RFI-NdPr__090319.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

REQUEST FOR INFORMATION (RFI)

Neodymium Oxide (Nd2O3) and Praseodymium Oxide (Pr6O11)

1.0 INTRODUCTION

The Defense Logistics Agency (DLA) Strategic Materials is issuing this Request for Information (RFI) and Sources Sought (SS) (hereinafter "notice") to solicit interest and information on how an interested contractor could provide Neodymium oxide (Nd2O3) and Praseodymium oxide (Pr6O11). This notice and attachments are strictly for information and acquisition planning purposes only. Market Research is an essential step in the Federal Government acquisition process. This notice will be utilized as a tool in determining market interest and feasibility in accordance with Federal Acquisition Regulation (FAR) Part 10, Market Research. This RFI does not constitute a Request for Proposals (RFP)/Request for Quote (RFQ) or a Government-issued solicitation.

DLA Strategic Materials, at this time, is not seeking proposals and will not accept any unsolicited proposals. All interested parties are encouraged to submit a response to this RFI.

Failure to respond to this notice does not preclude a firm from responding to a future solicitation; however, a lack of interest in this requirement may prevent this effort from moving forward competitively. The potential opportunity for set-asides for various small business concerns will be considered; but cannot be guaranteed by the Government on a potential future acquisition. This notice shall not be construed as a commitment or authorization to incur costs in anticipation of an award. The Government is not bound to make any awards under this notice. All costs associated with responses to this RFI are the sole responsibility of the interested party. If a future acquisition is determined appropriate, it will be synopsized on the Federal Business Opportunities (https://www.fbo.gov) website. It is the responsibility of all interested parties to monitor the Federal Business Opportunities (https://www.fbo.gov) website site for additional information pertaining to future acquisitions.

2.0 DESCRIPTION

The Defense Logistics Agency (DLA) Strategic Materials Contracting Directorate is seeking information on how an interested contractor could provide for a potential acquisition of Neodymium oxide (Nd2O3) and Praseodymium oxide (Pr6O11).

2.1 Potential Government Quantity: 42 metric tons Nd2O3, 10 metric tons Pr6O11

2.2 Potential Government Delivery Timeframe: One/Three years

(2020-2021, 2021-2022, 2022-2023)

3.0 BACKGROUND

DLA Strategic Materials is the operational agent of the National Defense Stockpile Manager, Under Secretary of Defense, Acquisition and Sustainment (USD A&S) charged with implementation of the provisions of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. Section 98 et seq., hereafter referred to as the “Act”). Section 2(b) of the Act requires the Stockpile Manager to “…provide for the acquisition and retention of stocks of certain strategic and critical materials…, to decrease and to precludesepte when possible, a dangerous and costly dependence by the United States upon foreign sources or a single point of failure for supplies of such materials in times of national emergency.”

4.0 INSTRUCTIONS TO INTERESTED PARTIES

This RFI and SS for a potential acquisition of Nd2O3 and Pr6O11 is open to firms and businesses of all sizes. Small businesses and large businesses are invited to respond to this notice. The North American Industry Classification System (NAICS) code for this procurement is 325180 Other Basic Inorganic Chemical Manufacturing with a size standard of 1000 employees. https://www.census.gov/eos/www/naics/

Interested parties should respond to this notice by submission of a capabilities statement package, double-spaced, using 12-point Times New Roman font with one inch margins on standard 8 ½ by 11-inch paper demonstrating the ability to fulfill the requirement as specified within this notice.

Interested parties should provide a statement of interest on company letterhead no later than 5:00 PM Eastern Daylight Time (EDT) on September 29, 2019. Responses shall be submitted via e-mail; only to SMContracting@dla.mil. Proprietary information, if any, MUST BE CLEARLY MARKED. To aid the Government, please segregate proprietary information. Please be advised that all submissions become Government property and will not be returned. All responses MUST include the criteria depicted in Sections 5.0, “Submission Requirements/Capability Statement” and 6.0, “Government Requested Information” subsections. If responses cannot be provided in accordance with this notice, the interested party must provide a brief explanation disclosing the reasoning the entity could not provide the requested information.

