Treasury's Mint Awards $22.1M for Raw Gold, Highlighting Firm Fixed Price Contract
Contract Overview
Contract Amount: $22,097,195 ($22.1M)
Contractor: Coins 'N Things, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2012-12-10
End Date: 2012-12-24
Contract Duration: 14 days
Daily Burn Rate: $1.6M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
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 $22.1 million to COINS 'N THINGS, INC. for work described as: RAW GOLD Key points: 1. The contract value of $22.1 million is significant for raw materials. 2. Full and open competition was utilized, suggesting a competitive market. 3. The short duration (14 days) may indicate urgent need or specific project phase. 4. The sector is Nonferrous Metal Rolling, Drawing, and Extruding, crucial for manufacturing.
Value Assessment
Rating: fair
The contract value of $22.1 million for raw gold is substantial. Without specific benchmarks for gold procurement, it's difficult to definitively assess pricing, but the firm fixed price suggests the government accepted the seller's price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, indicating multiple potential suppliers could bid. This method generally promotes price discovery and competitive pricing, though the final price is fixed.
Taxpayer Impact: The firm fixed price contract locks in the cost, providing budget certainty for taxpayers. The competitive process aims to ensure this price is reasonable.
Public Impact
Procurement of raw gold impacts the precious metals market and potentially coinage production. The contract supports the United States Mint's operations, which are vital for national currency. Transparency in government spending on valuable commodities like gold is important for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for raw gold.
- Short delivery window could imply potential supply chain risks if issues arise.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding sector. Spending in this area is often tied to manufacturing and industrial needs, with benchmarks varying widely based on commodity prices and specific material requirements.
Small Business Impact
The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was awarded by the Department of the Treasury to the United States Mint. Standard procurement oversight processes would apply to ensure 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
- Potential price volatility of gold.
- Short delivery timeline.
- Limited detail on specific gold quality.
- No indication of 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 $22.1 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 $22.1 million.
What is the period of performance?
Start: 2012-12-10. End: 2012-12-24.
What was the specific grade and form of raw gold procured, and how did this influence the price?
The specific grade and form of raw gold are not detailed in the provided data. Different forms (e.g., doré bars, grain) and purities (e.g., 99.99% pure) command different market prices. Understanding these specifics is crucial for a precise valuation and comparison against market rates at the time of award.
What market conditions or specific needs drove the urgency implied by the 14-day delivery period?
The urgency indicated by the 14-day delivery period could stem from several factors, such as immediate production needs for coinage, a critical inventory shortage at the Mint, or a strategic decision to capitalize on favorable market prices. Without further context, it's difficult to pinpoint the exact driver, but it suggests a time-sensitive requirement.
How does the $22.1 million award compare to historical gold procurement contracts by the US Mint in terms of value and competition?
Comparing this $22.1 million award requires access to historical procurement data for the US Mint. While full and open competition is noted, the sheer value suggests a significant transaction. Benchmarking against past contracts would reveal trends in gold sourcing, price fluctuations, and the effectiveness of competitive bidding over time for this critical commodity.
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: 7
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: $22,097,195
Exercised Options: $22,097,195
Current Obligation: $22,097,195
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: TMHQ10C0044
IDV Type: IDC
Timeline
Start Date: 2012-12-10
Current End Date: 2012-12-24
Potential End Date: 2012-12-24 00:00:00
Last Modified: 2025-04-15
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