Treasury's $20.9M contract for precious metals fabrication awarded to A-Mark Precious Metals, Inc

Contract Overview

Contract Amount: $20,922,211 ($20.9M)

Contractor: A-Mark Precious Metals, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2009-02-26

End Date: 2009-03-05

Contract Duration: 7 days

Daily Burn Rate: $3.0M/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 $20.9 million to A-MARK PRECIOUS METALS, INC. for work described as: PROVIDE RAW GOLD MATERIAL Key points: 1. Contract value represents a significant investment in specialized metal fabrication services. 2. Limited competition dynamics may influence pricing and value for money. 3. Short contract duration suggests a specific, time-bound need for services. 4. The award falls within the broader 'Miscellaneous Fabricated Metal Product Manufacturing' sector. 5. Geographic concentration in California for this specific award. 6. Fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: fair

The contract value of $20.9 million for a 7-day period is substantial. Benchmarking this against similar, short-term, high-value fabrication contracts is difficult without more specific service details. The price per unit is not readily available for direct comparison. However, the significant total value suggests a need for specialized capabilities that command a premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. Without information on the number of bidders or the solicitation method, it's challenging to assess the extent of competition. If the contract was competed, a higher number of bidders would typically lead to more competitive pricing. If it was sole-source or limited, the government may have paid a premium.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition generally drives down prices, ensuring taxpayer funds are used more efficiently. Limited competition can result in higher costs for the government.

Public Impact

The United States Mint benefits from the acquisition of specialized fabricated metal products. Services delivered likely support minting operations or specific coinage/medallic programs. Geographic impact is concentrated in California, where the contractor is located. Workforce implications are primarily within the specialized metal fabrication industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition process.
Potential for above-market pricing due to limited competition.
Short duration may indicate a reactive or urgent need, potentially leading to rushed processes.

Positive Signals

Award to a specialized fabricator suggests access to necessary expertise.
Firm fixed-price contract provides cost certainty for the government.
Contract awarded by the Department of the Treasury, a major federal agency.

Sector Analysis

This contract falls under the 'All Other Miscellaneous Fabricated Metal Product Manufacturing' sector, which encompasses a wide range of metal goods not elsewhere classified. The market for specialized precious metal fabrication is niche, often requiring specific expertise and equipment. The value of this single contract, while substantial, represents a small fraction of the overall federal spending in manufacturing.

Small Business Impact

The provided data indicates that small business set-aside flags are 'false' (ss: false, sb: false). This suggests the contract was not specifically targeted towards small businesses. There is no information on subcontracting plans, so the direct impact on the small business ecosystem is unclear, but it is unlikely to have a significant positive impact through direct set-aside.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's internal audit and compliance functions, potentially involving the Treasury Inspector General. Transparency is limited by the available data, but the contract award itself is a matter of public record. Accountability would be measured by the successful delivery of the fabricated metal products as per the contract terms.

Related Government Programs

Department of the Treasury Contracts
United States Mint Procurement
Fabricated Metal Product Manufacturing Contracts
Precious Metals Procurement

Risk Flags

Potential for limited competition
Lack of detailed service description
Short contract duration may indicate urgency or risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $20.9 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 $20.9 million.

What is the period of performance?

Start: 2009-02-26. End: 2009-03-05.

What specific types of precious metal products were fabricated under this contract?

The provided data classifies the contract under NAICS code 332999, 'All Other Miscellaneous Fabricated Metal Product Manufacturing.' While the contract number '332999' is listed, it does not specify the exact nature of the fabricated metal products. Given the awarding agency is the United States Mint, it is highly probable that the fabricated items relate to coinage, medals, or other numismatic products. However, without further details from the contract's statement of work or description, the precise nature of the 'precious metals' and their fabrication remains unspecified in the raw data.

How does the $20.9 million contract value compare to typical spending for similar fabrication services by the US Mint?

Direct comparison of this $20.9 million contract value to typical US Mint spending on similar fabrication services is challenging without more granular historical data. The provided information indicates a short 7-day duration (dur: 7) and a specific award date range (sd: 2009-02-26 to ed: 2009-03-05). This suggests a potentially urgent or highly specific need rather than routine, ongoing procurement. The value is substantial for a short period, implying either a very high volume of work or the requirement for specialized, high-cost materials and processes. Benchmarking would require access to a database of past US Mint contracts for fabricated metal products, detailing scope, duration, and value.

What are the key risks associated with a contract of this magnitude and short duration?

A primary risk associated with a contract of this magnitude ($20.9 million) and extremely short duration (7 days) is the potential for rushed execution, leading to quality control issues or overlooked details in the fabrication process. Another significant risk is the possibility of inadequate competition, which could result in the government overpaying for the services. If the procurement process was expedited due to urgency, there might be insufficient time for thorough due diligence on the contractor's capabilities or for negotiating the most favorable terms. Furthermore, the lack of detailed information on the specific deliverables makes it difficult to assess risks related to material sourcing, specialized labor requirements, or potential supply chain disruptions.

What is the track record of A-Mark Precious Metals, Inc. in performing federal contracts?

The provided data identifies A-Mark Precious Metals, Inc. (co: 'A-MARK PRECIOUS METALS, INC.') as the contractor. However, it does not include historical data on their performance with federal contracts. To assess their track record, one would need to query federal procurement databases (like FPDS or SAM.gov) for previous awards to this entity, examine past performance reviews, and check for any reported issues or disputes. Without this external data, it's impossible to evaluate their reliability, past performance quality, or history of meeting federal requirements.

What does the 'All Other Miscellaneous Fabricated Metal Product Manufacturing' classification imply about the services rendered?

The NAICS code 332999, 'All Other Miscellaneous Fabricated Metal Product Manufacturing,' is a broad category that includes establishments primarily engaged in manufacturing fabricated metal products not elsewhere classified. This can encompass a wide array of items, such as tanks, boilers, sheet metal work, metal stampings, and custom metal parts. For this specific contract with the US Mint, it suggests the fabricated metal products are likely specialized components or finished goods made from precious metals, potentially for coinage, commemorative items, or other specific applications that do not fit into more narrowly defined manufacturing categories. The 'miscellaneous' nature implies a degree of customization or non-standard production.

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: $20,922,211

Exercised Options: $20,922,211

Current Obligation: $20,922,211

Timeline