Treasury's Mint awards $21.8M for silver, with 13-day delivery, under full and open competition

Contract Overview

Contract Amount: $21,878,604 ($21.9M)

Contractor: Stonex Financial Ltd

Awarding Agency: Department of the Treasury

Start Date: 2025-03-04

End Date: 2025-03-17

Contract Duration: 13 days

Daily Burn Rate: $1.7M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SILVER RAW MATERIAL

Plain-Language Summary

Department of the Treasury obligated $21.9 million to STONEX FINANCIAL LTD for work described as: SILVER RAW MATERIAL Key points: 1. Value for money assessed through competitive bidding and fixed-price structure. 2. Competition dynamics indicate a robust market for silver supply. 3. Risk indicators include short delivery window and reliance on a single raw material. 4. Performance context is a rapid procurement for immediate material needs. 5. Sector positioning within nonferrous metal refining and precious metals supply chain.

Value Assessment

Rating: good

The contract value of $21.8 million for silver material appears reasonable given the quantity and short delivery timeframe. Benchmarking against market prices for silver during the award period would provide a more precise value assessment. The firm fixed-price contract shifts risk to the contractor, which can be beneficial for the government if market prices rise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders likely participated. This level of competition is expected to drive favorable pricing and ensure the government receives competitive offers for the required silver. The presence of 3 bids indicates a healthy competitive environment for this specific procurement.

Taxpayer Impact: Full and open competition generally leads to better price discovery and ensures taxpayer dollars are used efficiently by leveraging market forces.

Public Impact

The United States Mint benefits from securing essential raw materials for its operations. Services delivered include the supply of critical silver for coinage or other minting activities. Geographic impact is national, supporting the Mint's nationwide operations. Workforce implications are minimal directly from this contract, but it supports jobs in the mining and refining sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short delivery window (13 days) could pose logistical challenges or indicate urgent, potentially higher-cost, sourcing.
Reliance on a single raw material supplier for a significant value contract carries inherent supply chain risks.

Positive Signals

Firm fixed-price contract protects against cost overruns if market prices increase.
Full and open competition suggests a competitive market and potentially good pricing.
Awarded by the Department of the Treasury, indicating a critical government function.

Sector Analysis

This contract falls within the nonferrous metal smelting and refining sector, specifically focusing on precious metals. The market for silver is global and subject to significant price volatility. The United States Mint is a major consumer of precious metals, and its procurement activities can influence market dynamics. Comparable spending benchmarks would involve analyzing other large-scale silver procurements by government entities or major industrial consumers.

Small Business Impact

There is no indication of small business set-aside in this contract, and the contractor, STONEX FINANCIAL LTD, is likely a large entity given the contract value. Subcontracting opportunities for small businesses are not explicitly detailed but could exist within the broader supply chain for raw material processing or logistics.

Oversight & Accountability

Oversight is provided by the Department of the Treasury and the United States Mint. As a delivery order under a larger contract vehicle, the specific oversight mechanisms for this particular award are embedded within the terms of the base contract. Transparency is facilitated by public contract databases, though detailed performance monitoring is internal.

Related Government Programs

Precious Metals Purchases
Raw Material Procurement
Coinage Production Materials
Department of the Treasury Supply Chain

Risk Flags

Short Delivery Window
Reliance on Single Raw Material
Potential Price Volatility (Contractor Risk)

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $21.9 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 $21.9 million.

What is the period of performance?

Start: 2025-03-04. End: 2025-03-17.

What is the historical spending pattern for silver raw materials by the United States Mint?

Analyzing historical spending for silver by the U.S. Mint requires access to detailed procurement data over multiple fiscal years. Typically, the Mint procures significant quantities of silver for its bullion and circulating coinage programs. Spending can fluctuate based on demand for specific coin products, market price of silver, and inventory management strategies. Without specific historical data, it's difficult to provide exact figures, but the Mint consistently ranks as a major government purchaser of precious metals. Past awards would likely show similar contract types (firm fixed-price) and competition levels, though dollar values would vary significantly with silver market prices.

How does the per-unit cost of this silver award compare to market benchmarks?

Determining the precise per-unit cost requires knowing the exact quantity of silver procured (e.g., troy ounces) and the specific date of the award to benchmark against the spot price of silver. The contract value is $21,878,604.27. If, for example, this award was for 1 million troy ounces, the implied price would be approximately $21.88 per ounce. This would need to be compared against the prevailing market price of silver on or around March 4, 2025. Given the short delivery window, the price might include a premium for expedited sourcing. A detailed analysis would involve obtaining the exact quantity and comparing it to historical COMEX or LBMA silver prices for the relevant period.

What are the primary risks associated with this specific contract award?

The primary risks associated with this contract include supply chain disruption, price volatility, and logistical challenges due to the short delivery window. If STONEX FINANCIAL LTD faces issues in sourcing the silver, it could impact the Mint's production schedule. While the firm fixed-price contract protects against price increases for the government, a sharp decline in silver prices before delivery could impact the contractor's profitability and potentially lead to performance issues. The 13-day delivery requirement also increases the risk of transportation delays or damage.

What is the track record of STONEX FINANCIAL LTD in supplying raw materials to the federal government?

Information regarding STONEX FINANCIAL LTD's specific track record in supplying raw materials to the federal government is not detailed in the provided data. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past contracts awarded to this entity, examining performance evaluations, and identifying any history of contract disputes or terminations. Without this historical data, it's challenging to definitively assess their reliability and past performance in meeting government requirements.

How does the competition level (3 bidders) impact the value received by the government?

A competition level of 3 bidders for a full and open solicitation generally indicates a reasonably competitive market. While more bidders could potentially drive prices lower, three offers suggest that the requirement was known and that multiple suppliers were capable and willing to bid. This level of competition is typically sufficient to achieve fair market pricing and prevent monopolistic pricing. The government benefits from the contractor's incentive to offer a competitive price to secure the award against two other known competitors.

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: 3

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: $21,878,604

Exercised Options: $21,878,604

Current Obligation: $21,878,604

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