Treasury's Mint Awards $18.7M Contract for Silver Raw Material to Stonex Financial Ltd
Contract Overview
Contract Amount: $18,680,439 ($18.7M)
Contractor: Stonex Financial Ltd
Awarding Agency: Department of the Treasury
Start Date: 2025-03-31
End Date: 2025-04-11
Contract Duration: 11 days
Daily Burn Rate: $1.7M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SILVER RAW MATERIAL
Plain-Language Summary
Department of the Treasury obligated $18.7 million to STONEX FINANCIAL LTD for work described as: SILVER RAW MATERIAL Key points: 1. Significant award for essential raw material procurement. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration is short (11 days), indicating immediate need. 4. Sector is Nonferrous Metal Smelting and Refining, crucial for coinage.
Value Assessment
Rating: good
The award amount of $18.7M for silver raw material appears reasonable given market prices for precious metals. Benchmarking against historical purchases and market fluctuations is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically drives competitive pricing and ensures the government receives fair market value. The award to Stonex Financial Ltd. suggests they offered the most advantageous terms.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible price for the silver.
Public Impact
Ensures supply of critical silver for U.S. coinage. Supports the operational needs of the United States Mint. Potential impact on silver market prices due to large procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Price volatility of silver commodity.
- Supply chain disruptions for raw materials.
Positive Signals
- Full and open competition.
- Firm fixed price contract.
Sector Analysis
This contract falls within the Nonferrous Metal Smelting and Refining sector. Spending in this area is directly tied to the production needs of coinage and other government-issued precious metal products.
Small Business Impact
No indication of small business participation in this specific award. Further analysis would be needed to determine if small businesses were involved in the supply chain or subcontracting.
Oversight & Accountability
The United States Mint, under the Department of the Treasury, is responsible for this procurement. Standard oversight processes for raw material acquisition and contract management are expected to be in place.
Related Government Programs
- Nonferrous Metal (except Aluminum) Smelting and Refining
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Commodity price volatility.
- Supply chain dependency.
- Potential for single-source reliance in future.
- Geopolitical risks affecting metal markets.
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 $18.7 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 $18.7 million.
What is the period of performance?
Start: 2025-03-31. End: 2025-04-11.
What is the historical price trend of silver and how does this award compare to recent benchmarks?
Analyzing historical silver prices from sources like the London Bullion Market Association (LBMA) or COMEX is crucial. This contract's price should be compared against average prices over the last 6-12 months and current spot prices to determine if it represents a favorable acquisition for the government, considering market volatility and any bulk purchase discounts.
What are the specific risks associated with sourcing silver raw material from a single supplier like Stonex Financial Ltd. under this contract?
While competition was full and open, the delivery order is placed with Stonex Financial Ltd. Risks include potential supply chain disruptions, quality control issues specific to the supplier, and the possibility of future price increases if market conditions change unfavorably and the contract terms allow for adjustments. Dependence on a single supplier for a critical commodity warrants close monitoring.
How effectively does this procurement process ensure the long-term availability and cost-effectiveness of silver for U.S. Mint operations?
The current award addresses an immediate need with a short delivery window. Its effectiveness for long-term availability and cost-effectiveness depends on the Mint's broader procurement strategy. Utilizing full and open competition for individual orders is good, but strategic sourcing, hedging, and multi-year agreements might be necessary to ensure consistent supply and stable pricing against market fluctuations.
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: 4
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: $18,680,439
Exercised Options: $18,680,439
Current Obligation: $18,680,439
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: 2025-03-31
Current End Date: 2025-04-11
Potential End Date: 2025-04-11 00:00:00
Last Modified: 2025-07-25
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