Treasury's $22.8M contract for miscellaneous fabricated metal products awarded to A-Mark Precious Metals, Inc

Contract Overview

Contract Amount: $22,882,658 ($22.9M)

Contractor: A-Mark Precious Metals, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2009-12-16

End Date: 2009-12-24

Contract Duration: 8 days

Daily Burn Rate: $2.9M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

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 $22.9 million to A-MARK PRECIOUS METALS, INC. for work described as: PROVIDE RAW GOLD MATERIAL Key points: 1. Contract value of $22.8 million for fabricated metal products. 2. Awarded to A-Mark Precious Metals, Inc. under full and open competition. 3. Contract duration of 8 days suggests a rapid fulfillment requirement. 4. Firm Fixed Price contract type indicates price certainty for the government. 5. The North American Industry Classification System (NAICS) code 332999 covers a broad range of metal product manufacturing. 6. The contract was awarded by the United States Mint, a bureau within the Department of the Treasury. 7. The contract was awarded in December 2009, with a very short performance period.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the broad NAICS code and the short performance period. The raw dollar amount of $22.8 million is significant, but without specific details on the fabricated metal products, a direct comparison to similar contracts is difficult. The firm fixed-price nature provides cost certainty, but the value for money depends entirely on the necessity and quality of the delivered goods. The contract's brief 8-day duration suggests a time-sensitive need, which might influence pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The fact that it was competed broadly suggests the government sought the best value through a competitive process. However, the number of bids received is not specified, which would provide further insight into the level of actual competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality goods or services.

Public Impact

The United States Mint is the primary beneficiary, likely receiving essential fabricated metal products. The services delivered are related to the manufacturing of miscellaneous fabricated metal products. The geographic impact is primarily tied to the contractor's location in California and the Mint's operations. Workforce implications would be within the manufacturing sector, specifically for companies capable of producing these metal products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specificity regarding the exact nature of the 'miscellaneous fabricated metal products' makes it difficult to assess the true value and necessity of the procurement.
The extremely short performance period (8 days) raises questions about the urgency and potential for rushed production, which could impact quality or lead to unforeseen issues.
Limited information on the number of bidders in the full and open competition makes it hard to gauge the intensity of the competitive pressure on pricing.

Positive Signals

Awarded under full and open competition, suggesting a commitment to a fair and transparent procurement process.
The firm fixed-price contract type provides cost predictability for the government, mitigating the risk of cost overruns.
The contractor, A-Mark Precious Metals, Inc., is a known entity, implying some level of established business operations.

Sector Analysis

The contract falls under the Miscellaneous Fabricated Metal Product Manufacturing sector (NAICS 332999). This broad category includes establishments that produce a wide array of metal items, such as metal doors, windows, tanks, and other fabricated metal products. The market size for such products is substantial, driven by demand from various industries including construction, defense, and general manufacturing. This specific contract, awarded by the U.S. Mint, likely pertains to specialized metal components or products required for minting operations or related facilities.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses is likely minimal unless A-Mark Precious Metals, Inc. utilizes small businesses for subcontracting. Without further information on subcontracting plans, the implications for the small business ecosystem remain unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Treasury and the United States Mint. As a firm fixed-price contract awarded through full and open competition, the primary oversight would focus on ensuring the timely delivery of the specified fabricated metal products according to the contract terms. Transparency is facilitated by the public nature of contract awards, but detailed operational oversight information is not publicly available.

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

Short performance period may impact quality or delivery.
Broad NAICS code lacks specificity on procured items.
Limited information on number of bidders in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $22.9 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 $22.9 million.

What is the period of performance?

Start: 2009-12-16. End: 2009-12-24.

What specific fabricated metal products were procured under this contract?

The contract details specify the North American Industry Classification System (NAICS) code 332999, which covers 'All Other Miscellaneous Fabricated Metal Product Manufacturing.' This is a very broad category that can include items such as metal tanks, industrial valves, pipe fittings, sheet metal work, and custom metal components. Without more specific product descriptions or line items within the contract award notice, it is impossible to determine the exact nature of the fabricated metal products. The United States Mint might have procured specialized metal components for machinery, security features, or infrastructure related to its operations.

How does the $22.8 million contract value compare to typical spending for miscellaneous fabricated metal products by the U.S. Mint?

Comparing the $22.8 million contract value to typical spending for miscellaneous fabricated metal products by the U.S. Mint is difficult without historical spending data specific to this NAICS code. The U.S. Mint's primary mission involves producing circulating coinage, bullion, and medals, which requires specialized equipment and materials. While they do procure various goods and services, a single contract of this magnitude for 'miscellaneous fabricated metal products' suggests a significant, potentially one-time or urgent need, or a large batch order. Further analysis would require examining the Mint's procurement history for similar items over several fiscal years to establish a benchmark.

What are the potential risks associated with a contract for miscellaneous fabricated metal products with an 8-day performance period?

An 8-day performance period for a $22.8 million contract involving fabricated metal products presents several potential risks. Firstly, there's a risk of compromised quality due to the compressed timeline, as manufacturers may rush production. Secondly, logistical challenges in sourcing raw materials and coordinating production within such a short window could lead to delays or cost increases, although the firm fixed-price contract aims to mitigate the latter for the government. Thirdly, the urgency implied by the short duration might indicate a critical operational need for the U.S. Mint, meaning any failure to deliver on time could have significant operational consequences. Finally, assessing the contractor's capacity to deliver such a large volume of potentially complex metal products within 8 days is a key risk factor.

What does the 'full and open competition' designation imply for the contractor selection and pricing?

The designation 'full and open competition' implies that the U.S. Mint advertised the requirement broadly and allowed all responsible sources to submit proposals. This process is designed to maximize competition, theoretically leading to the best possible pricing and quality for the government. It suggests that A-Mark Precious Metals, Inc. was selected from a pool of potential bidders based on factors such as price, technical capability, and past performance. While it indicates a competitive process, the actual number of bids received and the specific evaluation criteria would provide a clearer picture of the competitive intensity and its impact on the final negotiated price.

Could this contract be related to precious metals given the contractor's name, A-Mark Precious Metals, Inc.?

While the contractor's name, A-Mark Precious Metals, Inc., strongly suggests a specialization in precious metals, the contract itself is categorized under NAICS code 332999: 'All Other Miscellaneous Fabricated Metal Product Manufacturing.' This code does not specifically relate to the trading or refining of precious metals but rather to the manufacturing of metal goods. It is plausible that the U.S. Mint, which handles coinage and bullion, might procure specialized metal components or equipment from a company that also deals with precious metals, perhaps for security, storage, or specific minting processes. However, based solely on the NAICS code, the contract is for fabricated metal products, not the precious metals themselves.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $22,882,658

Exercised Options: $22,882,658

Current Obligation: $22,882,658

Timeline