2031JG19R00016.docx

Statement of Work

Scope The contractor shall provide all labor, effort and materials necessary to provide the packaging described below to the United States Mint. This effort is expected to include, but is not limited to, fabricating injection molded parts, designing custom parts, manufacturing new/replacement molds to fabricate parts and maintaining the existing molds used to fabricate parts.

Fabrication of injection molded parts requires the contractor to use molds that are the property of the United States Mint. The contractor shall not subcontract the fabrication of the injection molded parts.

Background - About the United States Mint The United States Mint was created by Congress in 1792 and became part of the Department of the Treasury in 1873. It is the Nation's sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the Nation to conduct its trade and commerce. The United States also produces numismatic products, including proof, uncirculated, and commemorative coins; Congressional Gold Medals; and precious metal bullion coins. The United States Mint's numismatic programs are self-sustaining and operate at no cost to the taxpayer.

About the Part(s) American bullion coins are congressionally authorized, precious metal coins minted and issued by the United States Mint. They are intended to provide investors with a convenient and cost-effective way to invest in precious metals.

A bullion coin is a coin that is primarily valued by its weight and content of a specific precious metal. Bullion coins offered by the US Mint are subject to change based on legislation.

The coins listed below are grouped into product families based on metal content, and weight

· American Buffalo

· One ounce 24 karat gold

· American Eagle

· One ounce 22 karat gold

· One-half ounce 22 karat gold

· One-quarter ounce 22 karat gold

· One-tenth ounce 22 karat gold

· One ounce platinum

· One ounce palladium

· One ounce silver

· America the Beautiful

· Five ounce silver The United States Mint does not sell bullion coins directly to the public. Bullion coins are distributed through a network of wholesalers, brokerage companies, precious metal firms, coin dealers, and participating banks known as Authorized Purchasers.

Coins and sold by the Mint may be considered collectible. While bullion coins are not specifically sold as numismatic collectibles, all care is taken to preserve their ‘factory fresh’ condition.

Bullion coins are made available for sale in functional packaging consisting of tubes, caps, cartons and inserts. Packaging parts use shared sizes and shapes when possible to create a system of parts that can yield multiple products within the same form factor. The custom injection molded plastic parts provide durable, space efficient, x-ray transparent, controlled weight packaging. Tubes and their matching caps encase a specific count of coins while cartons and their inserts encase a specific count of tubes.

Order History The Mint’s need for bullion packaging is related to the rise and fall of precious metal markets. Quantities of parts required fluctuate year to year, however historical volumes provide insight into overall need and are provided in attached spreadsheet.

Order Cadence While the United States Mint produces throughout the year, its sales cycle results in the first quarter of the calendar year having the majority of the product releases. Orders for recurring parts are typically placed once or twice per year to replenish inventories of packaging that have been depleted by production.

References American National Standards Institute. (2003). Sampling Procedures and Tables for Inspection by Attributes. Washington: American National Standards Institute. Retrieved from http://webstore.ansi.org/RecordDetail.aspx?sku=ANSI%2fASQ+Z1.4-2003+(R2013) ASTM International. (2015). Standard Practice for Commercial Packaging. Retrieved from www.astm.org Government Printing Office. (2002, August). Quality Assurance Through Attributes Program for Printing and Binding. Retrieved October 2017, from Government Publishing Office: https://www.gpo.gov/pdfs/customers/qatap.pdf Pantone LLC. (2017). Pantone Matching System. Carlstadt, New Jersey, United States of America: Pantone LLC.

US Department of Labor; US Bureau of Labor Statistics. (n.d.). Table 9 - Producer price indexes and percent changes for commodity and service groupings and individual. Producer Price Index (PPI) Detailed Report. Retrieved from https://www.bls.gov/ppi/ppi_dr.htm US Government Publishing Office. (2002, August). Quality Assurance Through Attributes Program for Printing and Binding (QATAP). Contract Terms, pp. 310.1 1-60. Retrieved from https://www.gpo.gov/pdfs/vendors/qatap.pdf Note: The documents listed above are cited in this document.

