ATT 2_Statement of Work.pdf

Statement-of-Work

Scandium Oxide

1. BACKGROUND

The Department of Defense (DoD), has bought, and will continue to buy, parts that contain or utilize Scandium. Scandium is produced as an oxide that can be converted into metal through an arduous process. For the purpose of this acquisition “scandium” will refer to both grades together, and either grade on its own will be specified. Scandium, until recently, was primarily sourced from China. In late 2024, China placed export controls on scandium, which constrained the supply chain and prompted this acquisition for the National Defense Stockpile. Scandium oxide is used heavily in solid-oxide fuel cells, as well as in the production of scandium metal.

DLA Strategic Materials received Congressional authority to procure scandium oxide. Through research on scandium, the Government determined to procure scandium oxide for the National Defense Stockpile (NDS).

2. SCOPE

To reduce the risk of availability in the scandium supply chain, DLA Strategic Materials intends to purchase scandium oxide with maximum values shown in Table 1. DLA Strategic Materials received authority to procure scandium oxide in the FY2025 National Defense Authorization Act

(NDAA).

Table 1: Maximum planned procurement quantities and schedule for scandium

Execution Year Scandium Oxide (kg)

Year 1 1,998

Year 2 953

Year 3 909

Year 4 868

Year 5 1,656

TOTAL 6,384*

*Total quantity +/- 1.0%

3. REFERENCE

The following are incorporated by reference:

a. Harmonized Tariff Schedule, the Tariff Act of 1930, and the Trade Act of 1974

b. United States (US) Customs and Border Protection (CBP) Form 7501

c. US CBP Form 6059, General Declaration

d. US CBP Form 5106 (Request for Importer Number, or Notification of Importer

Number)

4. TECHNICAL REQUIREMENTS

The following sections define the requirements for the material the Contractor shall provide.

4.1. MATERIAL DESCRIPTION – SCANDIUM OXIDE

4.1.1. The material shall be scandium oxide with purity greater than or equal to 99.8 %

Sc2O3.

4.1.2. The material shall meet the elemental requirements of the Table 2.

Table 2. Chemical requirements of scandium oxide.

Component Limit (ppm)

Sc2O3 min. 99.8%

La2O3 max. 10 CeO2 max. 25 Pr6O11 max. 5 Nd2O3 max. 10 Sm2O3 max. 5 Eu2O3 max. 5 Gd2O3 max. 5 Tb4O7 max. 5 Dy2O3 max. 5 Ho2O3 max. 5 Er2O3 max. 5 Tm2O3 max. 5 Yb2O3 max. 5 Lu2O3 max. 5 Y2O3 max. 15 Na2O max. 800 MgO max. 5 Al2O3 max. 80 SiO2 max. 250 P2O5 max. 70 CaO max. 1000 TiO2 max. 150 V2O5 max. 20 Cr2O3 max. 5 Fe2O3 max. 50 ZrO2 max. 600

As max. 30 Ba max. 50 Cd max. 5 Co max. 5 Cu max. 50 Ga max. 5 Ge max. 5 Hf max. 25 Mn max. 5 Mo max. 5 Nb max. 10 Pb max. 5 Sb max. 5 Sn max. 5 Sr max. 5 Th max. 250 U max. 10 Zn max. 5

4.1.3. All testing methods shall be named, including the components for which they were used to test.

4.1.4. The Contractor shall ensure the material from each production lot is segregated from the material from any other production lot. Co-mingling of multiple production lots into one larger lot will not be accepted. The Contractor shall assign a unique lot number to each production lot.

5. SAMPLING

5.1 The Government will witness the Contractor’s sampling operations for each lot of material the Contractor intends to deliver to the Government for compliance with the Sampling Plan.

5.2 The Government reserves the right to waive witnessing of the sampling process on a case-by-case basis.

5.3 The Contractor shall permit the Government access to activities associated with sample collection and distribution at the time the Contractor is manufacturing each lot of material the Contractor intends to provide to the Government. The Contractor’s material production facilities must be within the Continental United States (CONUS) or Canada for all material the Contractor intends to supply the Government.

5.4 The Contractor shall provide the Government with written notice of the date(s) the Contractor intends to begin processing, sampling, and testing activities of lots of material it intends to provide to the Government, a minimum of 20 (twenty) business days prior to that date.

5.5 The Contractor shall provide the Government with a written summary (via email and in PDF format) of its sampling plan and activities. The summary shall clearly describe the sampling process and cite any relevant sampling standards, as applicable.

