Treasury's Mint Spends $18.7M on Silver Raw Material from Stonex Financial Ltd
Contract Overview
Contract Amount: $18,681,521 ($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 expenditure on a key industrial commodity. 2. Competition method indicates potential for competitive pricing. 3. Risk of price volatility for raw materials. 4. Sector: Manufacturing/Materials.
Value Assessment
Rating: fair
The contract is a firm fixed price delivery order. Benchmarking against similar raw material procurements is difficult without more specific grade and quantity details. The price appears within a reasonable range for bulk silver.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. The firm fixed price contract type helps mitigate cost overruns for the government.
Taxpayer Impact: Taxpayers benefit from competitive bidding, aiming for the best value on essential materials for mint operations.
Public Impact
Ensures supply of critical silver for U.S. Mint operations. Supports industrial supply chains for precious metals. Potential impact on market price of silver if large quantities are involved.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Commodity price volatility
- Supply chain disruptions
Positive Signals
- Competitive award
- Firm fixed price contract
Sector Analysis
The procurement falls within the nonferrous metal smelting and refining sector. Spending benchmarks for raw silver are highly variable based on market conditions and purity.
Small Business Impact
No indication of small business participation in this specific award. The nature of raw material supply often involves larger, specialized firms.
Oversight & Accountability
The Department of the Treasury, through the U.S. Mint, is responsible for this procurement. Standard procurement oversight processes should apply.
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
- Dependence on a single supplier for this specific award
- Potential for supply chain disruptions impacting delivery
- Lack of detailed specification for benchmarking
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 specific grade and purity of the silver being procured, and how does this impact the unit cost benchmark?
The provided data does not specify the grade or purity of the silver raw material. This information is crucial for accurate unit cost benchmarking against market prices. Different purities and forms (e.g., bullion, grain, powder) command different prices, making a precise comparison difficult without these details.
What are the potential risks associated with the price volatility of silver raw material over the contract duration?
Silver is a precious metal with inherent price volatility influenced by global economic factors, inflation, and industrial demand. Fluctuations could impact the actual cost to the government if the firm fixed price was set based on historical data that is no longer representative of current market conditions at the time of delivery.
How effectively does the full and open competition process ensure optimal value for this raw material procurement?
Full and open competition is generally the most effective method for ensuring optimal value by allowing all qualified sources to bid. This process drives down prices through market forces. However, for highly specialized or volatile commodities, the effectiveness also depends on the government's ability to accurately define specifications and anticipate market trends.
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: $18,681,521
Exercised Options: $18,681,521
Current Obligation: $18,681,521
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
More Contracts from Stonex Financial Ltd
- Silver RAW Material Mint MAC Silver Bullion — $46.4M (Department of the Treasury)
- Silver RAW Material — $22.5M (Department of the Treasury)
- Silver RAW Material — $21.9M (Department of the Treasury)
- Silver RAW Material Mint MAC Silver Bullion — $21.7M (Department of the Treasury)
- Silver RAW Material — $21.3M (Department of the Treasury)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)