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INVITATION FOR BID (IFB)

REGIONAL SCRAP SALES

IFB 33-9001

SEALED BID

TERM (Not to exceed five years)

AUGUST 30, 2019

DEFENSE LOGISTICS AGENCY (DLA) DISPOSTION SERVICES

74 Washington Ave. North

Battle Creek, Michigan 49037-3092

Bid Opening Date

SEPTEMBER 24, 2019; 10:00 AM EST

Inspection Period Begins September 3, 2019; 10:00 AM Local

By appointment only.

WEST REGION

Sales Contracting Officer (SCO) Thomas W. Marcum

Room 2-6-C2 E-mail: thomas.marcum@dla.mil

Phone: 269-961-5146 mailto:thomas.marcum@dla.mil i

TABLE OF CONTENTS

GENERAL STATEMENTS OF SALES CONTRACT

ITEM DESCRIPTION

ADDITIONAL TERMS AND CONDITIONS OF SALE

ARTICLE ONE Bid Evaluation and Contract Award

Section 1 – Bidding Process

(A) How to bid

(B) Where to send bid

(C) A responsive bid submission shall contain at a minimum

(D) When to send bid

(E) How to modify/cancel bid

(F) Bid Acceptance Period Section 2 – Bid Evaluation Section 3 – Ineligible Bidder Section 4 – Pre-Award Survey Section 5 – Contract Award Section 6 – Post-Award Conference

ARTICLE TWO Parties to the Contract

Section 1 – Purchaser Information:

Section 2 – Transfer and Hypothecation:

(A) General Prohibition

(B) Attempted Transfer Section 3 – Contract of Sale

(A) Relationship of Parties

(B) Parties to the Contract Section 4 – Authority of Sales Contracting Officer (SCO) Section 5 – Authority of the Sales Point of Contact (SPOC)

ARTICLE THREE Contract Financial Retention & Insurance and Bond Requirements

Section 1 – Bid Deposit Section 2 – Payment Deposit Section 3 – Financial Guaranty Bond Section 4 – Insurance and Bond Contract Requirements

(A) Modification of Special Circumstance Conditions

(B) Further Modifications

(C) Evidence of Insurance

ARTICLE FOUR Contract Performance

Section 1 – Performance Period Section 2 – Phase-In Period Section 3 – Termination for Convenience of the Government ii

Section 4 – Purchaser Early Cancellation Notice Section 5 – Wind-Down Commencement Date Section 6 – Phase-Out Period Section 7 – Wind-Down Period

ARTICLE FIVE Distributions/Payments

Section 1 – The Billing Cycle Section 2 – Types of Acceptable Payments Section 3 – Payment Confirmation Section 4 – Consequences of late or short payments

ARTICLE SIX Product pool, Material Referrals, Title Transfer, Returns & Material Breach

Section 1 – Product Pool

(A) Material Flow

(B) Material Referral

(C) Classified Material

(D) Material Potentially Presenting an Explosive Hazard (MPPEH)

(E) RADIOACTIVE Property

(F) HAZARDOUS Property

(G) Other Than "DEMIL A" Scrap Property

(H) Safety of Use Message (SOUM) property

(I) Material Surges

(J) Scrap Warranty and Exemptions from the scrapping requirement

(K) DEMIL Code Assignment

(L) Foreign Attachments

(M) Miscellaneous Debris Section 3 – Standard Form (SF) 364 Report of Discrepancy (ROD) Section 4 – Title Transfer Section 5 – Notice of Material Breach Section 6 – Response to Notice Section 7 – Termination Section 8 – Agency Remedies for Material Breach by Purchaser Section 9 – Storage Charges

ARTICLE SEVEN Compliance With Export Control Regulations

Section 1 – Bureau of Industry and Security (BIS)

ARTICLE EIGHT Purchaser Responsibilities

(A) Weighing

(B) Letter of Authorization (LOA)

(C) Purchaser Awareness of the Agency’s Environmental Management System

(EMS)

(D) Purchaser shall not be allowed to sell material at Agency locations

(E) Purchaser use of sub-contractors

(F) Containers (commonly referred to as Roll-offs, dumpster, bins, etc.)

iii

(G) Removal and Replacement of Containers

(H) Segregation and Sorting of Scrap by SCL at Agency lications

(I) Purchaser Staffing of Scrap Yards

ARTICLE NINE Government Furnished Equipment (GFE) & Purchaser Owned Equipment

Section 1 – Government furnished Material Handling Equipment (MHE) Section 2 – Purchaser use of Purchaser owned MHE Section 3 – Requirement for Purchaser to use Purchaser owned MHE

ARTICLE TEN Government Facilities

Section 1 – Workspace Section 2 – Utilities Section 3 – Office Space Section 4 – Physical Security Section 5 – Key Control

ARTICLE ELEVEN Contract Compliance, Audits and Reviews

Section 1 – Compliance with Applicable Laws and Regulations Section 2 – Licenses and Permits Section 3 – Duties of Care and Loyalty Section 4 – Prohibited Activities Section 5 – Purchaser Cooperation in DOD Investigations/Audits Section 6 – Purchaser’s Responsibility for Independent Audit at Government’s Request Section 7 – Purchaser Record Retention Section 8 – Records Maintenance Section 9 – Inspection of Records and Workplace by Government Section 10 – Purpose and Content of Compliance Audits, Reviews and Further Reviews Section 11 – Methods and Procedures for Compliance Reviews

