Attachment 2 - SOW_Bismuth_0806_Final.pdf

ATTACHMENT 2

Statement of Work

Bismuth Metal

1. BACKGROUND

The Department of Defense (DoD), has bought, and will continue to buy, bismuth. Bismuth is commonly used in many forms, of which this statement of work will focus on one (1). Bismuth metal has numerous applications in metallurgy and defense applications. Metallurgically, bismuth is utilized in alloys specific to strategic DoD applications. Bismuth metal is also used in certain ammunitions due to its ability to mimic lead.

DLA Strategic Materials received Congressional authority to procure bismuth. Through research on bismuth the Government determined to procure bismuth for the National Defense Stockpile

(NDS). The NDS previously contained bismuth, however, the last bismuth reserves were sold in

1997.

2. SCOPE

To reduce the risk of availability in the bismuth metal supply chain for DoD applications, DLA

Strategic Materials intends to purchase bismuth metal with estimated values shown in Table 1 over a five-year ordering period. DLA Strategic Materials received authority to procure bismuth in the FY2025 National Defense Authorization Act (NDAA).

Table 1: Estimated planned procurement quantities and schedule for bismuth

Execution Year

Item Planned Procurement

Quantity (lbs).

Year 1 Bismuth Metal 1,230,012

Year 2 Bismuth Metal 1,122,786

Year 3 Bismuth Metal 1,024,908

Year 4 Bismuth Metal 935,561

Year 5 Bismuth Metal 854,004

TOTAL 5,167,272

*Total quantity +/- 1.0%

* Disclaimer: Table 1 provides an estimate of delivery orders and quantities. The government is not obligated to issue the estimated delivery orders.

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

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

4.1.1 The material shall be commercial-grade bismuth metal of 4N (99.99%) purity and adhere to the composition found in Table 2. It must be in slab or ingot form.

Table 2. Elemental analysis of commercial grade 4N (99.99%) Bismuth metal

Element Percent by

Mass

Bi 99.99% min

Pb 0.0010% max

Cu 0.0010% max

As 0.0003% max

Sb 0.0005% max

Fe 0.0010% max

Zn 0.0005% max

Cl 0.0015% max

Cd 0.0010% max

Ag 0.0040% max

4.1.2 Material shall be in slab or ingot form. Each slab shall weigh no less than 32 lbs.

and no more than 40 lbs.

4.1.3 Dimensions must be under 7 inches in width, 16 inches in length and under 2 inches in thickness.

4.1.4 Each lot shall be approximately 1,000 kg, contained in wooden crates matching the requirements of Section 9 and 10 of this SOW, with each crate containing approximately 1,000 kg. 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.

4.1.5 Material must be non-radioactive, non-licensable per Nuclear Regulatory

Commission (NRC) regulations. It must contain less than 0.05 percent combined thorium and uranium by weight.

4.1.6 The Contractor shall ensure no Government material or samples of Government material leave CONUS.

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 production facilities must be within the Continental United States (CONUS) for all ingots 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 submit a Sampling Plan with their proposal

5.6. 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 third-party laboratory analysis., and one set for laboratory reserve. All four samples shall be of the same size and form and shall be representative of the 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 for sample size.

5.7. 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, unless otherwise specified.

5.8. The Contractor shall package the analytical and reserve samples in identical containment as the sample material they ship to the Government. The Government’s sample for each lot shall be shipped with each lot of material it delivers to the

Government.

6. TESTING

6.1. The Contractor shall employ an independent third-party analytical chemistry laboratory (lab) to characterize, chemically, each lot of bismuth metal that the

Contractor intends to deliver to the Government. The lab shall analyze each lot in accordance with Table 2 for bismuth metal.

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 for which chemical analyses were 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.

d) Be certified in ISO 17025 through A2LA with the following specific certifications, at a minimum: sample preparation for mineral ore, limestone, ferro-alloys (falling within the A2LA P112 Flexible Scope Policy); Inductively

Coupled Plasma (“ICP”) for Al, Ag, As, B, Ba, Bi, Ca, Cd, Ce, Co, Cr, Cu, Fe, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Sb, Se, Si, Sn, Sr, Ta, Ti, V, W, Zn

(falling within the A2LA P112 Flexible Scope Policy); combustion analysis for C, N, O, S (falling within the A2LA P112 Flexible Scope Policy); Wavelength-

Dispersive X-Ray Fluorescence (“WDXRF”) analysis for Al, Ca, Cr, Co, Cu, Fe, Mn, Mo, Na, Nb, Ni, P, S, Si, Ti, V (falling within the A2LA P112 Flexible

Scope Policy); gravimetric precipitation analysis for CaF2, Mo, Nb, S, SiO2;

volumetric analysis for B, Ca, Cr, Fe, Metallic Fe, Mg, Mn, Ni, Ti, V; gas evolution for CO2 and; miscellaneous gravimetric analysis for sieve testing, Loss on Ignition (“LOI”), moisture at 105oC.

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 instrumentational analysis.

f) Have expert ability and experience in clean pulverization capabilities; laboratory sample preparation and digestion; titration; and reagent preparation.

g) 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 techniques

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 Quality Assurance

Specialist (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. Production lots are defined in section 4.1.4.

7.2. The contractor shall affix a cover letter with their letterhead to each COA the

Contractor submits to the Government. The Contractor’s letterhead shall include all information the Contractor is required to report and that information is not generated by a separate entity. For example, the third-party shall generate an analytical report on a lot of material; the contractor shall not alter that report in any manner but will affix a cover letter to that analytical report from the third-party lab.