5.5.1. The Contractor shall submit this summary to the Government no later than thirty

(30) business days prior to sampling of the material the Contractor intends to provide to the Government.

5.5.2. The Contractor shall not make any changes to their Sampling Plan without the explicit written approval of the Quality Assurance Specialist (QAS). If the Contractor wishes to make changes to the approved Sampling Plan, the Contractor shall submit a complete and revised proposed Sampling Plan for approval to the QAS. The QAS will advise the Contractor whether the revised proposed Sampling Plan is acceptable within seven (7) calendar days of receipt of the revised Sampling Plan. All sampling will be in accordance with the approved Sampling Plan.

5.5.3. If subsequent Contractor sampling plans and processes remain unchanged from previous sampling plans, the Contractor shall submit an email to the Government, stating that there have been no changes to its sampling plan and processes ten (10) business days prior to the date the Contractor begins its sampling activities.

5.6 The Contractor’s Sampling Plan shall include, at a minimum, the following:

a) Specify sample size and quantity

b) Provide a detailed description of the sampling process (i.e., individual sampling collection process, preparation of aggregate sample, sample splitting, additional sample preparation, estimated time for completing each lot’s sampling process, etc.)

c) Cite the national or international sampling standards applied to the sampling processes and/or description of industry-accepted sampling processes

d) Explain how each lot’s sample set will be equivalent in size and properties and be representative of the lot of material in properties.

e) Confirm the Contractor will provide written notice of the date(s) the Contractor intends to begin sampling operations of material it intends to deliver to the Government, a minimum of thirty (30) business days prior to that date.

5.7 The Contractor shall collect samples for each lot of material it intends to provide to the Government. The Contractor’s sampling process and procedures shall be consistent with the sampling process and procedures the Contractor typically uses for this material for other customers.

5.8 The Contractor shall collect four equivalent samples for each lot of material the contractor intends to supply to the Government – one set of samples for the Contractor’s purposes, one set of samples for the Government, one set of samples for independent third-party laboratory analysis, and one sample for the reserve material of the independent third party laboratory reserve, All four samples shall be of the same size and form and shall be representative in chemical properties of the lot of material.

All four samples shall have a minimum sample size that satisfies the requirements of the independent third-party laboratory.

5.9 The Contractor shall ship the Government’s sample for each lot with each lot of material it delivers to the Government.

5.10 The Contractor shall document and transfer chain of custody of the lot’s analytical and reserve samples to the independent third-party laboratory.

6. TESTING

6.1 The contractor shall employ an independent third-party analytical chemistry laboratory

(lab) to characterize, chemically, each lot of scandium oxide the contractor intends to deliver to the Government. The lab shall analyze each lot in accordance with Table 2.

6.2 The contractor shall report this information to the government in a Certificate of Analysis (COA). The contractor shall deliver a COA for each representative sample from each lot of scandium oxide for which chemical analyses was performed.

6.3 The third party lab used to perform verification testing shall:

a) have CONUS (Continental United States) -- based operations.

b) perform all analytical chemistry activities in this SOW within CONUS.

c) have an established reputation for experience and excellence in laboratory analytical services for REE and Rare Earth Oxides (“REOs”), battery materials (graphite, light element cations, and transition metal systems), and other specialized analytical laboratory services (i.e., Time Temperature Transformation (“TTT”), thermogravimetric analysis coupled with infrared spectroscopy, instrumental gas analysis (“IGA”), Raman spectroscopy, glow discharge mass spectrometry (“GDMS”)).

d) be ISO (International Organization for Standardization) 17025 certified, ASTM (American Society for Testing and Materials) 9001 certified, and ITAR (International Traffic in Arms Regulations) compliant.

e) have expert ability and experience in analytical chemistry techniques and methods, and method development in wet chemistry (i.e., sample preparation and digestion, titration, reagent preparation, glovebox work, etc.), and in instrumental analysis including FTIR and Raman vibrational spectroscopy, instrumental gas analysis (IGA), ICP-OES/AES plasma emissions/absorption spectroscopy, ICP-MS plasma-initiated mass spectrometry, and glow discharge mass spectrometry (GDMS).

f) have expert ability and experience in instrumental analysis, including Inductively Coupled Plasma Optical Emission Spectroscopy/Atomic Emission Spectroscopy (ICP- OES/AES), ICP-Mass Spectrometry (ICP-MS), and inert gas fusion and combustion analysis, especially using LECO™ or similar instruments.

