Attachment 2 - SOW_HF1 Steel 1.pdf

Attachment 2

DEFENSE LOGISTICS AGENCY

HIGH FRAGMENTATION 1 (HF-1) STEEL

STATEMENT OF WORK

I. INTRODUCTION

A. BACKGROUND

The Department of Defense (DoD) procures parts that contain High Fragmentation 1 Steel (HF-1 Steel). HF-1 Steel is commonly used in the form of round forged bar as the main casings of 155mm artillery shells. This statement of work (SOW) is for 6.75" round HF-1 Steel forged bar, which is used the most common form used for 155mm artillery shell casings.

B. OBJECTIVES

The objective of this procurement is to establish an indefinite delivery/indefinite quantity (IDIQ) ordering vehicle to allow DLA to purchase HF-1 Steel as needed within the parameters established within the resulting IDIQ regarding estimated purchase amounts.

C. SCOPE

The contractor will provide the necessary management, services, personnel, and documentation required to accomplish the tasks described within this SOW.

To reduce the risk of unavailability in the HF-1 Steel supply chain, DLA Strategic Materials intends to purchase HF-1 Steel with estimated values shown in Table 1 over a five-year ordering period.

Table 1 - Maximum Quantities (in pounds)

Execution Year HF-1 Steel (lbs.)

Year One 104,440,000

Year Two 94,920,000

Year Three 87,360,000

Year Four 79,240,000

Year Five 72,520,000

TOTAL 438,480,000

D. COMPLIANCE REQUIREMENTS

The contractor must meet the below listed compliance requirements:

• Harmonized Tariff Schedule, the Tariff Act of 1930, and the Trade Act of 1974

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

• US CBP Form 6059 General Declaration

• US CBP Form 5106 Request for Importer Number or Notification of Importer

Number

II. PERFORMANCE REQUIREMENTS

Unless otherwise specified, all references to days are considered government business days and do not include federal holidays. The contractor will perform actions as necessary to accomplish the objectives stated above as well as the following tasks and deliverables.

Contact information will be provided with the delivery order that indicates the government point of contact and an email address for submitting deliverables.

A. MATERIAL REQUIREMENTS

1. HF-1 Steel

a. The material must be consistent with the requirements identified below. All testing methods must be reported along with the components to which they were used to test.

Table 2 – HF-1 Steel specifications

Component Limit Unit Fe Balance wt%

Carbon 1.00 1.15 wt% Manganese 1.70 2.10 wt%

Silicon 0.70 1.00 wt% Sulphur - 0.040 wt%

Phosphorus - 0.350 wt% Nickel - 0.250 wt%

Chromium - 0.20 wt% Molybedenum - 0.06 wt%

Copper - 0.350 wt% Aluminum - 0.020 wt%

b. Material must be forged round bar with a diameter ranging from 6.7” to 6.9” with an allowable tolerance of ±0.0015” in diameter from the final proposed size.

c. Bars must be supplied in lengths no shorter than six (6) feet and no longer than ten (10) feet.

d. Material must comply with military specification MIL-S-50783 Amendment 1.

e. Material must be of uniform quality and condition within the limits of good manufacturing and inspection practices; free from pipe, deep seams, or cracks, excessive porosity, segregation of non-metallic inclusions, and other defects which due to their nature, degree, or extent prevent the fulfillment of other requirements.

f. Material must be manufactured within the continental United States

(CONUS).

g. Each lot must be approximately 280,000 lbs. packaged as defined in Section II.F of this SOW with each bundle weighing approximately 10,000 lbs. Co-mingling of multiple production lots into one larger lot will not be accepted.

The contractor must assign a unique lot number to each production lot.

h. The contractor must ensure no government material or samples of government material leave CONUS.

i. 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. Each lot must have a combined value of Th+U<0.05 percent by mass. Th+U, Th, and U percent by mass must be reported individually on the contractor’s COA for each lot of material the contractor delivers to the government.

B. SAMPLING

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

2. The contractor’s sampling operations must take place within the Continental United States (CONUS).

3. The contractor must 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 CONUS for all lots of material the contractor intends to supply the government.

4. The contractor must provide the government with written notice of the date(s) the contractor intends to begin sampling activities of lots of material it intends to provide to the government at least 20 business days prior to that date.

5. The contractor must submit a sampling plan as part of the proposal. The contractor's sampling plan must clearly describe the sampling process and how it produces a sample that is representative of the lot. The sampling plan must cite any relevant sampling standards used for sampling as applicable. The sampling plan must provide supporting documentation showing that the sampling practice produces a sample that is representative of the lot (e.g., cite a standard, industry practice, or data demonstrating the sample is representative, etc.).

6. The contractor cannot make any changes to the sampling plan without the explicit written approval of the government representative.

a. If the contractor wishes to make changes to the approved sampling plan, the contractor must submit the revised proposed sampling plan to the government representative for approval no later than 20 business days prior to implementation of the changes. The revised sampling plan must be submitted in PDF format by email. The government representative will advise the contractor whether the revised proposed sampling plan is approved within 5 business days of receipt. All sampling must be conducted in accordance with the approved sampling plan.

b. Alternatively, if subsequent contractor sampling plans and processes remain unchanged from previous sampling plans, the contractor must send an email to the government stating that there have been no changes to its sampling plan and processes at least 20 business days prior to the date the contractor begins sampling activities.

