Treasury's $3.5M Gold Bullion Purchase: Asahi Refining Wins Contract Amidst Firm Fixed Price Agreement
Contract Overview
Contract Amount: $3,514,553 ($3.5M)
Contractor: Asahi Refining USA Inc
Awarding Agency: Department of the Treasury
Start Date: 2026-01-20
End Date: 2026-01-30
Contract Duration: 10 days
Daily Burn Rate: $351.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RAW GOLD BULLION MINT MAC GOLD BULLION
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84120
State: Utah Government Spending
Plain-Language Summary
Department of the Treasury obligated $3.5 million to ASAHI REFINING USA INC for work described as: RAW GOLD BULLION MINT MAC GOLD BULLION Key points: 1. The contract is for raw gold bullion, a commodity with volatile pricing. 2. Asahi Refining USA Inc. is the sole awardee, raising questions about competition. 3. The short duration (10 days) suggests a specific, immediate need. 4. The sector is Nonferrous Metal, with gold being a key component.
Value Assessment
Rating: fair
The contract value of $3.5M for 10 days of delivery is difficult to benchmark without specific quantity and purity details. However, the firm fixed price suggests the government accepted Asahi's pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded to Asahi Refining USA Inc., the contract states 'FULL AND OPEN COMPETITION'. This implies multiple bids were considered, but Asahi was selected. The impact on price discovery is unclear without bid details.
Taxpayer Impact: Taxpayer funds are used for this purchase. The value for money depends on market conditions at the time of award and delivery.
Public Impact
Purchase of precious metals by a government agency. Potential impact on gold market liquidity if the quantity is significant. Transparency of the procurement process for a high-value commodity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition visibility
- Commodity price volatility risk
Positive Signals
- Firm fixed price contract
- Clear awardee and agency
Sector Analysis
This contract falls under the Nonferrous Metal sector, specifically involving gold bullion. Government purchases of gold can be for strategic reserves or specific projects, and pricing is tied to global commodity markets.
Small Business Impact
There is no indication that small businesses were involved in this contract award. The focus appears to be on specialized refiners capable of handling large quantities of precious metals.
Oversight & Accountability
The United States Mint is responsible for this procurement. Oversight would involve ensuring delivery meets specifications and that the price paid aligns with market value at the time of award.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential lack of robust competition despite 'full and open' designation.
- Exposure to gold price volatility.
- Limited transparency on specific quantity and purity.
- Short delivery window may indicate urgency or limited supplier capacity.
Tags
nonferrous-metal-except-copper-and-alumi, department-of-the-treasury, ut, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $3.5 million to ASAHI REFINING USA INC. RAW GOLD BULLION MINT MAC GOLD BULLION
Who is the contractor on this award?
The obligated recipient is ASAHI REFINING USA 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 $3.5 million.
What is the period of performance?
Start: 2026-01-20. End: 2026-01-30.
What is the specific quantity and purity of gold bullion being procured, and how does the awarded price compare to the spot market price for equivalent gold at the time of contract award?
The provided data does not specify the exact quantity or purity of the gold bullion. To assess value, a comparison with the prevailing spot market price for gold of the same fineness and weight, adjusted for any premiums or discounts, would be necessary. The firm fixed price suggests the government has locked in a price, but its fairness relative to the market requires more detailed information.
Given the 'full and open competition' designation, what factors led to Asahi Refining USA Inc. being the sole awardee, and what mechanisms were in place to ensure a competitive price discovery process
The designation of 'full and open competition' implies that the solicitation was broadly advertised. However, the selection of a single awardee, Asahi Refining USA Inc., suggests that either they were the only responsive bidder meeting all requirements, or their offer was deemed the most advantageous. The specific evaluation criteria and the number of bids received would clarify the extent of price discovery achieved.
What is the intended use of this gold bullion, and how does this procurement align with the strategic objectives of the Department of the Treasury and the United States Mint?
The intended use of the gold bullion is not detailed in the provided data. Government acquisitions of gold can serve various purposes, including maintaining national reserves, funding specific initiatives, or as part of monetary policy operations. Understanding the specific application would be crucial to evaluating the effectiveness and strategic alignment of this $3.5 million expenditure.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Asahi Holdings, Inc.
Address: 4601 W 2100 S, SALT LAKE CITY, UT, 84120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $3,514,553
Exercised Options: $3,514,553
Current Obligation: $3,514,553
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG21D00006
IDV Type: IDC
Timeline
Start Date: 2026-01-20
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2026-01-20
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