INVITATION_FOR_BID_Number_19_0009_Scrap_Sales_Djibouti_March_2019.pdf

IFB Number 19‐0009

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INVITATION FOR BID (IFB)

Number 19-0009

Scrap Sales Djibouti, Africa

TERM SALE

March 13, 2019

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Contents Scrap Sales Djibouti, Africa

INVITATION FOR BID

Number 19-0009

BIDDING PROCESS

GENERAL STATEMENTS OF CONTRACT

ITEM DESCRIPTION

ADDITIONAL TERMS AND CONDITIONS OF SALE

TERMS AND CONDITIONS OF SALE

ARTICLE ONE

Bid Evaluation and Contract Award

ARTICLE TWO

Parties to the Contract

ARTICLE THREE

Contract Financial Retention

ARTICLE FOUR

Contract Performance

ARTICLE FIVE

Payments

ARTICLE SIX

Product Pool, Property Referrals and Title Transfer

ARTICLE SEVEN

Demilitarization Codes, Export Control Requirements, Prohibited Sale

ARTICLE EIGHT

Government Required Reports

ARTICLE NINE

Property Storage and Government owned Material Handling Equipment (MHE)

ARTICLE TEN

Property Returns

ARTICLE ELEVEN

Contract Operational Requirements

ARTICLE TWELVE

Contract Compliance, Audits, Investigations and Reviews

ARTICLE THIRTEEN

Disputes

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ARTICLE FOURTEEN

Insurance

ARTICLE FIFTEEN

Miscellaneous Provisions

ADDITIONAL CONTRACT ADVISEMENTS

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Scrap Sales Djibouti, Africa

INVITATION FOR BID

Number 19-0009

BIDDING PROCESS

This Invitation for Bid (IFB) is issued by DLA Disposition Services to initiate the sealed bid process for a sales contract for Scrap derived from DEMIL “A” FEPP (Foreign Excess Personal Property) located at Camp Lemonnier Djibouti, Africa and surrounding areas in the country of Djibouti.

Accordingly, you are invited to submit a Sealed Bid with an acceptance period of 180 day unless otherwise specified, in accordance with the DLA Disposition Services Sales by Reference (SBR) publication of 2012. The SBR and forms for submitting a bid are provided on the DLA Disposition Services web site, http://www.dla.mil/DispositionServices/Offers/Public-Sales-Offerings/Bidding/ Your completed Bid Form must be delivered to, and received by, DLA DISPOSITION SERVICE’S SCO before the bid opening at 1:00PM EST, DST March 27, 2019.

The authorized bid submissions for IFB 19-0009 are as follows:

1. Email: drmssalesbids@dla.mil

2. FAX: (269) 961-7568

3. Mail or Hand Deliver to:

Mr. Danniel Schneider Sales Contracting Officer (SCO)

DLA DISPOSITION SERVICES J-422 Room 2-4-15 74 North Washington Avenue Battle Creek, Michigan 49037-3092

Any bid, modification, or withdrawal received after the time set for bid opening will not be considered unless received by the Sales Contracting Officer prior to award; or that was mailed and in fact delivered to the address specified in the sales offering in sufficient time to have been received by the Sales Contracting Officer by the time and date set forth in the Sale for the bid opening, and, except for delay attributable to personnel of the sales office or their designees, would have been received on time.

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GENERAL STATEMENTS OF CONTRACT

Certain contents and provisions of this IFB, including Appendices, Attachments and Schedules, are described in general. The following General Statements of Contract are not intended to be complete and do not take precedence over the terms and conditions of this contract. The requirements for all matters discussed in the General Statements are fully defined in the Terms and Conditions Section of this IFB.

Any historical data provided in this IFB was derived using existing sources and is presented for general reference only.

This IFB is for a firm fixed price sales contract where the bid price is expressed in United States currency per kilogram. The Government expects the purchaser to perform all the requirements under this contract at the bid price provided by the purchaser. This is not a sale by lot. The Government guarantees to issue the purchaser 1 million kilograms of scrap property annually. The maximum amount of property issued annually will not exceed 20 million kilograms of scrap property. Annually is defined as any continuous 12-month period of time during the contract performance period commencing with the beginning of contract performance commencing from the date of the first removal by the purchaser.

The Government will determine items to be sold to the purchaser regardless of Federal Supply Classification or location. Purchaser has no right to any property that is not issued on a DLA form 1367 Shipment Receipt/Delivery Pass (weight ticket) under the terms of the contract. DLA Disposition Services reserves the right to transfer or sell property or offer property through alternative sales or contract means for all property not issued on a DLA form 1367 Shipment Receipt/Delivery Pass (weight ticket) to awardee under the contract.

This IFB relates to foreign excess personal property (FEPP) that is considered scrap and which the Government has determined to be excess to the needs of the Department of Defense and the Federal Government. The scrap property will be located at Camp Lemonnier Djibouti, and potentially surrounding areas in the country of Djibouti.

Scrap property includes recyclable waste and discarded materials derived from DEMIL A items that have been rendered useless beyond repair, rehabilitation, or restoration such that the item’s original identity, utility, form, fit and function have been destroyed. Items can be classified as scrap if processed by cutting, tearing, crushing, mangling, shredding, or melting. Intact or recognizable USML or CCL items, components, and parts are not scrap. Scrap is property that has no value except for this basic material content. See section 102-36.40 of the FMR for more information on scrap material. DLA Disposition Services does not accept rubbish, refuse or trash from its customers and this type of material shall not be issued under the contract.