5.0 SUBMISSION REQUIREMENTS/CAPABILITY STATEMENT

5.1 The entity name, mailing address, overnight delivery address (if different from mailing address), phone number, fax number;

5.2 The name of the primary Point of Contact (POC) to discuss the Capabilities

Statement, inclusive of the POC’s phone number and email address, in addition to, an alternate POC inclusive of their phone number and email address;

5.3 The Commercial and Government Entity (CAGE) Code

5.3.1 The CAGE is a five-character ID number used extensively within the federal government, assigned by the Department of Defense's Defense Logistics Agency (DLA). If a formal solicitation is issued based on this notice, a CAGE is required to accompany all responding proposals. More information can be found at System for Award Management (SAM) at https://sam.gov/SAM/ regarding registering entities in order to do business with the United States Government;

https://www.census.gov/eos/www/naics/ https://sam.gov/SAM/

5.4 Business Type and affiliated NAICS with your entity

5.4.1 (i.e. Large business, small business, small disadvantaged business, 8(a)-certified small disadvantaged business, HUBZone small business, woman-owned small business, very small business, veteran-owned small business, service-disabled veteran-owned small business) based upon NAICS 325180 Other Basic Inorganic Chemical Manufacturing with a size standard of 1000 employees. “Small business concern” means a concern, including its affiliates that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria and size standards in 13 CFR part 121. A small business concern for the purposes of this procurement is generally defined as a business, including its affiliates, with a size standard of 1000 employees. Annual receipts of a concern that has been in business for 3 or more complete fiscal years means the annual average gross revenue of the concern taken for the last 3 fiscal years. Annual receipts of a concern that has been in business for less than 3 complete fiscal years means its total receipts for the period it has been in business, divided by the number of weeks including fractions of a week that it has been in business, and multiplied by 52. If your entity is a small business concern under the applicable NAICS, please also provide information on which subcategory (i.e., certified by Small Business Association (SBA) as HUBZone SB, self-certify as a SDB, WOSB, VOSB, and/or SDVOSB) you are qualified in. Additional standards and conditions apply. Please refer to Federal Acquisition Regulation FAR 19 for additional detailed information on Small Business Size Standards. (http://farsite.hill.af.mil.)

5.5 Organizational and staff capability

5.5.1 Tailored capability statements should address the particulars of this effort, with appropriate documentation supporting claims of organizational and staff capability

5.5.2 If significant subcontracting or teaming is anticipated in order to deliver technical capability, organizations should address/discuss the administrative and management structure of such arrangements.

5.5.3 A list of contracts for similar and related work completed previously. The response should include: (1) the contract number, (2) the Government/commercial agency point of contact affiliated with the work, and (3) whether your entity acted as a primary or subcontractor on the work. Additionally, please submit lessons learned from current or previous contract awards that are similar to the potential acquisition.

5.6 Delivery time frames are extremely important to the federal government. Please provide your company’s delivery lead-time for the potential effort.

5.7 Indicate whether you would be performing as a manufacturer, a supplier, or trader for the potential acquisition

5.7.1 If your entity would be performing as a manufacturer, please provide a list of approved distributors or suppliers, if any. (your list should include entity names, addresses and the location of each source, CAGEs if known) http://farsite.hill.af.mil/

5.7.2 If your entity would be performing as a distributor or supplier, please provide your manufacturer or source. (your list should include entity names, addresses and the location of each source, CAGE if known)

5.8 Recommended contract strategy.

5.8.1 The response should outline what contractual vehicles your entity would recommend, if any and why (i.e., GSA (provide schedule), or any other existing contract vehicle)

6.0 GOVERNMENT REQUESTED INFORMATION

6.1 Provide the specific (estimate) information price breakdown of NdFeB magnet raw material applicable to unit price and the extended quantities of 42 metric tons Nd2O3, and 10 metric tons Pr6O11.

6.1.1 Oxide Base Price—please provide the current unit price (USD per kilogram) FOB China price for NdFeB magnet material Nd2O3, and for Pr6O11 that will be used as a basis in the indicative price offering (please provide current indicative price this is for information purposes only).

6.1.2 Packaging Cost (drums, pallets, plastic bags)—the oxide material will be packaged in double bagged 0.2 mm thick industrial poly bags. The drums used should meet manufacturer specifications for UN 1A Rated Open- Head steel drums with bungs. Each drum should be of appropriate dimensions and strength to contain a standard quantity of 50 kilograms of the oxide material. The drums will be loaded on grade 4 material hardwood wooden pallets, 122 cm (48 in) x 122 cm (48 in), for transport and storage. Please estimate number of drums per pallet and number of pallets.

