Treasury's Mint awards $5.7M contract for gold bullion to Asahi Refining USA Inc

Contract Overview

Contract Amount: $5,697,640 ($5.7M)

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: $335.2K/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 $5.7 million to ASAHI REFINING USA INC for work described as: RAW GOLD BULLION MINT MAC GOLD BULLION Key points: 1. Contract awarded for raw gold bullion, indicating a need for precious metals for minting operations. 2. The contract value of approximately $5.7 million suggests a significant volume of gold required. 3. Asahi Refining USA Inc. secured this award, highlighting their role as a key supplier in the precious metals market. 4. The fixed-price contract type provides cost certainty for the government. 5. Awarded under full and open competition, suggesting a robust bidding process. 6. The short duration of the delivery order implies a specific, immediate need for the bullion.

Value Assessment

Rating: good

The contract value of $5.7 million for raw gold bullion appears reasonable given market prices for precious metals. Benchmarking against historical purchases of similar materials by the Mint or other government agencies would provide further context. The firm fixed-price structure helps manage cost fluctuations inherent in commodity markets. Without specific quantity details, a direct per-unit cost comparison is challenging, but the overall award seems aligned with typical procurement scales for such materials.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The specific number of bidders is not provided, but this method generally fosters competitive pricing and allows the government to select the most advantageous offer. The open competition suggests that Asahi Refining USA Inc. was selected based on merit, price, or a combination thereof, rather than through a restricted process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives the best value for its expenditure on essential commodities like gold bullion.

Public Impact

The United States Mint benefits by securing a supply of raw gold bullion necessary for its coin and medal production. This contract supports the Mint's mission to produce circulating coinage, bullion coins, and medals. The geographic impact is primarily within the United States, where the Mint operates its facilities. The contract has implications for the precious metals refining and supply chain industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in the gold market impacting the actual value delivered.
Dependence on a single supplier for a critical raw material could pose a risk if supply chains are disrupted.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract provides cost certainty for the government.
Supplier, Asahi Refining USA Inc., is a known entity in the precious metals industry.

Sector Analysis

The procurement of raw gold bullion falls within the broader materials and mining sector, specifically nonferrous metals. The market for gold is global and subject to significant price fluctuations driven by economic conditions, investor sentiment, and geopolitical events. The United States Mint is a major consumer of precious metals for its coinage operations. Comparable spending benchmarks would involve analyzing the Mint's historical purchases of gold and silver, as well as the purchasing patterns of other national mints or large-scale industrial users of precious metals.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Asahi Refining USA Inc. is a large corporation, not a small business. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on securing a large volume of a commodity from a major refiner.

Oversight & Accountability

Oversight for this contract would primarily fall under the United States Mint's internal procurement and quality assurance processes. The Department of the Treasury's Office of Inspector General may also conduct audits or investigations into significant procurements to ensure compliance and prevent fraud. Transparency is generally maintained through contract award databases like FPDS, where basic information is publicly available.

Related Government Programs

United States Mint Coinage Production
Precious Metals Procurement
Commodity Futures and Trading

Risk Flags

Price Volatility Risk
Supply Chain Dependency
NAICS Code Mismatch

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.7 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 $5.7 million.

What is the period of performance?

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

What is the specific quantity of gold bullion being procured under this contract?

The provided data does not specify the exact quantity of gold bullion being procured. The contract value is listed as $5,697,639.91. To determine the quantity, one would need to know the price per unit (e.g., per troy ounce) at the time of the award or the contract's unit price. Without this information, it is impossible to ascertain the precise volume of gold involved. This detail is crucial for understanding the scale of the procurement and for performing accurate value-for-money assessments against market prices.

How does the price paid for this gold bullion compare to the spot market price around the award date?

The provided data does not include the specific price per unit of gold bullion or the exact award date, only the delivery order period. To compare this contract's pricing to the spot market, we would need the quantity procured and the average spot price of gold (e.g., per troy ounce) during the relevant period. Assuming the contract value of approximately $5.7 million represents a significant quantity, a detailed analysis would involve obtaining the unit price from the contract or estimating it based on market data. This comparison is essential for assessing whether the government secured a competitive price.

What is Asahi Refining USA Inc.'s track record with the US Mint and other government agencies?

Asahi Refining USA Inc. is a known entity in the precious metals industry. While the provided data confirms they were awarded this specific contract, a comprehensive track record analysis would require searching historical contract databases (like FPDS) for previous awards to this company from the US Mint and other federal agencies. This would reveal their history of performance, reliability, and pricing on prior contracts. Information on past performance evaluations, any disputes, or contract terminations would be critical for assessing their suitability and reliability for this current award.

What are the specific risks associated with procuring raw gold bullion, and how are they mitigated?

Procuring raw gold bullion carries several risks, primarily market price volatility and supply chain disruptions. Gold prices can fluctuate significantly due to global economic factors, geopolitical events, and investor demand. Supply chain risks include potential issues with mining, refining, or transportation. This contract attempts to mitigate price risk through a firm fixed-price structure, locking in a price at the time of award. Supply chain risks might be addressed through the supplier's established reputation and potentially through contractual clauses regarding delivery timelines and force majeure. The short delivery window suggests an immediate need, potentially reducing long-term price exposure.

How does this contract fit into the broader context of the US Mint's annual gold acquisition and spending?

This contract for approximately $5.7 million represents a specific acquisition of raw gold bullion. To understand its place in the broader context, one would need to examine the US Mint's annual reports and historical spending data on precious metals. The Mint typically procures significant quantities of gold and silver for its bullion coin programs (e.g., American Eagles) and commemorative coins. This $5.7 million award could represent a portion of their annual requirement or a specific batch needed for a particular production run. Comparing this value to the Mint's total annual budget for raw materials or its total revenue from bullion sales would provide essential perspective.

What is the significance of the 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding' NAICS code for this contract?

The NAICS code 331491, 'Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding,' is somewhat unusual for a contract primarily for raw gold bullion. Typically, raw material procurement might fall under mining, refining, or wholesale trade categories. This specific code relates to the manufacturing process of shaping metals into specific forms like sheets, rods, or tubes. It suggests that perhaps the gold bullion being procured is not in its most basic form (e.g., doré bars) but might be processed into a specific format (like planchets or semi-finished shapes) suitable for immediate minting, or the classification might be a broader categorization encompassing the supplier's overall business activities.

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: $5,697,640

Exercised Options: $5,697,640

Current Obligation: $5,697,640

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