Foreign attachments included in the weight and sale. It is estimated that no more than 20% of the total removal weight per truck, may contain foreign attachments or other miscellaneous debris. No weight reduction and/or weight will be removed due to this amount of foreign debris or attachments. Foreign attachments or other miscellaneous debris may include, but will NOT be limited to: cardboard, dirt, sand, water, and rocks, glass debris, and rubber pieces, wood chips, Etc. Bids submitted must take into account the possibility of foreign debris. Foreign debris in excess of 20% per removal should be brought to the attention of the Sales Contracting Officer or on-hand government representative prior to scrap being removed from the site. Appropriate proof/documentation of such excess materials must be forwarded to the Sales Contracting Officer prior to any adjustment in weight.

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All property covered under the contract is being sold “as-is” and “where is.” No request for adjustment in price for any item or rescission of the sale will be considered. This is not a sale by sample and property issued under the terms of this contract may not be rejected by the purchaser, unless an item falls outside the scope of the contract. The United States Government (USG) is the sole arbiter of determining condition code and determining whether property is considered scrap under its property regulations and thus eligible for referral under this contract. Purchaser’s opinion on whether the property is able to clear customs, sell or market, or the availability of customers for items have no bearing on whether the Government considers the property scrap. No changes, modifications, or reductions of price will be applied. Under no circumstances is culling for the purpose of effecting partial or incremental removals authorized.

Property will primarily be located at Camp Lemonnier Djibouti. With mutual agreement of the purchaser, property may also be referred for sale at other “Receipt in Place” (RIP) locations within the country of Djibouti.

The purchaser shall be knowledgeable of and comply with all applicable Host Nation Directives, National, State, and local laws, regulations, and requirements regarding scrap property disposal relating to the duties, obligations, and performance under the contract. The purchaser shall identify and obtain all licenses and pay all fees and other charges required. This includes all environmental, safety and health laws and regulations. Any liabilities or claims resulting from the purchaser’s failure to do so are the purchaser’s responsibility.

The property included on this contract is surplus property formerly owned or purchased by the USG under customs exemptions contained in international agreements. Therefore, removal of property from US Installations (and US control) may require advance approval of the appropriate customs officials, preparation of customs documentation, posting of bonds, and payments of customs duties. The USG has determined the material to be scrap under its internal regulations. Regardless of how the USG has characterized it, officials may still impose fees, charges, or custom duties, etc. DLA Disposition Services makes no representation that this material is exempt from such duties. The USG will make every effort to provide information required by customs officials. However, the purchaser shall be solely responsible for obtaining customs approval, paying any fees, duties, or other charges required by customs officials, and for timely coordinating such approval in order to comply with the performance timeframe of this contract. Purchaser may not represent themselves as an indirect part of the USG for any relief for foreign government taxes, duties, or similar charges. The scrap property is being sold to purchasers in their individual capacity. A copy of the obtained customs clearance must be furnished to the Sales POC prior to removal. Note there may be local differences in customs procedures, practices, or interpretation of National and International law. It is recommended that the purchaser consult the appropriate custom official for the sites included on this contract to ensure an understanding of the efforts that may be required and the amount of time needed, to obtain customs approval of property removed from the designated location of this contract.

Purchaser will provide roll-off container with a minimum storage capacity of 20 cubic yards and a maximum capacity of 40 cubic yards in a quantity ranging from 2-4 containers per CLIN as directed by the SCO, with rear door and locking mechanism that meets or exceeds OSHA/local national standards, and retractable cover, per scrap sales CLIN. Purchaser will do all loading blocking and bracing of the purchaser’s conveyance for loading of the roll-off container of scrap property from DLA Disposition Services. The following are a list of CLINS:

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1. ELECTRICAL AND ELECTRONIC SCRAP (D4R): Electrical and electronic residue not containing PM

2. MIXED METALS, SCRAP (E1L):Iron and steel scrap, mixed with foreign attachments, highly enameled stock, coated paint cans, tin cans, borings and turnings highly corroded, dirty and containing excessive oil and other inferior grades of metal prohibitive to other classifications.

3. RUBBER, SCRAP (G05): Rubber scrap not otherwise classifiable

4. TEXTILE SCRAP (C1A): Textile scrap, miscellaneous scrap

5. TIRES (G02): Vehicular rubber tire scrap

6. VEHICLES (E2A/E2C): Commercial autos/trucks scrap, tactical all types scrap

7. WHITE APPLIANCE GOODS (EWG): Scrap appliances not otherwise classifiable

At DLA Disposition Services sites, the Purchaser will not be provided with permanent indoor or outdoor storage space for property, or any space to store equipment, (including MHE), at any location where the purchaser is required to remove property, except as noted herein. Temporary storage areas with a capacity to accommodate the required amount of roll-off scrap containers needed as mentioned above, may be offered as determined by DLA Disposition Services Disposition Services Area Managers or as authorized by DLA Disposition Services Sales POC for Djibouti, Africa.