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 Government 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 Government 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 Government POC 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

9.1. Material Packaging

9.1.1 Material shall be packaged in new wooden crates containing no more than 1000 kilos of material/ingots.

9.1.2 The Contractor shall package all material delivered throughout the performance of this SOW in approximately the same size and type

(identical in all aspects) of container.

9.1.3 The contractor shall submit detailed design drawings and manufacturer’s certifications for all containers proposed for use under this SOW for review and acceptance approval from the government prior to their utilization.

9.1.4 No container shall be utilized that has not been preapproved for use under this SOW by the government.

9.1.5 The container shall be new. Use of used, recycled, repaired, remanufactured or refurbished material will not be acceptable.

9.1.6 The container shall have a plastic liner to prevent the admission of moisture and to prevent leakage of its contents, especially fine particulates. The material shall have a chemical resistance consistent with the contents of the container.

9.1.7 If the container is manufactured by a third party, a copy of the container manufacturer’s certification shall be packaged with each shipment representing all containers in that shipment.

9.1.8 Upon delivery, the container shall be intact, free of damage, contamination and leaks.

9.2. PALLETIZING REQUIREMENTS

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

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

9.2.3 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.

9.3. A copy of Safety Data Sheet (SDS), specific for each grade of 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.

10. LABELING

10.1. All individual 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.

g) The information in items 1 through 10 below shall be listed on each tag/label. The marking shall not include a security classification or anything indicating DLA

Strategic Materials ownership other than the contract number.

1. Commodity Name

2. Commodity Grade, Type or Form

3. Merge Number

4. Country of Origin

5. Producer Name

6. Producer’s part number

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

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

9. Lot Number

10. Government Contract Number

10.2. 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.

10.3. One tag/label shall be attached to the exterior 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.

10.4. 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

11.1. 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 Hawthorne, NV.

12. DELIVERY

12.1. The Contractor shall deliver materials to the Government Storage Depot (delivery point) at the following address:

Defense Logistics Agency

Hawthorne Army Depot

1 South Main Ave.

Hawthorne, NV 89415-9404

Telephone: (775) 945-7001

Shipping Hours: 0800 to 1430 Pacific Standard Time (PST) Monday through Thursday. (Exceptions of Federal, State and local holidays and days of closure due to inclement weather and/or other emergencies.)

Accessibility: Truck/Rail scale is available (Truck scale weight capacity is

90,000 lbs. and the rail scale capacity is 500,000 lbs.).

Truck Lot Receiving Procedures:

Transportation companies are required to use the Carrier Appointment

System (CAS) SDDC for deliveries to Hawthorne Army Depot.

Transportation companies must schedule an appointment 24 hours in advance by CAS or by calling 775-945-7950 or 775-945-7949.

Hawthorne Army Depot will review passports, naturalization papers and citizenship for admittance and reserves the right to reject non-compliant transportation.

Any deliveries must be pre-approved prior to arriving in Hawthorne.

12.2. The Contractor shall schedule all deliveries a minimum of ten (10) business days in advance of their delivery with the QAS. Deliveries will only be accepted between the hours of 7:30 AM – 2:30 PM (EST), Monday – Friday (excluding federal holidays).

12.3. The contractor must plan delivery of material so that no more than two trucks arrive per day.

12.4. Delivery Orders issued against this IDIQ contract shall have a delivery period not to exceed 24 months.

13. INSPECTION & ACCEPTANCE

13.1. DLA personnel will perform in-depth visual inspections of material upon transferring to DLA custody at the final delivery point to verify conformance with the requirements stated in the SOW that can be verified visually.

13.2. The Government reserves the right to sample and test each lot of material received to verify the material meets the material specifications set forth in the SOW.

13.3. The QAS will provide written notification of the acceptance/rejection of each delivered lot of material to the Contractor within twenty (20) calendar days of delivery. The Contractor shall not submit an invoice until the QAS has issued a written notification of acceptance of each lot of material delivered.

13.4. If any delivered lot of material or other deliverable does not conform to the requirements stated in the SOW the Government reserves the right to reject the non-conforming material.

13.5. Material rejected based on non-compliance is to be replaced at no cost to the

Government. The Contractor shall be responsible for removal and replacement of rejected lots of 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.

14. TARRIFS

14.1. Exemption of Tariffs. This purchase of Bismuth Metal by DLA Strategic Materials is exempt from tariffs, according to the Harmonized Tariff Schedule, under the provisions of 19 U.S.C. 1202 (Line 9808.00.40, Strategic and Critical Materials Stock

Piling Act), 19 U.S.C. 2461, 19 U.S.C. 2463 and 19 U.S.C. 3007 from the Art. I, sec.

8, U.S. Const., as a strategic and critical material.

14.2. Forms of Exemption. The exemption forms shall be filed by the Contractor and executed on the CBP Form 7501 (Entry Summary), where the code (9808.00.40, plus additional code entries) shall be entered on the form with the notation that the Duty and Internal Revenue Taxes are "0," along with the declaration (Form 6059, General

Declaration). In addition, the Customs Service requires the Form 5106 (Request for

Importer Number, or Notification of Importer Number), along with the invoice for the material, the packing list (if available or applicable), and shipping documents.

14.3. Signature of Certificate. The Form (along with its declarations/entries) shall be signed by an "Authorized Agent," who would be the same individual receiving the shipment.

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

ESOH

GHS

ISPM

Lbs

NDAA

NSS

OSHA

POC

SDS

SOW

Environmental Protection Agency

Environmental, Safety, and Occupational Health

United Nations Globally Harmonized System of Classification and Labeling of Chemicals

International Standards for Phytosanitary Measures

Pounds

National Defense Authorization Act

National Security Space

Occupational Safety and Health Administration

Point of Contact

Quality Assurance Specialist Safety Data Sheet

Statement of Work

QAS