firm Fixed Price contract, ensuring delivery of specified fabricated metal products. Transparency is generally facilitated through federal contract databases, though specific performance details may be less public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Treasury Procurement
United States Mint Operations
Fabricated Metal Product Manufacturing Contracts
Federal Supply Schedule Contracts (if applicable)
Defense Production Act Purchases (if applicable)

Risk Flags

Limited competition
Broadly defined scope of work
Contractor's primary industry focus mismatch
Historical contract data (2008)

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $15.1 million to A-MARK PRECIOUS METALS, INC.. PROVIDE RAW GOLD 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 $15.1 million.

What is the period of performance?

Start: 2008-12-02. End: 2008-12-11.

What specific fabricated metal products were procured under this contract?

The provided data indicates the contract was for 'All Other Miscellaneous Fabricated Metal Product Manufacturing' under NAICS code 332999. However, the specific items procured are not detailed. This broad classification suggests a wide range of potential products, from custom-machined parts to specialized metal enclosures or components. Without further documentation, it is impossible to determine the exact nature of the fabricated metal products. This lack of specificity makes it challenging to assess the true value and necessity of the contract.

How does the $15.1 million contract value compare to similar procurements for fabricated metal products?

Comparing the $15.1 million contract value is difficult without knowing the specific fabricated metal products involved. The category 'All Other Miscellaneous Fabricated Metal Product Manufacturing' is very broad. For commodity metal products, $15.1 million might be exceptionally high for a 9-month duration. However, if the contract involved highly specialized, custom-engineered metal components or large-scale manufacturing runs for unique government equipment, the value could be justified. Benchmarking would require identifying contracts for identical or highly similar items, which is not possible with the current data.

What is the track record of A-Mark Precious Metals, Inc. in fulfilling government contracts for fabricated metal products?

The provided data identifies A-Mark Precious Metals, Inc. as the contractor. However, it does not offer insight into their specific track record for fulfilling government contracts, particularly in the realm of fabricated metal products. A-Mark Precious Metals, Inc. is primarily known for its operations in the precious metals industry. Further investigation into their contract history, performance reviews, and any past issues with government procurements would be necessary to assess their reliability for this type of manufacturing work.

Given the limited competition (2 bidders), what is the estimated impact on price for taxpayers?

With only two bidders, the potential for competitive pressure is reduced compared to a scenario with multiple offers. This limited competition suggests that taxpayers may have paid a higher price than if more companies had vied for the contract. While the Firm Fixed Price (FFP) contract type provides cost certainty, the initial price negotiated could have been less favorable due to the restricted bidding pool. Quantifying the exact 'price impact' is not possible without knowing what a more competitive scenario might have yielded, but it is reasonable to infer a potential cost increase for taxpayers.

What were the prevailing market conditions for fabricated metal products around the contract award date of 2008?

The contract was awarded in December 2008, a period marked by the onset of the global financial crisis. This economic downturn likely influenced market conditions for manufactured goods, potentially leading to decreased demand and lower prices for raw materials and labor in some sectors. However, for specialized or government-mandated production, the impact might have been less pronounced. Understanding the specific commodity prices, labor costs, and overall demand within the miscellaneous fabricated metal products sector in late 2008 would provide crucial context for evaluating the contract's value.

Industry Classification

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

Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS

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: $15,099,372

Exercised Options: $15,099,372

Current Obligation: $15,099,372

Timeline