The scrap purchaser must request an appointment with the responsible customs officials within one (1) business day of written notification of removal, via email by the field site to the Purchaser. The written Custom Clearance appointment request must be sent to DLA Disposition Services Area Managers or the DLA Disposition Services Sales POC for Djibouti, Africa for each removal request. After customs has approved the removal of scrap property, the purchaser must have the roll-off container removed and replaced with the equal amount of empty roll-off container within three (3) business days. Purchaser must provide Custom Clearance paperwork prior to any removals. Special circumstances may arise where DLA Disposition Services will allow certain scrap property to remain at a Government facility after email notification for removal has been given, however, written authorization from a DLA Disposition Services Area Manager for these exceptions are required. The Purchaser will be charged storage charges for each scrap roll-off container not removed from the Government facility within three (3) business days of the Djiboutian Customs approval for removal, unless prior approval has been granted by the DLA Disposition Services Area Manager. Normally, approval will not exceed fifteen (15) days or thirty (30) days at receipt in place locations.

Weighing will be done under the direction and supervision of the USG using one of the following methods:

1. USG owned scales located on USG installation. Purchaser’s conveyance will be weighed with the empty roll off container still attached upon entrance of the military installation and weighed with a full roll-off container upon exiting the military installation.

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2. Certified scales not located on USG installation. Purchaser will not be reimbursed for transportation cost associated with the weighing process, including cost of transportation to and from the scale. The USG will fund the cost for use of the scale only.

3. In the event scales are not available, a mutually agreed upon estimated weight will be determined between the purchaser (authorized representative) and the USG.

For removals from DLA Disposition Service sites or RIP locations, the Purchaser will pay for any and all transportation costs associated with shipments. Purchaser will coordinate with the Sales POC for their conveyance pick up time frame. On the agreed day of pick-up, DLA Disposition Services will load property up to the maximum capacity of the field site loading equipment capabilities. The Government will not block, chock, brace, lash band or in any other manner secure the cargo on such conveyance(s) furnished by the Purchaser. Purchaser personnel will not be permitted to operate Government owned MHE. For RIP locations, if Government furnished MHE cannot be made available, the purchaser is responsible for the cost of providing MHE to remove the property.

For purposes of bidding on this contract, Bidders should not assume that property may be resold on a Government facility or at Receipt in Place (RIP) locations. Reselling of property at Government facilities or RIP locations is not permitted.

The successful bidder commits to purchase scrap property issued under this contract for a twenty-four (24) month performance period commencing from the date of the first removal by the purchaser.

DLA Disposition Services may exercise options to extend the performance period for up to an additional thirty-six (36) months via three, twelve-month options, based on Government requirements and mutual agreement of the purchaser.

An offeror’s bid will consist of a bid in US currency specified by the bidder, per kilogram of scrap for each scrap CLIN offered under this contract. Bid price will be multiplied by the prior year property generations for each CLIN. The contract will be offered to the responsive responsible bidder offering the highest cumulative bid price per kilogram for each scrap type offered.

CLINS

Bids

Prior Year

Scrap

Generation in KG

Total Bid

Price

ELECTRICAL AND ELECTRONIC SCRAP (D4R) $ 0.85 310000 $ 263,500.00

MIXED METALS, SCRAP (E1L) $ 0.89 850000 $ 756,500.00

RUBBER, SCRAP (G05) $ 0.25 10000 $ 2,500.00

TEXTILE SCRAP (C1A) $ 0.36 17000 $ 6,120.00

TIRES: VEHICLE, EQUIPMENT & LOCALLY PURCHASED (G02) $ 0.89 241000 $ 214,490.00

VEHICLES, COMMERCIAL AUTOS/TRUCKS, TACTICAL ALL TYPES,

SCRAP (E2A/E2C)

$ 0.95

390000

$ 370,500.00

WHITE APPLIANCE GOODS (EWG) $ 0.70 2000 $ 1,400.00

$ 1,615,010.00

Note: that the above average example incorporated into the IFB for purposes of bid evaluation only.

Bidders should be advised that actual proportions will vary based on many factors and the USG makes no representation about the mix of property that will actually be turned in and referred for sale during the term of the contract. “Prior year scrap generations” are accurate but “Bids” and “Total Bid Price” are notional and used for demonstration purpose only.

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The successful bidder agrees to pay the Government the bid price offered based on the weight for each scrap CLIN issued. This is referred to in the contract as the billing payment.

Prior to award, the purchaser will be required to submit to the Sales Contracting Officer a properly completed End-Use Certificate (EUC) in the form of a DLA Form 1822, and the operational plan within seven (7) calendar days of notification of being the Apparent High Bidder (copy available on the DLA Disposition Services web site, http://www.dla.mil/DispositionServices/Offers/Public-Sales- Offerings/Forms/ ). The Sales Contracting Officer will evaluate the EUC and operational plan to determine if the purchaser is capable of performing all requirements of this contract. The purchaser must submit an operational plan showing the capability to accomplish the safe removal and transport of the scrap using roll-off container, as well as meet the requirements to access United States Government facilities with minimal assistance. The Sales Contracting Officer (SCO) will evaluate the operational plan to determine if the purchaser is capable of performing all requirements of this contract. The factors in paragraph A through F below must be thoroughly addressed in a manner that demonstrates the purchaser clearly understands the requirements and is fully capable of performing the contracts requirements in a timely manner. Failure to fully address the factors will likely render the bid non-responsive without further consideration for award. The Sales Contracting Officer will evaluate and discuss the operational plan during the pre-award conference.

