Treasury's Mint awards $3.67M contract for gold bullion to Asahi Refining USA Inc

Contract Overview

Contract Amount: $3,666,392 ($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: $166.7K/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 awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for a short duration, indicating a specific, time-bound need for gold bullion. 3. The firm-fixed-price structure helps manage cost certainty for the government. 4. The award value is relatively modest for a federal contract, suggesting a focused procurement. 5. The procurement falls under nonferrous metal rolling, drawing, and extruding, a specialized industrial category.

Value Assessment

Rating: good

The contract value of $3.67 million for gold bullion appears reasonable given the commodity's market price fluctuations and the specialized nature of refining and minting. Benchmarking against historical government purchases of precious metals would provide a more precise value assessment. However, the firm-fixed-price contract type offers cost predictability. Without specific per-unit data, a direct comparison to market rates is challenging, but the award to a known refiner suggests a competitive market price was likely achieved.

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 a competitive environment, which can lead to better pricing and terms for the government. The open competition suggests that the United States Mint sought the best value from the available market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government is not overpaying for necessary goods or services.

Public Impact

The primary beneficiary is the United States Mint, which will receive the gold bullion for its operations, likely for coinage or investment purposes. The services delivered involve the supply of raw gold bullion, a critical component for mint operations. The geographic impact is primarily within the United States, where the Mint operates and the bullion will be utilized. Workforce implications are minimal for the contracting agency, but the contractor, Asahi Refining USA Inc., will utilize its specialized workforce for refining and delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the quantity and purity of gold bullion, making it difficult to assess the exact value proposition.
Limited information on the number of bidders in the full and open competition could obscure the true level of market engagement.
The short delivery window might pose logistical challenges or premium pricing if not managed efficiently.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Firm-fixed-price contract provides cost certainty and protects against price escalations.
Contractor, Asahi Refining USA Inc., is a known entity in the precious metals industry, suggesting reliability.
The contract supports the operational needs of the United States Mint, a core government function.

Sector Analysis

This contract falls within the broader metals and mining sector, specifically focusing on precious metals refining and supply. The market for gold bullion is global and subject to significant price volatility. Government procurements of this nature are typically for strategic reserves, coinage, or investment portfolios. Comparable spending benchmarks would involve analyzing past U.S. Mint purchases or other federal agencies' acquisitions of precious metals, which are often infrequent and highly specialized.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus was on full and open competition, likely prioritizing specialized capabilities over small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the United States Mint's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified gold bullion. Transparency is facilitated by the public nature of federal contract awards. While no specific Inspector General jurisdiction is mentioned, the Treasury Inspector General for Tax Administration (TIGTA) may have oversight over Treasury Department procurements if fraud, waste, or abuse is suspected.

Related Government Programs

United States Mint Operations
Treasury Department Procurement
Precious Metals Management
Federal Commodity Purchases

Risk Flags

Commodity Price Volatility
Supply Chain Risk
Limited Bidder Information

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 quantity and purity of gold bullion being procured under this contract?

The provided data does not specify the exact quantity (e.g., in troy ounces or kilograms) or the precise purity (e.g., .999 fine) of the gold bullion. This information is crucial for a comprehensive value assessment, as the market price is directly tied to both weight and fineness. Without these details, it is difficult to perform a precise cost-per-unit analysis or compare it directly to spot market prices for gold of a specific standard. Future analysis should seek to obtain these specifications to fully evaluate the contract's value for money.

How does the awarded price compare to recent market prices for gold bullion of similar specifications?

Direct comparison to recent market prices is challenging without knowing the exact quantity and purity of the gold bullion. However, the contract value of $3.67 million for a short delivery period suggests a price that reflects current market conditions, including potential premiums for refining, assaying, and timely delivery. To conduct a thorough benchmark, one would need to identify comparable market transactions for gold bullion meeting the contract's (unspecified) purity and form (e.g., bars, grain) around the contract award date. The firm-fixed-price nature implies the contractor absorbed any price fluctuations between bid submission and delivery.

What is the track record of Asahi Refining USA Inc. in fulfilling government contracts for precious metals?

Asahi Refining USA Inc. is a recognized entity in the precious metals industry. While the provided data does not detail their specific history with government contracts, their presence in the market suggests they possess the necessary certifications and capabilities for refining and supplying precious metals. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would reveal their past performance on similar contracts, including any performance ratings, past issues, or successful deliveries. This would provide insight into their reliability and experience in meeting government requirements.

What is the strategic purpose of this gold bullion acquisition for the United States Mint?

The strategic purpose of this gold bullion acquisition is likely multifaceted, supporting the core functions of the United States Mint. It could be intended for the production of gold coins for collectors or investors, bolstering the nation's official gold reserves, or potentially for use in specific commemorative programs. The Mint's mandate includes producing circulating coinage, bullion coinage, and protective services related to the nation's monetary system. Acquiring raw materials like gold bullion is fundamental to fulfilling these responsibilities, ensuring a supply chain for precious metal products and reserves.

What historical spending patterns exist for gold bullion procurement by the U.S. Mint or other federal agencies?

Historical spending patterns for gold bullion by the U.S. Mint and other federal agencies are generally characterized by infrequent, large-volume procurements rather than routine purchases. These acquisitions are often tied to specific policy decisions regarding monetary reserves, the issuance of bullion coins (like American Eagles), or strategic metal stockpiling. Data from previous years might show significant variations in spending based on market conditions, government policy shifts, and the specific needs of programs like the American Eagle Gold Bullion Coin program. Analyzing these patterns requires accessing historical contract databases and treasury reports.

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: $3,666,392

Exercised Options: $3,666,392

Current Obligation: $3,666,392

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