Treasury's $3.55M gold bullion contract awarded to Asahi Refining USA Inc. for minting supplies

Contract Overview

Contract Amount: $3,552,712 ($3.6M)

Contractor: Asahi Refining USA Inc

Awarding Agency: Department of the Treasury

Start Date: 2026-04-06

End Date: 2026-04-24

Contract Duration: 18 days

Daily Burn Rate: $197.4K/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. Value for money assessed against market rates for precious metal refining. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include reliance on a single supplier for critical minting materials. 4. Performance context is tied to the United States Mint's operational needs for gold bullion. 5. Sector positioning within the nonferrous metal processing industry. 6. Contract duration of 18 months suggests a short-to-medium term supply need.

Value Assessment

Rating: good

The contract value of $3.55 million for raw gold bullion is difficult to benchmark directly without specific market data on refining costs for the Mint's unique requirements. However, the price is likely influenced by the fluctuating global price of gold, with the contract value representing the cost of refining and processing. The fixed-price nature of the contract provides cost certainty for the government. Further analysis would require comparing the per-ounce refining cost to industry averages.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but a full and open process generally fosters a competitive environment, which can lead to more favorable pricing and terms for the government. This approach allows the government to leverage the market to find the best value.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by encouraging multiple companies to vie for the contract, potentially driving down costs and improving service quality.

Public Impact

The United States Mint benefits from a reliable supply of refined gold bullion for its coinage operations. This contract supports the production of gold bullion coins, which are popular among investors and collectors. The geographic impact is primarily within the United States, supporting domestic refining capabilities. Workforce implications may include employment at Asahi Refining USA Inc. and associated supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in raw gold impacting the final cost.
Dependence on a single supplier for a critical component of mint operations.
Ensuring consistent quality and purity of the refined gold bullion.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Fixed-price contract provides cost predictability for the government.
Contract duration is relatively short, allowing for re-evaluation of needs.

Sector Analysis

The contract falls within the nonferrous metal processing sector, specifically focusing on precious metals. The United States Mint is a significant consumer of gold for its bullion and commemorative coin programs. This contract supports the Mint's mission by ensuring the availability of high-purity gold. Comparable spending benchmarks would involve analyzing other government or private sector contracts for precious metal refining services.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Asahi Refining USA Inc. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award. Future analysis could explore if the prime contractor has a history of engaging small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the United States Mint's contracting officers and program managers. Accountability measures are embedded in the contract terms, including specifications for gold purity and delivery schedules. Transparency is generally maintained through public contract databases. The Inspector General for the Department of the Treasury may have jurisdiction for audits and investigations if fraud or mismanagement is suspected.

Related Government Programs

United States Mint Bullion Coin Programs
Precious Metals Refining Services
Department of the Treasury Procurement

Risk Flags

Price Volatility of Gold
Supplier Dependence
Quality Assurance of Precious Metals

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: 2026-04-06. End: 2026-04-24.

What is the historical spending pattern for raw gold bullion procurement by the United States Mint?

Historical spending data for the United States Mint's raw gold bullion procurement reveals a consistent need for these materials to support its bullion coin programs. While specific dollar amounts fluctuate annually based on market conditions and demand for coins, the Mint has continuously engaged in contracts for gold acquisition and refining. For instance, in recent years, the Mint has awarded multi-million dollar contracts for gold and silver, often through competitive bidding processes. Analyzing past contracts would show trends in contract values, awardees, and the duration of these agreements, providing context for the current $3.55 million award. This historical perspective is crucial for understanding the scale and regularity of the Mint's bullion needs.

How does the price per ounce of gold refined under this contract compare to market benchmarks?

Directly comparing the price per ounce of gold refined under this contract to market benchmarks is challenging without granular cost data. The contract value of $3.55 million covers the refining of raw gold bullion, which includes not only the market price of gold itself but also the service costs associated with refining, assaying, and potentially fabrication. The United States Mint likely negotiates terms that account for the fluctuating spot price of gold, plus a refining premium. To benchmark effectively, one would need to isolate the refining fee component and compare it against industry rates for similar high-purity gold processing. Given the fixed-price nature, the government has a defined cost, but the underlying value proposition hinges on the competitiveness of the refining fee.

What is Asahi Refining USA Inc.'s track record with government contracts, particularly for precious metals?

Asahi Refining USA Inc. has a history of engaging with government entities, including contracts related to precious metals. While specific details of all past government awards are not immediately available in this context, their role as a refiner suggests experience in meeting stringent quality and purity standards often required by government agencies. A comprehensive review of their contract history with federal agencies, including performance reviews and any past issues or commendations, would provide a clearer picture of their reliability and capability. Their ability to secure this contract with the United States Mint, a high-profile entity with exacting standards, implies a satisfactory track record in handling precious metals for governmental purposes.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract include potential price volatility of raw gold, ensuring the consistent purity and quality of the refined bullion, and supply chain disruptions. Price volatility is inherent in the gold market, but the fixed-price nature of this contract locks in the cost for the government for the specified period, shifting some of that risk to the contractor. Quality and purity are mitigated through stringent contract specifications and likely rigorous testing and assaying by the Mint. Supply chain disruptions are a broader economic risk, but the relatively short duration of the contract (18 months) and the competitive award process aim to ensure a reliable source. The government's oversight mechanisms also play a role in monitoring performance and addressing issues proactively.

What is the expected impact of this contract on the broader precious metals refining market?

This contract's impact on the broader precious metals refining market is likely to be localized and specific to the supply of gold bullion for the United States Mint. Asahi Refining USA Inc. securing this award signifies their competitive standing within the industry. The full and open competition process ensures that other qualified refiners had the opportunity to bid, fostering a generally healthy competitive environment. While this specific contract might not dramatically alter the overall market dynamics, it reinforces the importance of domestic refining capabilities and highlights the demand from significant governmental entities. The success of this contract could influence future bidding opportunities for similar government contracts.

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: $3,552,712

Exercised Options: $3,552,712

Current Obligation: $3,552,712

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