Domain Refined Grain Oriented Electrical Steel (DR-GOES)
The Defense Logistics Agency (DLA) awarded a sole-source, firm fixed-price Indefinite Delivery Indefinite Quantity (IDIQ) contract to Cleveland-Cliffs Inc. for Domain Refined Grain Oriented Electrical Steel (DR-GOES), a specialized iron-silicon alloy used in power transformer cores. The contract spans a five-year ordering period with an estimated total quantity of 53,540 net tons, distributed across annual contract line items ranging from 2,024 to 15,282 net tons per year. The sole-source justification was issued under FAR 6.302-3(a)(2)(i) because Cleveland-Cliffs Inc. is currently the only domestic supplier capable of producing DR-GOES to the required specifications, as confirmed through market research conducted from October 2020 to February 2025. The steel must meet rigorous technical requirements including maximum core loss of 0.280 W/lb, minimum peak permeability of 1.875, and nominal thickness between 0.008-0.0098 inches, with delivery to the DLA Strategic Materials Hammond Depot in Indiana. While the contract value has been redacted, the procurement is critical to supporting both Department of Defense and Department of Energy requirements, with the first delivery order expected within two years of the September 25, 2025 contract award date.
SP8000-25-D-0008 Defense Logistics Agency
Limited / Sole Source Justification 3/4 9/29/25, 1:41 PM Domain Refined Grain Oriented Electrical Steel (DR-GOES)
The Defense Logistics Agency (DLA) issued a Limited/Sole Source Justification Notice for the procurement of Domain Refined Grain Oriented Electrical Steel (DR-GOES), a specialized silicon steel material used primarily in power transformer cores for the National Defense Stockpile. The procurement was awarded to Cleveland-Cliffs Inc. as a sole source supplier under a five-year firm fixed price Indefinite Delivery Indefinite Quantity (IDIQ) contract, justified under FAR 6.302-3(a)(2)(i) because Cleveland-Cliffs is currently the only domestic producer of DR-GOES that meets Department of Defense and Department of Energy specifications. The contract allows for the purchase of up to 53,450 Net Tons of DR-GOES over the five-year period, with estimated annual quantities ranging from 2,024 to 15,282 Net Tons. DLA Strategic Materials conducted extensive market research from October 2020 to February 2025, including interviews with material users and government program offices, which confirmed Cleveland-Cliffs' unique position as the sole domestic manufacturer capable of producing this critical material. While the specific contract value was not disclosed in the redacted documents, the procurement supports national security objectives by maintaining domestic industrial capabilities for strategically important materials.
SP8000-25-F-0011 Defense Logistics Agency
Limited / Sole Source Justification 4/4 9/29/25, 1:59 PM Domain Refined Grain Oriented Electrical Steel (DR-GOES)
The Defense Logistics Agency has published a Special Notice regarding their intent to award a sole source contract for Domain Refined Grain Oriented Electrical Steel (DR-GOES) to Cleveland-Cliffs Inc. This is a firm fixed price Indefinite Delivery Indefinite Quantity contract with a five-year ordering period valued up to $400 million for the National Defense Stockpile. The solicitation SP8000-25-R-0018 has been amended three times, with the final submission deadline set for September 5, 2025 at 2:00 PM EST. Cleveland-Cliffs Inc. has been identified as the only qualified domestic producer of this specialized electrical steel material. The procurement falls under NAICS code 331110 for Iron and Steel Mills and Ferroalloy Manufacturing.
The purpose of this procurement is to secure up to 53,450 Net Tons of DR-GOES over five years for strategic national defense purposes, with estimated annual quantities ranging from 2,024 to 15,282 Net Tons. The specialized steel, containing over 0.60% silicon, will be used as core material for power transformers and must meet strict technical specifications for core loss, permeability, and thickness. Contractors must be registered in the System for Award Management and will be evaluated based on technical acceptability and price reasonableness. The material will be delivered to the DLA Strategic Materials Hammond Depot in Indiana with a 24-month delivery window after order issuance. The sole source justification is based on national security interests, Executive Orders promoting domestic manufacturing, and extensive market research confirming Cleveland-Cliffs as the only domestic supplier capable of meeting these specialized requirements.
SP8000-25-R-0018 Defense Logistics Agency
Special Notice 1/4 8/6/25, 10:41 AM Domain Refined Grain Oriented Electrical Steel (DR-GOES)
The Defense Logistics Agency (DLA) awarded a $400 million firm fixed price Indefinite Delivery Indefinite Quantity (IDIQ) contract to Cleveland-Cliffs Inc. for the supply of Domain Refined Grain Oriented Electrical Steel (DR-GOES), a specialized silicon steel used primarily as core material for power transformers. The five-year contract will procure up to 53,450 Net Tons of this high-permeability electrical steel for storage in the National Defense Stockpile, with estimated annual quantities ranging from 2,024 to 15,282 Net Tons delivered in coil form to the DLA Strategic Materials Hammond Depot in Indiana. This sole-source procurement was justified under FAR 6.302-3(a)(2)(i) because Cleveland-Cliffs is currently the only domestic producer capable of manufacturing this specialized material that meets Department of Defense and Department of Energy specifications. The contract includes a two-year timeline for the first delivery order and establishes comprehensive technical requirements for the steel including specific core loss, permeability, and dimensional standards.
SP8000-25-R-0018 Defense Logistics Agency
Award Notice 2/4 9/29/25, 12:27 PM