(A) Method

(B) Procedures Section 12 – Further Reviews Section 13 – Compliance Notification Section 14 – Costs of Oversight Section 15 – Notice of Audit Adjustment Section 16 – Procedures for Adjudication of Audit Adjustments Section 17 – Remedies for Audit Adjustments Section 18 – Contracts with Third Parties

ARTICLE TWELVE Disputes

Section 1 – Disputes Section 2 – Claims Section 3 – Decisions Section 4 – Alternative Dispute Resolution (ADR) iv

ARTICLE THIRTEEN Miscellaneous Provisions

Section 1 – Binding Effect Section 2 – Notices Section 3 – Severability Section 4 – Headings Section 5 – Survival Section 6 – Waiver Section 7 – Force Majeure Section 8 – Use of the Agency Name and Public Communications Section 9 – Tense and Gender Section 10 – Entire Agreement and Modification Section 11 – Computation of Time Section 12 – Electronic Communication Section 13 – No Reimbursements

ARTICLE FOURTEEN Government Required Reports

Section 1 – Purchaser Operating Schedules Section 2 – Government Use of Purchaser Reported Information Section 3 – Monthly Reporting Requirements

ARTICLE FIFTEEN Additional Contract Advisements

Section 1 – Public Law Pertaining to Location Operations Section 2 – Public Law Pertaining to Material Section 3 – Resource Conservation and Recovery Act Notice Section 4 – Chemical Agent Resistant Coating (CARC) Paint Section 5 – Refrigerant

DEFINITIONS

ACRONYMS……………………………………………………………………………………………63

v

Additional Content

TABLES:

Table 1: Common Container Size Chart …………………….. Page 9 Table 2: Contract Line Item Number (CLIN) Details …….…. Page 14 Table 3: CLIN, Material, SCL, Descriptions ……………….. Page 31

ATTACHMENTS:

ATTACHMENT A: Sale By Reference pamphlet ATTACHMENT B: DLA Facility Checklist Note: Attachments will be provide in Adobe Acrobat (PDF) format.

SCHEDULES:

SCHEDULE A: Government Furnished Equipment List SCHEDULE A-1: Government Furnished Equipment List - Hoppers/Bins SCHEDULE B: Standard Waste and Scrap Classification (SCL) Codes SCHEDULE C: Phase-In Schedule SCHEDULE D: Plant Codes SCHEDULE E: Contractor Manned Sites SCHEDULE F: Recommended Staffing, Scrap Yard Listing & Unmanned Locations SCHEDULE F-1: Receipt in Place Locations SCHEDULE G: Container Requirements SCHEDULE H: Bid Sheet SF114A (Local Reproduction) Spreadsheet Note: All schedules are provided in a MicroSoft (MS) Excel workbook (spreadsheet) format.

PDF versions will be available upon request.

USEFUL WEBSITES:

DLA Disposition Services: https://www.dla.mil/DispositionServices.aspx DLA Auction Site: https://www.sales.dla.mil/dlab2b/init.do Federal Business Opportunities (FedBizOpps): https://www.fbo.gov/ Bureau of Industry and Security: https://www.bis.doc.gov/ U.S. Department of the Treasury: https://home.treasury.gov/ https://www.dla.mil/DispositionServices.aspx https://www.sales.dla.mil/dlab2b/init.do https://www.fbo.gov/ https://www.bis.doc.gov/ https://home.treasury.gov/

GENERAL STATEMENTS OF SALES CONTRACT

Certain contents and provisions of this IFB, including Appendices, Attachments and Schedules, are described in general. The following General Statement of Public Sales Contract is not intended to be complete and does not take precedence over the specific terms and conditions of this public sales contract. The requirements for all matters discussed in the General Statement of Public Sales Contract are fully defined in the Terms and Conditions Section of this IFB. Any historical data provided in support of this IFB was derived using existing sources and is presented for general reference only.

1. Defense Logistics Agency (DLA) Disposition Services (hereinafter, the “Agency”) is offering scrap for sale through this Term Sale Invitation for Bid (IFB). This is one of five Regional IFBs offering DEMIL A scrap for sale. This IFB covers the Disposal Support Directorate (DSD) West Region, which is comprised of fourteen field locations in ten states. The Bid Sheet (SF114A Local Reproduction), Schedule H, lists the states, specific locations and items for sale at each location in this region. The Agency may also issue material from Receipt-In-Place (RIP) locations or other locations that are not located at an Agency facility.

2. The performance period of the contract resulting from the IFB shall consists of a 36-month base period, followed by two 12-month option periods that may be exercised at the Sales Contracting Officer’s (SCO) discretion. The contract also contains an available six-month extension period that may be offered at the SCO’s discretion at the end of each performance period, under the same terms and conditions of the contract. In the event the extension is utilized, the SCO shall advise the contractor in writing 120 calendar days prior to the expiration of the current period of performance period. The extension may be utilized in 30-day increments, a combination of 30-day increments, or in its entirety. The entire length of the contract, if all option periods and extension are used, shall not exceed five years.

3. This IFB relates to scrap material that the Government has determined to be surplus to the needs of the Department of Defense (DOD) and the Federal Government. Scrap material is defined as recyclable waste and discarded materials derived from 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. The Agency does not accept rubbish, refuse or trash from its customers and this type of material shall not be issued under the contract. Scrap and salvage material issued under this contract shall be comprised of Demil code A property.

