Battle_Creek_TOSC_1_time_IFB_33-9058.pdf

INVITATION FOR BID (IFB)

SCRAP SALE

IFB 33-9058

SEALED BID

ONE TIME SALE

DEFENSE LOGISTICS AGENCY (DLA) DISPOSITION SERVICES

74 Washington Ave. North

Battle Creek, Michigan 49037-3092

Bid Opening Date November 4, 2019; 10:00 AM EST

Inspection Period Begins October 22, 2019; 10:00 AM Local

By appointment only.

Battle Creek TOSC

MI

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

IFB 33-9058

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Contents Additional Content ........................................................................................................................................ ii

GENERAL STATEMENTS OF SALES CONTRACT

Item Description

Notes:

TERMS AND CONDITIONS OF SALE

SALE BY REFERENCE (SBR)

ADDITIONAL TERMS AND CONDITIONS OF SALE

ARTICLE ONE

Bid Evaluation and Contract Award

ARTICLE TWO

Parties to the Contract

ARTICLE THREE

Contract Financial Retention & Insurance and Bond Requirements

ARTICLE FOUR

Contract Performance

ARTICLE FIVE

Distributions/Payments

ARTICLE SIX

Product Pool, Material Referrals, Title Transfer, Returns and Material Breach

ARTICLE SEVEN

Compliance with Export Control Regulations

ARTICLE EIGHT

Purchaser Responsibilities

Government Furnished Equipment (GFE) & Purchaser Owned Equipment

ARTICLE TEN

Government Facilities

ARTICLE ELEVEN

Contract Compliance, Audits and Reviews

ARTICLE TWELVE

Disputes and Claims

ARTICLE THIRTEEN

Miscellaneous Provisions

ARTICLE FOURTEEN

Government Required Reports

ARTICLE FIFTEEN

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Additional Contract Advisements

DEFINITIONS

ACRONYMS

Additional Content

TABLES:

Table 1: Common Container Size Chart …………………….. Page 4 Table 2: Contract Line Item Number (CLIN) Details …….…. Page 8 Table 3: CLIN, Material, SCL, Descriptions ……………….. Page 22

ATTACHMENTS:

ATTACHMENT A: Sale By Reference pamphlet ATTACHMENT B: Facility Inspection Checklist ATTACHMENT C: Bid Sheet (SF114 and SF114A) ATTACHMENT D: Regional Map

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/

The following is for reference only and does not indicate endorsement of the information provided.

Commercial Scale Locator https://catscale.com/cat-scale-locator/ 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 One-Time Sale Invitation for Bid (IFB). This IFB is offering DEMIL A scrap property and material for sale.

2. The performance period of the contract resulting from the IFB shall consists of a 21 calendar days from the start of work.

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.

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 offered). 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 the locations specified in this IFB, except for hazardous material. Under no circumstances is culling for effecting partial or incremental removals authorized. Items are offered with a guaranteed minimum quantity per SCL, throughout the performance period.

5. The Purchaser’s bid shall consist of an amount per pound specified in U.S. currency for each SCL listed on the Item Bid page (Attachment C). 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.

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:

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 Agency 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 region (see Attachment D) 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 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. Government Facilities: 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: 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 not utilize available government owned MHE. The Purchaser may use and store its own MHE in the Scrap Yard when authorized by the site lead or Area Manager. 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 (Attachment A) entitled Sale by Reference - Instructions, Terms and Conditions Applicable to Department of Defense Personal Material Offered for Sale by DLA Disposition Services, July 2012” (hereinafter, Sale by Reference 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 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 or waiver is approved. 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 to and received by the SPOC. 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 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 Region ITEM # Material Total QTY

MI Battle Creek TOSC JTT0 HQ 1 DS000E1LA 181,000 lbs.

Table 3: CLIN, Material, SCL, Descriptions

CLIN MATERIAL SCL Description 1 DS000E1LA E1L Iron and steel scrap, mixed w/foreign attachments, highly enameled stock, coated paint cans, tin cans, borings and turnings highly corroded, dirty and containing excessive oil and other inferior grades of metal prohibitive to other classifications.

Notes:

Local POC is Don Zimmerman, phone # 269-969-3533, email: Don.Zimmerman@dla.mil

Hours of Operation: Monday-Friday 8:00AM-3:00PM excluding Federal Holidays.

Location requires a crane in order to lift the boat onto the buyer’s choice of transportation

Pick up location:

Battle Creek Air National Guard Base, 3367 W. Dickman Road, Bldg. 6917, Battle Creek, MI 49037

TERMS AND CONDITIONS OF SALE

SALE BY REFERENCE (SBR)

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: Does not apply.