A. Loading and Removal - Describe how property will be loaded and removed. Describe the number and type of employees and equipment, to include trucks and the ability to transfer the item into appropriate containers before removal. The purchaser must demonstrate the capability to remove the item without U.S. Government assistance.

B. Security/Access – Purchaser will describe their plan to legally access the U.S. Government facilities. Describe any security clearances already in place or a plan on how the bidder and employees will obtain proper security clearances to access U.S. Government facilities.

C. Safety - Describe personal safety equipment to be used by personnel performing transferring, loading, and transporting the item from the U.S. Government facilities.

D. Customs- Purchaser will describe their efforts in obtaining Custom’s approval and provide an estimate upon when all approvals will be in-place.

E. Other host nation laws and regulations- The purchaser will provide a status report on their efforts in obtaining all licenses and paying all fees and other charges required. This includes all environmental, safety and health laws and regulations. If not completed, purchaser will provide an estimate upon when all items will be complete.

F. Required Insurance - The purchaser will provide a status report on their efforts to obtain required insurance in Article 14 Section 1.

G. Payment Deposit - Purchaser will describe their ability to make payment deposit within ten (10) business days of contract award.

Within ten (10) business days of contract award, the purchaser must provide a payment deposit.

The amount of the Payment Deposit required is based upon the prior year property generations for each CLIN multiplied by 20 percent of each commodities bid price. This amount will be given to the contactor

10 | P a g e by the SCO prior to the start of the ten (10) business days. The payment deposit will be held by DLA Disposition Services until the Contract has been financially reconciled by DLA Disposition Services at is termination or ending point

C

LI

N S

B id

P ri o r Y e ar

Sc ra p

G n e ra ti o n

(K o f an n u al n e ra ti n

Es ti m at ed

Es cr w

P ay m e n t

ELECTRICAL AND ELECTRONIC SCRAP (D4R) $ 0.85 310000 20% 62000 $ 52,700.00

MIXED METALS, SCRAP (E1L) $ 0.89 850000 20% 170000 $ 151,300.00

RUBBER, SCRAP (G05) $ 0.25 10000 20% 2000 $ 500.00

TEXTILE SCRAP (C1A) $ 0.36 17000 20% 3400 $ 1,224.00

TIRES: VEHICLE, EQUIPMENT & LOCALLY PURCHASED (G02) $ 0.89 241000 20% 48200 $ 42,898.00

VEHICLES, COMMERCIAL AUTOS/TRUCKS, TACTICAL ALL TYPES,

SCRAP (E2A/E2C)

$ 0.95

390000

20%

78000

$ 74,100.00

WHITE APPLIANCE GOODS (EWG) $ 0.70 2000 20% 400 $ 280.00

$ 323,002.00

Note: that the above example incorporated into the IFB for purposes of Payment deposit only. “Prior year scrap generations” are accurate but “Bids” and “Estimated Escrow Payments” are notional and used for demonstration purpose only

The property may or may not be authorized for export from the country of Djibouti. Purchaser is solely responsible for obtaining required clearances and approvals from the appropriate government officials within Djibouti. Further, the purchaser is required to comply with Department of State and Department of Commerce export laws and regulations when re-selling property obtained from DOD. The scrap sold to purchaser is authorized for export only to the country listed in EUC for use by the end-user(s) identified therein. The scrap may not be resold, transferred, or otherwise disposed of, to any other country or to any person either in their original form or after being incorporated into other items unless otherwise authorized by U.S. law and regulations.

Purchaser agrees to fully cooperate with the Government when informed by DLA Disposition Services of any reviews or investigations by any DOD, DLA, or Federal Government investigative service or agency. Purchaser agrees to provide DLA Disposition Services with all requested information regarding the property or information relating to the customer purchasing the property. This may include but is not limited to interviewing purchaser employees or sub-contracted employees within three (3) business days of Government notice. Purchaser must make all sales records, property, and customer’s records pertaining to such investigations available to DLA Disposition Services upon request not to exceed three (3) business days of request.

The contract requires that the purchaser fulfill certain requirements related to national security, customer service, and compliance review. The purchaser must be fully auditable and remain cooperative with DLA Disposition Services audit requirements to include accounting statements, insurance coverage, inventory control and returning/retrieving controlled property, both prior to 3rd Party resale and after. Any and all of the purchaser’s records must be made available to DLA Disposition Services. Records will be made available in either electronic or hard copy form as requested by DLA Disposition Services within three (3) business days of request. Purchaser should not expect any equitable relief or any other type of relief that is based upon or related in any manner to an unanticipated level of effort or additional effort necessary related to national security, DLA customer service, and/or compliance reviews.

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The USG will conduct a post-award conference as early as nine (9) calendar days after award.

The purpose of the conference is to ensure the purchaser fully understands the terms and conditions of this contract. The location and date of the conference will be determined by DLA Disposition Services and the costs incurred by purchaser personnel attending shall be paid in full by the purchaser without reimbursement by DLA Disposition Services.

