Treasury's $45.6M contract for metal stamping awarded to Sunshine Minting Inc. for 20 days

Contract Overview

Contract Amount: $45,658,036 ($45.7M)

Contractor: Sunshine Minting Inc

Awarding Agency: Department of the Treasury

Start Date: 2011-05-24

End Date: 2011-06-13

Contract Duration: 20 days

Daily Burn Rate: $2.3M/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, 83814

State: Idaho Government Spending

Plain-Language Summary

Department of the Treasury obligated $45.7 million to SUNSHINE MINTING INC for work described as: PROVIDE RAW SILVER Key points: 1. Value for money appears fair given the short duration and fixed price, but detailed cost breakdowns are needed for a definitive assessment. 2. Competition dynamics indicate a potentially limited market for this specific type of specialized metal stamping. 3. Risk indicators are low due to the short contract duration and fixed-price nature, minimizing cost overrun potential. 4. Performance context is limited by the short duration; successful delivery is expected but long-term performance is unassessed. 5. Sector positioning is within the niche manufacturing and materials sector, supporting coinage and related products.

Value Assessment

Rating: fair

The contract value of $45.6 million for a 20-day period suggests a high daily rate. Benchmarking against similar specialized metal stamping contracts is difficult without more specific details on the materials and complexity involved. The firm fixed-price structure provides cost certainty for the government, but the overall value proposition hinges on the necessity and urgency of the requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting it was publicly solicited. The presence of two bidders indicates some level of competition, though the limited number might suggest a specialized market or that other potential bidders did not find the opportunity attractive. SAP is typically used for procurements under the simplified acquisition threshold, which makes the $45.6M value unusual and warrants further investigation into the specific circumstances of this competition.

Taxpayer Impact: The competition, while limited to two bidders, still provided a basis for price comparison, potentially saving taxpayer funds compared to a sole-source award. However, the efficiency of the SAP process for such a high-value award needs scrutiny.

Public Impact

The United States Mint benefits from the timely delivery of essential metal-stamped components, likely for coinage or medals. Services delivered include specialized metal stamping, a critical manufacturing process for currency and commemorative items. Geographic impact is primarily national, supporting the operations of the U.S. Mint. Workforce implications are likely concentrated within Sunshine Minting Inc.'s facilities, requiring skilled labor for metal stamping operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unusual contract value for a 20-day duration under SAP.
Limited number of bidders (2) for a high-value contract.
Lack of detailed technical specifications in the provided data.
Potential for price escalation if the scope was underestimated.
Short performance period may not reflect true long-term production needs.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awarded to a single contractor, simplifying management.
Competition, even if limited, suggests some market validation.
Contract falls under the jurisdiction of the Department of the Treasury, a reputable agency.
Specific product (metal stamping) is a core industrial capability.

Sector Analysis

This contract falls within the manufacturing and materials sector, specifically focusing on metal fabrication and stamping. The market for high-precision metal stamping, particularly for government-related products like coinage, is specialized. Comparable spending benchmarks are difficult to establish without knowing the exact specifications of the metal stamped, but large-scale metal fabrication contracts can range from millions to billions depending on complexity and volume.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Given the substantial value, it is unlikely to have been exclusively set aside for small businesses. There is no information on subcontracting plans, so the direct impact on the small business ecosystem is not discernible from this data alone.

Oversight & Accountability

Oversight would typically be managed by the contracting officers and program managers within the U.S. Mint (a bureau of the Treasury Department). Accountability is established through the firm fixed-price contract terms and delivery schedules. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports or Inspector General involvement are not specified here.

Related Government Programs

U.S. Mint Coinage Production
Treasury Department Procurement
Specialty Metal Manufacturing Contracts
Government-Issued Medals and Tokens

Risk Flags

Unusual contract value under SAP
High daily rate for short duration
Limited competition for high-value award

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $45.7 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 $45.7 million.

What is the period of performance?

Start: 2011-05-24. End: 2011-06-13.

What specific type of metal was stamped, and what were the required specifications?

The provided data does not specify the exact type of metal or the detailed specifications for the stamping. This information is crucial for understanding the complexity of the work, assessing the reasonableness of the price, and comparing it to industry standards. Different metals (e.g., various alloys of copper, nickel, zinc, or precious metals) have distinct properties affecting stamping processes and costs. Similarly, the intricacy of the design, tolerances, and finishing requirements significantly influence the effort and expertise needed, thereby impacting the overall contract value.

Why was a contract of this magnitude awarded under Simplified Acquisition Procedures (SAP)?

Awarding a $45.6 million contract under Simplified Acquisition Procedures (SAP) is highly unusual, as SAP is typically intended for procurements below the simplified acquisition threshold (currently $250,000). This suggests either an error in the data provided, a specific regulatory exception being invoked, or a misunderstanding of the contract's true nature or value breakdown. Agencies must justify using SAP for awards significantly exceeding the standard thresholds. It's possible this represents a consolidation of smaller requirements or a specific emergency procurement scenario that warranted expedited processing, but it deviates significantly from standard procurement practices for such a high dollar value.

What is the track record of Sunshine Minting Inc. with government contracts, particularly with the U.S. Mint?

Sunshine Minting Inc. has a history of supplying metal products, including blanks and planchets, to the U.S. Mint. Their experience likely includes meeting stringent quality and security standards required for coinage. While this specific contract is for metal stamping, it aligns with their core business. Assessing their broader track record would involve reviewing past performance evaluations, any past disputes or contract modifications, and their overall history with federal agencies to gauge reliability and performance consistency.

How does the $45.6 million cost compare to the expected output for a 20-day contract?

The cost of $45.6 million for a 20-day metal stamping contract translates to an average daily expenditure of approximately $2.28 million. This figure appears exceptionally high for a 20-day period, even for specialized manufacturing. Without knowing the volume of items produced, the complexity of the stamping, or the specific materials used, it's impossible to definitively assess value. However, the daily rate suggests either a very high-value, low-volume product, or potentially an inflated cost if the output is substantial. Further details on the deliverables are needed for a proper value assessment.

What are the potential risks associated with a short-duration, high-value contract like this?

The primary risks with a short-duration, high-value contract include potential for rushed production leading to quality issues, insufficient time for thorough testing and validation, and the possibility that the contractor may not be able to scale resources adequately for the intense period. For the government, there's a risk of overpaying if the scope is not precisely defined and managed, or if the urgency drives up costs. The short timeframe also limits the ability to correct course or switch vendors if performance issues arise, making initial contractor selection and clear requirement definition critical.

What is the historical spending pattern for similar metal stamping services by the U.S. Mint?

Historical spending data for similar metal stamping services by the U.S. Mint is not provided here. To establish a pattern, one would need to analyze past contracts for metal stamping, blank production, or related fabrication services awarded by the Mint. Key metrics to compare would include contract values, durations, number of bidders, and the specific items produced. Significant deviations from historical spending levels, especially for seemingly routine services, would warrant further investigation into the underlying reasons, such as changes in material costs, increased demand, or evolving production requirements.

Industry Classification

NAICS: Manufacturing › Forging and Stamping › Metal Stamping

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: $45,658,036

Exercised Options: $45,658,036

Current Obligation: $45,658,036

Timeline