SALE BY REFERENCE PART 4: Sale of Government Property Special Sealed - Term Conditions: Does not apply.

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

Note: Article D is modified in Article Three of this IFB.

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 Attachment C to submit a hand-delivered or faxed 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 submit bid: Do not email bids or call in bids directly to the SCO.

Mailed or Hand-Delivered bids shall consist of an SF114 and SF114A provided in Attachment C.

Bids may be submitted via:

1. Facsimile (FAX) to 269-961-7568

2. Email to DRMSSALESBIDS@DLA.MIL

3. Hand Carried by Bidder

4. Hand Carried by United States Postal Service,

5. Hand Carried by Express Carriers (FEDEX, UPS, DHL, or other courier services), Address hand-carried bids to:

DLA Disposition Services ATTN: Bid Room - IFB 33-9058 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. SF114A (or equivalent information) as provided in Attachment C

(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 90 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.

html

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 Agency personnel prior to contact award. (See Facility Inspection Checklist in Attachment B)

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 within 10 calendar days 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 10 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 DEPOSITS AND PAYMENT (ONE-TIME):

(a) A bid deposit is not required on this sale. Full payment is required prior to removal in accordance with DRMS Pamphlet, Sale by Reference, July 2012, Part 1, Condition 6.

(b) All payments, including those for storage charges, liquidated damages, and interest, must be in U. S. currency in the form of cashier's check, certified check, traveler's check, bank draft, money order or credit card (Mastercard, Visa, Discover Card or American Express.) Make checks payable to the U.S. Treasury. When a credit card is used as payment, the credit card number, the name as printed on the credit card, and the expiration date must be provided. All credit card transactions are limited to $24,999.99.

Credit card transactions greater than $24,999.99 may not be split into two (2) or more transactions over one (1) or multiple days. Bidders whose payment is accompanied by a letter of credit, or who have an approved bid bond (SF150 or SF151) on file may make payments by uncertified personal or company checks, but only up to an amount equal to the penal sum of their bond or the amount of their letter of credit.

(c) If, for any reason, a bidder's uncertified check is not honored for payment by the payee's bank upon initial presentment, the Government may, after notifying the bidder, require the bidder to make all future payments by cash, cashier's check, certified check, traveler's check, bank draft or money order.

(d) Successful bidders that wish to make payment via credit card for property awarded can do so by providing language substantially as follows:

I (WE) AUTHORIZE THE SALES CONTRACTING OFFICER TO OBTAIN

PAYMENT BY CREDIT CARD FOR ANY ITEMS I AM (WE ARE)

AWARDED ON THIS SALE.

Any necessary adjustments in accordance with the condition of sale entitled "Adjustment or Variation in Quantity or Weight" will be applied to the card as a debit or credit.

(e) Personal checks will be accepted for payments of debt interest, liquidated damages, overages and storage charges for amounts of $25.00 or less.

(f) All payments should be addressed and mailed or delivered to:

DLA Disposition Services ATTN: Cashier 74 N. Washington Ave.

Battle Creek, MI 49037

Credit card payments may be faxed to: 269-961-7230

(g) Credit card payment within the United States can be made using the web site at:

https://www.pay.gov/paygov/forms/formInstance.html?agencyFormId=25176217

(h) Should you need to make payment for less than $1.00, you cannot use the web site credit card payment method. You must complete the manual credit card form and fax it to 269-961-7230.

(i) Regardless of how you pay, to avoid delays at the DLA Disposition Services sites when you go to pickup property, payment should be received in Battle Creek at least 24 hours in advance of your scheduled pickup of property.

Section 2 – Insurance and Bond Contract Requirements: Purchaser shall obtain and maintain the following insurance and bond requirements throughout the performance period:

(A) Modification of Special Circumstance Conditions: Sale by Reference (SBR) Part 5 - Additional Special Circumstance Conditions – Miscellaneous (DRMS Form 86, Oct 93), Article D, Liability and Insurance, paragraphs (a)(2) and (a)(3) is modified as follows:

1. Bodily Injury Insurance in an amount of not less than $250,000 any one individual and $1,000,000 for any one accident or occurrence.

2. Material Damage Liability Insurance in the amount of $250,000 (which shall include any and all material whether or not in the care, custody or control of Purchaser). The annual coverage shall be not less than one million dollars $1,000,000.

