Treasury's Mint Spends $3.7M on Gold Bullion from Asahi Refining USA Inc
Contract Overview
Contract Amount: $3,695,773 ($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: $168.0K/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 highlights demand for precious metals. 2. Asahi Refining USA Inc. is a key supplier in the precious metals market. 3. Potential risk associated with commodity price volatility and supply chain disruptions. 4. Spending falls within the 'Other' sector, but relates to precious metals trading.
Value Assessment
Rating: fair
The contract value of $3.7 million 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 pricing, a direct comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a competitive bidding process. This method should theoretically lead to price discovery and a fair market price for the bullion.
Taxpayer Impact: Taxpayer funds are used for acquiring gold, which can be seen as a store of value or for minting purposes. The ultimate impact depends on the strategic use and market performance of the gold.
Public Impact
Public funds are being used to purchase a significant quantity of gold. The purchase supports the operations of the United States Mint. Transparency in the pricing and rationale for gold acquisition is important for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Commodity price volatility
- Supply chain risks for precious metals
- Potential for market manipulation
Positive Signals
- Supports strategic reserves or minting operations
- Utilizes competitive bidding process
Sector Analysis
This expenditure relates to the acquisition of precious metals, which can be considered a specialized sector. Benchmarking against the broader nonferrous metals industry is less relevant than comparing against global gold market prices and transactions.
Small Business Impact
The data does not indicate any specific involvement or benefit to small businesses in this transaction. The supplier, Asahi Refining USA Inc., is likely a large-scale refiner.
Oversight & Accountability
The United States Mint, as a bureau within the Department of the Treasury, is subject to oversight. The procurement process, including the use of full and open competition, should be auditable.
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 of Gold
- Supply Chain Disruptions
- Storage and Security Costs
- Market Speculation
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 $3.7 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 specific rationale for acquiring this quantity of gold bullion at this time?
The rationale for acquiring gold bullion could range from replenishing strategic reserves, supporting the production of gold coins and medals, or as an investment. Understanding the Mint's specific objectives, such as meeting anticipated demand for numismatic products or hedging against inflation, would clarify the value proposition.
How does the price paid compare to the prevailing market price for raw gold bullion during the contract period?
A precise comparison requires access to the specific transaction price per ounce and the average market price of gold during the award and delivery periods. Given the $3.7 million contract value and current gold prices, this likely represents a significant volume. The use of full and open competition suggests an effort to secure a competitive price, but market fluctuations introduce inherent risk.
What are the potential risks associated with holding a large quantity of physical gold, and how are they mitigated?
Risks include price volatility, theft, storage costs, and liquidity issues. Mitigation strategies typically involve secure storage facilities, insurance, diversification of assets, and careful timing of purchases and sales based on market analysis and strategic objectives. The Mint likely has established protocols for managing these risks.
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: $3,695,773
Exercised Options: $3,695,773
Current Obligation: $3,695,773
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
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