Expended Small Arms Cartridge Cases (ESACCs) is not included in this IFB and will be offered in a separate IFB at a future date.

4. Items in this sale are identified by Scrap Classification Codes (SCL) based on material content (see Item Description for a listing of all SCLs being sold in this region). Availability of specific items at any particular location will vary and some items are not available at all locations. The Government has sole discretion to determine what material shall be sold to the Purchaser, and the Purchaser has a contractual obligation to purchase and accept all material referred by the

Government at all locations in the region, except for hazardous material. Under no circumstances is culling for effecting partial or incremental removals authorized. Items are being offered with a guaranteed minimum quantity per SCL in the region throughout the performance period. Agency locations may be relocated to other geographic locations to meet the needs of the Agency, and may require Purchaser to relocate containers, workforce and/or equipment as needed, at the expense of the Purchaser to include transportation. Relocation of Agency locations will not change or lower the guaranteed minimums offered for each SCL under this contract.

5. For all SCLs, the Purchaser’s bid shall consist of an amount per pound specified in U.S.

currency for each SCL listed for the region as listed on the Item Bid page (Schedule H). The minimum bid for each SCL item is $0.01000 per pound (bids amounts cannot exceed five decimal places) and the Bidder with the highest cumulative bid for all SCLs shall be considered the apparent high bidder for the sale in this Region.

Note: System generated documents will round to the nearest cent due to the two decimal place parameters. However, the system performs calculations using the actual bid amount up to five decimal places.

6. 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. The Agency does not represent, nor is it possible to identify all such risk factors. The prospective bidder is advised and cautioned to assess the following in addition to those risks identified elsewhere in this IFB:

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 the Agency or through other disposition methods. These changes will affect the volume and nature of the material referred for sale under this contract.

This is not a requirements contract requiring the delivery of all the Agency’s excess and surplus generations of a particular type of property at a location. The Agency is only obligated to sell the minimum quantities for each SCL in each Region that is being offered for sale in the Item Description of the property and consistent within the terms that allow for the Adjustment for Variation in Quantity or Weight as set forth in the Sale by Reference (SBR) Part 4, Condition 5 and other terms elsewhere within this IFB, attachments and schedules.

Purchasers should exercise caution when incurring obligations based on an anticipated performance period as the performance period refers only to the amount of time the agency shall have to meet its commitments to provide the minimum quantities of scrap to the Purchaser. It does not confer any right to receive scrap throughout the performance period; instead, the Agency promises only to provide the minimum quantities subject to variations as authorized by SBR Part 4, Article 5.

7. All potential Bidders are advised to read all terms and conditions of this IFB prior to submitting their bids to ensure they have a complete and full understanding of all requirements under this contract for sale. The Purchaser is cautioned that some requirements for information are required before the start of work on this contract. The Purchaser agrees to provide all services necessary for the contract in accordance with all Federal, state, local laws and regulations and in accordance with the terms of this contract. This also applies to subcontractor(s). All locations may have strict rules that may prohibit access to some individuals. To access our facilities a bidder or their agent shall be required to obtain base access through the host installation. The local location will be able to provide information on how to obtain base access.

Unique Terms and Conditions for this Sale that require special attention from all Bidders

8. No Reimbursements: There shall 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. At no time shall the Government pay the Purchaser to take material offered. This is not a service contract administered in accordance with the Federal Acquisition Regulations (FAR). This is a contract for the sale of scrap pursuant to provision in Title 40, US Code, Chapter 5. The Government is not responsible for any indirect 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.

Purchaser may be required to attend special training, seminars, instructions, classes, safety orientations, etc., provided by the Government or to provide information to perform work or gain access to the location. Example: Pass and ID requirements, antiterrorist training, Environmental Management Systems (EMS) policies and/or equipment training.

9. Purchaser shall not be allowed to sell material at Disposition Locations: All sales of material must occur after removal from the Agency’s location or RIP location. For property removed from Agency locations or RIP locations the Purchaser is not limited on the number of processing and storage locations, other than processing and storage locations must be within the West Region and a DLA Form 2536, Statement of Intent, must be on file for the location.

Exceptions to use processing and storage locations outside the region must be approved by the SCO in advance.

10. Purchaser use of sub-contractors: Purchaser may sub-contract with other entities to perform the special terms and conditions required for sorting, segregating and removal of scrap at Agency locations. All sub-contractors shall be approved by the government and shall comply with all terms and conditions of this IFB. Sub-contractors shall be vetted through the same process as the Purchaser as described throughout this IFB. Material may also be processed at sub-contractor facilities approved under the terms of this IFB. Failure of sub-contractors to perform the special terms and conditions required under this sale are grounds for default and shall result in termination if not cured. The Purchaser’s contract with the sub-contractor must include Sales by Reference, Part 5, Article C, subparagraphs a through c.

11. Containers (commonly referred to as Roll-offs, dumpster, bins, etc.):

The Purchaser shall be required to provide a covered container for each SCL at each location. Containers must be transportable with a lid in which scrap material is stored, transported, disposed of or otherwise handled. Containers must be capable of being sealed. The containers shall be used to segregate and accumulate the specific SCLs as determined by the Agency. When a container is full, the Purchaser shall place an empty container of equal capacity and remove the full container from Agency premises. Initial container requirement is one 30 cu.

