Treasury Spends $35.5M on Raw Gold Material from A-Mark Precious Metals, Inc
Contract Overview
Contract Amount: $35,528,659 ($35.5M)
Contractor: A-Mark Precious Metals, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2009-12-16
End Date: 2009-12-28
Contract Duration: 12 days
Daily Burn Rate: $3.0M/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
Plain-Language Summary
Department of the Treasury obligated $35.5 million to A-MARK PRECIOUS METALS, INC. for work described as: PROVIDE RAW GOLD MATERIAL Key points: 1. Significant expenditure on a key commodity. 2. Competition method indicates broad market engagement. 3. Fixed-price contract suggests cost certainty. 4. Sector context points to precious metals trading.
Value Assessment
Rating: fair
The award amount of $35.5M for raw gold material is substantial. Benchmarking against similar contracts for precious metals is difficult without more specific contract details and market fluctuations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust process for selecting a vendor. This method generally promotes competitive pricing and ensures the government obtains the best value.
Taxpayer Impact: The use of full and open competition aims to secure favorable pricing for taxpayers on this significant procurement of raw gold.
Public Impact
Impacts the national gold reserve and monetary policy. Affects the precious metals market and related industries. Ensures supply for minting operations and potential strategic reserves.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Commodity price volatility risk
- Supply chain disruption risk
- Contract performance risk
Positive Signals
- Competitive pricing achieved
- Clear contract terms
- Strategic material acquisition
Sector Analysis
This contract falls under the manufacturing sector, specifically related to fabricated metal products, with a focus on precious metals. Spending benchmarks for raw gold procurement vary widely based on market conditions and quantity.
Small Business Impact
The data indicates no specific set-aside for small businesses. The large contract value suggests it was likely awarded to a larger, established supplier in the precious metals market.
Oversight & Accountability
The contract was awarded by the Department of the Treasury, likely subject to standard federal procurement oversight. The short duration and fixed price suggest limited ongoing oversight needs.
Related Government Programs
- All Other Miscellaneous Fabricated Metal Product Manufacturing
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Commodity price fluctuation
- Supplier dependency
- Market volatility
- Geopolitical risks affecting gold supply
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 $35.5 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 $35.5 million.
What is the period of performance?
Start: 2009-12-16. End: 2009-12-28.
What was the specific market price of gold at the time of contract award, and how did the awarded price compare?
Determining the exact market price of gold on December 16, 2009, requires historical data analysis. The contract's fixed price of $35.5M suggests a negotiated rate based on prevailing market conditions and anticipated future prices. A comparison would reveal if the government secured a favorable deal or paid a premium.
What are the potential risks associated with relying on a single supplier for such a large quantity of raw gold?
While the contract was awarded through full and open competition, the data doesn't specify if A-Mark is the sole provider for this specific type of raw gold material. Risks include potential supply chain disruptions, price manipulation, or quality control issues if oversight is insufficient. Diversification of suppliers could mitigate these risks.
How effectively does this procurement support the U.S. Mint's operational needs and strategic objectives?
This procurement of $35.5M in raw gold material directly supports the U.S. Mint's production of coins and bullion. The fixed-price contract provides cost certainty for these operations. Its effectiveness hinges on meeting production schedules and quality standards, contributing to the Mint's mission.
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: $35,528,659
Exercised Options: $35,528,659
Current Obligation: $35,528,659
Timeline
Start Date: 2009-12-16
Current End Date: 2009-12-28
Potential End Date: 2009-12-28 00:00:00
Last Modified: 2010-08-12
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