Treasury's Mint awarded $17.7M contract for nonferrous metals, with MITSUI & CO. PRECIOUS METALS, INC. as the sole awardee

Contract Overview

Contract Amount: $17,692,826 ($17.7M)

Contractor: Mitsui & CO. Precious Metals, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2009-12-29

End Date: 2009-12-29

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 $17.7 million to MITSUI & CO. PRECIOUS METALS, INC. for work described as: PROVIDE RAW GOLD MATERIAL Key points: 1. The contract value of $17.7 million represents a significant investment in essential metal supplies for the Mint's operations. 2. Full and open competition was utilized, suggesting a broad market outreach for this procurement. 3. The contract's duration and specific performance details are not provided, making a comprehensive value assessment challenging. 4. The award to MITSUI & CO. PRECIOUS METALS, INC. indicates their capability to meet the stringent requirements for precious metal sourcing. 5. The procurement falls under the 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding' category, highlighting specialized industrial needs. 6. The absence of small business set-asides suggests the contract's nature or value may not have been conducive to such provisions.

Value Assessment

Rating: fair

Benchmarking the value of this contract is difficult without more specific details on the exact types and quantities of nonferrous metals procured, as well as the contract's duration. The $17.7 million figure is substantial, but its value-for-money can only be assessed against market prices for the specific metals at the time of award and the quality standards required by the U.S. Mint. Without comparable contract data or detailed performance metrics, it's challenging to definitively state if this represents excellent or questionable value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that the U.S. Mint solicited bids from all responsible sources. The number of bidders is not specified, but the fact that it was fully competed suggests an effort to ensure a competitive marketplace for the supply of these specialized metals. This approach generally aims to secure the best possible pricing and terms for the government.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and prevents potential price gouging associated with limited competition.

Public Impact

The primary beneficiaries are the U.S. Mint and its coin and medal production facilities, ensuring a steady supply of critical raw materials. The services delivered involve the provision of specific nonferrous metals, likely meeting precise metallurgical and dimensional specifications. The geographic impact is primarily centered around the U.S. Mint's manufacturing locations, with potential downstream effects on the metals supply chain. Workforce implications may include specialized roles in metal processing, quality control, and logistics within the awarded contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to assess if the contractor consistently met all quality and delivery expectations.
The specific types and grades of nonferrous metals are not detailed, making it difficult to ascertain if the most cost-effective materials were sourced.
The contract's duration is listed as 0, which is unusual and may indicate a single delivery or a data entry error, requiring clarification.

Positive Signals

The contract was awarded under a full and open competition, suggesting a robust bidding process.
The awardee, MITSUI & CO. PRECIOUS METALS, INC., is a known entity in the precious metals market, implying a level of established expertise.
The contract specifies a Firm Fixed Price (FFP) type, which provides cost certainty for the government and shifts risk to the contractor.

Sector Analysis

This contract falls within the broader industrial sector of metals and minerals, specifically focusing on nonferrous metals. The market for such specialized metals is often characterized by global supply chains, fluctuating commodity prices, and stringent quality requirements, particularly when serving government entities like the U.S. Mint. Comparable spending benchmarks would involve analyzing other government procurements for similar metals or private sector contracts for high-purity industrial metals.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and potential value of nonferrous metals procurement for the U.S. Mint, it is likely that the requirements favored large, established suppliers with significant production capacity and specialized handling capabilities. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is not directly ascertainable from this data.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Mint's internal procurement and quality assurance processes. As a component of the Department of the Treasury, broader oversight may be provided by the Treasury Inspector General. Transparency is generally facilitated through contract award databases, but detailed performance monitoring and accountability measures are usually internal to the agency unless specific issues arise.

Related Government Programs

U.S. Mint Coinage Metal Purchases
Department of the Treasury Supply Chain Management
Federal Procurement of Industrial Materials

Risk Flags

Unclear contract duration (0)
Lack of specific material details
Absence of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.7 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 $17.7 million.

What is the period of performance?

Start: 2009-12-29. End: 2009-12-29.

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

The provided data specifies the contract is for 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding' and lists the awardee as MITSUI & CO. PRECIOUS METALS, INC. for a total of $17,692,826.30. However, the exact types (e.g., specific alloys, purities) and quantities (e.g., tons, rolls) of these metals are not detailed in the raw data. This information is crucial for a precise understanding of the contract's scope and for conducting detailed value analysis against market benchmarks.

How does the awarded price of $17.7 million compare to market rates for similar nonferrous metals during the contract period?

To compare the $17.7 million award to market rates, one would need to identify the specific nonferrous metals, their grades, and quantities procured. Then, historical market data for those commodities during the contract's performance period (which is not explicitly defined beyond the award dates) would be required. Without this granular detail, a direct price-to-market comparison is not feasible. However, the 'full and open competition' suggests an effort to achieve competitive pricing, and the Firm Fixed Price (FFP) structure shifts price risk to the contractor.

What were the key performance indicators (KPIs) and quality standards for the metals supplied under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or detailed quality standards for the nonferrous metals. Typically, contracts for the U.S. Mint would involve stringent metallurgical specifications, dimensional tolerances, and purity requirements. Performance would likely be assessed based on on-time delivery, adherence to specifications, and material quality. The absence of this information in the summary data limits a thorough assessment of contractor performance and value.

What is the track record of MITSUI & CO. PRECIOUS METALS, INC. in fulfilling government contracts, particularly for metals?

MITSUI & CO. PRECIOUS METALS, INC. is a recognized entity in the precious and nonferrous metals market. While this specific contract award is noted, a comprehensive assessment of their track record would require examining their history across multiple government contracts, including past performance evaluations, any disputes or contract terminations, and their success rate in competitive bidding. Their established presence in the industry suggests a baseline capability, but detailed government contract performance data would provide a more definitive picture.

What is the significance of the contract duration being listed as 0?

A contract duration listed as '0' is highly unusual and likely indicates a data entry anomaly or a contract for a single, immediate delivery rather than a period of performance. If it represents a single delivery, the $17.7 million would be for that specific transaction. If it's a data error, the actual duration would need to be ascertained from more detailed contract documentation. This ambiguity prevents a clear understanding of the contract's timeline and the period over which the funds were utilized.

How does this contract fit into the U.S. Mint's overall procurement strategy for coinage and medal materials?

This contract for nonferrous metals is a component of the U.S. Mint's broader strategy to secure the raw materials necessary for producing circulating coinage, commemorative coins, and medals. The Mint relies on a consistent and high-quality supply chain for metals like gold, silver, copper, and other alloys. Procurements are typically managed to ensure availability, meet stringent purity and specification standards, and achieve cost-effectiveness through competitive sourcing, often involving specialized metal suppliers.

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: $17,692,826

Exercised Options: $17,692,826

Current Obligation: $17,692,826

Parent Contract

Parent Award PIID: TMHQ06C0034

IDV Type: BOA

Timeline