Yd. Roll-off container per SCL at each pick-up location. After commencing performance under the contract, the Purchaser and Area Manager or Site Lead may agree to change the planograph for the scrap yard to accommodate smaller containers for specific SCLs. The Area Manager or Site Lead shall submit the planograph to the SCO for approval. If approved, an SF114D shall be signed by both Purchaser and SCO as mutually agreed and at no additional cost to the Government. Change in container size must not impede rate of removal or customer support.

Containers must be covered. Lids or other covers must be constructed of impermeable material to prevent collection of rainwater, snow or other foreign debris from accumulating inside the container. Lids or covers must be able to secure load during transport to prevent material from falling or flying out of the container.

Container size and quantity may vary based on SCL and the volume due to customer turn-in rates. Container size and quantity shall be of such capacity to accommodate an accumulation of 3-5 workdays’ and prevent scrap from accumulating on the ground.

Table 1: Common Container Size Chart Volume (in cubic yards) Exterior Dimensions (L*W*H) ft.

Weight Capacity in pounds (lbs.)

10 12 * 8 * 3.5 4,000 – 6,000 20 22 * 8 * 4 5,000 – 7,000 30 22 * 8 * 6 7,000 – 10,000 40 22 * 8 * 8 12,000 – 16,000

Containers not meeting safety requirements shall be refused for delivery to Government facilities.

12. Removal and Replacement of Containers: The Sales Point of Contact (SPOC) shall provide local oversight of the contract and provide written notice (use DLA Form 2535-1) to request removals of containers and other over-sized loads. Purchaser shall confirm, in writing via email to the SPOC and SCO, support for the requested removals. Purchaser shall provide for the pickup, removal and transportation of containers from the Agency’s locations to their designated facility as identified on the DLA Form 2536 Statement of Intent.

Property must be removed within three working days when written notification on DLA Form 2535-1 has been provided to the contractor via email by the location. Pickups must be scheduled to occur during the Disposition locations normal working hours. The Special circumstances may arise where the Agency will allow certain property to remain at a Government facility after email notification for removal has been given; however, written authorization from the SCO for anything beyond the original three working days is required. The Contractor will be charged storage charges for property not removed from a Government facility within three working days of the email notification, unless a prior approval has been granted by the SCO. Normally, approval will not exceed 30 days.

The Government will assess storage charges for all property not removed within three working days after written notification has been made to the contractor via email by location. Storage charges begin accrual on the fourth working day after written notification. Storage charges accrue at a rate of $0.05 (five cents) per hundred pounds, per day, until removed. Charges may be applied by the Government for any item not removed from Government premises within three working days after written notification on DLA Form 2535-1 is sent via email by location to the Purchaser. The Government may apply a minimum fee of $100 per day. Property left on Government premises longer than 60 business days will, at the Government’s sole discretion, revert to Government ownership and control without refund of any Purchaser monies received. The Agency will include such charges on the monthly Statement of Account and the cost for the storage will be the total responsibility of the Purchaser. Purchaser shall coordinate such access with the management of each facility. In addition, DOD customers may require additional storage space; therefore, property issued to Purchaser may be required to be relocated by the Purchaser and at the Purchaser’s expense.

13. Segregation and Sorting of Scrap by SCL at Agency Locations: Segregating and Sorting is defined as the process of identifying the material for its basic material content in accordance with SCLs available at a particular location. This determination is based on the weight of the predominate material of an item. Questionable items shall be determined in conjunction with Agency personnel and the Purchaser. Any unresolved issues shall be elevated to the SCO prior to removal of a container. Material shall be sorted by the SCL identified by the Agency personnel. Attempt to resolve any discrepancy locally whenever possible or elevated to the SCO for resolution. In either case, the matter will be recorded on an SF 364 Report of Discrepancy (ROD) and sent to the SCO.

At locations not designated in Schedule E, Agency personnel shall segregate scrap based on SCL and place all scrap into the containers provided by the Purchaser. Oversize items (such as vehicles, commercial trailers, boilers, conex, etc.) are required to be loaded by the Purchaser or their authorized Agent. All weighing will be observed by both parties, on a Certified Scale, recorded on a DLA Form 1367 (filled out by Government personnel) and signed by both parties prior to release. Weight tickets will accompany the DLA Form 1367. Weight tickets will accompany the DLA Form 1367. This process will be completed in accordance with SBR Part 2 Paragraph 13. When miscellaneous debris and dunnage exceeds 20% of the total weight, indicate the difference on the DLA Form 1367. Submit the SF 364 ROD with the DLA Form 1367 for credit claim. For claims of excess dunnage and debris after removal from an Agency managed location, within 30 calendar days of removal, submit a SF 364 ROD with the DLA Form 1367 and photos of the entire load and the dunnage in the load.

At locations designated on Schedule E, Purchaser is required to off-load, segregate and sort property from conveyances delivering scrap material to the Agency location. The Agency shall provide the Purchaser on-site space to allow for sorting and segregating all scrap. At each Agency location, the scrap yard space utilized shall be based on the history of generations and may be reduced or expanded to reflect current requirements. Schedule G specifies how many containers shall be used at each collection point.

Purchaser is required to remove downgraded material from the Agency location after Agency personnel have processed it. For downgraded material processed by Agency personnel at the location, the Site Lead shall establish the process for turning over downgraded material. Purchaser shall maintain a neat, clean collection location and shall operate the collection location in accordance with all laws and any DOD requirements specified herein and as directed by the Agency’s Area Manager or Site Lead. All certificates (Inert, MDAS, Bio, ODS, Hard drive, etc.) will be maintained on the property whenever possible or in a file to accompany container at removal.