6.1.3 Transportation Costs—provide breakdown of logistics route and total estimated FOB price, listing source (provide place and country of origin), through city and country of export, through U.S. import city and state, and freight costs to vendors warehouse (city and state) where third party testing occurs, and finally freight costs to final destination at the Government storage depot: Defense Logistics Agency Strategic Materials, 3200 Sheffield Avenue, Hammond, Indiana 46327. Please estimate number of drums per pallets, number of pallets per container and number and type of containers in the cargo load, for international and domestic shipping and insurance (plus inflation rate).

6.1.4 Third Party Testing—please also provide costs of third party independent inspection, sampling and assaying in the United States based on ASTM International Standards B215-15. (the name and location of the facility must be included in the breakdown that would be utilized).

6.1.5 General Specification Sheet—please provide an acceptable industry specification sheet for each of the Nd2O3, Pr6O11 materials that includes maximum limits of rare earth impurities and non-rare earth impurities that meet industry standards for the application of sintered rare earth permanent NdFeB magnet material.

6.1.5.1 For each of the individual Nd2O3, Pr6O11 products, the purity level should be 99.5% relative to total rare earth oxides (TREO) for each of the products.

6.1.5.2 This should include a listing of limits for rare earth impurities and non-rare earth impurities that are deleterious for magnet manufacturing feedstock (e.g., carbon, silica, chlorine etc.).

6.1.6 Safety Data Sheet (SDS) and example Certificate of Analysis (COA)— please provide SDS and COAs of NdFeB magnet material oxide feeds for both of the individual Nd2O3, and Pr6O11 market convention products acceptable for 99.5% purity levels.

6.2 NdFeB Magnet Raw Material Feedstock Information

6.2.1 What are the specifications of the Neodymium oxide and Praseodymium oxide for use in manufacturing of sintered NdFeB magnets produced, sold, or required by your company?

6.2.1.1 Specifications can be commercial or company specific.

(Proprietary specification information submitted to the Government will be held as Business Confidential and not disclosed outside of DLA Strategic Materials or the chain of command responsible for the operation of the National Defense Stockpile (NDS). Specification information is important as it helps ensure that the materials potentially acquired for the NDS could be released to industry for the production of end items in the event of a National Emergency.)

6.2.2 What is your annual overall production/throughput of individual purified rare earths that are used as raw materials for the NdFeB magnet industry (Nd2O3, Pr6O11 oxide powders)?

6.2.3 What other forms of Nd and/or Pr Rare Earth material are sold to NdFeB magnet industry customers (oxide, fluoride, carbonate, nitrate, mixed compounds, metal, alloy) and how does the volume of those forms sold compare to sale of NdPr oxide forms?

6.2.4 How much didymium oxide (NdPr2O3) is sold to NdFeB magnet industry customers compared to the volume of individual Nd2O3, Pr6O11 oxide powders?

6.2.5 For mixed NdPr2O3 sold, which NdPr ratio is more usual, 75:25 or 80:20 and what is the market share of each?

6.2.6 Please include the Safety Data Sheet (SDS) for Neodymium oxide (Nd2O3) and Praseodymium oxide (Pr6O11) products your company sells or distributes.

6.2.7 Which customer market sector(s) (military-aerospace; commercial-automotive) is your rare earth magnet material sold?

6.2.8 What is your plant/distribution capacity per year?

6.2.9 How much of “your” rare earth oxide is stockpiled by and how often is the inventory replenished?

6.2.10 How does the time of year effect availability of material?

6.3 Product Quality Information

6.3.1 Please provide material specifications which includes Nd2O3, Pr6O11, and

NdPr2O3 purity levels as a % of total rare earth oxides (%TREO); and Rare Earth impurities (as %/TREO); and other non- RE impurities (measured % as non-rare earth oxides or ppm).

6.3.2 What is the range of oxide purity for Nd2O3, Pr6O11, and NdPr2O3 products to use as a base level feedstock to produce any grade of NdFeB magnet?

6.3.3 What is the measure of radioactivity (Bq/g) for the individual RE oxide products?

6.3.4 Are there any crucial non-RE impurities that have adverse effects on magnet performance and what are the limits of those impurities in RE oxide products that are specified as magnet feedstock restrictions?

6.3.5 Which test methods are used to measure RE impurities and non-RE impurities (e.g., ICP-OES; ICP-MS, GDMS, Titration, Spectrophotometric, Turbidity etc.)? Please specify which method for which element or compound.