(B) Further Modifications: Sale by Reference Part 5, Article D, paragraph (a) is also amended as follows:

1. All risk coverage for fire and other material perils for all material owned by Purchaser with aggregate coverage of $5,000,000.

2. Umbrella liability coverage not less than $2,000,000.

3. Fidelity or blanket bond coverage for $5,000,000. Purchaser shall obtain and maintain such coverage with a responsible surety company with respect to all of Purchaser's employees, officers and directors to protect Purchaser against losses, including, without limitation, those arising from theft, embezzlement, fraud, or misplacement of funds, money, or documents. The issuer, policy terms, forms, and amounts of coverage, including applicable deductibles, shall be satisfactory to the Agency, and the policy shall include a provision that the issuer shall notify the Agency in writing within five business days of the cancellation or termination of any such coverage or of any modification of such coverage. Purchaser shall notify the Agency in writing within five business days after filing a claim under such coverage.

4. Comprehensive general liability, automobile liability, umbrella liability, Worker’s compensation and other insurance coverage as may be required by law.

At its option, Purchaser may obtain and maintain such additional insurance, including directors and officers coverage and errors and omissions coverage, as Purchaser deems appropriate.

(C) Evidence of Insurance: Within 10 calendar days from the date of award, Purchaser shall provide the SCO copies of policies, certificates of insurance or other proof evidencing the coverage required. Purchaser shall obtain the minimum coverage specified unless the Agency approves a variance from such minimum coverage.

Section 2 – Insurance and Bond Contract Requirements: Purchaser shall obtain and maintain the following insurance and bond requirements throughout the performance period:

(A) Modification of Special Circumstance Conditions: Sale by Reference (SBR) Part 5 - Additional Special Circumstance Conditions – Miscellaneous (DRMS Form 86, Oct 93), Article D, Liability and Insurance, paragraphs (a)(2) and (a)(3) is modified as follows:

1. Bodily Injury Insurance in an amount of not less than $250,000 any one individual and $1,000,000 for any one accident or occurrence.

2. Material Damage Liability Insurance in the amount of $250,000 (which shall include any and all material whether or not in the care, custody or control of Purchaser). The annual coverage shall be not less than one million dollars $1,000,000.

(B) Further Modifications: Sale by Reference Part 5, Article D, paragraph (a) is also amended as follows:

1. All risk coverage for fire and other material perils for all material owned by

Purchaser with aggregate coverage of $5,000,000.

2. Umbrella liability coverage not less than $2,000,000.

3. Fidelity or blanket bond coverage for $5,000,000. Purchaser shall obtain and maintain such coverage with a responsible surety company with respect to all of Purchaser's employees, officers and directors to protect Purchaser against losses, including, without limitation, those arising from theft, embezzlement, fraud, or misplacement of funds, money, or documents. The issuer, policy terms, forms, and amounts of coverage, including applicable deductibles, shall be satisfactory to the Agency, and the policy shall include a provision that the issuer shall notify the Agency in writing within five business days of the cancellation or termination of any such coverage or of any modification of such coverage. Purchaser shall notify the Agency in writing within five business days after filing a claim under such coverage.

4. Comprehensive general liability, automobile liability, umbrella liability, Worker’s compensation and other insurance coverage as may be required by law. At its option, Purchaser may obtain and maintain such additional insurance, including directors and officers coverage and errors and omissions coverage, as Purchaser deems appropriate.

(C) Evidence of Insurance: Within 10 calendar days from the date of award, Purchaser shall provide the SCO copies of policies, certificates of insurance or other proof evidencing the coverage required. Purchaser shall obtain the minimum coverage specified unless the Agency approves a variance from such minimum coverage.

ARTICLE FOUR

Contract Performance

Section 1 – Performance Period: The performance period of the contract resulting from the IFB shall consists of 21 calendar days from the start of work.

Section 2 – Termination for Convenience of the Government: The Government may terminate performance of work under this contract in whole or, from time to time, in part if the SCO determines that a termination is in the Government’s interest. The SCO shall terminate by delivering to the Purchaser a Notice of Termination specifying the extent of termination and the effective date.

After receipt of a Notice of Termination, and except as directed by the SCO, the

Purchaser shall immediately proceed with the following obligations, regardless of any delay in determining or adjusting any amounts due under this clause:

(A) Stop work as specified in the notice.

(B) Unless otherwise directed by the SCO, place no further subcontracts.

(C) Terminate all subcontracts to the extent they relate to the work terminated.