Except for “oversized items,” all scrap property shall be maintained in containers and shall not be left stored on the ground or outside of containers overnight. Purchaser shall maintain the containers so that material does not overflow or overhang the containers or does not otherwise create unsafe conditions. Agency personnel shall provide oversight of the segregating and sorting of all scrap. Any irregularities, discrepancies or disagreement on the sorting and segregating of scrap that cannot be resolved at the local level must be elevated to the SCO prior to removal of a container.

Purchaser shall furnish all equipment, materials and services necessary to perform requirements for sorting, segregating and removal of all scrap (except for GFE/MHE, as discussed later within the contract in Article Nine). Equipment to be used must conform to the host installation, Federal, state and local standards for handling scrap and recyclable materials.

Containers not meeting safety requirements shall be refused for delivery to government facilities.

Purchaser furnished equipment; materials and services shall include, but are not limited to the following: containers, vehicles, material handling equipment (MHE) and spill response supplies.

14. Government Facilities: At locations identified in Schedule E, the Agency shall make administrative space available for the Purchaser’s use. That use is restricted to the performance of this contract, free of charge, when space and facilities are available for use. The Agency may at its own discretion and at any time during the performance of this contract reallocate the space and facilities made available to the Purchaser. Purchaser must maintain all Government facilities and equipment, made available for its use, in accordance with host installation, DLA Policies, Federal, state and local regulations. The Agency shall conduct inspections (example inspection form is provided in Attachment B to this IFB) of its facilities and equipment. These inspections include checks for safety and housekeeping. Purchaser shall correct deficiencies identified by the Agency in their operational area immediately if possible but no later than 30 calendar days from the date of inspection.

15. Purchaser Staffing of Scrap Yards: At locations identified in Schedule E where Purchaser is onsite segregating and sorting scrap, Purchaser is required to be present during the scheduled customer services hours of each Agency location. Purchaser shall staff at a level sufficient to accomplish all requirements in the resulting contract terms and conditions.

16. Use of Government Furnished Equipment (Material Handling Equipment (MHE)): The Purchaser may utilize available government owned MHE at specified locations (see Schedule A) or alternatively, the Purchaser may use and store its own MHE in the Scrap Yard at those specified locations. Specific terms and conditions for MHE are in Article Nine.

17. Other Information: Additional information, definitions, requirements and special conditions of sale are set forth below in this IFB and in the Agency’s pamphlet entitled Sale by Reference - Instructions, Terms and Conditions Applicable to Department of Defense Personal Material Offered for Sale by Agency, July 2012” (hereinafter, Sale by Reference or SBR).

18. Scrap Warranty and Exemptions from the scrapping requirement: In accordance with Sales by Reference Part 5, Article A, the Purchaser shall ensure that scrapping is accomplished in manner that prevents recognition or reconstruction of all material offered under this IFB. All material shall be processed by cutting, tearing, crushing, mangling, shredding or melting. The SCO shall be notified in writing at a minimum of 30 calendar days prior to removal where scrapping will take place. The Purchaser’s location shall be listed on DLA Form 2536 Statement of Intent (SOI) and have an approved Environmental Responsibility Determination (ERD). Title shall not transfer until all scrapping is accomplished or any waivers are approved. Purchaser may not resell scrap until the scrap warranty statement is signed, submitted and received. Upon removal to Purchaser’s location, the Purchaser shall keep Agency scrap containers segregated and shall not commingle Agency scrap with other material until the scrap warranty statement is submitted and received. A placard identifying containers with Agency scrap must be maintained on all containers. A signed scrap warranty statement shall be submitted for each DLA Form 1367 within 30 calendar days of removal. If scrap warranty statements are not submitted in the time specified, letters to immediately cure will be issued as this requirement is tied to agency auditability requirements and will not be waived. The Agency is specifically exempting the following property from processing and the scrapping requirement: tires, lockers, ammunition cans, production stock/residue (bars, plate, sheet, rod, wire, borings and turnings), wire and cable, pipe and tube construction material (lumber, block, brick, windows, I- beams), vehicles, wood products, furniture, fitness equipment and white goods (appliances, e.g., refrigerators).

The material exempted above in this section is subject to change to include deletions and additions at the sole discretion of the Government. The Purchaser has the option to submit a written request to the SCO for an exemption from scrapping for other material in addition to the aforementioned items.

ITEM DESCRIPTION

Generally, scrap material sourced to the resulting contract(s) is considered safe to sell and have no additional restrictions by this Agency. The scrap material issued under this contract shall be assigned a Demil Code of A and will be categorized into the SCLs listed below. At the earliest opportunity or over the duration of the performance period the Government guarantees to issue the Purchaser a minimum total weight equal to the Total Region QTY identified per SCL specified below subject to variations as authorized by SBR Part 4, Article 5.