7. The contractor must collect a minimum of two equivalent samples for each lot of material the contractor intends to supply to the government – one set of samples for the contractor’s purposes, and one set of samples for the government. Both samples must be of the same size and form and must be representative of the chemical properties of the lot of material. Both samples must have a minimum sample size that satisfies the minimum sample size requirements of the laboratory the contractor uses for quality assurance.

8. The contractor’s lot sampling process and procedures must be consistent with the sampling process and procedures the contractor typically uses for this material for other customers unless otherwise specified.

9. The contractor must ship the government’s sample for each lot with each lot of material it delivers to the government.

10. The contractor must document and transfer chain of custody of the lot’s analytical sample to the independent third-party laboratory.

C. TESTING

1. Performance of all testing operations associated with this SOW must occur within

CONUS.

2. The Contractor must submit a testing plan with their proposal. The testing plan must include, at a minimum:

a. A summary description of sample preparation techniques

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

c. Any significant assumptions a lab might elect to make that are beyond the accepted assumptions made for chemical analysis (instruments and wet chemistry)

d. An acknowledgement of the safety portion of the SDS for the specific material being tested

3. The Contractor must not make any changes to their testing plan without the explicit written approval of the Quality Assurance Specialist (QAS) or other government representative.

a. If the contractor wishes to make changes to the approved testing plan, the contractor must submit the revised proposed testing plan to the government representative for approval no later than 20 business days prior to implementation of the changes. The revised testing plan must be submitted in PDF format by email. The government representative will advise the contractor whether the revised proposed testing plan is approved within 5 business days of receipt.

b. Alternatively, if subsequent contractor testing plans and processes remain unchanged from previous testing plans, the contractor must send an email to the government stating that there have been no changes to its testing plan and processes at least 20 business days prior to the date the contractor begins testing operations.

4. The contractor must provide the government with written notice of the date(s) the contractor intends to begin testing operations of material it intends to deliver to the government, a minimum of 20 business days prior to that date.

5. To verify Contractor’s compliance with the testing plan, the government will witness the contractor’s testing operations for each lot of material the Contractor intends to deliver to the Government. The Government may waive this requirement, temporarily or permanently, at any time.

6. The Contractor must permit the Government full access to all areas where the Contractor’s testing operations take place.

7. The Government will reject material as a non-compliant deliverable if the contractor does not comply with the testing plan.

8. The contractor must only deliver lots of material to the government where the government has witnessed testing operations (unless the government waives this requirement temporarily or permanently) and the government has determined the contractor’s testing operations comply with the testing plan. The government will advise the contractor whether or not their testing operations are in compliance with the testing plan no later than 5 business days after witnessing the testing operations.

9. The government reserves the right to employ a third-party entity to test the material the contractor intends to deliver to the government. The government will reject material as a non-compliant deliverable if the results of the third-party laboratory demonstrate the Contractor’s material is non-compliant with Section II.A.– Material Requirements of this SOW.

D. CERTIFICATES OF ANALYSIS (COA)

1. The Contractor must submit a sample COA of material that they currently supply to a customer which meets the requirements described in Section II.D.8 of this SOW. If the Contractor’s submitted COA does not meet the requirements described in Section II.D.8, the Contractor must briefly describe the process changes they intend to make to ensure their COA will meet the requirements of Section II.D.8.

2. The contractor must provide a COA with each production lot as defined within this SOW. Final approval of each Contractor COA takes place prior to Contractor’s shipment of each lot of material to the Government.

3. The COA is a legal document, which attests that the materials delivered by the contractor meet the specifications as stated in this SOW. The government will determine based on the COA if the lot(s) of the materials are acceptable for delivery.

The contractor must carefully sample and test the material to ensure the reliability of each submitted COA.

4. The COAs must be submitted by email in PDF format to the government for review and acceptance prior to shipping any lot(s) to the point of delivery.

5. The COA must have a statement certifying that the material meets and/or exceeds required material specifications as stated within this SOW.

6. The government POC will review every COA submitted to determine acceptability and compliance with the requirements in this SOW within 10 business days after receipt.

7. Each COA must 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 must 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.

i. Printed name and signature of analyst.

j. Results for Uranium and Thorium content

8. The COA and all documents submitted to the government must be in English.

E. ENVIRONMENTAL, SAFETY, AND OCCUPATIONAL HEALTH

1. The government will ensure contractor compliance with all federal, state, and local regulations as well as international laws (as applicable) for the use, transport, emergency response, and disposal of the acquired material.

2. The contractor must 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 safe condition to transport the material (49 CFR 173).

3. The contractor must 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).

4. The contractor must communicate the hazards of the material by providing the SDS in accordance with The United Nations Globally Harmonized System of Classification and Labeling of Chemicals (GHS) (29 CFR 1910).