(D) Coordinate with the SCO the return of any material issued to the Purchaser to the Government in which title has not transferred.

(E) With approval or ratification to the extent required by the SCO, settle all outstanding liabilities and termination settlement proposals arising from the termination of subcontracts.

(F) Take any action that may be necessary, or that the SCO may direct, for the protection and preservation of the material related to this contract that is under title and/or in the possession of the Purchaser in which the Government has or may acquire an interest until surrendered to the Government or its agent. The Purchaser and SCO shall agree on payment for the preservation and protection of goods. Failure to agree on an amount shall be a dispute under the Disputes clause.

The Purchaser shall submit a complete termination inventory list, by location, containing SCL, description and quantity no later than 30 calendar days from the effective date of termination unless extended in writing by the SCO, upon written request of the Purchaser, during this 30 calendar day period. The Government will review the inventory list within 14 calendar days. The Purchaser shall receive an approved list of items of which they can retain title. The retention of title of these items shall be by mutual agreement. Purchaser shall submit a substantiated Request for Equitable Adjustment (REA) for any expense incurred outside the scope of this contract. Projected lost revenue and expenses incurred for normal execution of the terms and conditions specified within this contract are not reimbursable. The cost principles and procedures of Part 31 of the FAR, in effect on the date of this contract, shall govern all costs claimed, agreed to, or determined under this clause.

If the Purchaser and the SCO fail to agree on the amount that may have been determined due to the Purchaser by the Government, due to the termination of the public sales contract, the Government will pay the Purchaser the amounts determined by the SCO within the specified time. Any amount due to be paid by the Purchaser and not paid within the specified time period shall be charged interest fees based on the rate determined by the Secretary of Treasury.

The Purchaser shall have the right of appeal, under the Disputes clause (see SBR Part

2, paragraph 33 as referenced above), from any determination made by the SCO, except that if the Purchaser failed to submit the termination settlement proposal or a request for equitable adjustment within the time provided.

The following shall be deducted from any amount due the Purchaser under this clause:

(1) Any claim which the Government has against the Purchaser under this contract; and

(2) The agreed price for, or the proceeds of sale of, materials, supplies, or other things acquired by the Purchaser or sold under the provisions of this clause and not recovered by or credited to the Government.

If contract is partially terminated, this clause has the same full effect.

Unless otherwise provided in this contract or by statute, the Purchaser shall maintain all records and documents relating to the terminated portion of this contract for six years after final settlement. This includes all books and other evidence bearing on the Purchaser’s costs and expenses under this contract. The Purchaser shall make these records and documents available to the Government, at the Purchaser’s office during normal business hours without charge. Records and documents may be digitally scanned for electronic storage at no cost to the Government. The SCO shall provide records management documentation to record the location(s) of physical and/or electronic records and documents.

Section 3 – Purchaser Early Cancellation Notice: If the Purchaser elects to terminate prior to the term of this contract the Purchaser shall provide the Government a notice to terminate and shall continue the terms of the contract for 30 calendar days following the termination to include the closeout process.

ARTICLE FIVE

Distributions/Payments

Section 1 - The Billing Cycle: For one-time sales, full payment is required prior to start of work.

The Notice of Award is the only invoice.

Section 2 - Types of Acceptable Payments: All payments, including those for storage charges, liquidated damages and interest shall be in U.S. currency. Payments by Electronic Fund Transfer (EFT), cashier’s check, certified check, travelers check, bank draft, money order or credit card (Master Card, Visa, Discover Card, and/or American Express). Make checks payable to the U.S.

Treasury are acceptable. When using a credit card method of payment, the credit card number, credit card security code (3-or 4-digit code on the back of the card), name as printed on the credit card, and the expiration date shall be provided. The U.S. Treasury limits all credit card transaction to $24,999.99. Transactions greater than $24,999.99 cannot be split into two or more credit card transactions. Bidders whose payment is accompanied by a letter of credit or who have on file an approved bid bond (SF 24 or SF 34) may make their payments by uncertified personal or company checks, but only up to an amount equal to the penal sum of their bond or the amount of their letter of credit.

Address all hand-carried or delivered payments to the following:

DLA Disposition Services ATTN: Cashier 74 N. Washington St.

Battle Creek, MI 49037

Credit Card payments within the United States can be made using the website at:

https://www.pay.gov/paygov/forms/formInstance.html?agencyFormId=25176217 Should Purchaser need to make a payment for less than $1.00, the website credit card payment method cannot be used. Instead, Purchaser will be required to complete the manual credit card form and fax it to (269) 961-7230.