Failure of the purchaser to be ready and capable of effectuating the first removal within thirty

(30) days of contract award will constitute grounds for Termination of Convenience at the sole discretion of the Sales Contracting Officer, and a new award may be issued to the next highest bidder. All bids remain valid for one hundred and eighty (180) days. Any liabilities or claims resulting from the Termination of Convenience prior to the first removal are the purchaser’s responsibility.

Prospective bidders should be aware of certain risk factors that could affect a bidder’s assessment of this contract and the calculations supporting the resulting bid. Under no circumstances is DLA Disposition Services/the Government responsible for any assumptions, planning factors, or decisions the Purchaser made related to determining their high bid. This is a firm fixed price contract where the bid price is expressed in US currency specified by the bidder, per kilograms of scrap for each scrap type. The Government expects the purchaser to perform all the requirements under this contract at the bid price submitted by the purchaser. At no time will the Government pay the purchaser to take property, sell property, or adjust bid pricing of contract or individual items due to the purchaser’s inability to clear customs, sell or market the property streams. There will be no reimbursement to the purchaser under this contract except for the limited circumstances related to reimbursement of actual expenses incurred for return of property directed by the Government. The Government is not responsible for any indirect, inconsequential, or completeness (through assumption of sales value, act or omission of factors) of expenses related to performance under this contract. The measure of the Government’s liability, in any case where liability of the Government to the Purchaser has been established, shall not exceed refund of such portion of the purchase price as the Government may have received. Although DLA Disposition Services does not represent that it has identified all such risk factors, the following, in addition to those risks identified elsewhere in this IFB, should be considered by a prospective bidder:

The future volume, quality, condition, market value, mix (e.g., brass, aluminum, copper, ferrous metal) of the material cannot be predicted. Applicable statutes, regulations, policies and inter-service agreements govern whether the disposition of particular items of surplus is through DLA Disposition Services or through other disposition methods. The volume and nature of the material referred for sale under this contract could be affected by such changes.

Described generally, applicable statutes and regulations grant DLA Disposition Services less flexibility to agree to amend a contract after award than prospective bidders may have experienced in other contractual settings. Purchaser should not expect any equitable relief or any other type of relief that is based upon or related in any manner to an unanticipated level of effort or additional effort necessary to fulfill contract obligations as written. Prospective bidders should assume that the provisions of the contract cannot be significantly amended after award.

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ITEM DESCRIPTION

The property will be comprised of Scrap material at Camp Lemonnier Djibouti, Africa and potentially RIP locations in the country of Djibouti. Scrap material issued under this contract will have been derived from DEMIL Code A property.

Described very generally, a Demilitarization code is a single alpha character assigned to the item.

For the purposes of this IFB, the following definitions are provided:

DEMIL Code A – Items subject to the Export Administration Regulations (EAR) in parts 730- 774 of Title 15, Code of Federal Regulations (CFR) (CCLI or EAR99) and determined by the DOD to present a low risk when released out of DOD control. May require an export license from the US Department of Commerce to further export the material. Additionally, even if all US export control requirements have been met, host nations customs officials may require additional mutilation prior to allowing such property to be removed from the US controlled portion of the base as scrap.

Prior Years Property Generation Date

SCRAP CLIN PRIOR YEARS PROPERTY GENERATIONS

ELECTRICAL AND ELECTRONIC SCRAP (D4R) 310,000 (KG)

MIXED METALS, SCRAP (E1L) 850,000 (KG)

RUBBER, SCRAP (G05) 10,000(KG)

TEXTILE SCRAP (C1A) 17,000(KG)

TIRES: VEHICLE, EQUIPMENT & LOCALLY

PURCHASED (G02)

241,000(KG)

VEHICLES, COMMERCIAL AUTOS/TRUCKS,

TACTICAL ALL TYPES, SCRAP (E2A/E2C

390,000(KG)

WHITE APPLIANCE GOODS (EWG) 17,000(KG)

Note: Bidders are advised that any sales history information provided is for informational purposes only. Prior year’s property generations and sales data are not warranted as predictors of future generations or sales.

ADDITIONAL TERMS AND CONDITIONS OF SALE

The sections identified below contained in the pamphlet entitled, “Sale by Reference – Instructions, Terms and Conditions Applicable to Department of Defense Personal Material Offered for Sale by DLA Disposition Services, July 2012” (hereinafter, Sale by Reference), are hereby incorporated by reference and becomes a part of this IFB and any resulting contract:

Part 1 General Information and Instructions: All conditions apply

Part 2 Sale of Government Property General Sale Terms and Conditions: All conditions apply

Part 4 Sale of Government Property Special Sealed –Term Conditions: All conditions apply

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Part 5 Additional Special Circumstance Conditions – Miscellaneous: All conditions apply Part 7 Additional Special Circumstance Conditions - Hazardous and Dangerous Property: Miscellaneous Articles C, D, E, R, S, T, U, and Y apply

Part 8 Additional Special Circumstance Conditions, Foreign Excess Personal Property (FEPP) (DRMS Form 94, Oct 93): All conditions apply

A copy of the Sale by Reference is available on the DLA Disposition Services web site, https://www.sales.dla.mil/dlab2b/init.do

Note: Articles in this IFB take precedence over any Articles in the Sale by Reference that may be interpreted as contradictory.

