Treasury's $3.46M gold bullion contract awarded to Asahi Refining USA Inc. for Utah delivery

Contract Overview

Contract Amount: $3,458,844 ($3.5M)

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: $203.5K/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 $3.5 million to ASAHI REFINING USA INC for work described as: RAW GOLD BULLION MINT MAC GOLD BULLION Key points: 1. Contract value appears reasonable given the specialized nature of precious metal refining and assaying. 2. Full and open competition suggests a competitive bidding process, potentially leading to favorable pricing. 3. The short duration of the contract (17 days) may indicate a specific, time-sensitive need. 4. Delivery to Utah aligns with potential regional minting or storage operations. 5. The contract falls within the broader category of nonferrous metal processing. 6. Fixed-price contract type limits the government's exposure to cost overruns.

Value Assessment

Rating: good

The contract value of $3.46 million for refining and assaying raw gold bullion is within a reasonable range for specialized precious metal services. Benchmarking against similar contracts is challenging due to the niche nature of this service and the specific commodity. However, the firm fixed-price structure provides cost certainty for the government. The award to Asahi Refining USA Inc., a known entity in the precious metals industry, suggests a level of confidence in their capabilities.

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 procurement method generally fosters a competitive environment, which should theoretically lead to better price discovery and value for the government. The open nature of the competition suggests that the United States Mint sought the best available offer in terms of price and technical capability.

Taxpayer Impact: A competitive bidding process for essential materials like gold bullion helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiary is the United States Mint, ensuring a supply of refined gold for its operations, potentially for coinage or reserve purposes. The service delivered is the refining and assaying of raw gold bullion, a critical step in verifying its purity and quality. Geographic impact is localized to Utah, where the delivery is scheduled. Workforce implications are likely within the specialized field of precious metal refining and assaying, potentially supporting skilled labor at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the quantity or quality of raw gold bullion to be processed.
Limited information on the number of bidders, making it difficult to fully assess the extent of competition.
The short delivery window could pose logistical challenges if unforeseen issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract provides cost certainty.
Contractor is an established entity in the precious metals industry.
Delivery location in Utah may align with specific operational needs of the Mint.

Sector Analysis

This contract falls within the broader 'Other' sector, specifically related to the processing and assaying of precious metals. The market for gold refining is specialized, with a limited number of highly capable firms globally. The United States Mint's need for such services is tied to its mandate of producing and managing the nation's coinage and bullion. Comparable spending benchmarks are difficult to establish due to the unique nature of government contracts for raw precious metals.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information suggesting subcontracting opportunities for small businesses. The specialized nature of gold refining typically requires significant capital investment and specific technical expertise, which may limit the pool of eligible small business contractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the United States Mint, a bureau within the Department of the Treasury. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services to an acceptable standard. Transparency is facilitated by the contract award notice, though further details on performance metrics and oversight activities are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Precious Metals Management
Bullion Coinage Programs
Assaying Services
Treasury Department Procurement

Risk Flags

Potential for price volatility in the gold market.
Logistical and security risks associated with handling precious metals.
Dependence on contractor's specialized expertise and equipment.
Short contract duration may limit flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.5 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 $3.5 million.

What is the period of performance?

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

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

Asahi Refining USA Inc. has a history of working with government entities, including the U.S. Mint, on precious metal refining and assaying. While specific contract details and performance reviews are not always publicly available, their established presence in the industry suggests a capacity to meet stringent government requirements. Their involvement in previous Mint contracts indicates familiarity with the agency's standards for purity, security, and delivery. Further investigation into their past performance on similar contracts, including any reported issues or successes, would provide a more comprehensive understanding of their reliability and value proposition for this specific award.

How does the awarded price of $3.46 million compare to market rates for refining and assaying raw gold bullion?

Determining a precise market rate comparison for refining and assaying raw gold bullion is complex due to several factors. The price is influenced by the volume of gold, its initial purity, the required final purity, assaying complexity, and prevailing market conditions for refining services. Government contracts often include premiums for security, compliance, and guaranteed delivery. While $3.46 million is a significant sum, it must be evaluated against the specific scope of work, which is not fully detailed in the award notice. Without knowing the exact quantity and specifications, a direct per-ounce or per-gram cost comparison to commercial rates is difficult. However, the use of full and open competition suggests the Mint sought competitive pricing within the industry.

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

Key risks include potential fluctuations in gold prices impacting the value of the raw material, logistical challenges in transporting and securing the bullion, and the possibility of assaying discrepancies. Mitigation strategies likely involve robust security protocols during transport and handling, stringent contractual terms regarding purity and assay verification, and the firm fixed-price nature of the contract which caps the government's financial exposure. The short duration also presents a risk of delays if unforeseen issues arise, which could be managed through clear communication channels and contingency planning between the Mint and Asahi Refining.

What is the expected effectiveness of this contract in supporting the U.S. Mint's operational goals?

This contract is expected to be highly effective in supporting the U.S. Mint's operational goals by ensuring the availability of high-purity gold. The refining and assaying process is fundamental to verifying the quality of gold used in coinage, bullion bars, and potentially for reserve purposes. By securing these services through a competitive process with a reputable contractor, the Mint can maintain the integrity and value of its gold holdings and products. The timely completion of this contract is crucial for uninterrupted production cycles and meeting market demand for gold-related products.

How does this contract's value and scope compare to historical U.S. Mint spending on similar refining and assaying services?

Historical spending data for the U.S. Mint on refining and assaying services can vary significantly year over year, depending on the volume of raw gold processed and the specific needs of coinage and bullion programs. Contracts for precious metals are often subject to market volatility and the availability of raw materials. Without access to detailed historical procurement records for the Mint's refining and assaying activities, a direct comparison is challenging. However, the $3.46 million figure suggests a substantial requirement for these specialized services, likely tied to specific production targets or inventory management needs for the period.

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: $3,458,844

Exercised Options: $3,458,844

Current Obligation: $3,458,844

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