6.4 The Contractor shall submit a Testing Plan with their proposal. The testing plan shall include, at a minimum:

a) Name and address of third party laboratory that the contractor intends to use

b) a summary description of sample preparation

c) a summary description of methodology and instrumentation (as applicable) the lab will employ for each required data value in this SOW’s material specifications

d) any significant assumptions the lab might elect to make that are beyond the accepted assumptions made for chemical analysis (instruments and wet chemistry)

e) an acknowledgement of the safety portion of the SDS for the specific material being tested

6.5 The Contractor shall not make any changes to the Independent Third-party Analytical Chemistry Laboratory’s testing plan (i.e., the proposed analytical methodologies the independent laboratory will employ that will be submitted and approved as part of the Contractor’s proposal) without the explicit written approval of the Contracting Officer Representative (QAS).

6.6 If the Contractor wishes to make changes to the approved Testing Plan, the Contractor shall submit a complete and revised proposed Testing Plan for approval to the QAS.

The QAS will advise the Contractor whether the revised proposed Testing Plan is acceptable within seven (7) calendar days of receipt of the revised Testing Plan. All testing will be in accordance with the approved Testing Plan.

7. CERTIFICATES OF ANALYSIS (COA)

7.1 The Contractor shall provide a COA with each production lot. A production lot is defined as agreed upon between the vendor and the government.

7.2 The COAs shall be sent to the QAS for review and acceptance prior to shipment of each lot to the delivery point.

7.3 The COA is a legal document, which ensures that the materials delivered by the contractor meet the specifications stated in this SOW. The QAS will determine based on the COA if the lot(s) of the material are acceptable for delivery. The Contractor shall carefully sample and test the material to ensure the reliability of each submitted

COA.

7.4 The COAs shall be provided by email in the Adobe Acrobat PDF (portable document format) format to the QAS for review and acceptance prior to shipping any lot(s) to the point of delivery. The email address for submitting the COAs will be designated in the Contract.

7.5 The COA shall have a statement certifying that the material meets and or exceeds required material specifications.

7.6 The QAS will review every COA submitted to determine acceptability and compliance with the requirements in this SOW within ten (10) business days after receipt of the

COA.

7.7 Each COA shall include the following, at a minimum:

a) Lot number

b) Weight and number of containers the COA covers

c) List of tests performed and/or the methodology applied. The Contractor shall include any significant assumptions made, other than typical assumptions for test methodology, as a footnote to the reported value.

d) Numerical results and qualitative results (as applicable)

e) Error ranges/limits for results

f) Specifications/requirements

g) Name of the company or name of the laboratory performing the testing

h) Date(s) each analysis is performed, and

i) Printed name and signature of analyst.

7.8 The COA and all other documents submitted to the Government shall be in English.

8. ENVIRONMENTAL, SAFETY, AND OCCUPATIONAL HEALTH

REQUIREMENTS

8.1 Transporting, Handling, and Management

8.1.1. The Government shall ensure compliance with all federal, state, and local regulations (international laws, as applicable) for the use, transport, emergency response, and disposal of the acquired material.

8.1.2. The Contractor shall ensure compliance with the Department of Transportation (DOT) regulations by certifying hazardous materials are properly classified, described, packaged, marked, and labeled and are in a condition safe to transport the material. (49 CFR 173)

8.1.3. The Contractor shall ensure compliance with the Occupational Safety and Health Administration (OSHA) regulations regarding the proper management, handling, storage, transportation, and disposition of material. (29 CFR 1910)

8.1.4. The Contractor shall communicate the hazards of the material by providing the Safety Data Sheet (SDS) in accordance with The United Nations Globally Harmonized System of Classification and Labeling of Chemicals (GHS). (29 CFR 1910)

8.1.5. The Contractor shall ensure compliance with the Environmental Protection Agency (EPA) regulations for the characterizing waste to determine appropriate disposal of material and any associated packing and shipping material. (40 CFR 260)

8.1.6. The Contractor shall ensure compliance with Strategic Materials’ Environmental, Safety, and Occupational Health (ESOH) Depot Orientation Guide and ESOH Policy Statement available on Strategic Materials website:

https://www.dla.mil/Strategic-Materials/ .

9. PACKAGING

Scandium Metal shall be packed in accordance with the requirements below.