Table 2: Contract Line Item Number (CLIN) Details

State Site Plant Site QTY. ITEM # Material Total Region

QTY

AZ Tucson JSZS 5,506

1 DS000C1AA 1,057,871

CA Barstow JSYM 21,330 CA Pendleton JSYX 797,071 CA San Joaquin JSZC 35,736 UT Hill JSYB 127,460 WA Lewis JSZP 70,768 NM Holloman JSZA 5,240 2 DS000D06A 5,240 WA Lewis JSZP 47,110 3 DS000D09A 47,110 CA Barstow JSYM 44,309

4 DS000D1DA 313,214

CA Pendleton JSYX 27,859 UT Hill JSYB 18,676 NM Holloman JSZA 223,136 NM Kirtland JSZN 7,480 WA Lewis JSZP 10,430 NM Kirtland JSZN 3,920 5 DS000D4CA 18,990 CA San Joaquin JSZC 15,070 NM Holloman JSZA 3,600

6 DS000D4DA 26,450 CA Barstow JSYM 20,557 CA San Joaquin JSZC 48,410 WA Lewis JSZP 22,850 CA Pendleton JSYX 495,857 7 DS000D5AA 2,202,766 WA Lewis JSZP 1,706,909 CA Barstow JSYM 263,271 8 DS000E1KA 1,647,595 CA Pendleton JSYX 668,348

CA San Diego JSYU 1,354,134 CA Vandenberg JSVR 30,190 AZ Tucson JSZS 2,793,771

9 DS000E1LA 13,688,452

CA Barstow JSYM 2,351,630 CA Pendleton JSYX 2,485,458 CA San Joaquin JSZC 966,738 NM Holloman JSZA 86,475 NM Kirtland JSZN 246,860 NV Nellis JSYW 458,668 UT Hill JSYB 640,404 WA Lewis JSZP 3,658,448 CA Barstow JSYM 32,410

10 DS000F01A 430,754

CA Pendleton JSYX 35,622 CA San Joaquin JSZC 29,384 NM Holloman JSZA 217,650 NM Kirtland JSZN 42,887 NV Nellis JSYW 2,530 UT Hill JSYB 56,592 WA Lewis JSZP 16,209 AZ Tucson JSZS 40,273

11 DS000G01A 100,933

CA Barstow JSYM 35,787 UT Hill JSYB 53,445 WA Lewis JSZP 41,492 NV Nellis JSYW 24,873 AZ Tucson JSZS 796,068

12 DS000G02A 7,831,345

CA Barstow JSYM 2,494,885 CA Pendleton JSYX 736,204 CA San Diego JSYU 480,881 CA San Joaquin JSZC 88,311 CA Sierra JSZO 525,640 CA Vandenberg JSVR 29,086 NM Holloman JSZA 268,204 NV Nellis JSYW 665,496 UT Hill JSYB 820,175 WA Lewis JSZP 926,395 CA Barstow JSYM 1,206 13 DS000G05A 33,259

CA San Joaquin JSZC 17,427

CA Pendleton JSYX 14,858 CA San Diego JSYU 689 WA Lewis JSZP 14,786 CA Sierra JSZO 14,626 WA Lewis JSZP 4,959,617 14 DS000H06A 4,959,617 CA Pendleton JSYX 397,142

15 DS000H08A 474,247

CA Barstow JSYM 11,060 NV Nellis JSYW 1,570 UT Hill JSYB 5,000 CA San Joaquin JSZC 6,154 WA Lewis JSZP 70,951 NM Holloman JSZA 2,028 16 DS000T24A 2,028 WA Lewis JSZP 274,988 17 DS000C02A 274,988 WA Lewis JSZP 11,323 18 DS000D4FA 11,323 WA Lewis JSZP 187,596 19 DS000EWGA 187,596 WA Lewis JSZP 93 20 DS000D5EA 93

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TERMS AND CONDITIONS OF SALE

SALE BY REFERENCE (SBR): Instructions, Terms and Conditions

The following general information, instruction and special conditions of sales contained in DLA Disposition Services pamphlet entitled the “Sale by Reference Instructions, Terms and Conditions Applicable to Department of Defense Personal Property Offered for Sale by DLA Disposition Services”, published July 2012, are hereby incorporated by reference and become a part of this IFB/Auction and any contract resulting from acceptance of a bid submitted pursuant to this IFB/auction as fully as though such instructions, terms and conditions had been specifically set forth herein:

SALE BY REFERENCE PART 1: General Information and Instructions: All conditions apply except: paragraph 5.

SALE BY REFERENCE PART 2: Sale of Government Property General Sale Terms and Conditions: All conditions apply except: 13(c), 19, 28 and 34.

“33. DISPUTES” is changed to read “Any contract awarded as a result of this sale is subject to the Contract Disputes Act 1978 (41 USC 7101-7109)”.

SALE BY REFERENCE PART 3: Sale of Government Property Special Sealed Bid Conditions: All conditions apply. Read and understand Article E: ALL-OR-NONE BID.

SALE BY REFERENCE PART 4: Sale of Government Property Special Sealed - Term Conditions: All conditions apply except: 2.

Condition 6 is modified to read …upon 60 calendar days’ written notice.

SALE BY REFERENCE PART 5: Additional Special Circumstance Conditions - Miscellaneous: All articles apply except: D and G.

SALE BY REFERENCE PART 6: Additional Special Circumstance Conditions - Demilitarization and Mutilation: Does not apply.

SALE BY REFERENCE PART 7: Additional Special Circumstance Conditions - Hazardous and Dangerous Property: All articles apply.

SALE BY REFERENCE PART 8: Additional Special Circumstance Conditions - Foreign Excess Personal Property: Does not apply.

SALE BY REFERENCE PART 9: Special Spot Bid Conditions of Sale of Government Property: Does not apply.

SALE BY REFERENCE PART 10: Sale of Government Property Special Auction Conditions:

Does not apply.

