Treasury's $33.9M contract for precious metals awarded to A-Mark Precious Metals, Inc. for specialized fabrication

Contract Overview

Contract Amount: $33,895,876 ($33.9M)

Contractor: A-Mark Precious Metals, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2009-12-28

End Date: 2010-01-12

Contract Duration: 15 days

Daily Burn Rate: $2.3M/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 $33.9 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 products. 2. Competition dynamics suggest a potentially competitive bidding process for this niche requirement. 3. Performance risk appears moderate given the short duration and specialized nature of the product. 4. This contract falls within the broader category of fabricated metal product manufacturing. 5. The award is a notable transaction within the precious metals supply chain for government needs.

Value Assessment

Rating: fair

The contract value of approximately $33.9 million for a short 15-day duration is substantial. Benchmarking this against similar contracts for specialized fabricated metal products is challenging due to the niche nature of precious metals. However, the raw dollar amount suggests a significant procurement. Without specific unit cost data or comparison to market rates for the exact precious metal products, a precise value-for-money assessment is difficult, but the scale warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 3 bidders participating, the level of competition appears adequate for this specialized requirement. This suggests that the government likely received competitive pricing, although the specific market dynamics for precious metal fabrication could influence the final price.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought competitive bids, aiming to secure the best possible price for these specialized materials.

Public Impact

The United States Mint is the primary beneficiary, acquiring essential materials for its operations. The contract facilitates the production of specific precious metal products required by the Mint. The geographic impact is primarily centered around the contractor's facilities and the Mint's operational locations. Workforce implications are likely within the specialized manufacturing sector related to precious metals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in precious metals markets impacting overall cost.
Ensuring consistent quality and purity of precious metals is critical.
Dependence on a single contractor for a specific, short-term need.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Contract specifies a firm fixed price, providing cost certainty.
Short duration may limit long-term exposure to market fluctuations.

Sector Analysis

This contract falls within the 'All Other Miscellaneous Fabricated Metal Product Manufacturing' sector, specifically dealing with precious metals. This is a niche segment of the broader manufacturing industry. The market size for government-specific precious metal fabrication is difficult to quantify but is tied to the demand from entities like the U.S. Mint. Comparable spending benchmarks would likely be within the broader defense or specialized industrial materials categories.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing specialized capabilities from larger or more established firms in the precious metals sector.

Oversight & Accountability

Oversight would primarily be managed by the contracting officers and program managers within the U.S. Mint. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified materials. Transparency is facilitated by the contract award notice, but detailed operational oversight information is not publicly available.

Related Government Programs

U.S. Mint Bullion Coin Programs
Federal Procurement of Industrial Materials
Precious Metals Market Operations

Risk Flags

Potential for price volatility in precious metals
Quality control for specialized fabrication
Short performance window requires rapid execution

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $33.9 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 $33.9 million.

What is the period of performance?

Start: 2009-12-28. End: 2010-01-12.

What is the specific type of precious metal product being fabricated under this contract?

The contract data indicates the product falls under the 'All Other Miscellaneous Fabricated Metal Product Manufacturing' NAICS code (332999). While the raw data doesn't specify the exact precious metal (e.g., gold, silver, platinum) or the form (e.g., bars, blanks, alloys), the context of the U.S. Mint suggests it is likely related to coinage, bullion, or other official metallic products. Further details would typically be found in the contract's statement of work or specifications, which are not provided in this summary.

How does the awarded price compare to historical spending for similar items by the U.S. Mint?

Direct historical spending comparisons for this specific $33.9 million contract are not readily available without access to detailed historical procurement data from the U.S. Mint for identical or highly similar precious metal fabrication services. The contract's short 15-day duration and the specialized nature of the product make direct comparisons difficult. However, the significant dollar amount suggests it is a substantial procurement, and the U.S. Mint likely has internal benchmarks and historical data to assess value, which are not publicly accessible.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators for this contract would likely focus on the timely delivery of the specified precious metal products, adherence to quality standards (purity, dimensions, form), and compliance with contractual terms. Given the short duration, rapid fulfillment and precise adherence to specifications are paramount. The contracting officer at the U.S. Mint would be responsible for monitoring these KPIs and ensuring the contractor meets all obligations outlined in the contract's statement of work.

What is the track record of A-Mark Precious Metals, Inc. with government contracts?

A-Mark Precious Metals, Inc. has a history of receiving government contracts, primarily related to the procurement of precious metals. While this specific contract is for fabrication services, the company is well-known in the precious metals industry. Analyzing their broader track record would involve reviewing past awards, performance evaluations, and any reported issues or successes in fulfilling government requirements. Information on their specific performance on this $33.9 million contract would be held by the U.S. Mint.

What is the potential risk associated with the short contract duration of 15 days?

The primary risk associated with a very short contract duration like 15 days is the potential for rushed production, which could impact quality control or lead to unforeseen logistical challenges. It also implies a highly specific, immediate need rather than a long-term supply agreement. For the government, this means ensuring the contractor can mobilize resources and deliver within the tight timeframe without compromising the integrity or specifications of the precious metal products. It also suggests that follow-on contracts or a more stable supply chain strategy might be necessary.

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: $33,895,876

Exercised Options: $33,895,876

Current Obligation: $33,895,876

Timeline