9.1 PACKAGING REQUIREMENTS

9.1.1. Scandium Oxide will be packaged in 10 kg water/damage resistant containers.

9.2 PALLETIZING REQUIREMENTS

9.1.2. All containers shall be placed onto new undamaged pallets meeting the specifications listed below and be banded/shrink wrapped together to prevent box movement during handling, transportation or other operations where boxes and/or personnel could be damaged and/or injured if the containers shift. The use of used, recycled, repaired, remanufactured and/or refurbished pallets will not be accepted.

https://www.dla.mil/Strategic-Materials/

9.1.3. All palletized containers shall be covered with a water resistant (e.g. plastic bag etc.) barrier that totally covers the top and sides of each banded/shrink wrapped pallet of containers to preclude water damage to the containers during shipment and storage.

9.1.4. Pallet Design

a) All pallets shall be 48 inches deep (front to back) and 48 inches wide (side to side) in size.

b) All pallets shall contain four (4) full length, solid stringers. One stringer shall be located at each edge (side) and two stringers shall located in the interior of all pallets. Interior stringers shall be spaced 18 1/2 inches (on center) from the outside of each edge (side).

Stringers shall be 1 5/8 inches in width and 3 ½ inches in height. Segmented, composite and/or block stringers will not be acceptable.

c) All pallets shall have flush sides (e.g. no wings).

d) All pallets shall contain “top decking” and “bottom decking” boards. All decking boards shall be six (6) inches in width with no more than one (1) inch between boards. All decking boards shall be ¾ inches in thickness and be solid.

e) All pallets shall be of a “two way entry” configuration.

f) Pallets may be reversible in design.

g) All pallets shall have a minimum rated load capacity of 750 pounds per square foot.

9.1.5. Pallet Construction

a) All pallets shall satisfy the requirements listed in ASTM D6199-18a.

b) All pallets shall be constructed entirely (except fasteners) of high-density hardwood meeting the requirements of paragraph 6 of ASTM D6199-18a. Only high-density hardwood species categorized in “Group IV” of ASTM D6199-18a shall be acceptable for pallet construction. The only acceptable high density hardwood species used for pallet construction are: Beech, Birch, Hackberry, Hard Maple, Hickory, Oak (Eastern), Pecan, Rock Elm, American Elm, White Oak and Green Oak. Pallets may be constructed by mixing together or using different high density hardwood species listed above interchangeability.

c) All pallets shall satisfy the requirements listed in ISPM-15 (International Standards for Phytosanitary Measures Number 15) (e.g. heat treated etc.).

d) Only driven nails that are “helically” threaded, “Annularly” threaded or “fluted” will be acceptable for use in pallet construction. The fastener length shall be sufficient to provide a minimum penetration of 1 ¼ inches into the stringer.

9.2. A copy of the Safety Data Sheet (SDS) for the contained material shall be accessible and external to the packed material with each delivery. All packages shall meet all requirements presented in Section 8 to ensure compliance with Federal, state, and local regulations for the transporting, handling, and management of material.

9.3. The Contractor shall use the industry standard for packaging that is in compliance with the statement of work technical specifications and agreed upon by the government to store the materials. The Contractor shall notify the QAS within ten (10) business days if the packaging standards have changed.

10. LABELING

10.1. All containers shall be identified with attached tags(s)/label(s) as follows:

a) The font size utilized to enter the required information on each tag/label shall be of sufficient size to be legible to the unaided eye.

b) All information on tag(s)/label(s) shall be in English.

c) Any ink used to print tag(s)/label(s) shall be indelible, permanent and suitable for use in unheated warehouses where temperature extremes (both hot and cold) exist. The use of paint on tags/labels to enter the required information on each tag/label is not acceptable.

d) The tag/label material shall be durable and suitable for use in unheated warehouses where temperature extremes (both hot and cold) exist. The tag/label material shall not react with the commodity being tagged/labeled.

e) Tag/label material shall have an expected lifespan of a minimum of twenty years with no degradation.

f) All tag(s)/label(s) shall be of sufficient size to permit the listing of all required information.

