Attachment 0001 - Sources Sought IMX-104 Production Capability.pdf

W519TC-25-R-0041

Sources Sought for IMX-104 Production Capability

17 MARCH 2025

DESCRIPTION

The Army Contracting Command-Rock Island (ACC-RI) on behalf of the Project Lead Joint Services (PL JS) is seeking information from foreign and domestic sources interested in the design, construction, and commissioning of an efficient and modern facility capable of manufacturing Insensitive Munition Explosive - 104 (IMX-104) as a Government Owned, Contractor Operated (GOCO) facility at the Holston Army Ammunition Plant (HSAAP) in Kingsport, TN or at another facility location within the Continental United States (CONUS). The targeted production capacity is approximately ten million pounds to thirteen million pounds of IMX-104 per year that shall meet the requirements of the military specification MIL-DTL-32425 (2022) and North Atlantic Treaty Organization Allied Ordnance Publication No. 7, Manual of Data Requirements and Tests for the Qualification of Explosive Materials for Military Use.

The U.S. Government is seeking an expeditious solution for the design, construction, and commissioning of an IMX-104 facility and the required supporting infrastructure. It is the Government’s preference that the IMX-104 precursors and raw materials required for production shall be manufactured within CONUS. However, outside the continental United States (OCONUS) source(s) for precursors and raw materials will also be considered. The Government considers capacity to be of primary importance with a preference that design, construction and commissioning be complete within 36 months of contract award; however, in no case shall construction and commissioning be complete later than 48 months after contract award.

GOVERNMENT INTENT

1. Interested sources are hereby notified that due to the urgency of this requirement, the Government will utilize the information submitted in response to this sources sought notice to award a non-competitive, sole source undefinitized contract action (UCA) under the temporary acquisition authorizations provided in Class Deviation 2024-O0005, paragraph B (1), for covered contracts related to Ukraine, Taiwan, and Israel. The Government intends for this sole source action to include a contract(s) for the design, construction, and commissioning of the IMX-104 facility, and potentially follow-on production operations if the facility is not located at HSAAP.

2. ACC-RI intends to issue any UCA resulting from this notice with a Firm Fixed Price

(FFP) ceiling, not-to-exceed (NTE) value, based upon vendor’s responses to this notice and/or other appropriate rationale. Interested vendors are advised that the definitized value of the action shall not exceed the stated FFP ceiling/NTE per Defense Federal Acquisition Regulation Supplement (DFARS) 252.217-7027(e).

Therefore, interested vendors are advised the values provided in response to this notice shall represent the total estimated amount for performance of the requirement in its entirety.

3. The Government's intent is to award the proposed contract(s) based on the capabilities demonstrated in response to this sources sought notice; therefore, any interested source is responsible for fully identifying capabilities believed necessary to perform the requirements included in this, and any subsequent notices. The Government reserves the right to conduct a facility capability review which includes a study of financial, organization, and operational status made prior to contract award to determine a prospective contractor’s responsibility and eligibility for Government procurement. Interested sources are hereby notified that any resultant contract will require that the Government be granted unlimited data rights to any and all data and/or Intellectual Property generated in meeting the requirements of said contract, to include but not limited to: design drawings, final construction drawings, equipment specifications, equipment manuals, technical data, work instructions, product formulations, all testing parameters, all testing results, etc.

4. Submissions will be limited to no more than 100 pages. Excess responses/pages will not be considered.

5. The Government intends to award a sole source contract(s) as a result of this sources sought notice, subject to availability of funds. The Government reserves its right to amend this notice and/or its acquisition strategy at any time, as determined in the Government's best interest.

The facility should have an optimized sustaining production rate of 10M-13M lbs per year for IMX-104; the Government encourages capacity solutions that maximize operating efficiency for both low and high-rate production. However, lower production capacity may be considered, should the cost for high production capacity be prohibitive.

The Government has identified tentative site locations at HSAAP available for the construction of the facilities. Respondents can assume water, sewer, steam, and electrical service is available adjacent to the HSAAP site, but respondents shall ensure appropriate connection of the utilities to the physical building locations. Other suitable CONUS locations will also be considered; however, respondents shall submit their proposed location and confirm/verify that all required utility connections are available and of sufficient supply. The awardee will be responsible for the cost of making any utility improvements to correct for insufficiencies.

