Treasury's Mint Spends $3.5M on Gold Bullion from Asahi Refining USA Inc

Contract Overview

Contract Amount: $3,542,035 ($3.5M)

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: $208.4K/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 $3.5 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 specific commodity need. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract is a delivery order, indicating a need for immediate or phased supply. 4. The sector is Nonferrous Metal Rolling, Drawing, and Extruding, with a focus on precious metals.

Value Assessment

Rating: fair

The contract value of $3.5M for gold bullion is substantial. Benchmarking against market prices for gold at the time of award is crucial to assess value. Without specific quantity or purity details, a direct per-unit cost 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 award to Asahi Refining USA Inc. suggests they offered the best value under the established terms. The impact on price discovery is positive due to the competitive bidding process.

Taxpayer Impact: Taxpayer funds are being used for the acquisition of a valuable commodity. The effectiveness of the competition in securing a fair price directly impacts the taxpayer's return on investment.

Public Impact

Public funds are acquiring a high-value commodity, gold bullion. The transaction involves a major government mint, indicating strategic reserves or operational needs. Transparency is maintained through full and open competition, allowing public scrutiny of the process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential price volatility of gold bullion.
Dependence on a single supplier for a critical commodity.
Logistics and security costs associated with transporting and storing gold.

Positive Signals

Utilized full and open competition.
Awarded to a known refiner, Asahi Refining USA Inc.
Contract has a defined delivery period.

Sector Analysis

The acquisition falls under the Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding sector, specifically focusing on precious metals. Government spending in this area is typically driven by reserve needs or specific minting operations, with benchmarks often tied to global commodity prices.

Small Business Impact

The data indicates no specific set-aside for small businesses. The nature of gold refining and bullion supply often involves large, specialized companies, making it less common for small businesses to participate directly in such high-value contracts.

Oversight & Accountability

The United States Mint, as the agency, is responsible for oversight. The use of delivery orders under a firm-fixed-price contract provides some accountability for delivery and cost. Further oversight would involve tracking the quality and quantity of the delivered bullion.

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.
Potential for supply chain disruptions.
Security risks associated with high-value asset transport.
Dependence on specific refiner's capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.5 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 $3.5 million.

What is the period of performance?

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

What is the specific purpose of acquiring this quantity of gold bullion, and how does it align with the Mint's strategic objectives?

The specific purpose of acquiring $3.5 million in gold bullion is not detailed in the provided data. However, the United States Mint's primary functions include producing circulating coinage, bullion coins, and medals, as well as safeguarding the nation's gold reserves. This purchase could be for replenishing reserves, fulfilling demand for bullion coins, or supporting specific minting projects. Understanding the exact purpose is key to evaluating the strategic alignment and necessity of the expenditure.

How does the awarded price compare to the prevailing market price of gold at the time of the contract award, considering purity and form?

The provided data does not include the exact price per ounce or the specific purity and form of the gold bullion purchased. To assess value, this information would need to be compared against the London Bullion Market Association (LBMA) spot price or other relevant benchmarks for gold of similar fineness (e.g., 99.99% pure) on or around the award date. The $3.5 million total cost, divided by the quantity, would be the basis for this comparison.

What measures are in place to ensure the quality, authenticity, and secure delivery of the gold bullion to the Mint?

Asahi Refining USA Inc. is a reputable refiner, suggesting adherence to industry standards for purity and quality. The contract likely includes specifications for the gold's fineness and weight. Secure delivery would involve established logistics protocols, potentially including insured transport and secure receiving procedures at the Mint's facilities. The Mint's internal quality control processes would verify the received bullion against contract specifications.

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: $3,542,035

Exercised Options: $3,542,035

Current Obligation: $3,542,035

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