Treasury's $3.67M gold bullion contract awarded to Asahi Refining USA Inc. for 10 days

Contract Overview

Contract Amount: $3,673,438 ($3.7M)

Contractor: Asahi Refining USA Inc

Awarding Agency: Department of the Treasury

Start Date: 2026-01-27

End Date: 2026-02-06

Contract Duration: 10 days

Daily Burn Rate: $367.3K/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 value represents a small fraction of the Mint's overall operational budget. 2. Limited duration suggests a specific, short-term need for refining services. 3. Fixed-price contract offers cost certainty for the government. 4. Sole supplier for nonferrous metal refining could indicate specialized capabilities. 5. Geographic location in Utah may influence logistics and transportation costs. 6. Absence of small business set-aside warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $3.67 million for 10 days of service appears high on a daily basis, but without specific details on the volume of gold processed or the complexity of the refining required, a direct comparison to similar contracts is difficult. The firm fixed-price nature provides cost predictability. Benchmarking this against the Mint's historical refining costs or industry standards for large-scale precious metal refining would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the specific number of bidders is not provided, which limits the assessment of the competitive landscape. A robust competition typically leads to better pricing and service terms for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially higher quality services, leading to better use of public funds.

Public Impact

The United States Mint benefits from this contract by securing essential refining services for its operations. The service delivered is the refining of raw gold bullion into usable forms. The geographic impact is primarily centered around the contractor's facility in Utah and the Mint's operational sites. Workforce implications are likely limited to the specialized personnel employed by Asahi Refining USA Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the number of bidders in the full and open competition.
Potential for high per-diem costs given the short duration and significant contract value.
Limited insight into the specific refining processes and quality standards required.
Absence of explicit small business subcontracting goals.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
Firm fixed-price contract provides budget certainty.
Contractor is a known entity in the refining industry.
Clear delivery and performance period.

Sector Analysis

The contract falls within the nonferrous metal processing sector, specifically focusing on precious metals. The market for gold refining is specialized, with a limited number of highly capable firms globally. The United States Mint, as a government entity, requires secure and reliable refining services, often necessitating stringent security and quality controls. Comparable spending benchmarks would depend on the volume and purity requirements of the gold being processed.

Small Business Impact

The contract does not appear to have a small business set-aside. While the prime contractor, Asahi Refining USA Inc., may be a large business, there is no explicit information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if opportunities exist for small businesses to participate in the supply chain or provide ancillary services related to this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Treasury and 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 services within the performance period. Transparency is moderate, with the contract award being public, but details on the bidding process and specific performance metrics are not readily available. The Inspector General for the Department of the Treasury may have jurisdiction for audits and investigations if any irregularities are suspected.

Related Government Programs

United States Mint Operations
Precious Metals Management
Government Procurement of Industrial Services
Department of the Treasury Financial Operations

Risk Flags

Potential for high daily cost without volume context
Limited duration may increase risk of schedule slippage
Security risks associated with handling precious metals
Lack of detail on specific performance standards

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: 2026-01-27. End: 2026-02-06.

What is the typical track record of Asahi Refining USA Inc. with government contracts, particularly with the Department of the Treasury or the United States Mint?

Information regarding Asahi Refining USA Inc.'s specific track record with government contracts, especially with the Department of the Treasury or the United States Mint, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS-NG to identify past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. Understanding their past performance is crucial for assessing reliability and capability in fulfilling this current contract for gold bullion refining.

How does the awarded price of $3.67 million for 10 days of service compare to industry benchmarks for gold refining, considering the volume and purity requirements?

The provided data does not include the volume of gold bullion to be refined or the specific purity requirements, making a direct price comparison to industry benchmarks challenging. The daily rate implied by the contract ($367,343.84 per day) appears substantial. However, the value of gold refining services is highly dependent on the quantity processed, the complexity of the refining process (e.g., achieving very high purity levels), and associated security and logistical costs. Without these specifics, it's difficult to definitively state whether this represents good or poor value. Benchmarking would require access to market rates for similar large-scale refining operations.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential disruptions in the refining process, failure to meet stringent purity or delivery timelines, and security breaches related to the handling of valuable gold bullion. Given the short 10-day performance period, delays could have a significant impact. Mitigation strategies likely involve robust quality control measures, strict security protocols enforced by both the contractor and the Mint, and clear contractual penalties for non-performance. The firm fixed-price nature also mitigates cost overrun risks for the government. However, the specific risk mitigation plans are not detailed in the provided summary.

What is the historical spending pattern of the United States Mint for gold bullion refining services over the past five years?

The provided data snippet does not contain historical spending patterns for the United States Mint's gold bullion refining services. To assess this, one would need to analyze historical contract awards for similar services from the Mint. This would involve querying procurement databases for contracts related to 'gold refining,' 'precious metal processing,' or similar keywords, filtering by the United States Mint as the awarding agency, and examining the total expenditure and frequency of such contracts over the last five fiscal years. Understanding historical spending can reveal trends, identify periods of increased demand, and provide context for the current contract's value.

What specific performance metrics or deliverables are expected under this contract, and how will they be measured?

The provided data indicates the contract is for 'RAW GOLD BULLION MINT MAC GOLD BULLION' with a duration of 10 days and an award amount of $3,673,438.38. However, it does not specify the exact performance metrics or deliverables. Typically, for refining services, these would include the quantity of gold processed, the achieved purity levels (e.g., 99.99% fine gold), the turnaround time for the refining process, and adherence to specific security protocols. Measurement would likely involve assays for purity, tracking of processed volumes, and documented compliance with security and delivery schedules. The contract terms and statement of work would contain these details.

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: $3,673,438

Exercised Options: $3,673,438

Current Obligation: $3,673,438

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