Treasury Spends $19.7M on Silver from Sunshine Minting Inc. Under SAP Competition
Contract Overview
Contract Amount: $19,732,411 ($19.7M)
Contractor: Sunshine Minting Inc
Awarding Agency: Department of the Treasury
Start Date: 2012-12-18
End Date: 2012-12-20
Contract Duration: 2 days
Daily Burn Rate: $9.9M/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROVIDE RAW SILVER
Place of Performance
Location: COEUR D ALENE, KOOTENAI County, IDAHO, 83814
State: Idaho Government Spending
Plain-Language Summary
Department of the Treasury obligated $19.7 million to SUNSHINE MINTING INC for work described as: PROVIDE RAW SILVER Key points: 1. Significant expenditure on raw silver highlights demand for precious metals. 2. Sunshine Minting Inc. secured the contract, indicating potential market concentration. 3. The use of SAP suggests a streamlined procurement process, but may limit broader competition. 4. Fixed-price contract provides cost certainty for the government.
Value Assessment
Rating: fair
The contract value of $19.7M for raw silver is substantial. Benchmarking against market prices for silver during the contract period (December 2012) is necessary to fully assess value. The 'SAP' procurement method might not have yielded the absolute lowest price compared to a full and open competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (System for Award Management), which typically implies a limited competition, often for small business set-asides or specific circumstances. This method can expedite procurement but may not always achieve the best price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer funds were used for this purchase. The effectiveness of the limited competition in securing a fair price directly impacts the value for taxpayers.
Public Impact
Government procurement of precious metals impacts market supply and demand. The United States Mint's activities can influence the precious metals market. Transparency in procurement processes ensures public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP
- Potential for price overpayment without broader market engagement
Positive Signals
- Firm fixed-price contract provides cost certainty
- Procurement completed efficiently under SAP
Sector Analysis
The purchase falls under wholesale trade of precious metals. Government spending in this sector can be influenced by market volatility and strategic reserves. Benchmarks would typically involve comparing the price paid to prevailing market rates for silver at the time of award.
Small Business Impact
The data does not indicate if Sunshine Minting Inc. is a small business. Analysis of small business participation is not possible with the provided information.
Oversight & Accountability
The contract was awarded by the Department of the Treasury, United States Mint. Oversight would involve ensuring the silver met specifications and was delivered as per the contract terms. The use of SAP suggests adherence to specific procurement regulations.
Related Government Programs
- Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Limited competition may have resulted in a higher price.
- Lack of detail on supplier's small business status.
- Potential market impact of large government silver purchases.
- Need for price benchmarking against spot market rates.
Tags
jewelry-watch-precious-stone-and-preciou, department-of-the-treasury, id, po, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $19.7 million to SUNSHINE MINTING INC. PROVIDE RAW SILVER
Who is the contractor on this award?
The obligated recipient is SUNSHINE MINTING 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 $19.7 million.
What is the period of performance?
Start: 2012-12-18. End: 2012-12-20.
Was the price paid for the raw silver competitive given market conditions in December 2012?
Determining competitiveness requires comparing the $19.7 million contract value against the spot price of silver and the volume purchased during December 2012. The limited competition under SAP suggests that while a price was agreed upon, it may not represent the absolute lowest possible price achievable through a broader, more extensive bidding process.
What are the risks associated with procuring raw silver through a limited competition process?
The primary risk is the potential for paying a premium due to reduced market visibility and fewer bidders. This can lead to inefficient use of taxpayer funds. Additionally, reliance on a single or limited number of suppliers could create vulnerabilities in the supply chain if those suppliers face disruptions.
How effectively did this procurement meet the needs of the United States Mint?
The procurement was completed, indicating the Mint received the raw silver. The effectiveness hinges on whether the quantity and quality met operational requirements and if the price paid was reasonable relative to market alternatives. The fixed-price nature suggests budget predictability was achieved.
Industry Classification
NAICS: Wholesale Trade › Miscellaneous Durable Goods Merchant Wholesalers › Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7600 N MINERAL DR STE 700, COEUR D ALENE, ID, 01
Business Categories: Category Business, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,732,411
Exercised Options: $19,732,411
Current Obligation: $19,732,411
Timeline
Start Date: 2012-12-18
Current End Date: 2012-12-20
Potential End Date: 2012-12-20 00:00:00
Last Modified: 2012-12-27
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