6.3.6 Please include any comparable Safety Data Sheet (SDS), or Certificate of Analyses (COA) for Neodymium oxide (Nd2O3) and Praseodymium oxide (Pr6O11) products your company sells or distributes.

6.3.7 If you are a purchaser, do you test the material you receive to determine whether it meets the material specifications you request?

6.3.8 Do you have your own laboratory perform the material testing?

6.3.9 If you use an external laboratory what testing do you have them do?

Which laboratory do you use for this testing?

6.3.10 How is the powder particle size measured and reported and what method is used to measure particle size distribution (PSD)?

6.3.11 Will you be able to obtain a letter from a producer stating that your material has met or exceeded manufacturing requirements in the past? (If no, please provide a reasoning)

6.4 Packaging and Storage Conditions

6.4.1 Packaging methods for Neodymium oxide (Nd2O3) and Praseodymium oxide (Pr6O11). Please include any industry standards that relate to how the Neodymium oxide (Nd2O3) and Praseodymium oxide (Pr6O11) is packaged.

6.4.2 Storage conditions for Neodymium oxide (Nd2O3) and Praseodymium oxide (Pr6O11). The material will be stored at a Government depot. It is not uncommon for NDS inventory to be stored for periods of time exceeding twenty-five years, so please include information on the following:

6.4.2.1 Shelf life (impacts, how it affects costs, packaging etc.)

6.4.2.2 Environmental impact (impacts, how it affects costs, packaging etc.)

6.4.2.3 Regulations

6.4.2.4 Material Rotation Requirements (impacts, how it affects costs, packaging etc.)

6.5 General Information on capability, pricing, and contract structure

6.5.1 How do you typically price the material?

6.5.2 Are there frequent changes in the market price for this material? If yes, how do you address those changes?

6.5.3 Please provide a copy of a redacted commercial contract that includes your standard terms and conditions.

6.5.4 Do you have provisions for agreements longer than one year? If so, how long term is tolerable?

6.5.5 Do you provide spot deliveries? If so, typically how much could you provide and in what timeframe could you deliver?

6.5.6 What is your production/delivery capacity per year?

6.5.7 What is the unit of measure that you use to price the required material?

6.5.8 Do you offer prompt payment discounts?

6.5.9 Do you have an active iRAPT account for submitting electronic invoices in the Wide Area Workflow System (WAWF)?

6.5.9.1 If a formal solicitation is issued as a result of this notice, the federal government typically requires organizations to be registered with a CAGE and setup for electronic payment within WAWF. (https://www.sam.gov/SAM/)

6.5.10 Delivery Methods for Neodymium oxide (Nd2O3) and Praseodymium oxide (Pr6O11). The material will be delivered to a Government depot for storage.

6.5.11 What is your typical delivery time for Neodymium oxide (Nd2O3) and Praseodymium oxide (Pr6O11) from the date of receiving a contract/order?

6.5.12 Provide the sales data identifying the percentage of material sold to the Government and the percentage of material sold to the general public.

6.5.13 Would you agree to a contract that contains Federal Acquisition Regulations (FAR) clause 52.216-2-Economic Price Adjustment— Standard Supplies? (Economic Price Adjustment is described in the FAR

16.203 Fixed –price contracts with economic price adjustment. (If the answer is no, please provide the reasoning that your entity could not accept this clause).

7.0 DISCUSSIONS

DLA Strategic Materials representatives may or may not choose to meet with an interested party. Discussions, if conducted, would only be intended to get further clarification of potential capability to meet the requirements, especially any development and certification risks.

8.0 QUESTIONS

Questions regarding this announcement shall be submitted in writing by email to the Contracting office and email address above. Verbal questions will NOT be accepted.

Questions will be answered by posting answers to Federal Business Opportunities (https://www.fbo.gov) website accordingly. Questions must NOT contain proprietary or classified information. The Government does not guarantee that any questions received after 5:00 PM EDT on September 15, 2019 will be answered.

https://www.sam.gov/SAM/

9.0 SUMMARY

THIS IS A REQUEST FOR INFORMATION ONLY to identify sources that can provide Neodymium oxide (Nd2O3) and Praseodymium oxide (Pr6O11) for a potential future acquisition. The information provided in the RFI is subject to change and is not binding on the Government. DLA Strategic Materials has not made a commitment to procure any of the items discussed. The sole purpose of the RFI/SS notice is to solicit industry's assistance and best practices. Responses to this notice will be utilized to assist the Government in determining the best approach on future acquisitions.