Treasury's $3.6M Gold Bullion Purchase from Asahi Refining Under Full and Open Competition
Contract Overview
Contract Amount: $3,621,508 ($3.6M)
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: $164.6K/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 $3.6 million to ASAHI REFINING USA INC for work described as: RAW GOLD BULLION MINT MAC GOLD BULLION Key points: 1. Significant expenditure on raw gold bullion for minting purposes. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to gold price volatility and supply chain. 4. Sector is Nonferrous Metals, with specific application in precious metals.
Value Assessment
Rating: fair
The contract value of $3.6M for raw gold bullion is substantial. Benchmarking requires comparison to current market prices for gold bullion of similar purity and quantity, which can fluctuate daily. Without specific unit pricing, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which is the preferred method for maximizing competition and achieving fair and reasonable prices. This approach allows multiple qualified vendors to bid, driving down costs through market forces.
Taxpayer Impact: Taxpayer funds are used for this purchase. While competition aims for efficiency, the ultimate cost is tied to the volatile global gold market.
Public Impact
Ensures supply of precious metals for U.S. Mint products. Supports the economic activity of precious metal refiners. Potential impact on the availability of gold for other industrial or investment uses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Gold price volatility
- Supply chain disruptions for precious metals
- Contract performance risk by the supplier
Positive Signals
- Use of full and open competition
- Clear delivery timeline
- Firm fixed price contract type
Sector Analysis
This contract falls within the Nonferrous Metal sector, specifically focusing on precious metals. Spending benchmarks for raw gold bullion are highly dependent on market prices and the specific purity and form required by the U.S. Mint.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. Full and open competition theoretically allows for small business participation if they meet the qualifications, but specific outreach efforts are not detailed.
Oversight & Accountability
The U.S. Mint, as part of the Department of the Treasury, operates under established procurement regulations. Oversight would involve monitoring contract performance, delivery schedules, and adherence to the firm fixed price.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Gold price volatility
- Supply chain dependency
- Potential for overpayment if market prices decline
- Limited detail on specific gold quality and quantity
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 $3.6 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 $3.6 million.
What is the period of performance?
Start: 2026-01-15. End: 2026-02-06.
What is the specific quantity and purity of gold bullion being procured, and how does the price compare to the spot market price at the time of award?
The specific quantity and purity of the gold bullion are not detailed in the provided data. To assess value, a comparison to the prevailing spot market price for gold of the specified purity (e.g., 99.99% pure) at the time of contract award is crucial. Fluctuations in the spot price significantly impact the fairness of the $3.6M expenditure.
What are the primary risks associated with relying on a single supplier, even within a full and open competition framework, for a critical commodity like gold?
Even with full and open competition, reliance on a single supplier for delivery carries risks such as potential supply chain disruptions (geopolitical, logistical, or refinery issues), quality control failures, or unforeseen market shocks affecting the supplier's ability to fulfill the contract. Mitigation strategies might include supplier vetting and contingency planning.
How effectively does the firm fixed price contract type protect the government against price escalations given the inherent volatility of gold prices?
A firm fixed price contract is generally advantageous for the government as it locks in the price, protecting against upward price volatility. However, if the market price of gold significantly drops after the contract award, the government might be overpaying. The effectiveness hinges on the timing of the award relative to market price trends.
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: $3,621,508
Exercised Options: $3,621,508
Current Obligation: $3,621,508
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: 2026-01-15
Current End Date: 2026-02-06
Potential End Date: 2026-02-06 00:00:00
Last Modified: 2026-01-20
More Contracts from Asahi Refining USA Inc
- RAW Gold Bullion Mint MAC Gold Bullion — $5.7M (Department of the Treasury)
- RAW Gold Bullion Mint MAC Gold Bullion — $5.4M (Department of the Treasury)
- RAW Gold Bullion Mint MAC Gold Bullion — $4.0M (Department of the Treasury)
- RAW Gold Bullion Mint MAC Gold Bullion — $4.0M (Department of the Treasury)
- RAW Gold Bullion Mint MAC Gold Bullion — $3.8M (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)