ADDITIONAL TERMS AND CONDITIONS OF SALE

The following Articles (not part of the Sale By Reference, July 2012) apply and constitute specific terms and conditions of this sale:

ARTICLE ONE

Bid Evaluation and Contract Award

Section 1 – Bidding Process: The Purchaser’s bid shall consist of an amount per pound specified in U.S. currency. 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 the Agency or 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 pound. The Government expects the Purchaser to perform all the requirements under this contract at the bid price submitted by the Purchaser. At no time shall the Government pay the Purchaser to take material offered. There shall 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.

(A) How to bid: Bidders shall use the SF114 and SF114A documents provided in this IFB’s Addendum and Schedule to submit bid. Refer to Bid Worksheet (SF114A Local Reproduction) Schedule H. Bidder shall enter bid as price per pound not to exceed five decimal places (example 0.01005). Minimum bid is .01000 per pound. Multiply your bid price by the quantity specified for extended bid amount.

(B) Where to send bid: Do not email bids or call in bids directly to the SCO.

Bids shall consist of an SF114 and the Bid Worksheet (SF114A Local Reproduction) provided in Schedule H.

Bids may be submitted via:

a. Hand Carried by Bidder

b. United States Postal Service,

c. Express Carriers (FEDEX, UPS, DHL, or other courier services),

1. The hand-carried or delivered bids shall be addressed to:

DLA Disposition Services ATTN: Bid Room IFB 33-9001 74 N. Washington Avenue Battle Creek, MI 49037

(C) A responsive bid submission shall contain at a minimum:

1. SF114 (or equivalent information) completed and signed.

2. Bid Worksheet (SF114A Local Reproduction) provided (or equivalent information) printed, pdf format, hand or digitally signed.

3. Bid deposit.

(D) When to send bid: Bids must be in the possession of the Agency’s Public Sales Contracting Division by the bid opening date and time specified in the auction. If the bid is not submitted on time, it shall be considered non-responsive.

(E) How to modify/cancel bid: In addition to SBR Part 3, Articles B and C, by submitting a new bid in the same manner as the previous bid. Separately, without disclosing bid amounts, notify the SCO of the modification. To cancel a bid submit a zero

(0) bid in the same manner as the original bid. Notify the SCO of the bid cancellation (specify date, time and method of bid submission).

(F) Bid Acceptance Period: The bid must remain valid 180 calendar days from the bid opening unless otherwise modified or cancelled.

Section 2 – Bid Evaluation: A responsive bidder is one that has complied with all instructions for properly submitting a bid. A responsible bidder is one that is able to pass the vetting process and is determined through the screening process to be an eligible transferee.

Submitting the highest bid price does not convey any special right nor does it imply that the Purchaser shall be the primary removal company or exclusively allowed to remove throughout the term of this contract. The Government reserves the right to reject any bids that are not in the best interest of the Government.

Section 3 – Ineligible Bidder: Bidder will not be eligible for award if they are:

a. Excluded from Federal programs by the General Services Administration as identified in the System for Award Management at https://www.sam.gov/portal/public/SAM/.

b. Subject to denial, suspension, debarment, or other sanctions pursuant to export control and related laws, regulations, or orders administered by the DOS, DOC, DHS, or USTD. The DOS, DOC, DHS, and USTD name these entities, individuals, and countries in the Federal Register and at the following websites:

1. DOS DDTC Debarred Parties Website at http://www.pmddtc.state.gov/compliance/debar_intro.html;

2. DOS DDTC Embargoed Countries Website http://www.pmddtc.state.gov/embargoed_countries/index.html

3. DOC Denied Persons List Website at http://www.bis.doc.gov/dpl/thedeniallist.asp and DOC Unverified List Website at http://www.bis.doc.gov/enforcement/unverifiedlist/unverified_parties.

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4. USTD Specially Designated Nationals List Website at http://www.treasury.gov/resource-center/sanctions/SDN- List/Pages/default.aspx which includes designated narcotics traffickers and designated terrorists, USTD Sanctions Program Website at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx

Section 4 – Pre-Award Survey: After bid opening and prior to award, the Government will conduct a Pre-Award survey of the apparent high bidder. The apparent high bidder will be required to submit a completed and signed DLA Form 2536 Statement of Intent (SOI) Completed (Parts 1-6). The Purchaser shall be required to provide detailed information on every storage location the Purchaser intends to use within the Region. The Pre-Award survey may be conducted at the Purchaser’s facility(ies) or other location(s) as deemed necessary by the Government and may include but is not limited to a review of Purchaser’s facilities and equipment, financial capability or disclosure of a Purchaser’s financial condition, quality assurance, safety, environmental responsibility and transportation. Bidders shall cooperate in the Pre-Award process by assisting in arrangements and/or by providing requested information in a timely manner. Bidders are advised that accomplishment of a Pre-Award survey or furnishing documents to the Government in support of the Pre-Award survey is part of the evaluation of the responsibility process and is not a guarantee the bidder will receive award of a contract.

Pre-Award Survey may include but is not limited to the following:

1. The Purchaser’s Facility shall pass an inspection by DLA Disposition Services personnel prior to contact award. (See Security Checklist in the Addendum)

2. Environmental Responsibility Determination (ERD)

3. Licenses, Permits, Certifications reviews

4. Prior to the award of a contract, the SCO or his authorized representative shall determine whether the potential Purchaser has the necessary permits/licenses, experience, organization, and technical qualifications (either through its own facilities or facilities of a subcontractor) to perform the work specified in this contract and is capable of complying with the applicable Federal, State and local laws, ordinances and regulations.