Upon project completion, the Government will take ownership of the facility whether located at the HSAAP GOCO or at an alternative site.

The priorities to the Government include, but are not limited to, production capacity, schedule, technical risk in the design, build, and commissioning of a manufacturing facility, total costs of commissioned facility, unit production cost, and planned operational efficiency.

RESPONSE REQUIREMENTS

Individual companies, teaming arrangement(s), or partnerships of companies are invited to respond to this notice. Interested respondents shall address the following:

1. Describe team members and roles including any teaming arrangements (letters of commitment, Joint Ventures, etc.). If a respondent does not have adequate resources (technical, manufacturing, personnel, etc.) available, the respondent must be able to demonstrate its ability to obtain those resources, to include, but not limited to, safety and modern automation practices in an explosive environment.

2. Describe the respondent's background and experience in each of the following essential areas, to include dates and locations:

a. Explosive Safety Site Plan preparation IAW DoD 6055.09-M (Defense Explosive Safety Regulation)

b. Process design related to explosives manufacturing and other related processes

c. Environmental permitting and compliance (local, state, federal)

d. Large scale facility construction

e. Chemical or Energetic facility operations and commissioning.

3. Describe the proposed technology process, and waste treatment solutions including:

a. Technical description of relevant technology(ies) to be utilized

b. Representative layout of an explosives manufacturing facility capable of producing ten million pounds to thirteen million pounds per year of IMX-104 including Net Explosive Weight (NEW) in each building for at least the following operations/facilities:

Spent acid reconcentration or spent acid disposal Raw materials receipt and storage Nitration, recrystallization, formulation, and packaging Analytical testing Waste treatment, waste-water treatment, and air emission controls

c. Overall annual throughput including operational availability basis of the calculation. Note, the Government typically considers 85% operational availability against design capacity as reasonable for explosives manufacturing lines. Describe the turn-down capacity of the processes and the minimum throughput to maintain efficient operations.

d. Utilities requirements, specifications, and consumption (e.g. electricity, process water, cooling water, steam, natural gas, and compressed air).

e. Evidence provided that the proposed solution can be operated at sufficient scale to verify operating feasibility and reliability.

f. Ability to meet U.S. standards, if using a foreign design.

4. Demonstrate current CONUS manufacturers for key raw materials or include a plan to establish a CONUS source. CONUS sources for raw materials are preferred; however, OCONUS source(s) will be considered. If OCONUS source(s) are to be used, identify current OCONUS manufacturers for key raw materials or include a plan to establish an OCONUS source.

5. Provide the cost for the design, construction (broken down by building/facility), and commissioning of a complete manufacturing facility. Provided cost should include all assumptions.

6. Provide a notional list of buildings/facilities with approximate size and net explosive weight by hazard class (e.g. 1.1, 1.3) in each and include ESQD (Explosive Safety Quantity Distance) Arc requirement.

7. Provide a breakdown of manufacturing and engineering personnel required

(numbers, experience, specialized skill sets).

8. Provide an estimate for the scrap rates of explosive scrap material and plans to handle and/or dispose of explosive scrap.

9. Discuss commissioning and transition plans for the facility.

10. Provide an Integrated Master Schedule outlining top-level activities and milestones to design, construct, commission, and transition the facility.

11. Describe any potential solutions that would allow the Government to configure/re-configure the facility to support surge requirements.

12. Discuss assumptions and major cost drivers of the proposed technology solutions and building design and construction.

Respondents should provide sufficient details to allow the Government to make a reasonable assessment of the respondent's capabilities to build an explosive manufacturing facility, including all relevant assumptions.

All interested sources are hereby informed that the Government intends to assess the information submitted in response to the sources sought and thereon make a determination as to which response, including all aspects logically encompassed therein, would be in the public’s best interest for the award and execution of a sole source contract for the design, build, and commissioning of such a facility.

As part of its assessment and comparison of the technologies, teaming arrangements, and potential site locations for the facility, the Government will specifically take into consideration the following:

1. The proposed technology for the synthesis, purification, flaking/granulating, and packaging of IMX-104, as well as the proposed technology(ies) for the management and treatment of the production-related waste streams; the extent to which those technologies have been proven viable (e.g. has been proven at full-rate production, is environmentally sound, and can be adapted to U.S. standards); and, the benefits and drawbacks or risks of the proposed technologies. The Government will consider the completeness of the IMX- 104 process information, including the associated risks and benefits.