TERMS AND CONDITIONS OF SALE

The following Articles apply and constitute the terms and conditions of this sale:

ARTICLE ONE

Bid Evaluation and Contract Award

Section 1. Bidding Process – The bidding process will commence on the bid opening day and time specified by the Government. Bidders are expected to have the required sealed bid consisting of one bid price per CLIN identified in the General Statements above specified by the bidder. The bid must be expressed as a price in US currency per kilogram, per CLIN. The value of the property delivered under this contract (must exceed zero), and only two (2) digits to the right of the decimal without rounding. The SCO will open each sealed bid at the specified bid opening day and time. Bids will be read by the SCO.

The high bid offered at that time will be considered the Apparent High Bid. All other bids will remain valid for 180 days in the event the apparent high bidder is unable to perform as required under the terms of the contract and/or the contract is terminated for convenience within that timeframe.

Section 2. Bid Evaluation - Award will be made to the responsive, responsible bidder that offers the highest bid price. Bid price will be multiplied by the prior year property generations for each CLIN. The Government reserves the right to not award a contract if such contract is deemed not to be in the Government’s best interest or if Bidder is found non-responsible.

Section 3. Pre –Award Operational Plan - Prior to award, the purchaser will be required to submit to the Sales Contracting Officer a properly completed End-Use Certificate (EUC) in the form of a DLA Form 1822, and the operational plan within seven (7) calendar days of notification of being the Apparent High Bidder (copy available on the DLA Disposition Services web site, http://www.dla.mil/DispositionServices/Offers/Public-Sales-Offerings/Forms/ ). The Sales Contracting Officer will evaluate the EUC and operational plan to determine if the purchaser is capable of performing all requirements of this contract. The purchaser must submit an operational plan showing the capability to accomplish the safe removal and transport of the scrap using roll-off container, as well as meet the requirements to access United States Government facilities with minimal assistance. The Sales Contracting Officer (SCO) will evaluate the operational plan to determine if the purchaser is capable of performing all requirements of this contract. The factors in paragraph A through G below must be

14 | P a g e thoroughly addressed in a manner that demonstrates the purchaser clearly understands the requirements and is fully capable of performing the contracts requirements in a timely manner. Failure to fully address the factors will likely render the bid non-responsive without further consideration for award. The Sales Contracting Officer will discuss the operational plan during the pre-award process and post-award conference.

A. Loading and Removal - Describe how property will be loaded and removed. Describe the number and type of employees and equipment, to include trucks and the ability to transfer the item into appropriate containers before removal. The purchaser must demonstrate the capability to remove the item without U.S. Government assistance.

B. Security/Access – Purchaser will describe their plan to legally access the U.S. Government facilities. Describe any security clearances already in place or a plan on how the bidder and employees will obtain proper security clearances to access U.S. Government facilities.

C. Safety - Describe personal safety equipment to be used by personnel performing transferring, loading, and transporting the item from the U.S. Government facilities.

D. Customs- Purchaser will describe their efforts in obtaining Custom’s approval and provide an estimate upon when all approvals will be in-place.

E. Other host nation laws and regulations- The purchaser will provide a status report on their efforts in obtaining all licenses and paying all fees and other charges required. This includes all environmental, safety and health laws and regulations. If not completed, purchaser will provide an estimate upon when all items will be complete.

F. Required Insurance - The purchaser will provide a status report on their efforts to obtain required insurance in Article 14 Section 1.

G. Payment Deposit - Purchaser will describe their ability to make payment deposit within ten (10) business days of contract award.

Section 4. Contract Award - The SCO will determine if each bid is responsive and responsible prior to award of the contract. The contract will be awarded to the highest responsive, responsible bidder. In the event of a termination for convenience with the initial high bidder, the SCO may award the contract to the next highest responsive, responsible bidder if bids have not expired, and such award is otherwise determined to be in the Government's best interest, price and other factors considered.

Section 5. Post-award conference - The USG will conduct a post-award conference as early as nine (9) calendar days after award. The purpose of the conference is to ensure the purchaser fully understands the terms and conditions of this contract and review the Operational Plan with the purchaser. The location and date of the conference will be determined by DLA Disposition Services and the costs incurred by purchaser personnel attending shall be paid in full by the purchaser without reimbursement by DLA Disposition Services

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ARTICLE TWO

Parties to the Contract

Section 1. Purchaser Information - Within seven (7) calendar days of the date of contract award, the purchaser shall provide DLA Disposition Services the following information:

A. Designation of key persons.

B. Purchaser shall provide the SCO notification of any changes to the above within ten (10) calendar days of the change.

C. Certain purchaser personnel must have a background check and obtain a purchaser’s base ID in order to enter and conduct business at DLA Disposition Services field site locations. The local sales POC will assist the purchaser in completing this process.

Section 2. Transfer and Hypothecation

A. General Prohibition - Except as specifically provided herein or specifically approved by DLA Disposition Services in writing, the purchaser may not directly or indirectly sell, transfer, assign, pledge, offer as collateral or otherwise hypothecate all or any part of its rights or obligations under the contract. Any contract awarded under this IFB is subject to the Assignment of Claims Act. (41 USC 15, et al.)

B. Attempted Transfer - Any attempted transfer in violation of the provisions of this Article shall be null and void, and shall constitute a material breach of this contract.