Requirements The descriptions below provide the basic characteristics and requirements to achieve the current look, feel and quality of the finished parts ordered by the United States Mint. Instructions beyond the descriptions and information provided that may be necessary for producing and assembling components into finished parts are the responsibility of the contractor.

Parts are expected to maintain consistent dimensions and tolerances so as to be interchangeable across multiple orders. Parts may be used through multiple product years and for multiple products, therefore it is a requirement that products will be the same when lots of the same part number from multiple production dates are compared.

The United States Mint uses automated machinery to assemble parts and coins into finished packages. Parts are expected to maintain consistent materials, dimensions and tolerances to facilitate automatic assembly.

General Requirements All parts ordered by the United States Mint under this contract are subject to the general requirements below.

Material Description Materials used by the contractor to create finished parts shall be of a quality appropriate to a product that may be retained for 10 years or more.

Materials used shall not tarnish, react with, or otherwise damage the coins they encase. Materials shall not react with or otherwise damage other elements of the package, including but not limited to plastic strap for sealing closed cartons. Materials shall remain colorfast and resistant to break down in normal storage conditions.

Specific Materials Plastic Resins Only virgin resins shall be used for molding. The use of recycled or reground material is unacceptable.

Low Density Polyethylene (LDPE) is required for the fabrication of tubes. The material shall be uncolored and translucent. It is intended that requiring an uncolored, translucent plastic will allow visual validation of the contents of the tube, identifying a void or a slug, without requiring removal of the cap.

· Mtegrity LDPE LD500 has been used in the past and has been found to meet the Mint’s requirements for this material.

Polypropylene (PP) is required for the fabrication of caps and carton parts. The material shall be colored and opaque. It is intended that the colored parts will match and provide visual identification as to the contents of the assembled parts. Colors shall match to the description provided in the section titled “Color”.

· Braskem PP D115A has been used in the past for the manufacture of caps and has been found to meet the Mint’s requirements for this material.

· Pro-fax 8523 has been used in the past for the manufacture of cartons and inserts and has been found to meet the Mint’s requirements for this material.

Material Restrictions The following items have been identified as potentially damaging to coins and therefore shall be restricted from any element of the produced product. The United States Mint reserves the right to request from the Contractor, at no cost to the United States Mint, laboratory analysis performed by a third-party that confirms or denies the presence of restricted materials.

· Any materials shall have a sulfur content of less than 0.0008%, and a soluble chlorides content of less than 0.05%.

· Materials used shall not change the appearance of the medals by causing discoloration, tarnish, or corrosion.

· Polyvinyl chloride (PVC) shall not be used.

Aesthetic Description The visual and tactile descriptions below are descriptive of the current parts required by the United States Mint.

Bullion packaging parts have been designed to work together as a system, sharing look, feel and design elements across multiple parts. Parts have been designed with form fit and function prioritized over aesthetics. Aesthetic concerns are secondary to the functionality of the parts and their compatibility with existing packaging equipment. As a system of parts, it is intended that one mold produce multiple parts with variation to meet a part description supplied by a color change.

Color The United States Mint utilizes parts that are the “same” color but composed of different materials that may be difficult to color match. It is intended that components with the same color be as visually close in color as is possible. Pantone color standards (Pantone LLC, 2017) will be used whenever practicable for color matching. Acceptability of the color match shall be at the discretion of the COR.

· Black elements are to be visually matched to Pantone Black 3

· Dark Blue elements are to be visually matched to Pantone 539

· Gray elements are to be visually matched to Pantone Cool Gray 11

· Green elements are to be visually matched to Pantone 356

· Light Blue elements are to be visually matched to Pantone 290

· Orange elements are to be visually matched to Pantone Orange 021

· Red elements are to be visually matched to Pantone 187

· White elements are to be visually matched to Pantone 11-0601 TCX

· Yellow elements are to be visually matched to Pantone Yellow Texture Parts are expected to have smooth surfaces, neatly finished corners, and no sharp edges. Mold surfaces shall be polished to reduce or remove tooling marks on finished parts. Gates shall be unobtrusive and neatly finished with minimal material protruding from the surface.

