Treasury's $32.6M contract for raw gold awarded to Coins 'N Things, Inc. under full and open competition
Contract Overview
Contract Amount: $32,619,440 ($32.6M)
Contractor: Coins 'N Things, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2011-03-21
End Date: 2030-05-30
Contract Duration: 7,010 days
Daily Burn Rate: $4.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RAW GOLD
Place of Performance
Location: BRIDGEWATER, PLYMOUTH County, MASSACHUSETTS, 02324
Plain-Language Summary
Department of the Treasury obligated $32.6 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. The contract value is substantial, indicating significant demand for raw gold. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk appears moderate given the commodity nature of the product and established supplier. 4. The sector is Nonferrous Metal Rolling, Drawing, and Extruding, with potential links to manufacturing and investment.
Value Assessment
Rating: fair
Pricing is based on market fluctuations for gold, making direct comparison difficult. The firm fixed price suggests a negotiated rate that may not reflect real-time spot prices.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing multiple bidders to participate. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are used for acquiring a valuable commodity. The final cost will depend on market conditions and the negotiated fixed price over the contract's duration.
Public Impact
Ensures supply of a key commodity for potential government or economic purposes. Price volatility of gold could impact the overall cost to taxpayers. Supports industries involved in metal processing and potentially precious metal markets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation if gold prices surge significantly.
- Dependence on a single supplier for a critical commodity.
Positive Signals
- Awarded via full and open competition.
- Long-term contract provides supply stability.
Sector Analysis
This contract falls within the Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding sector. Spending benchmarks are difficult to establish due to the commodity nature of gold and its fluctuating market value.
Small Business Impact
The data indicates that small businesses were not the primary awardee, as the contract was awarded to Coins 'N Things, Inc. Further analysis would be needed to determine if small businesses participated in the subcontracting opportunities.
Oversight & Accountability
The contract is managed by the Department of the Treasury, specifically the United States Mint. Oversight would focus on ensuring timely delivery and adherence to the fixed price agreement, especially given the commodity's price volatility.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Price Volatility Risk
- Supply Chain Dependency
- Market Fluctuation Impact
- Contract Duration
Tags
nonferrous-metal-except-copper-and-alumi, department-of-the-treasury, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $32.6 million to COINS 'N THINGS, INC.. RAW GOLD
Who is the contractor on this award?
The obligated recipient is COINS 'N THINGS, 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 $32.6 million.
What is the period of performance?
Start: 2011-03-21. End: 2030-05-30.
What is the specific end-use of this raw gold acquisition by the US Mint?
The specific end-use of the raw gold is not detailed in the provided data. However, the United States Mint is responsible for producing circulating coinage, bullion coins, and medals. This acquisition could be for minting bullion coins for investment purposes, or potentially for other strategic reserves or manufacturing needs related to their operations.
How does the firm fixed price protect against gold market volatility?
A firm fixed price contract locks in the price at the time of award, regardless of future market fluctuations. While this protects the government from price increases, it also means they won't benefit if the gold price drops. The effectiveness depends on when the price was negotiated relative to market trends.
What mechanisms are in place to ensure fair pricing given the commodity nature of gold?
The contract was awarded through full and open competition, which is the primary mechanism to ensure fair pricing by allowing multiple bidders to offer their best prices. Additionally, the contract terms and the oversight by the US Mint would likely include provisions for monitoring market conditions and ensuring the supplier meets quality and delivery standards.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 350 BEDFORD ST STE 2, BRIDGEWATER, MA, 02324
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,619,440
Exercised Options: $32,619,440
Current Obligation: $32,619,440
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: TMHQ10C0044
IDV Type: IDC
Timeline
Start Date: 2011-03-21
Current End Date: 2030-05-30
Potential End Date: 2030-05-30 00:00:00
Last Modified: 2025-04-15
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