Section 3 – Payment Confirmation: The Government does not provide payment confirmation.

Purchaser shall submit proof of payment to the SCO, showing type of payment, amount, and date submitted. The SCO will ensure payment is applied to the Purchaser’s account.

Section 4 – Consequences of late or short payments: If full payment is not received within 10 calendar days of the Notice of Award, interest shall be charged on the unpaid portion at the rate established by the U.S. Treasury from the date of the bill in accordance with Section 3717 Title 31 of the U.S. Code. After 10 calendar days from the Notice of Award, the Government will place the contract in default. If the debt is forwarded to the DFAS Debt Management Office, Contract Pay Services, Columbus, Ohio; the Purchaser shall be assessed an administrative fee of $26 to cover costs specifically associated with the administration and collection of payments over 30 calendar days delinquent.

If full payment is not received within 90 calendar days from the date of the bill, the Government will transfer the debt to the Debt Management Office for collection and an additional administrative charge of $50 will be assessed. They will continue the collection process and if unsuccessful, shall transfer the delinquent debt to the Department of Treasury for further collection. Because of this transfer, the following actions may be taken:

a. The debt shall be subject to the Department of Treasury offset from Federal payments due (owner or company, as applicable). A fee for each offset made will be added to the debt as part of the administrative charge. Federal payments eligible for offsets include contract payments, Federal income tax refunds, and other payments not exempt.

b. The debt may be reported to a credit bureau.

c. The debt may be referred to a private collection agency. In such instance, a fee for collections made shall be added to the debt as part of the administrative charge.

d. The debt may be referred to the Department of Justice for litigation. In such case, an administrative cost will be added to the debt.

The Purchaser may inspect and/or request a copy of the records pertaining to this debt. If the Purchaser believes the debt is invalid or the amount is incorrect, please contact the SCO immediately. If the Purchaser is financially unable to pay the full amount of the debt, the Purchaser may request a written agreement to pay the debt in installments. The Purchaser’s request for an installment agreement shall be in writing and supported by certified statements of income and financial position covering the last 12 months. The point of contact for this debt is the Sales Contracting Officer listed on the Notice of Award document.

ARTICLE SIX

Product Pool, Material Referrals, Title Transfer, Returns and

Material Breach

Section 1 – Product Pool: 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 indicating that demilitarization or mutilation is not required 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 QTY identified per SCL specified below subject to variations as authorized by SBR Part 4, Article 5.

(A) Material Flow: The material is by SCL as weight in pounds, by each location. The Agency has established field locations and other receipt-in-place locations to meet the needs of our customers. The Agency does not represent that the locations and the number of locations are enduring and does state that all locations are subject to change based on the needs of our customers.

(B) Material Referral: The Government has sole discretion to determine when and what material shall be issued to the Purchaser, and the Purchaser has a contractual obligation to purchase and accept all material referred by the Government as specified in the contract. The Purchaser is not required to take hazardous material or material that could pose a risk to national security, environmental or personnel safety or health issue such as mold and asbestos containing materials. Under no circumstances is culling for effecting partial or incremental removals authorized. The Agency reserves the right to sell material or offer material through alternative sales or contract means for all material not considered part of this contract.

(C) Classified Material: Performance of this contract neither requires nor authorizes the Purchaser to handle classified property or documents. Should Purchaser’s employees handle actual or suspected classified property or documents, the Purchaser shall immediately secure the documents or property from both physical loss and compromise and immediately notify the Agency’s Site Lead and the SCO of the discovery. The Purchaser shall submit a SF364 ROD as outlined below. The Agency will arrange for pick up and removal of such material. Under no circumstances shall the Purchaser release the property or documents to anyone other than designated personnel. If the contents of said documents or property are at a level that requires debriefing, the Purchaser’s personnel shall be made available to the proper Government authorities for this action.

(D) Material Potentially Presenting an Explosive Hazard (MPPEH): Performance of this contract does not require nor authorize the Purchaser to handle MPPEH. Despite all best efforts by the Government, MPPEH may be discovered; the Purchaser shall immediately take the necessary action for protection of personnel and property. This shall include the evacuation and security of the immediate area. The Purchaser shall not attempt to handle or move the suspected property until a technically qualified trained Government representative investigates the incident. The Purchaser shall notify the Agency’s Site Lead and the SCO of the discovery immediately and submit a SF364 ROD outlined below. The Agency will arrange for pick up and removal of such material.

(E) Radioactive Property: Performance of this contract…