Attachment 2 - SOW NdFeB Magnet Block.pdf

Statement of Work – Attachment 2 NdFeB Magnet Block

NdFeB Magnet Block

STATEMENT OF WORK

1. INTRODUCTION

This is a supply contract to provide sintered neodymium-iron boron (NdFeB) magnet block meeting the grades of N38EH, N45SH, N48SH, N52. The Defense Logistics Agency (DLA) Strategic Materials received authority to procure NdFeB magnet block in the fiscal year (FY) 2024 Consolidated Appropriations Act. The government intends to store this material for an extended period; the material shall have a form and packaging conducive to long-term storage in an enclosed government warehouse. The government reserves the right to award less than the maximum quantity. The maximum acceptable quantity variance of the awarded weight is +/- 1%.

2. SCOPE OF WORK

DLA Strategic Materials intends to acquire the following quantities of sintered neodymium-iron-boron (NdFeB) magnet block grades N38EH, N45SH, N48SH, and N52 by way of the establishment of an Indefinite Delivery, Indefinite Quantity (IDIQ) contract with a period of performance (PoP) of one (1) five-year base ordering period, against which delivery orders will be issued.

Table 1: CLIN Structure with Estimated Quantities

3. REFERENCE

3.1 The following are incorporated by reference:

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

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

Table #1: CLIN Structure with Estimated Quantities (KG)

CLIN Year 1 Year 2 Year 3 Year 4 Year 5

N38EH 27,787 59,324 55,614 52,137 48,877

N45SH 31,207 65,825 61,709 57,851 54,233

N48SH 31,207 65,825 61,709 57,851 54,233

N52 37,459 79,012 74,072 69,440 65,098

3.1.3 US CBP Form 6059, General Declaration

3.1.4 US CBP Form 5106 (Request for Importer Number, or Notification of Importer Number)

3.1.5 Importation of Strategic and Critical Materials (50 U.S. Code § 98h – 4)

3.1.6 Nuclear Regulatory Commission (NRC) Part 71 – Packaging and Transportation of Radioactive Material (10 CFR 71)

3.1.7 DFARS 225.7018 [10 U.S.C. 4872]– Restriction on acquisition of certain magnets, tantalum and tungsten

4. TECHNICAL REQUIREMENTS

4.1 All magnet blocks across all lots shall conform to the size guidelines in Table 2.

Table 2: Size Guidelines Length (inches) Width (inches) Depth (inches)

Min 1.0 1.0 1.0

Max 4.0 4.0 4.0

4.2 The magnet blocks must adhere to the material property specifications described in Table 3. The magnet blocks must contain a combination of the following elements: Iron (Fe), Boron (B), Neodymium (Nd), Praseodymium (Pr) and Dysprosium (Dy).

4.3 Material must be non-radioactive, non-licensable per Nuclear Regulatory Commission (NRC) regulations. Individual values of Thorium (Th) and Uranium (U) must be reported. The material cannot have more than 0.05% combined Thorium and Uranium by weight.

4.4 Material and supplier must comply with DFARS requirements under DFARS 225.7018 [10 U.S.C. 4872] - Restriction on acquisition of certain magnets, tantalum and tungsten.

Table 3: Material Property Specifications

Expected Values

Magnetic Properties

Parameter/ Property

Units N38EH N45SH N48SH N52

MIN MAX MIN MAX MIN MAX MIN MAX

Minimum Residual

Induction, Br Gauss 12,200 12,800 13,300 13,800 13,700 14,300 14,300 14,800

Minimum Coercivity, HcB Oersteds 11,700 12,500 12,900 13,500 13,200 13,800 10,300 11,000

Minimum Intrinsic

Coercivity, HcJ

Oersteds 30,000 N/A 20,000 N/A 20,000 N/A 11,000 N/A

Energy Product, BH

Mega Gauss-

Oersteds 36 40 43 47 45 49 49 53

Thermal Properties

Thermal Coefficient of Induction, αBr

%/°K -0.090 -0.100 -0.100 -0.120

Thermal Coefficient of

Coercivity, αHcj

%/°K -0.430 -0.510 -0.510 -0.640

Curie Temperature, TC

℃ 310 315 315 309

Maximum Continuous Temperature

℃ 200 150 150 80

Other Prop.

