Treasury Spends $21.18M on Raw Silver from Sunshine Minting Inc. for U.S. Mint Operations
Contract Overview
Contract Amount: $21,182,024 ($21.2M)
Contractor: Sunshine Minting Inc
Awarding Agency: Department of the Treasury
Start Date: 2011-03-22
End Date: 2011-03-24
Contract Duration: 2 days
Daily Burn Rate: $10.6M/day
Competition Type: FULL AND OPEN COMPETITION
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, 83814
State: Idaho Government Spending
Plain-Language Summary
Department of the Treasury obligated $21.2 million to SUNSHINE MINTING INC for work described as: PROVIDE RAW SILVER Key points: 1. Significant expenditure on a key commodity for mint operations. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with commodity price fluctuations and supplier reliability. 4. Sector is wholesale of precious metals, a niche but essential market.
Value Assessment
Rating: good
The contract value of $21.18 million for raw silver appears reasonable given the quantity and market for precious metals. Benchmarking against similar bulk commodity purchases would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives fair market value. The award process likely involved multiple bids, allowing for price discovery.
Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for essential government operations.
Public Impact
Ensures supply of critical material for U.S. coinage and bullion. Supports domestic precious metals industry and associated jobs. Price volatility of silver can impact overall cost to taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Commodity price risk
- Supplier dependency
Positive Signals
- Competitive award process
- Essential material for government function
Sector Analysis
This contract falls within the wholesale trade of precious metals. Spending benchmarks for raw materials in mint operations are highly dependent on market prices and specific metal requirements.
Small Business Impact
While this specific contract is with a large supplier, the broader precious metals wholesale sector may include small businesses that could potentially participate in future, smaller-scale procurements.
Oversight & Accountability
The Department of the Treasury, through the U.S. Mint, is responsible for oversight. Standard procurement regulations and contract management practices would apply to ensure compliance and performance.
Related Government Programs
- Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Commodity price fluctuation risk
- Potential for supply chain disruptions
- Dependence on a single supplier for a critical material
- Lack of specific unit cost for detailed benchmarking
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 $21.2 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 $21.2 million.
What is the period of performance?
Start: 2011-03-22. End: 2011-03-24.
What was the specific quantity of raw silver procured under this contract?
The provided data does not specify the exact quantity of raw silver. The contract value is $21,182,023.80, and the North American Industry Classification System (NAICS) code '423940' indicates 'Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers'. This suggests a bulk purchase, but the precise weight or volume is not detailed.
How does the contract price compare to the spot price of silver during the contract period?
The data does not include the spot price of silver during the contract period (March 2011). To assess value, one would need to compare the contract's per-unit cost against historical market data for silver futures or spot prices around the award dates to determine if it was competitive.
What mechanisms are in place to mitigate risks associated with silver price volatility?
The contract type is 'FIRM FIXED PRICE', which generally shifts price risk to the contractor. However, for commodity-based contracts, clauses may exist for price adjustments under extreme market conditions, or the initial pricing may have factored in anticipated volatility. Further review of contract terms is needed.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $21,182,024
Exercised Options: $21,182,024
Current Obligation: $21,182,024
Timeline
Start Date: 2011-03-22
Current End Date: 2011-03-24
Potential End Date: 2011-03-24 00:00:00
Last Modified: 2011-03-22
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