Treasury's $21.4M contract for fabricated metal products awarded to Sunshine Minting Inc

Contract Overview

Contract Amount: $21,413,652 ($21.4M)

Contractor: Sunshine Minting Inc

Awarding Agency: Department of the Treasury

Start Date: 2010-06-02

End Date: 2010-06-10

Contract Duration: 8 days

Daily Burn Rate: $2.7M/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE RAW SILVER.

Place of Performance

Location: COEUR D ALENE, KOOTENAI County, IDAHO, 83814

State: Idaho Government Spending

Plain-Language Summary

Department of the Treasury obligated $21.4 million to SUNSHINE MINTING INC for work described as: PROVIDE RAW SILVER. Key points: 1. Contract awarded for fabricated metal products, indicating a need for specialized manufacturing capabilities. 2. The contract value of $21.4 million suggests a significant procurement for the specified goods. 3. Awarded to Sunshine Minting Inc., a company with a presence in the fabricated metal products sector. 4. The contract duration of 8 days is exceptionally short, suggesting a rapid fulfillment requirement or a specific, time-bound task. 5. The procurement method 'COMPETED UNDER SAP' implies a streamlined process for smaller value contracts. 6. The fixed-price contract type aims to control costs for the government. 7. The contract was awarded in Idaho, potentially impacting local or regional manufacturing employment.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the fabricated metal products. However, the total award of $21.4 million for a duration of only 8 days suggests a high per-diem cost or a very specific, high-volume, short-term need. Comparing it to similar contracts for 'All Other Miscellaneous Fabricated Metal Product Manufacturing' would require more granular data on the exact nature of the products and their complexity. The fixed-price nature provides some cost certainty, but the rapid turnaround might have necessitated premium pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Small Acquisition Procedures), indicating that it was likely advertised and offered to a broad range of potential vendors. While the exact number of bidders is not specified, this method generally aims to foster competition for procurements below certain thresholds. The use of SAP suggests that the government sought competitive bids to ensure fair pricing and identify the most capable supplier within the established parameters.

Taxpayer Impact: Competing under SAP allows taxpayers to benefit from potentially lower prices due to a competitive bidding process, even for smaller acquisitions.

Public Impact

The primary beneficiaries are likely the United States Mint and potentially other entities within the Department of the Treasury requiring specialized fabricated metal products. The services delivered involve the manufacturing and supply of 'All Other Miscellaneous Fabricated Metal Product Manufacturing' goods. The geographic impact is centered in Idaho, where Sunshine Minting Inc. is located, potentially creating or sustaining local jobs. Workforce implications may include employment opportunities for skilled labor in metal fabrication within the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extremely short contract duration (8 days) raises questions about the feasibility of fulfilling the requirement without potential quality compromises or expedited shipping costs.
Lack of detailed product specification makes it difficult to assess the true value for money.
The 'All Other Miscellaneous Fabricated Metal Product Manufacturing' category is very broad, making direct comparisons difficult.

Positive Signals

The contract was competed, suggesting an effort to obtain fair market value.
The use of a fixed-price contract type helps to control costs for the government.
Awarding to a domestic manufacturer supports U.S. industry.

Sector Analysis

The fabricated metal products manufacturing sector is diverse, encompassing a wide range of goods from structural components to specialized items. This contract falls under 'All Other Miscellaneous Fabricated Metal Product Manufacturing,' a broad category that includes products not elsewhere classified. The market size for such specialized manufacturing can vary significantly depending on the specific product. Benchmarking this contract's value against broader industry spending would require identifying comparable products and their typical market prices.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. As the contract was competed under SAP, it's possible that small businesses were among the bidders. Further analysis would be needed to determine if small business participation was encouraged or if subcontracting opportunities were mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's internal procurement oversight and the U.S. Mint's contracting office. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the contract award notice, though detailed performance metrics and inspection reports are not publicly available.

Related Government Programs

Department of the Treasury Procurement
United States Mint Operations
Fabricated Metal Product Manufacturing Contracts
Small Acquisition Procedures (SAP) Procurements

Risk Flags

Short contract duration
Broad NAICS code
Limited public detail on product specifications

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $21.4 million to SUNSHINE MINTING INC. PROVIDE RAW SILVER.

Who is the contractor on this award?

The obligated recipient is SUNSHINE MINTING 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 $21.4 million.

What is the period of performance?

Start: 2010-06-02. End: 2010-06-10.

What specific fabricated metal products were procured under this contract?

The contract notice specifies the North American Industry Classification System (NAICS) code 332999, which covers 'All Other Miscellaneous Fabricated Metal Product Manufacturing.' This is a broad category that includes items such as ammunition, metal tanks, fabricated pipe and pipe fittings, and other metal products not elsewhere classified. Without more specific product details, it is difficult to ascertain the exact nature of the goods supplied to the U.S. Mint. The limited duration of the contract (8 days) might suggest a need for readily available or standardized items rather than highly customized ones.

How does the $21.4 million award compare to typical spending for fabricated metal products by the U.S. Mint?

Direct comparison of this $21.4 million award to typical U.S. Mint spending on fabricated metal products is challenging without historical data specific to NAICS code 332999. The U.S. Mint's primary function involves coin and medal production, which may involve specialized metal fabrication. However, the broad nature of the NAICS code means this contract could be for a wide array of items. If this represents a significant portion of their annual spending in this category, it indicates a substantial requirement. Further investigation into the Mint's historical procurement patterns for similar goods would be necessary for a robust comparison.

What are the potential risks associated with a contract awarded under Small Acquisition Procedures (SAP)?

Contracts awarded under Small Acquisition Procedures (SAP) are generally for amounts below certain federal thresholds, designed for efficiency. While SAP can lead to faster procurement and potentially better prices through competition, potential risks include less rigorous vetting of contractors, limited market research, and reduced oversight compared to larger, more complex procurements. For taxpayers, the risk is that the expedited process might not always yield the absolute best value or that less experienced contractors might be awarded. However, the requirement for competition under SAP mitigates some of these risks by ensuring multiple bids are considered.

What is the significance of the 8-day contract duration?

An 8-day contract duration is exceptionally short for a procurement valued at $21.4 million. This could indicate several possibilities: the contract is for a very specific, time-sensitive task; it involves the rapid delivery of readily available goods; or it represents a task order under a larger, pre-existing agreement. The short duration might also imply a higher per-day cost or the need for expedited services, which could impact overall value for money. It raises questions about the planning and execution timeline for the requirement.

What is Sunshine Minting Inc.'s track record with federal contracts?

Sunshine Minting Inc. has received federal contracts, including this $21.4 million award from the Department of the Treasury. Publicly available data indicates past awards, suggesting a history of working with government agencies. A comprehensive review of their federal contracting history would involve examining contract performance ratings, any past performance issues or disputes, and the types of goods and services they have provided to the government. This would help assess their reliability and experience in fulfilling federal requirements.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7600 N MINERAL DR STE 700, COEUR D ALENE, ID, 01

Business Categories: Category Business, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,413,652

Exercised Options: $21,413,652

Current Obligation: $21,413,652

Timeline