Density g/cm3 7.60 7.55 7.55 7.50

5. SAMPLING

5.1 The contractor shall submit a Sampling Plan to the government for approval no later than thirty (30) calendar days prior to the start of sampling operations.

5.2 The contractor’s Sampling Plan shall include, at a minimum, the following:

5.2.1 Specify sample size and quantity

5.2.2 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.)

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

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

5.2.5 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) calendar days prior to the date the first sample will be pulled.

5.3 All sampling will be in accordance with the approved Sampling Plan. If the contractor wishes to make changes to the approved Sampling Plan, the contractor shall submit a complete and revised proposed Sampling Plan to the QAS and the contractor will follow the below procedures:

5.3.1 More than 30 calendar days prior to the change: Submit the revised Sampling Plan to the government. Re-approval is not required; however, the government reserves the right to reject the revised Sampling Plan and require a resubmission with any issues identified being addressed by the contractor.

5.3.2 30 calendar days or less prior to the change The contractor shall not make any changes to their Sampling Plan without written approval (e-mail is sufficient) from the Quality Assurance Specialist (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.

5.4 Performance of all sampling operations associated with this SOW shall occur within the Continental United States (CONUS). The contractor shall ensure no government material or samples of government material leave the CONUS at any point in time.

5.5 The government reserves the right to 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.

5.6 The contractor shall permit the government and the third-party tester full access to all areas where the contractor’s sampling operations take place.

5.7 For the sample set representing the finished product for each lot of material the contractor delivers to the government, the contractor shall provide the government with a government sample and an analytical sample. A lot/production lot is defined as the material produced by the same bench for a bench-wise production process, or the same operating shift for a continuous process.

5.7.1 The government and analytical samples shall be pulled from the lot concurrently with the contractor’s internal testing samples for finished product.

5.7.2 These samples must meet the requirements for capability testing. Capability testing is defined as internal quality control test that demonstrates the ability of the material to meet the required specifications.

5.7.3 The contractor shall not magnetize either the government sample or the analytical sample.

5.8 The contractor shall provide the analytical sample to the QAS at the time of sampling unless otherwise directed by the QAS. Should the QAS not be on site when the analytical sample has been extracted and packaged, the contractor shall maintain the analytical sample at their facility until the QAS returns to collect it.

5.9 The contractor shall ship the corresponding government sample with each lot of material. The government sample shall be packaged in the same manner as the material being shipped as outlined in section 8 of this SOW.

5.10 The government will advise the contractor if their sampling operations are not in compliance with the Sampling Plan no later than seven (7) calendar days after witnessing the sampling operations. If the government does not provide this notice, the contractor can assume there are no government concerns.

5.11 The contractor shall maintain and document chain of custody of the government and analytical samples for each lot of material. The contractor shall also document any transfer of physical custody of the government and analytical samples, while maintaining legal custody of the sample. A transfer of each sample requires a document containing: the name and written signature of the accepting and relinquishing party, as well as the date and time of the transfer. The contractor shall supply all chain of custody documents to the Government within seventy-two (72) hours of the government’s request for chain of custody documents. These documents shall be emailed in PDF form to the QAS.

5.12 The government reserves the right to employ a third-party entity to collect samples. The contractor shall permit the government’s third-party full access to all areas where the contractor’s sampling operations take place.

5.13 The government will reject material as non-compliant if the contractor does not comply with the Sampling section of this Statement of Work and the approved Sampling Plan.

6. TESTING

6.1 The contractor shall submit a Testing Plan to the government for approval no later than thirty (30) days prior to the start of testing operations.

6.2 The contractor’s Testing Plan shall include, at a minimum, the following:

6.2.1 Sample size for each test/analysis

6.2.2 Sample preparation procedure, including location of block where each lot’s internal testing sample is obtained

6.2.3 Brief description of each analytical method the contractor employs in their Testing Plan

6.2.4 Citation and description of each testing/analytical standard used

6.2.5 Temperature, and temperature range which each test/analysis and tolerances as applicable

6.2.6 Method of determining mass percent of Copper (Cu) and Nickel (Ni) for the magnet block

6.2.7 In-depth justification of the assumption that the tested block is representative of the lot as a whole

6.2.8 Confirm the contractor will provide 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 thirty (30) calendar days prior to that date.