Size Generic sizes are not typically used to categorize parts in this contract. Parts are intended to be space efficient and close fitting with the next smaller unit in a package configuration. Specific dimensions are provided for existing parts in specific part descriptions.

Shape Generic shapes are not typically used to categorize parts in this contract. The exterior and interior shapes of each part are based on their function and described in the section titled “Component Description”.

Additional Ornamentation Finished parts are intended to be generic to facilitate usage across multiple product years. Cartons and caps shall prominently bear the seal of the United States Mint. Cartons shall prominently bear the text “United States Mint” All components and parts shall bear the appropriate resin code as per “Standard Practice for Coding Plastic Manufactured Articles for Resin Identification”. Resin codes shall be placed in unobtrusive locations when possible.

Components and parts produced from multi-cavity molds may be marked with a source cavity indicator.

Component Description Components (i.e. the contractor produced elements that are assembled into the finished part) are to be completely finished and show good workmanship. The descriptions below are intended to provide the overall look and feel, intent, function and quality characteristics. Following production of the components below, the contractor is responsible for assembling them into the specific the finished parts detailed in the specific part descriptions.

Components are described in this section and subsection in relation to their function, interior shape, exterior shape and additional structures that are critical to their functional success. Descriptions are provided as a supplement to drawings.

It is intended that components surfaces are square in relation to each other and that structures are shaped appropriately for their function. Practical structures required for successful injection molding are not included in component descriptions. It is understood that the practicalities of injection molding require draft angles, fillets, chamfers, and structural support features to be incorporated into designs. Practical considerations made for successful injection molding are intended to be inconsequential to the overall design and located unobtrusively when possible. Component designs are expected to be consistent with the application of the best practices in use by the injection molding industry.

In addition to the component features listed below, the contractor shall be responsible for coordinating features where parts interface after Mint assembly. Features requiring at least two parts to work together include, but are not limited to:

· Coordination of tubes and caps to allow no more than the specified number of coins to be packaged into the container

· Coordination of tubes and caps to provide a firm fit of the cap to the tube

· Coordination of tubes and caps to close with a discernible snap

· Coordination of tubes and caps to ensure tubes remain sealed until deliberately opened

· The cap shall not release from the tube when subjected to a drop test

· Coordination of tubes and caps to allow closure with moderate finger pressure

· Coordination of inserts and cartons to enable one-handed assembly

· Parts shall not be warped or require adjustment prior to assembly.

· Coordination of tubes, inserts and cartons to allow no more than the specified number of tubes to be packaged into the carton

· Coordination of carton lids and bases to facilitate cartons stacking with a minimal tip or slide risk (i.e. interlocking beads)

· Coordination of carton lids and bases to facilitate closure with straps (i.e. strap channels). Feature shall not introduce a tip or slide risk for a stack of cartons.

· Coordination of caps, carton lids, bases and inserts to match in color.

· Coordination of packaging to the stack of coins to reduce or eliminate void space with salable product when possible. Parts and components are intended to fit closely to the next smaller part or component (or stack of coins).

Tubes The contractor shall produce tubes constructed of uncolored LDPE.

The primary packaging for the US Mint bullion product is a plastic tube fitted with custom, colored cap. Tubes encase a stack of coins and protect coins during shipping and storage. The height of the tube is intended to accommodate the specified number of coins (coin capacity), at maximum coin thickness tolerance. The thickness of the tube material shall be adequate to protect the tube from breaking apart when subjected to a drop test. The tube walls shall be polished inside and out to permit examination of a sealed tube and detection of shortages or substitutions. Relative to a top down view of the tube, lateral movement (x-y axes) of a coin stack shall be restricted to no more than 1/32”.

The interior shape of a tube is round, relative to a top down view, and cylindrical, relative to a side view.

The exterior shape of a tube is square with rounded corners, relative to a top down view, and rectangular, relative to a side view.

The interior surface of the tube shall have a locking ring feature parallel to the bottom of the tube, located near the rim and to interface with the cap for closure.

The interior surface of the tube may have ribs perpendicular to the bottom of the tube to restrict x/y coin movement.

