Treasury's Mint Spends $3.56M on Raw Gold Bullion from Asahi Refining USA Inc
Contract Overview
Contract Amount: $3,556,449 ($3.6M)
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: $209.2K/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. Spending is concentrated with a single supplier, Asahi Refining USA Inc. 2. The contract is for raw gold bullion, a commodity with volatile pricing. 3. Potential risk exists due to the reliance on a sole supplier for a critical commodity. 4. The sector is Nonferrous Metal Rolling, Drawing, and Extruding, with gold bullion as a specific product.
Value Assessment
Rating: fair
The contract value of $3.56M for raw gold bullion is difficult to assess without market benchmarks for this specific type of procurement. Pricing is likely tied to fluctuating spot prices of gold.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific supplier for raw gold bullion may be limited by refining capabilities and market access.
Taxpayer Impact: Taxpayer funds are used for the purchase of a valuable commodity. Price discovery is influenced by global gold markets and the competitive bidding process.
Public Impact
Public funds are being used to acquire a precious metal, impacting national reserves or investment portfolios. The transaction involves a commodity whose value fluctuates significantly, potentially affecting the overall cost to taxpayers. The United States Mint's procurement of gold bullion could influence market perceptions or demand.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Commodity price volatility
- Supplier concentration risk
- Limited transparency on specific gold sourcing
Positive Signals
- Awarded under full and open competition
- Firm fixed price contract type
Sector Analysis
The procurement falls under the Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding sector. Spending benchmarks for raw gold bullion are highly variable due to market fluctuations and are not easily comparable to standard manufacturing or industrial materials.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The nature of gold refining and bullion supply often involves larger, specialized entities.
Oversight & Accountability
The United States Mint is responsible for this procurement. Oversight would involve ensuring compliance with procurement regulations, quality control of the bullion, and adherence to the contract terms.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Reliance on a single supplier for a critical commodity.
- Exposure to significant commodity price fluctuations.
- Potential for market manipulation or supply chain disruptions.
- Lack of detailed justification for the specific quantity and timing of purchase.
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 $3.6 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: 2026-01-20. End: 2026-02-06.
What is the specific purpose of acquiring this raw gold bullion, and how does it align with the Mint's strategic objectives?
The specific purpose of acquiring raw gold bullion is not detailed in the provided data. Typically, the U.S. Mint might procure gold for coinage, investment purposes, or to manage national reserves. Understanding the intended use is crucial for assessing the value and necessity of this expenditure, and how it contributes to broader economic or monetary policy goals.
How are the risks associated with gold price volatility being mitigated throughout the contract period?
Mitigation strategies for gold price volatility are not explicitly stated. Given the firm fixed price contract, the risk of price fluctuations during the delivery period is likely borne by the contractor, Asahi Refining USA Inc. However, the initial pricing would have factored in anticipated market conditions, and the government's exposure is primarily through the agreed-upon price.
What mechanisms are in place to ensure the quality and authenticity of the raw gold bullion received?
The U.S. Mint likely has stringent quality assurance protocols for precious metal acquisitions. This would include assaying the bullion to verify its purity and weight, ensuring it meets the specifications outlined in the contract. Compliance with industry standards and potentially independent third-party verification would be expected.
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: $3,556,449
Exercised Options: $3,556,449
Current Obligation: $3,556,449
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: 2026-01-20
Current End Date: 2026-02-06
Potential End Date: 2026-02-06 00:00:00
Last Modified: 2026-01-21
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