Treasury's $19.3M Gold Material Contract Awarded to Mitsui & Co. in 2009
Contract Overview
Contract Amount: $19,313,826 ($19.3M)
Contractor: Mitsui & CO. Precious Metals, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2009-12-08
End Date: 2009-12-09
Contract Duration: 1 days
Daily Burn Rate: $19.3M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROVIDE RAW GOLD MATERIAL
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10166
State: New York Government Spending
Plain-Language Summary
Department of the Treasury obligated $19.3 million to MITSUI & CO. PRECIOUS METALS, INC. for work described as: PROVIDE RAW GOLD MATERIAL Key points: 1. Significant expenditure on raw gold material highlights the value of precious metals in government operations. 2. Mitsui & Co. Precious Metals, Inc. secured the contract, indicating their competitive position in the market. 3. The contract's risk is primarily tied to market price fluctuations of gold. 4. Spending falls within the 'Other' sector, focusing on material procurement for specific government functions.
Value Assessment
Rating: fair
The contract value of $19.3M for raw gold material is substantial. Benchmarking against similar raw material procurements is difficult without specific purity and quantity details, but the price appears to reflect market conditions for gold at the time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically ensures the government receives competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Taxpayer funds were used for this procurement. The value derived from the gold material is dependent on its intended use by the United States Mint.
Public Impact
Procurement of essential raw materials for minting operations. Potential impact on the precious metals market due to government purchasing. Ensures the availability of gold for national reserves or coinage.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Gold price volatility
- Supply chain disruptions for precious metals
Positive Signals
- Competitive bidding process
- Established supplier relationship
Sector Analysis
This contract falls under the 'Other' sector, specifically raw material procurement. Benchmarking is challenging as it's not a standard industrial sector, but the value is significant for a single material acquisition.
Small Business Impact
The data does not indicate any specific involvement or benefit to small businesses in this contract. The focus appears to be on large, specialized suppliers of precious metals.
Oversight & Accountability
The contract was awarded by the Department of the Treasury to the United States Mint. Standard government procurement oversight processes would apply, ensuring compliance and accountability.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Market price volatility of gold
- Potential for supply chain disruptions
- Dependence on a single large supplier
- Limited transparency on specific material quality
Tags
nonferrous-metal-except-copper-and-alumi, department-of-the-treasury, ny, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $19.3 million to MITSUI & CO. PRECIOUS METALS, INC.. PROVIDE RAW GOLD MATERIAL
Who is the contractor on this award?
The obligated recipient is MITSUI & CO. PRECIOUS METALS, 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 $19.3 million.
What is the period of performance?
Start: 2009-12-08. End: 2009-12-09.
What was the specific intended use of the raw gold material procured under this contract?
The raw gold material was procured for the United States Mint. While the exact application isn't detailed, it likely pertains to the production of gold coins, bullion, or potentially for strategic reserves. The value to taxpayers hinges on the successful and efficient utilization of this gold in fulfilling the Mint's operational and governmental mandates.
How did the contract price compare to the prevailing market price of gold at the time of award?
The contract was awarded under full and open competition, suggesting the price was competitive relative to the market. However, without the exact purity, form, and specific date of the gold transaction, a precise comparison to the spot price is difficult. The 'AW' (Award Amount) likely reflects the negotiated price based on market conditions at the time.
What measures were in place to mitigate the risk of gold price fluctuations impacting the final cost?
As a firm fixed-price contract, the risk of price fluctuation was largely borne by the contractor, Mitsui & Co. Precious Metals, Inc. This structure implies that the contractor factored potential market volatility into their bid. However, the government's ultimate cost is tied to the initial award amount, regardless of subsequent market movements.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SIMPLIFIED ACQUISITION
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ellison Technologies Inc (UEI: 690546403)
Address: 200 PARK AVE FL 35, NEW YORK, NY, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,313,826
Exercised Options: $19,313,826
Current Obligation: $19,313,826
Parent Contract
Parent Award PIID: TMHQ06C0034
IDV Type: BOA
Timeline
Start Date: 2009-12-08
Current End Date: 2009-12-09
Potential End Date: 2009-12-09 00:00:00
Last Modified: 2014-02-23
More Contracts from Mitsui & CO. Precious Metals, Inc.
- Gold — $22.6M (Department of the Treasury)
- Provide RAW Gold Material — $22.6M (Department of the Treasury)
- Provide RAW Gold Material — $20.2M (Department of the Treasury)
- Gold RAW Material — $19.7M (Department of the Treasury)
- Provide RAW Gold Material — $17.7M (Department of the Treasury)
View all Mitsui & CO. Precious Metals, Inc. federal contracts →
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