Treasury's Mint Spends $3.7M on Gold Bullion from Asahi Refining USA Inc

Contract Overview

Contract Amount: $3,730,120 ($3.7M)

Contractor: Asahi Refining USA Inc

Awarding Agency: Department of the Treasury

Start Date: 2026-01-20

End Date: 2026-02-06

Contract Duration: 17 days

Daily Burn Rate: $219.4K/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. Significant expenditure on raw gold bullion for mint operations. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to commodity price fluctuations and supply chain. 4. Sector context is nonferrous metals, with specific application in coinage.

Value Assessment

Rating: fair

The contract value of $3.7M for gold bullion appears reasonable given the commodity's market price. Benchmarking against similar raw material procurements would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which typically fosters competitive pricing. The award was a delivery order, indicating it was part of a larger contract vehicle.

Taxpayer Impact: Taxpayer funds are used for acquiring a valuable commodity, the price of which is subject to market volatility.

Public Impact

Direct impact on the precious metals market through significant purchase volume. Supports the production of coinage, affecting availability and cost of currency. Potential for price fluctuations in gold impacting the overall cost to taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Commodity price volatility
Supply chain disruptions for precious metals

Positive Signals

Full and open competition
Firm fixed price contract

Sector Analysis

The procurement falls under the nonferrous metal sector, specifically for gold bullion used by the U.S. Mint. Spending benchmarks for such raw material acquisitions are highly dependent on global market prices.

Small Business Impact

The data does not indicate any specific provisions or considerations for small business participation in this contract.

Oversight & Accountability

The U.S. Mint, as part of the Department of the Treasury, operates under established procurement regulations. Oversight would focus on adherence to contract terms and market price verification.

Related Government Programs

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

Risk Flags

Commodity price volatility
Supply chain risk
Market concentration of suppliers
Geopolitical factors affecting gold prices

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: 2026-01-20. End: 2026-02-06.

How does the awarded price compare to the prevailing market price of gold at the time of award?

A detailed comparison to the spot price of gold on or around the award date is crucial. Given the $3.7M value, even minor deviations from the market rate could represent significant taxpayer cost. Further analysis would require access to historical market data and the specific contract terms.

What are the specific risks associated with relying on a single supplier for a critical commodity like gold?

While competition was full and open for this delivery order, the long-term reliance on specific refiners can introduce risks. These include potential supply chain vulnerabilities, geopolitical influences on gold sourcing, and the possibility of future limited competition if market conditions change.

What is the effectiveness of the firm fixed price contract in mitigating cost overruns for volatile commodities?

A firm fixed price contract is effective in locking in the price at the time of award, thereby mitigating cost overruns due to price increases. However, it does not protect the government from the initial high cost if the market price is already elevated. It shifts the risk of price fluctuations to the contractor.

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: $3,730,120

Exercised Options: $3,730,120

Current Obligation: $3,730,120

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