Section 3. Contract of Sale

A. Relationship of Parties - This contract is an agreement for the sale of scrap property by DLA Disposition Services as seller to purchaser as the buyer. The purchaser and DLA Disposition Services expressly disavow the creation of any other relationship, including without limitation principal-agent, master-servant, employer-employee, general or limited partnership, or joint venture, between DLA Disposition Services and the Purchaser.

B. Parties to Contract - The parties to this contract are DLA Disposition Services and the Purchaser.

The exclusive representative of DLA Disposition Services for all purposes under this contract is the SCO and all notices, demands, requests, consents, approvals, declarations, reports and other communications to DLA Disposition Services from the purchaser shall be deemed ineffective unless addressed to the SCO. Communications from the purchaser to anyone other than the SCO shall not be deemed received by DLA Disposition Services.

Section 4. Authority of Sales Contracting Officer (SCO) On behalf of DLA Disposition Services, the SCO has the authority to represent DLA Disposition Services and to commit DLA Disposition Services to take such actions as permitted or required and to extend or waive timing requirements or deadlines as may reasonably be required under the performance of this contract.

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ARTICLE THREE

Contract Financial Retention

Section 1 – Payment Deposit - Within ten (10) calendar days of notification from the SCO, purchaser shall provide DLA Disposition Services with the payment deposit. The amount of the Payment Deposit required is based upon the prior year property generations for each CLIN multiplied by 20 percent of each commodities bid price. The payment deposit must be made via guaranteed instrument (cashier/certified check) wire transfer or Electronic Funds Transfer (EFT). DLA Disposition Services will retain the payment deposit until the completion of the financial reconciliation has been completed. The payment deposit will be applied to any unpaid billings or to offset any other claim that DLA Disposition Services may have against the purchaser. DLA Disposition Services shall return any available balance of the payment deposit, without interest, to purchaser at the completion of the contract closure process

ARTICLE FOUR

Contract Performance

Section 1. Performance Period - Subject to the early cancellation option provisions and the Termination for Convenience of the Government provisions, the Government shall provide property for a twenty-four

(24) month period from the date of the initial DLA form 1367 Shipment Receipt/Delivery Pass (weight Ticket) to purchaser. DLA Disposition Services may exercise three option periods to extend the performance period for up to an additional thirty-six (36) months based on Government requirements.

Option periods will normally be in one-year increments, however the Government reserves the right to exercise option periods for shorter periods of time. The Government may extend the term of this contract by written notice to the purchaser within thirty calendar (30) days of the expiration of the contract. The Government will strive to provide an earlier preliminary written notice of its intent to exercise an option period at least one hundred eighty calendar (180) days before the contract expires. The preliminary notice does not commit the Government to exercise the option and failure to provide the preliminary notice does not preclude the exercise of an option period.

Section 2: Termination of Convenience Prior to First Removal- The purchaser’s failure to provide necessary documentation specified in the contract to the Sales Contracting Officer (SCO) in a timely manner after contract award may result in Termination of Convenience prior to the first removal. Failure of the purchaser to be ready and capable of effectuating the first removal within thirty (30) days of contract award will constitute grounds for Termination of Convenience at the sole discretion of the SCO and a new award may be issued to the next highest bidder. . Any liabilities or claims resulting from the Termination of Convenience prior to the first removal are the purchaser’s responsibility.

Section 3: Termination and Failure to Perform after First Removal: Part 4 Paragraph 6 and paragraph 7 of the Sale by Reference govern “Termination” and “Failure to Perform” after performance has commenced and the first removal has been effectuated.

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ARTICLE FIVE

Payments

Section 1. Monthly Billing Property Payment – The Purchaser will pay DLA Disposition Services the purchaser’s bid price in US currency specified by the bidder, per kilogram of scrap for each scrap type.

Billing payment for property that was issued to the purchaser for the past thirty (30) calendar days is billed on the 25th of the month. Purchaser shall submit payment to DLA Disposition Services no later than the 20th of each month.

Section 2. Method of Payment – Payments made to DLA Disposition Services will be via an Electronic Funds Transfer (EFT). The account number for EFT and wire transfers will be provided by the SCO and updated whenever necessary.

Section 3. Failure to Make Timely Payment - Should purchaser fail to pay to DLA Disposition Services the full amount owed as reflected on the SOAs each month on or before the date that such payment is due, DLA Disposition Services will, stop the flow of property until account is in good standing. SCO will notify purchaser that such failure constitutes a material breach of contract that the purchaser must cure within ten (10) calendar days. The purchaser shall be assessed all applicable fees, penalties, and interest on the payment based on the current rate as determined by the Department of Treasury. All fees will be added to the next month’s billing Statement of Account(s). Purchaser cannot deduct any amount from monthly billing to offset unauthorized, or unprocessed credits, or credit requests, doing so constitutes a material breach of contract.

ARTICLE SIX

Product Pool, Property Referrals and Title Transfer

Section 1. Product Pool: Material shall be issued as scrap by weight. All material shall be transferred as kilograms. Inventory shall be located at Camp Lemonnier in Djibouti, Africa. The Government may include additional Receipt In Place (RIP) locations in the country of Djibouti by mutual agreement with the purchaser.

Section 2. Property Referrals

A. Location - Property that is referred for sale to the Purchaser shall be located at Camp Lemonnier in Djibouti, Africa.

