Treasury's $20.45M contract for raw gold awarded to Coins 'N Things, Inc. under full and open competition
Contract Overview
Contract Amount: $20,450,175 ($20.5M)
Contractor: Coins 'N Things, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2011-12-21
End Date: 2012-01-13
Contract Duration: 23 days
Daily Burn Rate: $889.1K/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 $20.5 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. The contract value of $20.45 million for raw gold is significant, indicating substantial demand. 2. Awarded under full and open competition, suggesting a competitive market for gold procurement. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Procurement falls under the 'Nonferrous Metal' sector, relevant for minting and industrial applications.
Value Assessment
Rating: good
The contract value of $20.45M for raw gold appears reasonable given market prices for precious metals. Benchmarking against similar bulk precious metal procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process likely resulted in a fair market price discovery.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the raw gold.
Public Impact
Ensures the United States Mint has a supply of precious metal for coinage. Supports the economic activity related to precious metal trading and processing. The procurement process upholds principles of fair competition and government accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential price volatility of gold impacting long-term value.
- Dependence on a single supplier for a critical raw material.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type.
- Procurement supports national minting operations.
Sector Analysis
This procurement falls within the nonferrous metals sector, specifically related to precious metals used for coinage. Spending benchmarks for raw precious metals can vary widely based on market fluctuations and specific purity requirements.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract. Further analysis would be needed to determine the extent of small business participation in the supply chain for this raw material.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's United States Mint, suggesting established oversight mechanisms. The use of a competitive bidding process also contributes to 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
- Price volatility of gold.
- Supply chain disruption risk.
- Potential for market price fluctuations impacting contract value.
- Limited information on small business participation.
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 $20.5 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 $20.5 million.
What is the period of performance?
Start: 2011-12-21. End: 2012-01-13.
What is the benchmark price for raw gold of this purity and quantity to assess value?
Assessing the precise value requires comparing the contract price against real-time market data for gold futures and spot prices, adjusted for purity, quantity, and delivery terms. Without specific market data at the time of award, a definitive benchmark is difficult. However, the $20.45M value suggests a significant volume, likely reflecting prevailing market conditions for bulk precious metal acquisition.
What are the risks associated with relying on external suppliers for critical raw materials like gold?
Risks include supply chain disruptions due to geopolitical events, trade restrictions, or natural disasters. Price volatility is also a major concern, potentially increasing costs if not adequately hedged. Furthermore, reliance on external suppliers can create vulnerabilities if the supplier faces financial instability or quality control issues, impacting the Mint's production capabilities.
How effectively does the firm fixed-price contract type protect the government against cost escalations for volatile commodities?
A firm fixed-price contract generally protects the government by locking in the price at the time of award, shifting the risk of cost increases to the contractor. However, for highly volatile commodities like gold, this can be a double-edged sword. If the market price drops significantly after the contract is awarded, the contractor may still be obligated to deliver at the higher fixed price, potentially leading to a less favorable outcome for the contractor and possibly impacting future bids.
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: $20,450,175
Exercised Options: $20,450,175
Current Obligation: $20,450,175
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: TMHQ10C0044
IDV Type: IDC
Timeline
Start Date: 2011-12-21
Current End Date: 2012-01-13
Potential End Date: 2012-01-13 00:00:00
Last Modified: 2025-04-15
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