Treasury's Mint Spends $19.9M on Silver Raw Material from Stonex Financial Ltd

Contract Overview

Contract Amount: $19,915,809 ($19.9M)

Contractor: Stonex Financial Ltd

Awarding Agency: Department of the Treasury

Start Date: 2024-12-20

End Date: 2024-12-26

Contract Duration: 6 days

Daily Burn Rate: $3.3M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SILVER RAW MATERIAL

Plain-Language Summary

Department of the Treasury obligated $19.9 million to STONEX FINANCIAL LTD for work described as: SILVER RAW MATERIAL Key points: 1. Significant expenditure on a key raw material for coinage. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to commodity price fluctuations and supplier performance. 4. Sector is manufacturing/metals, crucial for national currency production.

Value Assessment

Rating: good

The contract value of $19.9M for silver raw material appears reasonable given market prices for precious metals. Benchmarking against similar bulk metal procurements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which is ideal for price discovery and ensuring the government receives competitive offers. This method likely led to a fair market price for the silver.

Taxpayer Impact: The use of competitive bidding aims to maximize taxpayer value by securing the material at the best possible price, minimizing waste.

Public Impact

Ensures supply of essential material for U.S. coinage. Supports the financial operations of the U.S. Mint. Impacts the precious metals market due to the volume purchased.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Commodity price volatility
Supplier delivery reliability

Positive Signals

Competitive procurement process
Clear contract end date

Sector Analysis

The procurement falls within the nonferrous metal smelting and refining sector. Spending benchmarks for raw materials like silver can vary significantly based on global market conditions and demand.

Small Business Impact

The data indicates no specific set-aside for small businesses. The procurement likely involves large quantities of raw material, typically sourced from established, larger suppliers in the metals market.

Oversight & Accountability

The Department of the Treasury, through the U.S. Mint, is responsible for this procurement. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and financial accountability.

Related Government Programs

Nonferrous Metal (except Aluminum) Smelting and Refining
Department of the Treasury Contracting
United States Mint Programs

Risk Flags

Price volatility of silver commodity
Dependence on a single supplier for this specific order
Potential for supply chain disruptions affecting delivery
Ensuring material quality meets stringent minting standards

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $19.9 million to STONEX FINANCIAL LTD. SILVER RAW MATERIAL

Who is the contractor on this award?

The obligated recipient is STONEX FINANCIAL LTD.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2024-12-20. End: 2024-12-26.

What is the historical price trend of silver during the contract period and how does it compare to the contract price?

Analyzing the historical price trend of silver leading up to and during the contract period (December 2024) is crucial. If the contract price is fixed, understanding market volatility helps assess if the government secured a favorable rate or is exposed to potential losses if prices drop significantly. This comparison directly informs the value for money.

What are the specific performance metrics and penalties outlined in the contract with Stonex Financial Ltd. to mitigate delivery risks?

The contract details should include specific performance metrics related to silver purity, quantity, and delivery timeliness. Penalties for non-compliance, such as late delivery or substandard material, are essential for risk mitigation. Understanding these clauses clarifies the government's recourse and the supplier's accountability.

How does the U.S. Mint's procurement strategy for silver raw materials align with its overall production and inventory management goals?

The Mint's strategy for acquiring silver should be integrated with its long-term production forecasts and inventory management policies. This includes considering strategic reserves, hedging against price fluctuations, and ensuring a consistent supply chain. Aligning procurement with these goals enhances operational efficiency and financial prudence.

Industry Classification

NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Nonferrous Metal (except Aluminum) Smelting and Refining

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1ST FLOOR, LONDON

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $19,915,809

Exercised Options: $19,915,809

Current Obligation: $19,915,809

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 2031JG21D00023

IDV Type: IDC

Timeline