2. The proposed technology provider’s demonstrated capability of, and recent experience with, providing or operating the proposed technologies. The proposed team’s collectively demonstrated capability of, and recent experience with, designing, constructing, fabricating equipment for, and commissioning an IMX-104 or similar facility.

3. The proposed operator’s ability to successfully operate an IMX-104 facility in the U.S. The Government will consider whether the proposed operator has recent experience with operating an IMX-104 facility or an explosives manufacturing plant, with consideration given to the location, size, and complexity of said explosives plant.

4. The proposed team’s projected schedule for the design, construction, and commissioning of the facility, and the extent to which the team has demonstrated the achievability of that schedule. The Government will consider the benefits and risks associated with the projected schedule, including the extent to which the team’s commitment to achieving the schedule and benefits to the Government will be secured by, and risks to the Government will be mitigated by, any proposed terms and conditions submitted by the interested party for inclusion within the prime contract and reinforced in relevant subcontracts.

5. The viability and efficiency of the process solution during post-construction operations. The team’s demonstrated capability of constructing buildings for the production of IMX-104 or similar explosives with an expected 50+ year lifecycle and constructing, maintaining, and operating process equipment for IMX-104 or similar explosives with an expected 20-year lifecycle; if applicable, the viability of the proposed team’s IMX-104 operating plan and its demonstrated capability to execute said plan over the plant’s expected life cycle (process efficiency, operational availability, energy consumption, etc.);

and, the proposed operator’s demonstrated commitment to sustaining the equipment, facility capabilities, workforce, and production levels to ensure the Government’s IMX-104 requirements, to include DoD end use and foreign military sales FMS, are consistently and satisfactorily prioritized and met throughout that lifecycle, as well as its intentions in relation to supplementing Government orders with commercial orders or international direct sales.

6. The proposed schedule for the design, construction, and commissioning of the facility, and the extent to which the team has demonstrated the achievability of that schedule. The Government will consider the benefits and risks associated with the schedule, including the extent to which the vendor’s/team’s commitment to achieving the schedule and benefits to the Government will be secured by, and risks to the Government will be mitigated by, any proposed terms and conditions submitted by the interested party for inclusion within the prime contract and reinforced in relevant subcontracts.

7. The estimated total cost/price to the Government for the proposed technologies, the design and construction of the facilities, and capital investment; the extent to which the team has committed to self-investment in the technologies and/or facilities or other proposed cost-sharing or profit-sharing arrangements; potential areas for cost savings to the Government; the extent to which the team has demonstrated the proposed process and plant operating model will result in competitively-priced IMX-104; and all cost-related assumptions for construction (for example: make or buy decisions, on-site versus off-site hazardous waste treatment) and identified or anticipated factors that could impact construction cost/price. If applicable, the proposed cost per pound for follow-on production of IMX-104 assuming two, five, or ten years of fixed prices, and assuming no Government direct funding during post-construction operations; include all cost-related assumptions, and identified or anticipated factors that could impact product cost/price; the party’s demonstrated commitment to performing the contract within a not-to-exceed price ceiling; and the extent to which that commitment and benefits to the Government will be secured by, and risks mitigated by, any proposed terms and conditions submitted by the interested party for inclusion within the prime contract and reinforced in relevant subcontracts.

8. The teaming arrangement being proposed and intended contractual relationships (e.g. Joint Venture, prime/subcontractor, lessor/lessee) between the interested party submitting the response (i.e. the intended prime contractor), the technology provider (if not the submitting party/prime contractor), the entity(ies) who will design and build the facility, the entity who will commission the facility (if not the submitting party/Prime Contractor), and, transition to the operator of HSAAP, if located at HSAAP. The Government will consider the benefits and drawbacks or risks associated with the proposed teaming arrangements and expected contractual relationships, including the extent to which benefits to the Government will be secured by, or risks to the Government will be mitigated by, any proposed terms and conditions submitted by the interested party for inclusion within the prime contract and by the terms and conditions of legally-binding commitment letters, Joint Venture agreements, subcontracts, leases, or third-party contracts.

