Treasury's $29.8M Contract for Raw Silver Awarded to Sunshine Minting Inc
Contract Overview
Contract Amount: $29,848,954 ($29.8M)
Contractor: Sunshine Minting Inc
Awarding Agency: Department of the Treasury
Start Date: 2011-12-20
End Date: 2011-12-22
Contract Duration: 2 days
Daily Burn Rate: $14.9M/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
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 $29.8 million to SUNSHINE MINTING INC for work described as: PROVIDE RAW SILVER Key points: 1. Significant expenditure on a raw material commodity. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting limited market research. 3. Potential risk associated with commodity price volatility. 4. Spending falls within the wholesale trade sector.
Value Assessment
Rating: fair
The contract value of $29.8 million for raw silver is substantial. Benchmarking against market prices for silver at the time of award (December 2011) would be necessary to assess value, but SAP awards often lack robust price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, which typically involves fewer vendors and less formal solicitation than full and open competition. This method may limit price discovery and potentially lead to higher costs.
Taxpayer Impact: Taxpayer funds were used for the purchase of a commodity whose price can fluctuate significantly, impacting the overall value for money.
Public Impact
Direct impact on the supply chain for precious metals. Potential influence on the market for silver if the quantity is significant. Government procurement of raw materials can affect availability for other industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Commodity price volatility risk
- Limited competition under SAP
- Lack of detailed cost breakdown
Positive Signals
- Awarded to a known supplier
- Fixed price contract provides some cost certainty
Sector Analysis
This contract falls under the wholesale trade sector, specifically for precious metals. Government spending in this area is typically for coinage, medals, or other specific material needs, and benchmarks would relate to market prices for silver.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. SAP awards may sometimes involve small businesses, but it's not guaranteed.
Oversight & Accountability
Oversight would involve monitoring the delivery of raw silver and ensuring compliance with the firm fixed price terms. The Department of the Treasury's Inspector General may review such procurements for efficiency and compliance.
Related Government Programs
- Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Price volatility of silver
- Limited competition
- Potential for overpayment due to SAP
- Lack of transparency on end-use
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 $29.8 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 $29.8 million.
What is the period of performance?
Start: 2011-12-20. End: 2011-12-22.
What was the market price of silver at the time of award, and how did the contract price compare?
Determining the exact market price of silver on December 20, 2011, requires accessing historical commodity data. A comparison would reveal if Sunshine Minting Inc.'s price was competitive. Given the SAP award, a detailed justification for the price relative to market benchmarks is crucial for assessing value for money.
What was the rationale for using SAP instead of full and open competition for such a large sum?
The rationale for using SAP for a $29.8 million contract is unclear without further documentation. Typically, SAP is used for acquisitions below certain thresholds or when specific conditions apply, such as urgency or limited sources. A justification should exist explaining why full and open competition was not feasible or advantageous.
How effectively was the raw silver utilized by the United States Mint?
The effectiveness of the raw silver utilization depends on its intended purpose, such as coinage production. Without knowing the end-use and the quality/quantity of the final products, assessing the effectiveness of the raw material purchase is difficult. Tracking the silver's conversion into finished goods is key.
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: 3
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: $29,848,954
Exercised Options: $29,848,954
Current Obligation: $29,848,954
Timeline
Start Date: 2011-12-20
Current End Date: 2011-12-22
Potential End Date: 2011-12-22 00:00:00
Last Modified: 2011-12-20
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