B. Receipt In Place (RIP) – DLA Disposition Service sites may also receive property that is not located at Camp Lemonnier and, may with mutual consent of the purchaser refer property for sale at a RIP location within the country of Djibouti.

C. Material Surges - Purchaser acknowledges that during the performance of this contract, changes in Government processes or procedures could result in large generations of material being turned into DLA Disposition Services in a very short period of time, which could ultimately be referred

18 | P a g e under this contract. DLA Disposition Services and the purchaser agree to cooperate and institute special procedures as necessary in connection with material surges. Any costs of the increased workload upon the purchaser would not be at any additional costs to the Government. Any kilograms of scrap included in a material surge have already been accounted for within the maximum amount to be issued under this IFB.

D. Title Transfer of Property - Unless otherwise provided in this IFB, DLA Disposition Services shall transfer title to the purchaser when removal is affected and signature provided on the DLA form 1367 Shipment Receipt/Delivery Pass (weight ticket) at a scrap yard or RIP location.

E. Credit for Line Item Discrepancies – Purchaser must notify the Government of any line discrepancies on the DLA form 1367 Shipment Receipt/Delivery Pass (weight ticket) (i.e., quantity overage/shortage) prior to signing the DLA form 1367 Shipment Receipt/Delivery Pass (weight ticket). No credit request will be considered once the DLA form 1367 Shipment Receipt/Delivery Pass (weight ticket) is signed by the Contract.

ARTICLE SEVEN

Demilitarization Codes, Export Control Requirements, Prohibited Sale

Section 1. Purchaser’s End Use Certificate (EUC): Prior to award of this contract, the purchaser will be required to provide the SCO a properly completed EUC in the form of a DLA Form 1822, within two

(2) Business days of notification of being the Apparent High Bidder (copy available on the DLA Disposition Services web site, http://www.dla.mil/DispositionServices/Offers/Public-Sales- Offerings/Forms/.

Section 2. Compliance with Export Control Regulations: Purchaser is required to comply with Department of State and Department of Commerce export laws and regulations when re-selling property obtained from DOD. The scrap sold to purchaser is authorized for export only to the country listed in EUC for use by the end-user(s) identified therein. The scrap may not be resold, transferred, or otherwise disposed of, to any other country or to any person either in their original form or after being incorporated into other items unless otherwise authorized by U.S. law and regulations.

Section 3. Denied Areas:

A. The bidder understands and agrees that the ultimate destination of any property awarded from this sale cannot be to denied areas identified under US Government Export control laws. Currently, Belarus, Burma, China, Cuba, Eritrea, Iran, North Korea, Sudan, Syria, Vietnam, and Venezuela are denied areas. This list is subject to change and is based upon recent notices published by the Department of the Treasury, Office of Foreign Assets Control (OFAC). Current listings can be found at: http://www.treasury.gov/resource-center/sanctions/Pages/default.aspx. Purchaser may contact the SCO to ensure scrap property does not go to a prohibited country.

B. Commodity Restrictions: The purchaser understands and agrees that, although not on the Denied Areas List, the sale of Munitions List and Commerce Controlled List Items (MLI/CCLI)

19 | P a g e designated as CAT II items, and any property requiring demilitarization or mutilation under USG supervision shall not be sold for ultimate destination to Belarus, Burma, China, Cuba, Eritrea, Iran, North Korea, Sudan, Syria, and Venezuela.

C. The USG also has regions and countries that the sanction program applies to individuals and organizations. Purchaser agrees to ensure that no scrap property shall go to those on the Specially Designated Nationals lists as listed at http://www.treasury.gov/resource-center/sanctions/Pages/Default.aspx. This applies to subsections a-b above. Purchaser may contact the SCO to ensure scrap property does not go to a prohibited individual.

D. Inadvertent Release of Commerce Control List Items or US Munitions List property not rendered to scrap:

The purpose and intent of this contract is to sell only Demil A items that have been rendered useless beyond repair, rehabilitation, or restoration such that the item’s original identity, utility, form, fit and function have been destroyed. Items can be classified as scrap if processed by cutting, tearing, crushing, mangling, shredding, or melting. There may be unintentional and inadvertent occurrences where property subject to export controlled restrictions are released. If such releases occur, the USG will take action to retrieve the property from the purchaser. Upon notification by the USG, the purchaser will be responsible for providing transportation to return such property back to the DLA Disposition Site warehouse and will be reimbursed transportation costs. The Government will refund the purchaser its purchase price for such items based on its kilogram weight. DLA Disposition Services will not reimburse the Purchaser for any lost revenue associated with property that has been sold to a 3rd party buyer. In any case of export controlled property being sold to a third party, the purchaser will notify the 3rd party and take efforts to recover the property.

ARTICLE EIGHT

Government Required Reports

Section 1. Inventory Reports – Purchaser is required to provide DLA Disposition Services upon request reports reflecting a complete list of all scrap issued by DLA Disposition Services on a DLA form 1367 Shipment Receipt/Delivery Pass (weight ticket) currently in the possession of the purchaser. The report must record total weight by scrap commodity, location and must identify all scrap property that has not been removed from the purchaser /Government facilities. The specific reporting requirements will be further coordinated between the SCO and the purchaser during the contract phase in period in writing.

ARTICLE NINE

Property Storage and Government owned Material Handling Equipment

(MHE)

Section 1. Purchaser Temporary Staging Areas on…