Treasury's Mint Awards $22.5M Contract for Silver Raw Material to Stonex Financial Ltd
Contract Overview
Contract Amount: $22,499,522 ($22.5M)
Contractor: Stonex Financial Ltd
Awarding Agency: Department of the Treasury
Start Date: 2025-03-24
End Date: 2025-03-31
Contract Duration: 7 days
Daily Burn Rate: $3.2M/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 $22.5 million to STONEX FINANCIAL LTD for work described as: SILVER RAW MATERIAL Key points: 1. The contract value is $22.5 million for a 7-day delivery period. 2. Stonex Financial Ltd. is the awardee under full and open competition. 3. The raw material is classified under Nonferrous Metal Smelting and Refining. 4. This award represents a significant procurement for the United States Mint's operations.
Value Assessment
Rating: good
The contract is a firm-fixed-price delivery order, indicating a clear price expectation. Benchmarking against similar raw material procurements would be necessary for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust process for price discovery. The short duration and specific material may limit the number of competitive bids.
Taxpayer Impact: The use of full and open competition aims to secure the best possible price for taxpayers for this essential raw material.
Public Impact
Ensures the United States Mint has the necessary silver for coinage and other operations. Supports the production of circulating and bullion coins. Impacts the supply chain for precious metals within the federal government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short delivery window may limit competitive options.
- Price volatility of silver could impact long-term value.
- Reliance on a single supplier for a critical material.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract provides cost certainty.
- Essential material for Mint operations.
Sector Analysis
This procurement falls within the Nonferrous Metal Smelting and Refining sector. Federal spending in this area is typically driven by specific agency needs for raw materials in manufacturing and production.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The award was made by the United States Mint, a bureau within the Department of the Treasury, suggesting established oversight mechanisms. The use of full and open competition implies adherence to procurement regulations.
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
- Short delivery window
- Potential supply chain disruptions
- Limited competition due to material specificity
Tags
nonferrous-metal-except-aluminum-smeltin, department-of-the-treasury, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $22.5 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 $22.5 million.
What is the period of performance?
Start: 2025-03-24. End: 2025-03-31.
What is the benchmark price for silver raw material of this quality and quantity to assess the value of this contract?
Determining a precise benchmark requires access to real-time market data for silver futures and spot prices, factoring in purity, form (e.g., grain, bar), and delivery location. Given the $22.5 million value over 7 days, the price per unit would need to be compared against recent market trends and any long-term supply agreements the government might have.
What are the potential risks associated with the short 7-day delivery window for this critical raw material?
A short delivery window can increase logistical complexity and potentially limit the pool of qualified bidders, possibly leading to higher prices or reduced competition. It also heightens the risk of supply chain disruptions impacting the Mint's production schedule if the supplier faces unforeseen issues within that tight timeframe.
How effectively does the firm-fixed-price contract mitigate price volatility risks for the government in the silver market?
A firm-fixed-price contract effectively shields the government from upward price fluctuations in the silver market for the duration of this specific delivery order. However, if silver prices were to decrease significantly during this period, the government would not benefit from that lower market price, potentially overpaying relative to the prevailing market rate at the time of delivery.
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: $22,499,522
Exercised Options: $22,499,522
Current Obligation: $22,499,522
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
Start Date: 2025-03-24
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-07-25
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