10.2. The information in items a) through k) below shall be listed on each tag/label or included with the container. The marking shall not include a security classification or anything indicating DLA Strategic Materials ownership other than the contract number.

a) Commodity Name

b) Commodity Grade, Type or Form

c) Merge Number

d) Country of Origin

e) Producer Name

f) Producer’s part number

g) Gross Weight in pounds and metric units. (Metric units to be in parentheses.)

h) Net Weight in pounds and metric units. (Metric units to be in parentheses.)

i) Lot Number

j) Container Serial Number. (The serial number is the individual container number in relation to the total number of containers in the lot; e.g. container 25 of 100 containers in the lot.)

k) Government Contract Number

10.3. Tag(s)/Label(s) shall be attached to each container in a permanent manner that prevents accidental detachment. The means of attachment shall be suitable for use in unheated warehouses where temperature extremes (both hot and cold) exist.

10.4. Containers shall have one tag/label attached to the exterior side of each container in a permanent manner that prevents accidental detachment. A second tag/label shall be attached to the topside of the lid of each container. A third tag/label shall be attached to the underside of the lid of each container. The means of attachment shall be suitable for use in unheated warehouses where temperature extremes (both hot and cold) exist.

Attachment by adhesive means (e.g., glue, adhesive backed tag/label etc.) is acceptable.

10.5. All packages shall meet all requirements presented in Section 8 to ensure compliance with Federal, state, and local regulations for the transporting, handling, and management of material.

11. TRANSPORTATION

The Contractor shall be responsible for transport, as well as for Carrier and Insurance Paid to (CIP) of the material to the point of delivery: the Government Storage Depot in Hammond, Indiana. Refer to Section 10 for all legal labeling requirements.

12. DELIVERY

12.1. The Contractor shall deliver materials to the Delivery Point:

Defense Logistics Agency – Strategic Materials Hammond Depot 3200 Sheffield Avenue Hammond, Indiana 46327-1003 Telephone: -219-937-5383 Site Manager: Nathaniel Walsko Shipping/Receiving hours: 7:00 am to 2:30 pm (Central Time) Monday through Friday (exceptions of federal, state, and local holidays and days of closure due to inclement weather and/or other emergencies) Accessibility: Truck and rail.

12.2. The Contractor shall be free to schedule each delivery with the QAS ONLY after the COA is accepted by the QAS. The Contractor shall schedule in writing with the QAS all deliveries a minimum of twenty (20) business days in advance of their delivery and receive written acceptance of the proposed delivery schedule from the QAS prior to any shipping.

12.3. The Contractor shall deliver materials to the Government Storage Depot (delivery point in Hammond, Indiana) within the shipping hours of 7:00 am to 2:30 pm (Central Time) Monday through Friday (exceptions of federal, state, and local holidays and days of closure due to inclement weather and/or other emergencies.

12.4. All material deliveries shall be accomplished within the prescribed period of performance in this SOW and/or the associated contract.

12.5. The Contractor shall abide by the rules, laws, and regulations when accessing/delivering the material to the Government Storage Depot (delivery point in Hammond, Indiana as identified in the Hammond Depot ESOHMS Orientation Guide for Contractors and Visitors (see Attachment 2 for a copy of this guide) while in DLA Strategic Materials storage facility.

13. Inspection and Acceptance

13.1. The material inspection and acceptance location will be at the Government Storage

Depot (delivery point) in Hammond, Indiana.

13.2. The government will perform a visual inspection of all material upon receipt at the delivery point to verify conformance with the requirements of this SOW that can be verified visually.

13.3. The Government will provide written notification of the acceptance/rejection of delivered material to the Contractor within twenty (20) calendar days of delivery.

Payment shall not be remitted on any invoice until the government POC has issued a notification of Acceptance for the delivery.

13.4. If any delivered material does not conform to the requirements stated in the SOW or is not the same as that indicated on the COA, the Government will reject the nonconforming material. The Contractor shall be responsible for removal and replacement of rejected material, including all attendant costs, within ninety (90) calendar days of the final delivery. The Government reserves the right to ask for compensation for lost time.

ACRONYMS:

CFR Code of Federal Regulations CIP Carrier and Insurance Paid to COA Certificate of Analysis DLA Defense Logistics Agency DOD Department of Defense DOT Department of Transportation EPA Environmental Protection Agency ESOH Environmental, Safety, and Occupational Health FY Fiscal Year GHS United Nations Globally Harmonized System of Classification and Labeling of

Chemicals ISPM International Standards for Phytosanitary Measures Lbs Pounds NDAA National Defense Authorization Act NSS National Security Space OSHA Occupational Safety and Health Administration POC Point of Contact QAS Quality Assurance Specialist SDS Safety Data Sheet SOW Statement of Work