Section 5 – Contract Award: The SCO shall determine if each bid is responsive and responsible prior to award of the contract. The contract shall be awarded to the highest responsive, responsible bidder. In the event of a termination of the original Purchaser within 120 calendar days of the date of bid opening, 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 6 – Post-Award Conference: The Government shall conduct a post-award conference as early as two weeks after award. The purpose of the conference is to ensure the Purchaser fully understands the terms and conditions of this contract. The Agency shall determine the method, date, time and location of the post award conference. The Purchaser is responsible for any cost incurred by their organization and staff. The Government shall not provide any compensation for costs incurred to attend meetings.

ARTICLE TWO

Parties to the Contract

Section 1 – Purchaser Information: Within thirty calendar days of the date of contract award, the Purchaser shall provide the Agency the following information: Designation of key persons, to include their full name, title, telephone number, email address and a synopsis of their duties under the contract. Purchaser shall provide the SCO notification of any changes to the above within 10 calendar days of the change.

Section 2 – Transfer and Hypothecation:

(A) General Prohibition - Except as specifically provided herein or specifically approved by the Agency in writing, the Purchaser shall 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.

(B) Attempted Transfer - Any attempted transfer in violation of the provisions of this Article shall be invalid 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 the material by the Agency as seller to the Purchaser. Purchaser and the Agency 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 the Agency and the Purchaser.

(B) Parties to the Contract: The parties to this contract are the Agency and the Purchaser.

Section 4 – Authority of Sales Contracting Officer (SCO): On behalf of the Agency, the SCO has the authority to represent the Agency and to commit the Agency 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. The exclusive representative of the Agency for all purposes under this contract is the SCO, and all notices, demands, requests, consents, approvals, declarations, reports and other communications to the Agency from the Purchaser shall be deemed invalid unless addressed to the SCO.

Communications from the Purchaser to anyone other than an SCO shall not be deemed received by the Agency.

Section 5 – Authority of Sales Point of Contact (SPOC): The SPOC acts as the eyes and ears of the SCO. The SCO designates the SPOC to provide direct oversight of the Purchaser and/or their agents to ensure they meet the terms and conditions of the contract.

(A) The Sales POC (SPOC) has the responsibility to:

1. Be familiar with, and understand all Public Sales contracts terms and condition, and all Operational Standard Operating Procedures (oSOP) pertaining to Public Sales.

2. Coordinate the submission of all supporting documentation needed to support auditability of the contract, and the Public Sales Contracting team.

3. Maintain liaison and direct communications with the Purchaser’s representative.

4. Advise the SCO on contractual matters of a technical nature.

5. Inform the SCO as to the status and progress of performance of the Purchaser representative at your location on a weekly basis.

6. Alert the SCO to any potential or existing problems.

7. Maintain a file of all correspondence (or data) initiated or received in connection with subject contract.

8. Seek guidance from the SCO for specific situations not covered in this designation.

9. Ensure administration of government furnished property and equipment.

10. Report through normal administrative channels to Agency Inspector General (IG) and to the SCO any evidence of Purchaser or subcontractor kickback, attempt to bribe, or other fraudulent behavior.

(B) The SPOC will not:

1. Make or give the appearance of being able to make contractual commitments outside the scope of the contract, or execute or agree to modifications, or take actions that would commit the Government to a change in contract scope, price, quality, quantity, or delivery schedule.

2. Sign any changes or modifications to contracts.

3. Make determinations regarding issues of Purchaser liability that may arise during contract performance. Refer such issues to the SCO.

4. Direct the Purchaser on how to perform the work.

5. Issue stop-work orders.

6. Supervise Purchaser employees implicitly or explicitly which could constitute personal services.

ARTICLE THREE

Contract Financial Retention & Insurance and Bond

Requirements Section 1 – Bid Deposit: Each bid shall be accompanied by a refundable bid deposit in the form of a guaranteed instrument (cashier’s or certified check) in the amount specified on the bid sheet calculation for the bid deposit payable to U.S. Treasury; or alternatively, Bidders may submit a bid deposit in the form of a Bid Bond (SF 24) in the amount specified on the bid sheet calculation for the bid deposit payable to U.S. Treasury. The amount of the bid deposit is 20% of the total extended bid value. It is within sole discretion of the SCO to determine adequacy of the guaranteed instrument (cashier’s or certified check) or Bid Bond (SF 24) provided as a bid-deposit. If a guaranteed instrument (cashier’s or certified check) is used as the bid deposit, the Agency shall return the bid deposits, without interest, to all bidders except the apparent high bidder. If the apparent high bidder submitted a guaranteed instrument (cashier’s or certified check), that amount will be applied to the “payment deposit” required in Section 2 below.

Section 2 – Payment Deposit: Within ten calendar days of contract award, Purchaser shall provide the Agency a payment deposit in the amount equal to the bid deposit as specified in Section 1 Bid Deposit.” The payment deposit shall be in the form of a guaranteed instrument (cashier’s or certified check). If the apparent high bidder submitted a guaranteed instrument (cashier’s or certified check) as a bid deposit, that guaranteed instrument will be used as the “payment deposit.”

The Agency shall retain the payment deposit until the completion of…