Treasury's Mint Spends $3.56M on Gold Bullion from Asahi Refining USA Inc

Contract Overview

Contract Amount: $3,563,028 ($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: $209.6K/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. Significant expenditure on raw gold bullion highlights demand for precious metals. 2. Competition was full and open, suggesting a potentially competitive price discovery. 3. Risk is moderate, tied to market price fluctuations of gold. 4. Sector context is nonferrous metals, with specific application in minting operations.

Value Assessment

Rating: fair

The contract value of $3.56M for gold bullion is substantial. Benchmarking requires comparison to current market prices for raw gold bullion of similar purity and quantity, which can fluctuate daily. Without specific purity and weight details, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The firm fixed price structure provides cost certainty for the government, but the ultimate price is dictated by market conditions at the time of award.

Taxpayer Impact: Taxpayer funds are used for this purchase. The value depends on whether the price paid reflects fair market value for the gold bullion acquired.

Public Impact

Public funds are being used to acquire a valuable commodity, gold. The purchase supports the operational needs of the United States Mint. Transparency in pricing against market benchmarks is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Market price volatility of gold
Potential for price gouging if market intelligence is poor

Positive Signals

Full and open competition
Firm fixed price contract

Sector Analysis

This contract falls within the nonferrous metals sector, specifically related to precious metals. Spending benchmarks for raw gold bullion are highly variable and tied directly to global commodity markets. The $3.56M expenditure is significant for a single acquisition.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. The primary contractor, Asahi Refining USA Inc., is a significant refiner, and it's unlikely small businesses would be primary suppliers for this scale of raw bullion.

Oversight & Accountability

The United States Mint, under the Department of the Treasury, is responsible for this procurement. Standard government oversight processes for contract execution and payment apply. Accountability rests on ensuring the acquisition meets specifications and is priced competitively.

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 overpayment if market intelligence is weak
Reliance on a single primary supplier for a critical commodity

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 was the specific price per ounce or gram of gold paid under this contract, and how does it compare to the prevailing market rate at the time of award?

The provided data does not specify the exact quantity of gold bullion purchased, only the total contract value. To assess value, one would need to know the weight of the gold and compare the price per unit (ounce or gram) to the spot price of gold on the award date. This comparison is essential for determining if the government secured a fair market price.

What measures were in place to mitigate risks associated with gold price volatility during the contract period, given the short delivery window?

The contract is a firm fixed price award with a short delivery window (2026-01-20 to 2026-02-06). This structure largely transfers the risk of price fluctuations to the contractor, Asahi Refining USA Inc. The government's risk is primarily that the fixed price might be significantly above the market rate if market prices fall unexpectedly before the award date.

How does the United States Mint's procurement strategy for precious metals ensure optimal value and minimize taxpayer exposure to market fluctuations?

The Mint's strategy likely involves a combination of market monitoring, strategic sourcing, and leveraging competitive bidding processes like the full and open competition used here. By securing a firm fixed price, they aim for cost certainty. However, the effectiveness in achieving optimal value hinges on the accuracy of market intelligence used to set the fixed price and the competitiveness of the bidding environment.

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: $3,563,028

Exercised Options: $3,563,028

Current Obligation: $3,563,028

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