Caps The contractor shall produce caps constructed of colored PP.

The primary packaging for the US Mint bullion product is a plastic tube fitted with custom, colored cap. Caps complete the encasement of a stack of coins for shipping and storage. The depth of the cap inserted into the tube is intended to restrict coin movement, for a nominal height of the specified number of coins, to no more than half a coin. The thickness of the cap material shall be adequate to protect the cap from breaking apart when subjected to a drop test.

The interior shape of the cap is round, relative to a bottom up view.

The exterior shape of the cap is square with rounded corners, relative to a top down view. The exterior shape of the cap is round joining to a square, relative to a bottom up view. The exterior shape of the cap is complex and not describable in terms of a single simple geometric shape, relative to the side view.

The depth of the cap inserted into the cylinder of the tube is intended to restrict movement to no more than ½ a coin for a nominal stack height along the z-axis.

The exterior surface of the cylindrical portion of the cap shall have a feature, such as an undercut or ribs, which will interface with the locking ring feature on the interior surface of the tube and create a snap closure. The exterior surface of the cylindrical portion of the cap shall be tapered to facilitate insertion into a tube.

The taper on the cap may be set to a depth equivalent to a nominal coin height if the design allows. Additional taper features shall not interfere with the primary function for the taper.

Carton The contractor shall produce cartons constructed of colored PP. Components of the same carton should match in color to each other.

The secondary packaging for the US Mint bullion product is a plastic carton with a potential insert customized to the coin tubes being encased. Cartons encase a specified number and weight of coins that have already been sealed in tubes. The thickness of carton material shall be adequate to not deform when subjected to a drop test.

Cartons are ordered as complete parts rather than the individual components. Five hundred ounce cartons require an insert when ordered. One hundred ounce cartons are customized to a specific tube configuration and do not require inserts.

Carton - Insert The secondary packaging for the US Mint bullion product is a plastic carton with an optional insert customized to the coin tubes being encased. Five hundred ounce cartons require inserts, the current configuration of one hundred ounce cartons do not require inserts. Inserts step the relatively square shape of a group of tubes to the rectangular shape of the carton. Inserts distribute the load of a filled carton laterally and center it vertically. The height of the insert is determined by the tubes it encases. Up to two inserts may be used in an inverted configuration to completely restrict movement of a load within a carton.

The interior shape of the insert is typically divided into two squares. Some inserts have an “H” like shape allowing the space between two squares to be used for holding tubes.

The exterior shape of the insert is rectangular relative to both a top down view a side view.

The bottom rim of an insert may be rounded or chamfered to facilitate insertion into a base.

Carton - Cover The secondary packaging for the US Mint bullion product is a plastic carton with an optional insert customized to the coin tubes being encased. Carton covers interface with a base, and optional inserts, to encase a load of sealed tubes and create a sealable unit. The height of a five hundred ounce carton cover shall be adequate to telescope over at least 90% of the matching base. The height of a one hundred ounce carton cover shall be adequate to cover at least 30% of the matching base. Carton covers should not slide off or be easily knocked off a base when unsealed. Carton covers should rest on the base when cartons are closed.

The interior shape of a carton cover is generally rectangular from both a bottom up and side view. When viewed with the bottom up, indents in the center of each side are evident, breaking up the regular rectangular shape.

The exterior shape of a carton cover is generally rectangular from both a top down and a side view. When viewed with the top down, indents in the center of each side are evident breaking up the regular rectangular shape. When viewed from the side, indents are evident in the center of the top face are evident breaking up the rectangular shape.

The bottom face of a carton base shall have a bead feature around each corner to interface with the top of a matching cover. The feature shall allow clearance of a strap to seal the carton and create a stable structure when sealed cartons are stacked.

The bottom rim of the carton cover may be rounded or chamfered to facilitate the interface with the base.

Carton - Base The secondary packaging for the US Mint bullion product is a plastic carton with an optional insert customized to the coin tubes being encased. Carton bases interface with a cover, and optional inserts, to encase a load of sealed tubes and create a sealable unit. The height of a five hundred ounce carton base shall be equal or greater than the height of the tallest closed tube. The height of a one hundred ounce carton base shall cover at least 50% of the specified short tube dimension.

