Treasury Spends $34.8M for Raw Silver from Sunshine Minting Inc
Contract Overview
Contract Amount: $34,863,823 ($34.9M)
Contractor: Sunshine Minting Inc
Awarding Agency: Department of the Treasury
Start Date: 2010-12-21
End Date: 2010-12-23
Contract Duration: 2 days
Daily Burn Rate: $17.4M/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROVIDE RAW SILVER
Place of Performance
Location: COEUR D ALENE, KOOTENAI County, IDAHO, 83815
State: Idaho Government Spending
Plain-Language Summary
Department of the Treasury obligated $34.9 million to SUNSHINE MINTING INC for work described as: PROVIDE RAW SILVER Key points: 1. High value contract for a commodity. 2. Competition was limited under SAP. 3. Risk of price volatility for silver. 4. Sector is wholesale of precious metals.
Value Assessment
Rating: fair
The contract value of $34.8M is significant for raw silver. Benchmarking against market prices at the time of award would be necessary for a precise assessment, but the quantity suggests a substantial procurement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Small Acquisition Procedures), indicating a limited competition environment. This method may not have yielded the best possible price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer funds were used for this procurement. The effectiveness of the limited competition in securing a favorable price is a key consideration for taxpayer impact.
Public Impact
Procurement of a key commodity for minting operations. Potential impact on the availability and price of silver for other uses. Government reliance on a single supplier for a significant quantity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Commodity price volatility
- Potential single-source reliance
Positive Signals
- Clear contract award
- Specific commodity identified
Sector Analysis
This contract falls within the wholesale trade of precious metals. Spending benchmarks in this sector are highly variable due to commodity fluctuations and market dynamics.
Small Business Impact
Analysis of small business participation is not directly applicable as the awardee is Sunshine Minting Inc., a known entity, and the procurement method was SAP, which may have specific small business considerations not detailed here.
Oversight & Accountability
Oversight would involve monitoring the delivery of raw silver and ensuring compliance with the firm fixed price terms. The Department of the Treasury's United States Mint is responsible for this oversight.
Related Government Programs
- Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Price volatility of silver
- Limited competition may have increased cost
- Dependence on a single supplier for a critical commodity
- Potential for supply chain disruptions
Tags
jewelry-watch-precious-stone-and-preciou, department-of-the-treasury, id, po, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $34.9 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 $34.9 million.
What is the period of performance?
Start: 2010-12-21. End: 2010-12-23.
What was the market price of silver at the time of award to assess value?
Determining the precise market price of silver on December 21, 2010, is crucial for a thorough value assessment. Historical commodity data would need to be consulted to compare the contract price against prevailing market rates and ascertain if the government secured a competitive price for this significant quantity of raw silver.
What were the specific criteria for limiting competition under SAP for this award?
Understanding the specific justification for utilizing Small Acquisition Procedures (SAP) is key to assessing competition. Typically, SAP is used for acquisitions below certain dollar thresholds or when specific circumstances, like urgency or limited sources, apply. Clarifying the rationale would reveal if broader competition was feasible.
How did the quality and delivery of the raw silver meet the contract requirements?
Ensuring the raw silver met the specified purity and quantity requirements is fundamental to contract effectiveness. The United States Mint would have quality assurance processes to verify the delivered material against the contract's specifications, impacting the final value and usability for minting operations.
Industry Classification
NAICS: Wholesale Trade › Miscellaneous Durable Goods Merchant Wholesalers › Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 2
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: $34,863,823
Exercised Options: $34,863,823
Current Obligation: $34,863,823
Timeline
Start Date: 2010-12-21
Current End Date: 2010-12-23
Potential End Date: 2010-12-23 00:00:00
Last Modified: 2010-12-22
More Contracts from Sunshine Minting Inc
- Provide RAW Silver — $68.7M (Department of the Treasury)
- Provide RAW Silver — $45.7M (Department of the Treasury)
- Provide RAW Silver — $41.7M (Department of the Treasury)
- Provide RAW Silver — $41.0M (Department of the Treasury)
- Provide RAW Silver — $38.6M (Department of the Treasury)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)