Treasury's $3.7M gold bullion contract awarded to Asahi Refining USA Inc. for nonferrous metal processing

Contract Overview

Contract Amount: $3,743,536 ($3.7M)

Contractor: Asahi Refining USA Inc

Awarding Agency: Department of the Treasury

Start Date: 2026-01-15

End Date: 2026-02-06

Contract Duration: 22 days

Daily Burn Rate: $170.2K/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 $3.7 million to ASAHI REFINING USA INC for work described as: RAW GOLD BULLION MINT MAC GOLD BULLION Key points: 1. Contract value appears reasonable for specialized metal refining services. 2. Full and open competition suggests a competitive bidding process. 3. Short performance period may indicate a specific, time-bound need. 4. Focus on gold bullion processing aligns with Mint's core mission. 5. Contract type (firm fixed price) shifts risk to the contractor. 6. No small business set-aside noted, potentially limiting broader participation.

Value Assessment

Rating: good

The contract value of approximately $3.74 million for refining services is within a typical range for specialized precious metal processing. Benchmarking against similar contracts for gold refining is challenging due to the niche nature of the service and proprietary processes. However, the firm fixed-price structure suggests that the government has secured a defined cost for the work, which is generally favorable for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The open nature of the competition suggests that the Mint sought the best value from the market.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at a competitive market rate, preventing potential overpayment.

Public Impact

The United States Mint benefits from specialized refining services for its gold bullion operations. This contract supports the production and processing of precious metals essential for national reserves and numismatic products. The geographic impact is primarily linked to the contractor's facility location in Utah. Workforce implications are concentrated within the specialized skills required for precious metal refining at the contractor's site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on the number of bidders in the full and open competition.
Potential for limited competition if only a few firms possess the necessary specialized refining capabilities for gold bullion.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a known entity (Asahi Refining USA Inc.) may suggest a track record of performance.
Short duration suggests a focused, manageable project.

Sector Analysis

The contract falls within the nonferrous metal processing sector, specifically focusing on precious metals. This is a highly specialized niche within manufacturing. The market for gold refining is dominated by a few key players with the necessary security, expertise, and regulatory compliance. The United States Mint's spending in this area is critical for its mandate to produce, protect, and distribute precious metal coins and bullion.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Asahi Refining USA Inc. is likely a larger entity given the nature of the work. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is likely minimal unless Asahi engages small businesses for support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the United States Mint. Asahi Refining USA Inc. would be subject to standard contractual terms and conditions, including performance monitoring and quality assurance. Transparency is generally maintained through contract award databases, though specific performance metrics are often internal.

Related Government Programs

Precious Metals Refining Services
Gold Bullion Processing
Nonferrous Metal Manufacturing
Department of the Treasury Procurement

Risk Flags

Potential security risks associated with handling large quantities of gold.
Dependence on contractor's specialized expertise and facility capabilities.
Need for rigorous quality assurance to meet Mint's purity standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.7 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 $3.7 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-02-06.

What is the track record of Asahi Refining USA Inc. with government contracts, particularly with the United States Mint?

Information regarding Asahi Refining USA Inc.'s specific track record with government contracts, especially the United States Mint, is not detailed in the provided data. A deeper dive into the Federal Procurement Data System (FPDS) or other government contract databases would be necessary to ascertain past performance, any issues encountered, and the volume of previous awards. However, the fact that they were awarded this contract under full and open competition suggests they met the basic qualifications and were deemed a responsible source. Further investigation into their history with similar refining processes for other government agencies or private sector entities would provide a more comprehensive view of their capabilities and reliability.

How does the $3.74 million contract value compare to historical spending on similar gold refining services by the Mint?

The provided data does not include historical spending figures for similar gold refining services by the United States Mint, making a direct comparison difficult. The $3.74 million value is for a specific delivery order with a short performance period (22 days duration). To assess if this is a competitive price, one would need to analyze past contracts for refining services, considering factors like the quantity of gold processed, the purity levels required, and the specific refining techniques employed. Benchmarking would ideally involve comparing this contract's per-unit cost (e.g., cost per ounce or kilogram refined) against historical data or industry standards, which are not available here. The firm fixed-price nature, however, suggests cost certainty for this particular engagement.

What are the primary risks associated with this contract for the United States Mint?

The primary risks associated with this contract revolve around the specialized nature of gold refining and the short performance window. Potential risks include: 1) **Performance Risk:** Ensuring Asahi Refining USA Inc. meets the stringent purity and quality standards required for U.S. Mint bullion is critical. Any deviation could impact the value and integrity of the gold. 2) **Security Risk:** Handling large quantities of gold necessitates robust security protocols at the contractor's facility to prevent theft or loss. 3) **Supply Chain Risk:** Although not explicitly stated, disruptions in the supply chain for refining agents or operational issues at the contractor's plant could delay the service. 4) **Market Volatility:** While the contract is fixed-price, the underlying value of gold is volatile, which could indirectly impact the contractor's operational costs or willingness to bid on future contracts if margins are squeezed.

What is the expected effectiveness of this contract in supporting the Mint's mission?

This contract is expected to be highly effective in supporting the U.S. Mint's mission by ensuring the necessary refining of gold bullion. The Mint's mandate includes producing, protecting, and distributing precious metal coins and bullion. High-purity refining is a fundamental step in preparing gold for coinage, investment bars, and potentially for national reserves. By outsourcing this specialized task to Asahi Refining USA Inc. through a competitive process, the Mint can leverage external expertise and capacity, allowing its internal resources to focus on other critical aspects of its operations, such as minting, sales, and security. The firm fixed-price nature further enhances predictability in achieving this objective within the allocated budget.

Are there any indications of potential cost overruns or budget issues based on the contract details?

Based on the provided contract details, there are no immediate indications of potential cost overruns or budget issues. The contract is structured as a Firm Fixed Price (FFP), which means the price is set and not subject to adjustment based on the contractor's cost experience. This structure places the risk of cost overruns on the contractor, Asahi Refining USA Inc. The total award amount is $3,743,535.84. Without historical cost data or a detailed breakdown of the services included, it's difficult to definitively state it's the 'best' price, but the FFP mechanism itself is designed to provide budget certainty for the government. The short duration (22 days) also limits the window for unforeseen cost escalations.

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: $3,743,536

Exercised Options: $3,743,536

Current Obligation: $3,743,536

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