The interior shape of a carton base is generally rectangular from both a top down and side view. When viewed with the top down, indents in the center of each side are evident, breaking up the regular rectangular shape.

The exterior shape of a carton base is generally rectangular from both a bottom up and a side view. When viewed with the top down, indents in the center of each side are evident breaking up the regular rectangular shape. When viewed from the side, indents are evident in the center of the top face are evident breaking up the rectangular shape.

The top face of a carton cover shall have a bead feature around each corner to interface with the bottom of a base matching base. The feature shall allow clearance of a strap to seal the carton and create a stable structure when sealed cartons are stacked.

The top rim of the carton base may be rounded or chamfered to facilitate the interface with the cover.

Specific Requirements And Part Descriptions Part descriptions are provided as an attachment in MS Excel format (Attachment 1- Tables |Part List Tab). Active parts are listed with a three to six digit part number, parts that have been planned but not are not in use by the United States Mint are listed with a “TBD” part number. One time use parts with product specific packaging show part numbers with wild card place holders for some characters.

Change Management Occasionally the United States Mint will require new parts as a result of internal decisions or external instruction. New parts shall meet the same requirements for existing parts detailed above unless unless the contractor is specifically notified otherwise.

New parts and modifications to existing parts may be required for reasons that include, but are not limited to color change, functionality improvement, and productivity improvement. Occasionally, new parts may be required to address a specific packaging need not met by current parts.

Color changes, functionality improvements, and production improvements are generally considered minor. For minor changes, under the CO’s oversight, the COR will work with the contractor to develop appropriate descriptions for new parts. The contractor may be required to provide color swatches, prototypes and other samples to facilitate the development of an appropriate description. When a description is finalized, the Contractor will be notified of the need for new parts through a pricing request submitted by the Contracting Officer. When pricing is requested, the contractor may also submit costs for one time set up fees. If pricing is accepted, the contract will be modified appropriately to include additional parts for subsequent orders.

For major changes, that may require part design and mold design, the COR will work with the contractor and under the CO’s oversight to identify the scope of the project and part descriptions. When the description is finalized the contractor will be notified of the need for new parts through a request for proposal submitted by the CO. The contractor shall submit a proposal for the work. If the Mint wishes to proceed, the CO will issue a funded order for the effort.

Occasionally, the United States Mint will require new molds for existing parts. New molds may be required to replace existing molds at the end of their designed lifecycle, to improve part quality, to improve mold productivity or for other reasons. Existing parts produced from a new mold are expected to conform to existing drawings and be the same as previously produced parts.

New Parts The contractor shall have new parts designed as required.

It is the contractor’s responsibility to manage the part design process. Part designs shall follow injection molding industry best practices and include all practical features necessary for successful production and function. Part design may require identification of features not described herein that are required for successful production or function.

The new part design is required to meet the Mint’s performance requirements for existing parts. The contractor shall be responsible for managing part design validation and shall supply concepts, prototypes, technical drawings and other relevant deliverables to the Mint as appropriate to prove the part design.

Part design completes with the notification to the contractor that the Mint has accepted the final technical drawing.

It is understood that the contractor has significant latitude within the design of the part for modifications to improve mold functionality and productivity New Molds The contractor shall have new molds designed as required.

It is the contractor’s responsibility to manage the mold design process. Mold designs shall follow injection molding industry best practices. It is the contractor’s responsibility to manage the mold design process and identify any additional features or requirements that may be required for successful, efficient productivity. Molds shall be designed and produced to SPI Mold Class 101 (life of 1,000,000 cycles). It is the contractor’s responsibility to manage the mold design validation process, providing steel safe first shots, PPAP packages, first articles and other deliverables to the Mint as appropriate to validate that the mold the required parts represented by accepted technical drawings.

Molds shall not be designed with any proprietary features or fittings that would prevent the mold from being run on another press of similar capacity to the one intended to run the mold.

