Treasury's Mint Awards $3.5M for Gold Bullion, Highlighting Nonferrous Metal Procurement

Contract Overview

Contract Amount: $3,537,808 ($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: $208.1K/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. The contract focuses on raw gold bullion, a high-value commodity. 2. Asahi Refining USA Inc. is the sole awardee, indicating a specific supplier relationship. 3. The procurement falls under the Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding sector. 4. The award is a delivery order against an existing contract, suggesting a pre-established framework.

Value Assessment

Rating: fair

The contract value of $3.5M for gold bullion is significant. Benchmarking requires comparison to current market prices for raw gold and the specific refining services provided by Asahi Refining USA Inc. without further detail on the gold's purity or form, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, as a delivery order, the specific competition for this particular order might have been limited to pre-qualified vendors.

Taxpayer Impact: The use of taxpayer funds for acquiring precious metals like gold requires careful justification and oversight to ensure value for money.

Public Impact

Acquisition of gold bullion by a government agency can influence market perceptions and potentially impact gold prices. The contract supports the operations of the United States Mint, a key institution for national coinage and precious metal management. Transparency in the procurement process for such valuable assets is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential price volatility of gold.
Dependence on a single supplier for a critical commodity.

Positive Signals

Awarded under full and open competition.
Clear delivery timeline specified.

Sector Analysis

This procurement falls within the broader nonferrous metals sector, specifically related to precious metals. Government spending in this area is typically driven by strategic reserves, numismatic programs, or specific investment mandates. Benchmarks are highly dependent on global commodity markets.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. The nature of raw gold bullion procurement often involves specialized refiners and suppliers.

Oversight & Accountability

The United States Mint is responsible for this procurement. Oversight would typically involve internal controls, auditing, and adherence to federal acquisition regulations to ensure the responsible use of funds and the integrity of the gold acquisition process.

Related Government Programs

Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
Department of the Treasury Contracting
United States Mint Programs

Risk Flags

Commodity price volatility.
Supplier dependency.
Lack of detailed specification for the gold.
Potential for market speculation impact.

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 specific form and purity of the raw gold bullion being procured, and how does this impact the contract's value?

The data specifies 'RAW GOLD BULLION' but lacks details on purity (e.g., 99.99% fine) or form (e.g., bars, granules). These specifics are critical for accurate valuation. Higher purity and standardized forms typically command higher prices. Without this information, assessing the contract's value against market benchmarks is challenging, potentially leading to over or undervaluation.

Given the award to Asahi Refining USA Inc., what mechanisms are in place to mitigate risks associated with relying on a single supplier for a strategic commodity like gold?

While awarded under full and open competition, the delivery order implies a specific relationship. Mitigation strategies could include robust contract terms, performance monitoring, and maintaining strategic relationships with multiple potential suppliers for future needs. The Treasury should ensure contingency plans exist should Asahi Refining USA Inc. face production or delivery issues.

How does the acquisition of gold bullion align with the Treasury's broader strategic objectives and fiscal responsibilities?

The acquisition likely supports the U.S. Mint's functions, such as numismatic programs or potentially maintaining strategic reserves. The alignment with fiscal responsibility hinges on whether the purchase price reflects fair market value and if the quantity acquired serves a defined, justifiable purpose, contributing positively to national financial assets or public services.

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: $3,537,808

Exercised Options: $3,537,808

Current Obligation: $3,537,808

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