Treasury's $25.7M contract for precious metals awarded to Sunshine Minting Inc. amid 7 bids

Contract Overview

Contract Amount: $25,724,605 ($25.7M)

Contractor: Sunshine Minting Inc

Awarding Agency: Department of the Treasury

Start Date: 2014-03-11

End Date: 2014-03-14

Contract Duration: 3 days

Daily Burn Rate: $8.6M/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE RAW SILVER

Place of Performance

Location: COEUR D ALENE, KOOTENAI County, IDAHO, 83815

State: Idaho Government Spending

Plain-Language Summary

Department of the Treasury obligated $25.7 million to SUNSHINE MINTING INC for work described as: PROVIDE RAW SILVER Key points: 1. Value for money appears fair given the competitive bidding process. 2. Competition dynamics indicate a healthy market for precious metal products. 3. Risk indicators are low due to the nature of the product and established contractor. 4. Performance context is limited by the short duration of the award. 5. Sector positioning places this contract within the broader wholesale trade of precious metals.

Value Assessment

Rating: fair

The contract value of $25.7 million for precious metals is difficult to benchmark without specific product details. However, the presence of 7 bidders suggests a competitive environment that likely drove pricing towards market rates. The firm fixed-price nature of the award shifts risk to the contractor, which is generally favorable for the government. Further analysis would require understanding the specific types and quantities of precious metals procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating it was likely a full and open competition among eligible bidders. The solicitation received 7 bids, suggesting a reasonable level of interest and competition for this type of procurement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this award, with 7 bids received, suggests that taxpayers likely benefited from a fair market price for the precious metals procured.

Public Impact

The United States Mint benefits from the acquisition of precious metals for its operations. Services delivered include the supply of essential raw materials for minting operations. Geographic impact is primarily national, supporting the U.S. Mint's functions. Workforce implications are indirect, supporting the supply chain for mint production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited performance data due to short contract duration.
Lack of detailed product specifications makes value assessment challenging.

Positive Signals

Competitive bidding process with 7 offers received.
Firm fixed-price contract structure transfers risk to the contractor.
Awarded to a known entity in the precious metals industry.

Sector Analysis

This contract falls within the wholesale trade sector, specifically for precious metals. The market for precious metals is global and subject to significant price volatility. Government procurement in this area typically involves acquiring materials for coinage, reserves, or other official purposes. Benchmarking would require comparison to similar government contracts for bulk precious metal acquisition or large commercial transactions.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature and potential value of precious metal procurement, it is likely that larger, specialized firms would be the primary bidders. Subcontracting opportunities for small businesses are not explicitly detailed but could exist within the supply chain for raw materials or specialized processing.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's internal controls and the United States Mint's procurement regulations. As a competed contract under SAP, standard procurement oversight applies. Transparency is generally maintained through contract award databases, though specific details of the precious metals themselves may be sensitive.

Related Government Programs

United States Mint Operations
Treasury Department Procurement
Precious Metals Market

Risk Flags

Potential discrepancy in contract value vs. SAP competition threshold.
Lack of specific product details hinders precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $25.7 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 $25.7 million.

What is the period of performance?

Start: 2014-03-11. End: 2014-03-14.

What specific types and quantities of precious metals were procured under this contract?

The provided data does not specify the exact types (e.g., gold, silver, platinum) or quantities of precious metals purchased. The contract value of $25.7 million suggests a significant volume. Understanding these details is crucial for a precise valuation and comparison against market prices at the time of award. Without this information, assessing the value for money is inherently limited.

How does the awarded price compare to market rates for precious metals during the contract period?

A direct comparison to market rates is not possible without knowing the specific precious metals and their quantities. The market prices for gold, silver, and other precious metals fluctuate daily. The firm fixed-price nature of the contract means Sunshine Minting Inc. assumed the risk of price changes. To assess value, one would need to track the spot prices of the relevant metals during March 2014 and compare them against the pro-rated value within the contract.

What is Sunshine Minting Inc.'s track record with the U.S. Mint and other government agencies?

Sunshine Minting Inc. has a history of supplying precious metals and related products. While this specific award is for $25.7 million, their broader track record with the U.S. Mint and other federal agencies would need to be reviewed for a comprehensive assessment. Past performance, including on-time delivery, quality, and adherence to contract terms on previous awards, is a key factor in evaluating contractor reliability.

What were the key performance expectations and metrics for this contract?

Given the short duration (March 11-14, 2014), the primary performance expectation was likely the timely delivery of the specified precious metals. As a firm fixed-price contract for raw materials, detailed performance metrics beyond delivery might be minimal. Quality control and adherence to specifications would be paramount, with potential penalties or rejection for non-compliance.

How does this contract's value compare to other U.S. Mint procurements for precious metals?

The $25.7 million value is substantial for a single contract award. However, the U.S. Mint procures significant quantities of precious metals annually for its various coin programs (e.g., American Eagle, Gold Buffalo). Comparing this award requires understanding the total annual procurement volume and the typical contract sizes for bulk precious metal acquisitions. It represents a portion of the Mint's overall material needs.

What is the significance of the contract being competed under SAP?

Competing under the Simplified Acquisition Procedures (SAP) indicates that the contract value was likely below the threshold for full and open competition under the Federal Acquisition Regulation (FAR), typically $250,000 at the time, though specific SAP thresholds can vary. However, the award value of $25.7 million significantly exceeds the standard SAP threshold. This suggests either a misunderstanding of the data provided or that the contract was structured in a way that allowed for SAP procedures, perhaps through multiple awards or specific exceptions. Typically, a contract of this magnitude would undergo a more extensive competitive process.

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: 7

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: $25,724,605

Exercised Options: $25,724,605

Current Obligation: $25,724,605

Timeline