It is the contractor’s responsibility to manage mold qualification prior to submitting parts to fulfill an order.

Mold design completes with the notification to the contractor that the Mint has accepted first article samples. Following mold design acceptance, the contractor shall supply the COR with final mold drawings and basic running parameters for the mold. The information provided shall be adequate that if the mold is reassigned from the contractor’s responsibility, the newly assigned contractor will have enough information to start the mold and produce minimally acceptable parts.

Molds become the property of the United States Mint upon acceptance of the initial first articles produced by the mold and shall be regarded as Government Furnished Property/Equipment for the remainder of the contract.

New molds shall be permanently marked in an easily accessible and visible place with the following information:

· Enter service Month/Year (mm/yyyy)

· Mold exterior dimensions (length, width of the mold face and height of the closed mold)

· Mold weight

· Part number produced

· “Property of the United States Mint” The mold design and build shall include a 7 digit mechanical cycle counter.

Contractor Requested Change It is understood that the Contractor may wish to change suppliers or materials used for production. The contractor shall not unilaterally change the materials used to produce any part. The Contractor shall notify the CO/COR of its intent to change suppliers or materials to start the contract modification process. Material changes not requested by the United States Mint may require samples to be provided by the Contractor prior to acceptance.

It is understood that the Contractor may wish to recommend new parts or new molds outside a normal mold lifecycle. The contractor shall notify the CO and COR of any change opportunities that have been identified and proceed according to instruction provided by the CO.

Pre-Production Approval Process (PPAP) The United States Mint is a Lean Six Sigma production environment. To assist the United States Mint in identifying potential quality issues, suppliers may be required to submit a Pre-Production Approval Process (PPAP) package to the United States Mint the first time a part is ordered, as part of an incoming mold validation process or after major mold maintenance has been performed. The contractor shall coordinate submission of the PPAP package with the COR and will be notified of any need for additional information or if any items are unacceptable.

At a minimum, the PPAP package shall include:

· Process Flow Chart, which demonstrates how the process flows/works from Material Receipt through Shipment Delivery.

· Process Failure Mode & Effects Analysis (PFMEA)

· Control Plan, which will demonstrate the plan for controlling the processes and the plan for addressing PFMEA findings, RPN (Risk Priority Number) action target >/= 60)

· A complete Dimensional Layout of 3 pieces (or per customer request)

· Capability Study on Key/Critical characteristics on 30 pieces (or per customer request). Cp & CpK Target ≥ 1.33

· Gauge Repeatability & Reproducibility (R&R) using 3 people; 10 parts; 2 times each on a selected Key/Critical characteristic. Gage R&R Target ≤ 25%

· Operating Procedures (preferably with pictures)

· Packing Procedures (preferably with pictures)

· Critical to Quality Characteristics First Article Samples First article samples may be required for new parts or for changed parts. When a part is used in a manual assembly process, up to thirty (30) first article samples may be required for inspection and review. When a part is used in an automated assembly process, up to two hundred (200) first article samples may be required for inspection and review.

First article quantities will be included in the delivery order quantity and the contractor will be notified of any required first article submissions by the COR. When first articles are required, the COR shall have five (5) samples submitted concurrently with the samples being submitted to the plant. First article samples will be examined to the same quality standard that will be used for evaluating a production shipment. Rejected first articles shall be reworked and resubmitted.

First articles are typically required the first time a part is ordered, as part of an incoming mold validation process or after major mold maintenance has been performed.

Drawings Drawings shall be the governing document for the dimensions and tolerances of the produced part. When an order is placed, the contractor will be responsible for ensuring that the part ordered is represented by an accurate technical drawing with all critical tolerances and dimensions shown. This effort may require updating existing drawings or creating new drawings.

The Mint’s required file format for drawings is PDF. The Mint’s preferred native file format for drawings is SolidWorks.

Existing Drawings Relevant part and mold drawings shall be provided by the Mint to the contractor when they are available. Drawings may be provided in any or all of the following formats: as hard copy, PDF, SolidWorks native file and a generic AutoCAD file format (e.g. .dxf or .dwg).