9. The viability of, and benefits, drawbacks, and risks associated with the potential site. The Government’s consideration will include, but not be limited to: accessibility of supporting infrastructure; size and type of available space;

the planned footprint of the facility and potential for expansion; projected cost differentials; projected cost savings (savings on this project and subsequent IMX-104 production, and on other relevant DoD contracts); impacts on current production-related activities at the site; impacts on production activities across the DoD footprint; impediments to implementing hazardous waste disposal or treatment; necessary environmental permits; availability of a capable workforce; competing programs; the Government’s ownership of the facility and equipment; the Government’s continued access to, and control over, the facilities and equipment; and, national security concerns. The Government will consider the extent to which benefits to the Government will be secured by, and risks to the Government will be mitigated by, commitments from all proposed teammates, proposed terms and conditions submitted by the interested party for inclusion within the prime contract, and inclusion of those terms and conditions in any subcontract, lease, or other legally binding agreement.

SUBMISSION INSTRUCTIONS

1. Interested contractors must be registered in the System of Award Management

(SAM).

2. Interested sources within the US and Canada must be registered with the Joint Certification Program (JCP) via form DD2345 to receive technical documents.

3. Submissions for this notice must be provided no later than 5:00 PM CT May 14, 2025 at no cost to the Government by electronic mail (email) to Mr. Warren Stropes at warren.l.stropes.civ@army.mil and Ms. Josie Hennings at josephine.l.hennings.civ@army.mil.

4. If the file size of the response to this Sources Sought exceeds 5 MB, then respondents may email Mr. Stropes and Ms. Hennings to request a drop off via DoD Safe. All inquiries shall be made via email ONLY. TELEPHONE INQUIRIES

WILL NOT BE ACCEPTED.

5. All information provided will not be returned and will be held in confidential status.

6. Provide company name, address, telephone number, email address, technical point of contact, web URL (if applicable), and company size (please specify as either a Large Business, Foreign-Owned Business, Small Business, Small Disadvantaged Business, Woman-Owned Small Business, Historically Underutilized Business Zone concern, Veteran- Owned Small Business, or Service-Disabled Small Business).

7. Response shall include Unique Entity Identifier (UEI), Commercial and Government Entity Code (CAGE), and business type/size based on NAICS. If small, please indicate any applicable socio-economic status such as: Small Disadvantaged Business (SDB), Service-Disabled Veteran-Owned Small Business (SDVOSB), 8(a), HUB Zone, etc.

8. Response shall include documentation of technical expertise and capability in sufficient detail for the Government to adequately assess the capabilities of your company. It is imperative that business concerns responding to this sources sought articulate their capabilities clearly and adequately.

9. Classified material and material samples will not be accepted.

INDUSTRY DAY INFORMATION

The ACC-RI, PL JS, and Joint Munitions Command (JMC) hereby offers interested parties with capabilities to meet the requirements of this Sources Sought notice an opportunity to participate in an Industry Day at HSAAP. The purpose of the event is to ensure interested vendors have an understanding and uniform interpretation of the requirement. The Government intends to hold Industry Day tentatively the week of April 21, 2025, at HSAAP, which will include a tour of the potential site at HSAAP as well as one-on-one meetings and an open forum Question and Answer (Q&A) session. The Government will limit each one-on-one meeting to no more than 30 minutes. Offerors are encouraged to submit all questions in writing at least five days prior to the industry day. Respondents shall send all questions, prior to and after the event, to the points of contact listed below. After the event, the Government will amend this notice to attach an abstract of the Q&As as well as a list of attendees.

To facilitate preparations, vendors shall complete the Industry Day Form attached to this announcement and submit it to Warren Stropes at warren.l.stropes.civ@army.mil and Josie Hennings at josephine.l.hennings.civ@army.mil by 5:00 PM CT on April 11, 2025.

Vendors shall note that the number of persons per respondent/teaming arrangement is limited to a maximum of 4 attendees.

Vendors are cautioned that, while attendance is not mandatory, information presented during the event may be valuable and the Government cannot guarantee equal dissemination of all commentary to interested vendors. An interested vendor that does not participate does so at its own risk. The Government staff at HSAAP will vet all attendees accessing the facility using the National Crime Information Center.

DISCLAIMER

The Government does not intend to reimburse any contractors for any information or administrative costs associated with responding to this notification. Participation in this effort is strictly voluntary and any of the information stated above is subject to change.

Respondents are responsible for appropriately marking any proprietary information.

mailto:warren.l.stropes.civ@army.mil mailto:josephine.l.hennings.civ@army.mil