Treasury's Mint Spends $3.7M on Gold Bullion from Asahi Refining USA Inc
Contract Overview
Contract Amount: $3,712,787 ($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: $371.3K/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. Significant expenditure on raw gold bullion for mint operations. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk of price volatility in the gold market impacts overall value. 4. Sector context is within precious metals and minting operations.
Value Assessment
Rating: good
The contract value of $3.7M for gold bullion appears reasonable given market prices for raw gold. Benchmarking against similar bulk precious metal purchases would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically drives competitive pricing. The firm fixed price contract provides cost certainty for this acquisition.
Taxpayer Impact: Taxpayer funds are used for acquiring a valuable commodity, with the expectation of it being used in coinage or other mint products.
Public Impact
Direct impact on the availability of precious metals for U.S. coinage. Potential influence on the market for gold bullion depending on the quantity purchased. Supports the operational needs of the United States Mint.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Gold price volatility
- Supply chain disruptions for precious metals
Positive Signals
- Full and open competition
- Firm fixed price contract
Sector Analysis
This contract falls within the precious metals sector, specifically for raw materials used in minting operations. Benchmarks for bulk precious metal procurement are highly market-driven.
Small Business Impact
No specific indication of small business participation in this contract. The nature of raw gold bullion procurement often involves large, specialized suppliers.
Oversight & Accountability
The United States Mint is responsible for executing this contract. Oversight would involve ensuring delivery of specified gold quality and quantity at the agreed-upon price.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Market volatility of gold prices
- Potential for supply chain disruptions affecting delivery
- Contractor's financial stability and refining capacity
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 $3.7 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 specific purpose of this gold bullion acquisition?
The gold bullion is likely acquired for the production of U.S. coinage, including bullion coins, commemorative coins, or potentially for reserve purposes. The United States Mint is responsible for the production of all U.S. coins.
How is the risk of gold price fluctuations mitigated in this firm fixed price contract?
The firm fixed price contract shifts the risk of price fluctuations to the contractor, Asahi Refining USA Inc. They are obligated to deliver the gold at the agreed-upon price, regardless of market changes during the contract period.
What are the key performance indicators for this contract's effectiveness?
Effectiveness will be measured by the timely delivery of gold bullion meeting all specified purity and weight requirements. The Mint's ability to use the acquired gold in its production processes without issue will also indicate success.
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: $3,712,787
Exercised Options: $3,712,787
Current Obligation: $3,712,787
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: 2026-01-27
Current End Date: 2026-02-06
Potential End Date: 2026-02-06 00:00:00
Last Modified: 2026-01-27
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