All drawings provided to the contractor are the property of the United States Mint.

Complete, current drawings are not available for all parts or in all formats. Existing part drawings are provided as attachments to this document.

New Drawings The contractor will be required to create new drawings for new parts or for existing parts for which no drawing exists. The contractor may be required to create new drawings for new components for existing components for which no drawings exists. SolidWorks is the Mint’s preferred software suite for creating new drawings.

Contractor produced drawings shall be fully dimensioned and show critical tolerances. Tolerances shown shall be appropriate to the contractor’s industry and capability. Tolerances shall be adequate to ensure successful part performance for parts within specified tolerances.

New drawings will be reviewed and approved by the COR. Review and approvals will use the PDF version of the supplied drawings. Drawings become the property of the United States Mint upon acceptance.

Part and mold drawings shall be provided to the Mint by the contractor when they are available. Drawings shall be provided as PDF, native file and as a generic AutoCAD file format.

Empty United States Mint drawing templates are available upon request.

Quality and Testing Delivered parts will be tested to verify that the applicable specifications and requirements specified herein have been met. The most accurate tolerances, dimensions and descriptions available for the delivered part will be the standard followed for inspection. The United States Mint may utilize drawings, templates or custom gages for verifying samples are acceptable. Inspections will be completed within 10 business days after delivery and will be marked as “received” after a delivery has determined to have passed its inspection.

Deliveries that fail to meet inspection criteria will have defects noted and provided to the contractor through a Non-Conformance Report (NCR). Defects are subject to remedy through a Corrective Action Preventative Action (CAPA) process to identify and eliminate root causes for defects. Deliveries that fail to meet acceptable quality limits are subject to being rejected for contractor to pick up and remedy. Repeated rejected deliveries may result in the contractor being required to revalidate their ability to produce quality parts through a first article approval process prior to beginning production.

Deliveries that are fail to meet the agreed upon schedule are subject to being rejected.

Inspection results, NCR and CAPA information may be used in the preparation of past performance reports.

Production Lot Acceptance Acceptance of production lots from the contractor shall be in accordance with all requirements of the contract. Sampling will follow ANSI/ASQ Z1.4 General Inspection level II, with an AQL of 4.0 (American National Standards Institute, 2003).

Inspection Criteria The delivered parts shall be tested for workmanship, critical to quality characteristics and part performance.

Workmanship Delivered parts shall be free from debris resulting from the production process, shipping or handling. Delivered parts shall have minimal errant marks, scuffs, scratches or blemishes resulting from the production and in process handling. Edges shall be straight and finished without burrs, nicks or hanging material. Text and logos shall be completely filled and legible.

Allowable defects include minimal gate marks and light flow lines.

Rejectable defects include warping, voids, cracks, color variation, flash, or any other defect that could inhibit the inherent function of the part.

Critical To Quality Characteristics

· General Requirements

· Conformance of materials to specification and requirements

· Conformance of delivered parts to aesthetic requirements

· Color match to part specification

· Texture match to part specification

· Conformance of delivered parts to component requirements

· Part coordination

· Required components to make the complete ordered complete part

· Required assembly to make the complete ordered part

· Delivered part validation to specification table and other instructions

· Conformance of delivered parts to technical drawings

· Dimensions

· Tolerances

· Tubes –Inner Diameter, Height (Inside bottom to outside top)

· Inserts – Inner Length, Outer Width, and Perpendicularity, Sectional Inner Length (X2) & Center Section Divider Width, Height (if applicable)

· Carton base - Outer Length, Width, and Perpendicularity

· Carton Cover - Inner Length, Width, and Perpendicularity Part Performance

· Strength and durability shall be sufficient to prevent splitting, cracking, or other damage that would compromise the package

· Load movement restricted per requirements

· Parts from different production lots are interchangeable Automated Assembly Parts marked for automated assembly shall be functional on the United States Mint’s existing packaging equipment. Ordered parts shall be able to be fed into the automated line and to be processed by the automated line in accordance with the machine’s contractually specified throughput, quality and reject/spoilage rates.

