Treasury Spends $20.7M for Raw Silver from Sunshine Minting Inc
Contract Overview
Contract Amount: $20,761,789 ($20.8M)
Contractor: Sunshine Minting Inc
Awarding Agency: Department of the Treasury
Start Date: 2011-12-13
End Date: 2011-12-15
Contract Duration: 2 days
Daily Burn Rate: $10.4M/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 4
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 $20.8 million to SUNSHINE MINTING INC for work described as: PROVIDE RAW SILVER Key points: 1. High value contract for a commodity. 2. Competition method (SAP) may limit price discovery. 3. Risk of commodity price volatility. 4. Sector: Wholesale trade of precious metals.
Value Assessment
Rating: fair
The contract value is substantial for raw silver. 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
Competed under SAP (Simplified Acquisition Procedures), suggesting limited competition. This method might not yield the best price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer funds are used for commodity procurement, subject to market price fluctuations and potential inefficiencies from limited competition.
Public Impact
Procurement of a key commodity for minting operations. Potential impact on the precious metals market due to large purchase. Ensures supply chain for U.S. Mint products.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Commodity price volatility
- Limited competition under SAP
- Potential for price overpayment
Positive Signals
- Secured supply of raw silver
- Awarded to a known supplier
Sector Analysis
This contract falls under wholesale trade of precious metals. Benchmarks for similar commodity procurements are difficult to establish due to market volatility and specific contract terms.
Small Business Impact
No indication of small business participation in this contract.
Oversight & Accountability
Oversight would focus on contract performance, delivery, and adherence to terms. The use of SAP may reduce the level of formal oversight compared to larger procurements.
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 overpayment
- Lack of transparency in SAP
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 $20.8 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 $20.8 million.
What is the period of performance?
Start: 2011-12-13. End: 2011-12-15.
Was the price paid for the raw silver competitive given market conditions at the time of award?
Assessing the competitiveness requires comparing the contract price against prevailing market rates for silver on or around December 13, 2011. Factors like volume discounts, delivery terms, and purity specifications would also influence the final price, making a direct comparison challenging without detailed market data.
What is the risk associated with the commodity price volatility for this contract?
The primary risk is that the government may have overpaid if silver prices decreased significantly after the award, or conversely, benefited if prices rose. For a fixed-price contract, the risk of price fluctuation is borne by the contractor, but the initial award price is critical for taxpayer value.
How effective was the Simplified Acquisition Procedure (SAP) in achieving the U.S. Mint's procurement goals for raw silver?
SAP is intended for efficiency in smaller procurements. Its effectiveness here depends on whether it facilitated timely acquisition of necessary silver at a reasonable price. However, SAP's limitations on competition might have precluded potentially better pricing or terms available through broader solicitation methods.
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: 4
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: $20,761,789
Exercised Options: $20,761,789
Current Obligation: $20,761,789
Timeline
Start Date: 2011-12-13
Current End Date: 2011-12-15
Potential End Date: 2011-12-15 00:00:00
Last Modified: 2011-12-13
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