6.3 All testing will be in accordance with the approved Testing Plan. If the contractor wishes to make changes to the approved Testing Plan, the contractor shall submit a complete and revised proposed Testing Plan to the QAS and the contractor will follow the procedures below:

6.3.1 More than 30 calendar days prior to the change: Submit the revised Testing Plan to the government. Re-approval is not required; however, the government reserves the right to reject the revised Testing Plan and require a resubmission with any issues identified being addressed by the contractor.

6.3.2 30 calendar days or less prior to the change The contractor shall not make any changes to their Testing Plan without written approval (e-mail is sufficient) from the Quality Assurance Specialist (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.

6.4 Performance of all testing operations associated with this SOW shall occur within the CONUS. The contractor shall ensure no government material or samples of government material leave the CONUS.

6.5 The government reserves the right to witness the contractor’s testing operations for each lot of material the contractor intends to deliver to the government for compliance with the Testing Plan.

6.6 The contractor shall permit the government and the third-party tester full access to all areas where the contractor’s testing operations take place.

6.7 The contractor shall test each lot’s internal testing sample, generating results that demonstrate that the lot meets or exceeds the requirements of the material specification, and report that data to the government in its COA for each lot.

6.8 The government will advise the contractor if their testing operations do not comply with the Testing Plan no later than seven (7) calendar days after witnessing the testing operations. If the government does not provide this notice, the contractor can assume there are no government concerns.

6.9 The government may employ a third-party entity to test the material the contractor delivers to the government. The government will reject material as non-compliant if the results of the third-party testing demonstrate the contractor’s material is non-compliant with Section 4 – Technical Requirements of this SOW.

6.10 The government reserves the right to forgo third-party testing and accept the contractor’s Certificate of Analysis (COA).

6.11 The government will reject material as non-compliant if the contractor does not comply with the Testing section of this SOW and the approved Testing Plan.

7. CERTIFICATES OF ANALYSIS (COA)

7.1 The contractor shall provide a COA for the specified material with each production lot.

7.2 The contractor shall send each COA, via e-mail, to the QAS for review prior to the shipment of each lot. The COA is a legal document which attests that the material to be delivered by the contractor satisfies the specifications stated in the statement of work (SOW). The QAS has fourteen (14) calendar days after receipt of each COA to notify the contractor if the COA is unacceptable. If QAS notifies the Contractor the COA is unacceptable, then the contractor is NOT permitted to ship the material.The contractor shall provide the COAs via email in the 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 and/or provided by the Contracting Officer (KO) or QAS via e-mail after award. This may be updated via e-mail by the KO or QAS periodically throughout the life of the IDIQ/Delivery Orders.

7.3 The COA shall have a statement certifying that the material meets and or exceeds the material specifications of this SOW.

7.4 The COA and all other documents the contractor submit to the government shall be in English.

7.5 The contractor shall submit a sample COA with their proposal.

7.6 The contractor shall include, at a minimum, the following in each COA:

7.6.1 Lot number

7.6.2 Weight and number of containers the COA covers

7.6.3 List of tests performed, and the methodology applied

7.6.4 Significant assumptions, other than the standard instrumental/procedural assumptions, involved with the reported value as a footnote to the reported value.

(e.g., material production process involves calcination of material.)

7.6.5 Numerical results and qualitative results

7.6.6 Error ranges/limits for results

7.6.7 Specifications/requirements, as outlined in Section 4 of this document

7.6.8 Name of the company or name of the laboratory performing the analysis included on letterhead of the laboratory reporting the data

7.6.9 Date each analysis is performed

7.6.10 Printed name and signature of analyst

8. PACKAGING

8.1 The contractor shall submit a Packaging Plan to the government for approval no later than thirty (30) days prior to shipment of material.

8.2 The contractor’s Packaging Plan shall provide detailed descriptions, at a minimum, the following:

8.2.1 The method of storing the material

8.2.2 How much material is contained in each container (mass and number of magnets)

8.2.3 How many primary containers will be on each pallet, such that no primary containment overlaps the edge of the pallets

8.2.4 Palletized stacked containers must be designed to withstand a minimum of 7,000 lbs. to support an additional pallet of material

8.2.5 Any method of securing the primary containment to the pallets (i.e., shrink wrap, straps/bands, etc.)

8.3 All packaging will be in accordance with the approved Packaging Plan. If the contractor wishes to make changes to the approved Packaging Plan, the contractor shall submit a complete and revised proposed Packaging Plan to the QAS and the contractor will follow the below procedures:

8.3.1 More than 30 calendar days prior to the change: Submit the revised Packaging Plan to the government. Re-approval is not required; however, the government reserves the right to reject the revised Packaging Plan and require a resubmission with any issues identified being addressed by the contractor.

