Treasury's $21.1M Contract for Raw Silver Awarded to Sunshine Minting Inc
Contract Overview
Contract Amount: $21,178,818 ($21.2M)
Contractor: Sunshine Minting Inc
Awarding Agency: Department of the Treasury
Start Date: 2011-06-07
End Date: 2011-06-10
Contract Duration: 3 days
Daily Burn Rate: $7.1M/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: ATTLEBORO, BRISTOL County, MASSACHUSETTS, 02703
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 raw materials for minting operations. 2. Competition was conducted under SAP, suggesting a potentially limited but structured process. 3. Risk associated with commodity price fluctuations for silver. 4. Sector is within wholesale trade of precious metals.
Value Assessment
Rating: fair
The contract value of $21.18 million for raw silver is substantial. Benchmarking against market prices for silver during the contract period would be necessary to fully assess value for money, as commodity prices can be volatile.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (System for Award Management), indicating a limited competition process. While this can streamline procurement, it may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: Taxpayer funds are used for the purchase of raw materials. The efficiency of the procurement process and the final price paid for the silver directly impact the overall cost to taxpayers.
Public Impact
Direct impact on the supply chain for U.S. Mint products. Potential influence on the availability and cost of silver for other industries. Government's role as a major purchaser of precious metals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Commodity price volatility
- Limited competition process
- Potential for price escalation
Positive Signals
- Established supplier relationship
- Firm fixed price contract type
Sector Analysis
This contract falls within the wholesale trade sector, specifically for precious metals. Government procurement of raw materials like silver is benchmarked against market prices and the efficiency of the sourcing process.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight would typically involve the Department of the Treasury and the United States Mint ensuring contract terms are met, quality standards are adhered to, and payments are processed correctly. Accountability lies in managing the procurement process effectively and securing materials at a reasonable cost.
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 risk
- Limited competition
- Potential for overpayment if market prices declined post-award
- Lack of transparency on specific SAP criteria used
Tags
jewelry-watch-precious-stone-and-preciou, department-of-the-treasury, ma, 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: 2011-06-07. End: 2011-06-10.
What was the specific market price of silver at the time of contract award, and how does the contract price compare?
Determining the exact market price of silver on June 7, 2011, requires accessing historical commodity data. A comparison would reveal if Sunshine Minting Inc.'s price was competitive. Given the firm fixed price, the risk of price fluctuation is borne by the contractor, which could influence their initial bid.
What were the specific criteria for competing under SAP, and did these criteria limit potential bidders?
Competing under SAP typically involves procurements below certain dollar thresholds or for specific circumstances allowing for fewer than full and open competition solicitations. The criteria likely limited the pool of potential bidders, potentially impacting the level of price discovery achieved compared to a broader solicitation.
How does the quantity of raw silver procured align with the typical production needs of the U.S. Mint for the contract duration?
The contract specifies a quantity of 423,940 units, with a total value of $21.18 million. Understanding the Mint's production schedule and the silver content per unit (e.g., coins, medals) is crucial to assess if this procurement is appropriately sized for its intended purpose and duration.
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: $21,178,818
Exercised Options: $21,178,818
Current Obligation: $21,178,818
Timeline
Start Date: 2011-06-07
Current End Date: 2011-06-10
Potential End Date: 2011-06-10 00:00:00
Last Modified: 2011-08-25
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