Treasury's $22.5M Contract for Raw Silver Awarded to Sunshine Minting Inc
Contract Overview
Contract Amount: $22,547,580 ($22.5M)
Contractor: Sunshine Minting Inc
Awarding Agency: Department of the Treasury
Start Date: 2011-06-14
End Date: 2011-06-16
Contract Duration: 2 days
Daily Burn Rate: $11.3M/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 $22.5 million to SUNSHINE MINTING INC for work described as: PROVIDE RAW SILVER Key points: 1. Significant expenditure on a key commodity. 2. Competition method (SAP) suggests potential for better pricing. 3. Risk of commodity price volatility impacting final cost. 4. Sector: Wholesale of precious metals.
Value Assessment
Rating: fair
The contract value of $22.5M for raw silver is substantial. Benchmarking against market prices at the time of award is crucial to assess value, as commodity prices fluctuate significantly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), indicating a limited competition environment. This method may not always yield the most competitive pricing compared to full and open competition.
Taxpayer Impact: The use of taxpayer funds for commodity procurement requires careful price discovery to ensure value for money.
Public Impact
Ensures supply of precious metals for government-related needs. Potential impact on market availability and price of silver. Transparency in procurement of valuable commodities is essential.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Commodity price fluctuation risk
- Limited competition under SAP
- Potential for overpayment if market prices shifted unfavorably
Positive Signals
- Procurement of essential raw material
- Awarded to a known entity (Sunshine Minting Inc.)
Sector Analysis
This contract falls within the wholesale trade of precious metals. Spending benchmarks in this sector are highly dependent on global commodity markets and specific metal types.
Small Business Impact
Analysis of small business participation is not directly available from the provided data, but the contract was awarded to Sunshine Minting Inc., a specific company.
Oversight & Accountability
Oversight would focus on ensuring the quality and quantity of silver delivered, adherence to contract terms, and monitoring market price fluctuations against the awarded price.
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 price volatility impacting value
- Reliance on market conditions for final cost assessment
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 $22.5 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 $22.5 million.
What is the period of performance?
Start: 2011-06-14. End: 2011-06-16.
Was the fixed price fair given market conditions at the time of award?
Assessing the fairness of the fixed price requires detailed analysis of raw silver market data for June 2011. Without access to historical price indices and the specific contract terms, it's difficult to definitively state if the price was fair. However, the use of SAP suggests a focus on efficiency for smaller dollar amounts, which may sometimes come at the expense of optimal price discovery.
What is the primary risk associated with this raw material procurement?
The primary risk is commodity price volatility. Raw silver prices can fluctuate significantly due to global economic factors, market speculation, and supply/demand dynamics. A fixed price contract entered into when prices are high could lead to overpayment if prices subsequently fall, and vice-versa.
How effective was the SAP procurement method in securing this raw silver?
The effectiveness of SAP is measured by its ability to achieve the government's objective efficiently. For a $22.5M contract, SAP aims for speed and reduced administrative burden. While it facilitated the award, its effectiveness in achieving the best possible price compared to a more competitive process remains a question.
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: $22,547,580
Exercised Options: $22,547,580
Current Obligation: $22,547,580
Timeline
Start Date: 2011-06-14
Current End Date: 2011-06-16
Potential End Date: 2011-06-16 00:00:00
Last Modified: 2011-06-14
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