8.3.2 30 calendar days or less prior to the change The contractor shall not make any changes to their Packaging Plan without written approval (e-mail is sufficient) from the Quality Assurance Specialist (QAS). The QAS will advise the contractor whether the revised proposed Packaging Plan is acceptable within seven (7) calendar days of receipt of the revised Packaging Plan.

8.4 The total weight of all material, packaging, labeling and pallet shall not exceed 6,000 pounds per pallet.

8.5 The total height of all material, packaging, labeling and pallet shall not exceed 48 inches in height.

8.6 No packaging shall be utilized that has not been pre-approved for use under this SOW by the government. The use of used, recycled, repaired, remanufactured and/or refurbished packaging will not be acceptable.

8.7 The contractor shall package all material in accordance with the approved Packaging Plan. Upon delivery, all packaging shall be intact and shall be free of damage.

8.8 The contractor’s Packaging Plan shall satisfy the following:

8.8.1 Each magnet block shall have a uniform zinc (Zn) coating applied to all sides ranging in thickness from 5-25 micrometers zinc and should be uniform throughout the lot.

8.8.2 Each magnet block shall be packaged in such a way to prevent damage to individual magnet blocks. Magnet blocks shall not be stacked directly on top of one another. The contractor shall put protective material between each layer such that a layer can be removed in a single action.

8.8.3 Each layer shall be fully encapsulated in a moisture impermeable barrier. The barrier shall be transparent and have a minimum estimated lifespan of twenty (20) years with no degradation.

8.8.4 A moisture absorbing system (e.g., desiccant bags, etc.) shall be contained within the moisture impermeable barrier at the layer level to absorb any moisture within the barrier.

8.8.5 Each layer shall be stacked into a damage resistant container and the container sealed. Each container shall have a minimum estimated lifespan of twenty (20) years with no degradation.

8.9 The containers shall be stacked on a pallet, adhering to the following requirements:

8.9.1 Wooden Pallet Design. All pallets shall:

a) Be approximately 48 inches deep (front to back) and 48 inches wide (side to side) in size

b) Contain four (4) full length, solid stringers. One stringer shall be located at each edge (side) and two stringers shall be located in the interior of all pallets.

Interior stringers shall be spaced 18 ½ inches (on center) from the outside of each edge (side). Stringers shall be 1 ⅝ inches in width and 3 ½ inches in height. Segmented, composite and/or block stringers will not be acceptable

c) Have flush sides (e.g., no wings).

d) Contain “top decking” and “bottom decking” boards. Decking boards shall be six (6) inches in width for the lead boards and 3 ½ inches in width for the interior boards. All decking boards shall be ¾ inches in thickness and be solid

e) Be of a “two-way entry” configuration.

f) May be reversible in design.

g) Have a minimum rated load capacity of greater than 750 pounds per square foot.

8.9.2 Wooden Pallet Construction. All pallets shall:

a) Satisfy the requirements listed in ASTM (American Society for Testing and Materials) D6199-18a.

b) 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 interchangeably.

c) Satisfy the requirements listed in ISPM-15 (International Standards for Phytosanitary Measures Number 15) (e.g., heat treated etc.).

d) Be constructed using only driven nails that are “helically” threaded, “Annularly” threaded or “fluted.” The fastener length shall be sufficient to provide a minimum penetration of 1 ¼ inches into the stringer.

9. LABELING

9.1 The contractor shall submit proposed tags/labels to the government for review and approval by the government prior to their utilization. No tags/labels shall be utilized that have not been pre-approved by the government for use under this SOW.

9.2 One tag/label shall be attached to the exterior of each damage resistant container in a permanent manner that prevents accidental detachment. A second tag/label shall be attached to the underside of the lid of each damage resistant 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.

9.3 All packaged materials shall be identified with tags(s)/label(s) attached to each container that satisfy the following requirements:

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

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

c) Any ink used to print tags/labels 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) Embossment to enter the required information on each tag/label is an acceptable method. Each letter and number shall be completely, individually, and legibly embossed with the embossed surface raised to a minimum of

0.005 inch above the flat obverse tag surface.

e) 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.

f) Tag/label material shall have an expected lifespan of a minimum of twenty

(20) years with no degradation.

g) All tags/labels shall be of sufficient size to permit the listing of all required information.

