Treasury's $13.7M precious metals contract awarded to A-Mark Precious Metals, Inc. for fabricated metal products

Contract Overview

Contract Amount: $13,684,494 ($13.7M)

Contractor: A-Mark Precious Metals, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2009-06-23

End Date: 2009-07-02

Contract Duration: 9 days

Daily Burn Rate: $1.5M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE RAW GOLD MATERIAL

Place of Performance

Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $13.7 million to A-MARK PRECIOUS METALS, INC. for work described as: PROVIDE RAW GOLD MATERIAL Key points: 1. The contract value of $13.7 million represents a significant investment in fabricated metal products. 2. Competition dynamics for this contract were characterized by full and open competition. 3. Risk indicators appear low given the firm fixed-price contract type and short duration. 4. Performance context suggests a focus on specific fabricated metal product manufacturing. 5. Sector positioning is within the 'All Other Miscellaneous Fabricated Metal Product Manufacturing' category.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the fabricated metal products. The contract value of $13.7 million for a 9-day period suggests a high per-day expenditure. Comparing it to similar contracts for precious metals fabrication would be necessary for a more precise value assessment. The firm fixed-price nature provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bidders suggests a degree of market interest and competition. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiary is the United States Mint, which procures essential fabricated metal products. Services delivered include the manufacturing of specific fabricated metal products, likely related to coinage or bullion. The geographic impact is primarily within California, where the contractor is located. Workforce implications are likely concentrated within the specialized manufacturing sector of the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed product specifications makes it difficult to assess the true value for money.
The short duration of the contract might indicate a one-time need or a gap-filling measure, raising questions about long-term strategy.
Limited competition (2 bidders) could still leave room for price optimization.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost certainty and limits the government's financial risk.
Contractor is based in California, potentially supporting regional economic activity.

Sector Analysis

This contract falls within the fabricated metal product manufacturing sector, specifically 'All Other Miscellaneous Fabricated Metal Product Manufacturing'. This sector is diverse, encompassing a wide range of metal goods. The market size for such specialized manufacturing can vary significantly based on the specific product. Comparable spending benchmarks would depend heavily on the exact nature of the precious metals fabrication required by the U.S. Mint.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit information on subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless A-Mark Precious Metals, Inc. engages in significant small business subcontracting, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's internal audit and compliance functions, as well as the U.S. Mint's program management. Transparency is facilitated by contract award data, but detailed performance reports and Inspector General reviews would provide deeper accountability insights. Specific oversight mechanisms for this particular contract are not detailed in the provided data.

Related Government Programs

Precious Metals Procurement
Fabricated Metal Product Manufacturing
U.S. Mint Operations
Department of the Treasury Contracts

Risk Flags

Limited Competition
Short Contract Duration
Lack of Detailed Product Specification

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $13.7 million to A-MARK PRECIOUS METALS, INC.. PROVIDE RAW GOLD MATERIAL

Who is the contractor on this award?

The obligated recipient is A-MARK PRECIOUS METALS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2009-06-23. End: 2009-07-02.

What specific fabricated metal products were procured under this contract?

The provided data classifies the contract under NAICS code 332999, 'All Other Miscellaneous Fabricated Metal Product Manufacturing.' However, it does not specify the exact nature of the precious metals products. Given the agency (United States Mint), these products could range from components for coinage, medals, or bullion production, to specialized containers or handling equipment for precious metals. Without further detail, the precise nature of the fabricated metal products remains unspecified, making a granular assessment of value and suitability difficult.

How does the $13.7 million contract value compare to historical spending on similar fabricated metal products by the U.S. Mint?

Direct historical spending comparisons for this specific type of fabricated metal product are not available in the provided data. The contract value of $13.7 million for a very short duration (9 days) suggests a potentially high unit cost or a large volume of specialized items. To perform a meaningful comparison, one would need to analyze historical U.S. Mint contracts for similar fabricated metal products, considering factors like quantity, material, complexity, and inflation over time. The limited competition (2 bidders) also warrants a closer look at pricing trends compared to periods with broader competition.

What are the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not specify the key performance indicators (KPIs) or the methods used for performance measurement for this contract. Typically, for fabricated metal products, KPIs might include quality standards (e.g., material purity, dimensional accuracy, finish), delivery timelines, and adherence to specifications. The firm fixed-price nature implies that the contractor is responsible for meeting all requirements within the agreed price. A thorough review would require access to the contract's statement of work and any associated performance management plans.

What is the track record of A-Mark Precious Metals, Inc. in fulfilling government contracts, particularly for fabricated metal products?

The provided data indicates A-Mark Precious Metals, Inc. was awarded this contract. However, it does not offer details on their past performance, especially concerning government contracts for fabricated metal products. A comprehensive assessment of their track record would involve reviewing their contract history with federal agencies, including past performance evaluations, any instances of contract disputes or terminations, and their experience in manufacturing similar items. Without this historical context, it's difficult to gauge their reliability and expertise for this specific requirement.

Given the short duration and high value, what is the risk assessment associated with this contract?

The primary risks associated with this contract appear to be related to the potential for cost overruns if the scope was underestimated, or quality issues if production is rushed due to the short 9-day duration. However, the firm fixed-price (FFP) contract type mitigates financial risk for the government, placing the burden of cost control on the contractor. The limited competition (2 bidders) could also pose a risk if it led to suboptimal pricing. A thorough risk assessment would also consider the contractor's past performance, the complexity of the fabricated metal products, and the criticality of their timely delivery to U.S. Mint operations.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › All Other Miscellaneous Fabricated Metal Product Manufacturing

Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Spectrum Group International Inc. (UEI: 806666475)

Address: 100 WILSHIRE BLVD FL 3, SANTA MONICA, CA, 36

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,684,494

Exercised Options: $13,684,494

Current Obligation: $13,684,494

Timeline