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

6. The contractor must ensure compliance with Strategic Materials Environmental, Safety, and Occupational Health (ESOH) Depot Orientation Guide and ESOH Policy Statement available on the Strategic Materials website:

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

F. PACKAGING

1. Bars must meet size requirements outlined in section II.A of this SOW.

2. The contractor must use the industry standard for packaging to store the materials.

The contractor must notify the Contracting Officer within ten (10) business days if the packaging standards have changed.

3. Packaging Requirements for Storage at a Government Depot

a. Material shall be secured into flat bundles containing three (3) bars, supported and affixed to 4" x 4" dunnage to facilitate forklift access during handling and transport.

b. Dunnage shall not extend more than 2 inches beyond the perimeter of the bar bundle.

c. Dunnage placement shall maintain a minimum clearance of 6 inches from each end of the bar bundle.

d. Each bundle shall be supported by three (3) individual dunnage pieces, positioned at each end and at the center of the bundle.

e. All dunnage 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 dunnage construction. The only acceptable high density hardwood species used for dunnage construction are: Beech, Birch, Hackberry, Hard Maple, Hickory, Oak (Eastern), Pecan, Rock Elm, American Elm, White Oak and Green Oak.

f. All dunnage shall satisfy the requirements listed in ISPM-15 (International Standards for Phytosanitary Measures Number 15) (e.g.

heat treated etc.).

4. Packaging Requirements for Vendor Managed Storage

a. Vendors are authorized to utilize their established storage and packaging methodologies, provided such methods adhere to commercially acceptable and industry-recognized best practices for material handling and preservation.

5. An SDS specific for each grade of the contained material must be accessible and external to the packed material with each delivery. All packages must meet all requirements presented in Section II.E to ensure compliance with federal, state, and local regulations for the transporting, handling, and management of material.

G. LABELING

1. Each individual bar must be imprinted (or otherwise permanently marked) at the top and bottom with a unique serial number that is traceable to that individual bar only.

The use of paint/ink to mark/label bar is not acceptable.

2. The unique serial number imprinted (or otherwise permanently marked) on each individual bar must correlate to an individual COA.

3. The font size of markings imprinted (or otherwise permanently marked) on each bar must be sufficient in size to be legible to the unaided eye.

4. Bars may be stored outside. All markings must be permanent in nature to the extent that they remain completely legible to the unaided eye for a minimum of twenty years.

5. All markings must be in English.

6. The information in items (a) through (k) below must be included with the bar. The marking must 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. Serial Number.

k. Government Contract Number

7. All packages must meet all requirements presented in Section II.E to ensure compliance with federal, state, and local regulations for the transporting, handling, and management of material.

H. TRANSPORTATION

The contractor is responsible for transport as well as for carrier and insurance paid to (CIP) of the material to the point of delivery at the government storage location in Columbus, OH.

I. DELIVERY

1. The contractor must either store acquired HF1 steel in a facility managed by the contractor or deliver acquired HF1 steel to a government storage location, as indicated on the delivery order.

2. For Vendor Managed Storage

a. The contractor must store HF1 steel in a clean, dry, secure warehouse or equivalent structure that maintains continuous surveillance and ensures protection against loss or damage.

b. The contractor must allow the government full access to the storage facility for routine inspections and quantity verification.

c. The contractor must ensure that material intended for the government is segregated from any material intended for other customers.

3. For delivery to a government storage facility, the contractor must deliver materials to the following government storage location (delivery point):

DLA – Columbus 3990 E. Broad St.

Columbus, OH 43218

Unloading Hours: 7:30 AM – 2:30 PM (EST), Monday – Friday

Accessibility: Truck

Deliveries will only be accepted between the hours of 7:30 AM – 2:30 PM (EST), Monday – Friday (excluding federal holidays).

4. The Contractor must submit written documentation that identifies the proposed material delivery schedule for the duration of the contract to the Government within 30 business days of contract award. This material delivery schedule must include proposed individual delivery dates and the total net weight of each proposed delivery.

5. The contractor must schedule each delivery with the government representative only after the COA for each lot is accepted.

6. The contractor must schedule in writing with the government representative all deliveries a minimum of 15 business days in advance of delivery and receive written acceptance of the proposed delivery schedule from the government representative prior to any shipping. The notification must include the following information:

a. Total net weight of material to be delivered.

b. Total net weight of each lot of material to be delivered.

c. Total net weight of material contained in each package.

d. Total number of sub-packaging units contained inside each package if applicable.

e. Total number of packages

f. Quantity of packages in each bundle.

g. Total number of truck loads to be delivered each month.

h. Total number of lots contained in each truckload

i. Type of truck planned for transporting the material to the delivery point (e.g., enclosed van truck, overseas container etc.)

7. The contractor must take no longer than 24 months to deliver material after issuance of a delivery order.

J. INSPECTION AND ACCEPTANCE

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.

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

3. The government representative will provide written notification of the acceptance/rejection of each delivered lot of material to the contractor within 30 business days of delivery. The contractor cannot invoice until the government representative has issued a written notification of acceptance of each lot of material delivered.

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

5. Material rejected based on non-compliance must be replaced at no cost to the government. The contractor is responsible for removal and replacement of rejected lots of material including all attendant costs within 90 calendar days of the final delivery.