9.4 The information in the items listed below shall be on each tag/label. The markings shall not include a security classification or anything indicating DLA Strategic Materials’ ownership other than the contract number, purchase specification number and date.

a) Commodity Name

b) Commodity Grade, Type, or Form

c) Country of Origin

d) Producer Name

e) Gross Weight in metric units and pounds making sure units are clearly indicated. (Pounds to be in parentheses)

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

g) Lot Number

h) Serial Number

i) Government Contract Number

j) Manufacturer’s Specification, Name, Number and Date

9.5 All packages shall meet all requirements presented in Section 14 to ensure compliance with Federal, state, and local regulations for the transporting, handling, and management of material.

10. 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 Hawthorne, NV.

Refer to Section 14 for all legal labeling and shipping requirements.

11. DELIVERY

The contractor shall deliver materials to the delivery point:

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. DELIVERY SCHEDULE

12.1 The contractor shall be free to schedule each delivery with the QAS. The contractor shall schedule in writing with the QAS all deliveries a minimum of twenty-one (21) calendar days in advance of their shipment. The QAS will provide written acceptance of the proposed delivery schedule within fourteen (14) calendar days.

12.2 The proposed delivery schedule shall include the following information:

a) Total net weight of material to be delivered per day

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

c) Total net weight of material contained in each package (e.g., containers)

d) Total number of sub-packaging units contained inside each package if applicable (e.g., total number of blocks contained inside each container)

e) Total number of packages (e.g., containers)

f) Quantity of packages (e.g., containers) on each pallet

g) Pallet size (e.g., 48” X 48”)

h) Total number of truck loads to be delivered each month

i) Total number of lots contained in each truckload (e.g., one lot per truckload, two lots per truckload, ½ lot per truckload, etc.)

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

12.3 Any changes to the proposed shipping schedule shall be sent to the QAS fourteen (14) calendar days in advance of implementation of proposed changes, or as directed by the

QAS.

13. INSPECTION AND ACCCEPTANCE

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 delivery 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. ENVIRONMENTAL, SAFETY, AND OCCUPATIONAL HEALTH

REQUIREMENTS

14.1 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.

14.2 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)

14.3 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)

14.4 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) to the QAS in PDF form via email prior to shipment of material.

14.5 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)

14.6 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/ .

15. TARRIFS

15.1 Exemption of Tariffs. This purchase of NdFeB magnet blocks 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.

15.2 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.

15.3 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.

ATTACHMENT 2: List of Abbreviations/Acronyms

The following abbreviations and acronyms are used throughout this document:

Abbreviation or Acronym Meaning

ASTM American Society for Testing and Materials

B Boron

CAS Carrier Appointment System

CBP Customs and Border Protection

CFR Code of Federal Regulations

CIP Carrier and Insurance Paid To

COA Certificate of Analysis

CONUS Continental United States

DLA Defense Logistics Agency

ESOHMS Environmental, Safety, and Occupational Health Management System

EPA Environmental Protection Agency

Fe Iron

FY Fiscal Year

GHS Globally Harmonized System of Classification and Labeling of Chemicals

HCS Hazard Communication Standard

ISO International Organization for Standardization

ISPM-15 International Standards for Phytosanitary Measures Number 15

Kg Kilogram

KO Contracting Officer

LOI Loss on Ignition (moisture)

MgOe Mega Gauss-Oersteds

MT Metric Tons

N Neodymium

NDAA National Defense Authorization Act

NdFeB Neodymium-iron-boron

NPT National Pipe Thread

Abbreviation or Acronym Meaning

NRC Nuclear Regulatory Commission

OSHA Occupational Safety & Health Administration

PoP Period of Performance

PRST Performance Requirements Summary Table

QAS Quality Assurance Specialist

RE Rare Earth

REE Rare Earth Element

REO Rare Earth Oxide

SDS Safety Data Sheet

SOW Statement of Work

TREO Total Rare Earth Oxide

UN United Nations

US United States

USDOT U.S. Department of Transportation

For the purposes of this document, the following words and terms are defined accordingly:

Term Definition Bench: Workbench level Bench-wise production process

Workbench level process

In processus Taking place during the process.

Production lot The material produced by the same bench for a bench-wise production process, or the same operating shift for a continuous process.