Treasury's Mint Spends $3.6M on Gold Bullion from Asahi Refining USA Inc

Contract Overview

Contract Amount: $3,611,017 ($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: $164.1K/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 highlights a key commodity purchase. 2. Competition was full and open, suggesting a competitive price discovery process. 3. The contract is a delivery order, indicating a specific need for bullion. 4. The sector is Nonferrous Metal, with a focus on precious metals.

Value Assessment

Rating: fair

The contract value of $3.6M for gold bullion is substantial. Benchmarking against market prices for raw gold bullion is crucial to assess value, as prices fluctuate daily. Without specific unit details, a precise per-unit comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which generally promotes competitive pricing. The use of a firm fixed price contract provides cost certainty for the government. The impact on price discovery is positive due to multiple bidders.

Taxpayer Impact: Taxpayer funds are used for this purchase. The value for taxpayers depends on the price paid relative to the market value of gold at the time of purchase.

Public Impact

Direct purchase of a valuable commodity (gold) by a government agency. Potential impact on the precious metals market due to government acquisition. Transparency in procurement through full and open competition is a positive for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Commodity price volatility risk
Potential for market manipulation impacting price
Dependence on a single supplier for delivery

Positive Signals

Full and open competition utilized
Firm fixed price contract provides cost certainty
Clear end-use agency (US Mint)

Sector Analysis

The purchase falls under the Nonferrous Metal sector, specifically precious metals. Government spending on commodities like gold can be benchmarked against global market prices and other large institutional purchases.

Small Business Impact

There is no indication that small businesses were involved in this specific contract for raw gold bullion. The nature of gold refining and supply often involves larger, specialized entities.

Oversight & Accountability

The contract is a delivery order under a larger award, suggesting it might be part of a broader procurement strategy. Oversight would focus on ensuring the quality and quantity of gold delivered match specifications and the price paid is fair.

Related Government Programs

Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
Department of the Treasury Contracting
United States Mint Programs

Risk Flags

Price Volatility
Supply Chain Risk
Market Fluctuations
Quality Assurance

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 primary purpose of the US Mint purchasing raw gold bullion?

The US Mint primarily purchases raw gold bullion for its coin production and bullion sales programs. This includes striking American Eagle gold coins and other numismatic products, as well as providing investment-grade bullion for the public and investors.

What are the key risks associated with purchasing gold bullion?

Key risks include price volatility in the global gold market, potential for counterfeit or lower-purity bullion, and geopolitical events that can influence gold prices. Ensuring the integrity of the supply chain and the quality of the bullion is paramount.

How does this purchase contribute to the effectiveness of the US Mint's operations?

This purchase is essential for the operational effectiveness of the US Mint, ensuring a consistent supply of raw material needed for its core functions of producing circulating coinage, bullion coins, and medals. It directly supports their mission to mint and issue coins.

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: $3,611,017

Exercised Options: $3,611,017

Current Obligation: $3,611,017

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