Drop Test

· With coins inside a properly closed tube shall not open or break apart when dropped from a height of 5 feet onto a hard concrete surface.

· With sealed tubes inside, a sealed or banded carton shall not split, crack, or break apart when dropped from a height of 5 feet onto a hard concrete surface.

· With sealed tubes inside a carton subjected to a drop test shall result in undamaged tubes and coins.

Government Property Government property relevant to this contract includes molds and tooling used to manufacture the components and parts described herein. “Property”, “tooling”, and “molds” are used interchangeably in this section to refer to the items the government has assigned to the contractor that are required for execution of this contract.

Execution of the contract requires the contractor to be in possession of and responsible for government property. The contractor shall notify the government any time the property is being transferred out of or into their direct possession, for example, if a tool is being shipped to a supplier for rework. The contractor shall carry insurance coverage adequate to pay the replacement cost for each piece of property that has been assigned.

It is understood that the contractor’s efforts will create “wear and tear” on government property and will therefore require maintenance. The contractor shall perform regular maintenance on the assigned property without direct reimbursement. The contractor may be required to manage major maintenance and refurbishment.

It is understood that the contractor’s efforts may result in government property reaching the end of its designed lifecycle.

Government property and its contractor assignments are tracked on the attached table.

Transfer In Of Molds When assigned, at the discretion of and through notification the United States Mint, the contractor shall receive molds and tooling from the Mint or its delegate/contractor.

Upon receipt the contractor is responsible for the assigned government property. The contractor shall perform incoming inspections and account for all assigned property, and report their findings to the COR. The Mint will be responsible for any items that are missing, damaged or otherwise unusable. The contractor shall validate the working condition of the mold and notify the COR that the mold is ready to produce production quality parts.

The Mint shall absorb the transfer in costs of property assignments.

The contractor is responsible to provide any support tooling or other equipment required to bring the molds to an operational condition on its equipment.

Routine Maintenance and Repair of Molds The contractor shall administer, in accordance with sound industrial practice, a program for maintenance, rework, repair, protection, and preservation of the molds it has been assigned. The maintenance program shall keep the molds in a working condition and ready to produce production quality parts when orders are placed. Maintenance shall include polishing working surfaces to maintain part aesthetics and tolerances.

Refurbishment If a mold requires refurbishing or significant modification, to reach or maintain a productive state, contractor shall provide a description of the issues and provide a fair and reasonable fixed price proposal to the United States Mint CO for the work required. The Contractor must receive written authorization and approval funding from the CO prior to making any modifications to the mold.

The contractor may propose recommendations for decommissioning tooling rather than performing a refurbishment.

Transfer Out Of Molds When instructed, at the discretion of and through notification the United States Mint, the contractor shall deliver molds and tooling to the Mint or its delegate/contractor. The contractor shall deliver all property freight on board (FOB) destination to site(s) designated by the United States Mint. The United States Mint will reimburse the contractor for the costs of transporting the molds.

The United States Mint reserves the right to witness/inspect the molds at the contractor’s facility immediately prior to closing of the molds. This effort may include tagging and sealing the molds and containers for shipment. Visible damage to the molds shall be photographed/documented. The contractor transferring out the molds will be responsible for reasonable costs associated with returning damaged molds to a productive state.

Section 508 Compliance – New IDIQ Contracts (Clause #C-125, March 2009) All electronic and information technology (EIT) products (supplies and services) provided or delivered under this contract shall fully conform to Section 508 of the Rehabilitation Act of 1973, as amended, and the Architectural and Transportation Barriers Compliance Board's Electronic and Information Technology Accessibility Standards at 36 CFR Part 1194 et seq.

Any electronic means by which the Contractor shall provide information or data about its offered products must conform to Section 508 requirements.

For every EIT product accepted under this contract by the United States Mint that does not fully comply with 36 CFR Part 1194 et seq. (pursuant to an exception or exclusion as determined by the United States Mint in its discretion), the Contractor shall on 30 days notice, at the discretion of the United States Mint, make every effort to replace or upgrade it with a compliant equivalent product or service, if commercially available and cost neutral.