Attachment A - Statement of Objectives N204.pdf

STATEMENT OF OBJECTIVE

PROPELLANT, DINITROGEN TETROXIDE

20 July 2026

1. SCOPE OF REQUIREMENT: The Defense Logistics Agency (DLA) Aerospace Energy, as the Department of War (DoW) Integrated Materiel Manager (IMM) for Aerospace Energy products and related services, requires production of dinitrogen tetroxide (N2O4) and related ancillary services, in support of the United States Space Programs. The contractor shall provide all production and storage facilities, raw materials, supplies, management, tools, equipment and labor necessary for the manufacture, bulk storage and distribution of N2O4 from the contractor’s facility. DLA Aerospace Energy’s estimated quantities, which are an aggregate of all DLA Aerospace Energy customer requirements, are shown in the solicitation. The requirement encompasses production of all quantities of N2O4 delivered Freight on Board (FOB) “origin” into the contractor furnished bulk and/or provided customer-provided equipment. Customer-provided equipment is defined as any container (such as a cylinder, trailer, or tank) that becomes DLA-owned upon acceptance and maintained as an Aerospace Energy Support Point (AESP). Additionally, DLA Aerospace Energy will require pre-production samples, first article batch, and all samples to be analyzed.

2. FACILITY AND OPERATIONS: The contractor is responsible for delivering is critical that all DLA customers have a reliable and dependable supply of N2O4. The contractor is responsible for delivering all products, as ordered, in accordance with the specification, as well as the terms and conditions of the contract. In order to maintain accountability and control over Government-owned products located at the Contractor’s site, the facility shall be designated as an AESP, and the Contractor shall comply with all requirements stated in DLA Energy P-11 Aerospace Energy Storage Points. Documentation shall be submitted to DLAEnergyAerospaceRS@dla.mil . To meet these requirements, DLA anticipates funding the recoupment of certain facility and overhead expenses incurred by the contractor for both plant development, and maintenance and operational activity. A contractor Facility Fee should only represent costs incurred to produce DLA orders and not include costs incurred by contractor to produce other customer orders.

a. Maintenance and Facility Fee (MFF): DLA orders for N2O4 shall take precedence over the contractor’s other operations. Contractor shall develop (if necessary) and maintain plant production capabilities for products identified in the schedule for the duration of this contract. In consideration of expenses associated with developing and maintaining production capabilities and requisite qualified workforce in a ready state to fulfill production orders for DLA only, DLA intends to reimburse the contractor for all development, maintenance, and other expenses to ensure operational readiness. The proposed MFF shall include fixed costs such as manpower, purchase of equipment, maintenance of equipment and facility, insurance, taxes, overhead, indirect labor (wages), shipping documentation, packaging and labeling, container management, general & administrative, profit, utilities (not directly consumed in production). Minor container maintenance services are considered part of routine services included in the maintenance and facility fee. The contractor shall provide material handling equipment (MHE) for loading and unloading containers.

The MFF, as defined for purposes of this procurement, “DOES NOT” include any variable costs associated with the production of N2O4 products.

These variable costs, to include, but not limited to, raw materials or other materials, natural gas, electricity, and direct labor shall be included in the contractor’s proposal as product costs. Payment of MFF will commence on 1st day of the month following approval of all first article batches. This fee shall be paid in equal monthly payments at the end of each month spread over the contract's period of performance.

b. The proposed MFF shall include the following fixed costs:

Manpower Equipment purchases and maintenance Facility maintenance Insurance Taxes Overhead Indirect labor (wages) Shipping documentation Packaging and labeling Container management General and administrative expenses Profit Utilities (not directly consumed in production) AESP operations

3. PRODUCT PURCHASE PRICE: Product purchase price shall include finished products loaded into a specified container ready to ship, this excludes labor.

4. CONSIDERATIONS FOR USE: DLA Aerospace Energy encourages the contractor to sell N2O4 to commercial. DLA requires only the use of production capabilities and facilities the contractor to sell funded under this requirement. The contractor is encouraged to sell and distribute any products beyond those ordered by DLA. All DLA production quantities requested shall take priority over any other contractor customer. If all DLA Aerospace Energy orders are not met due to commercial demands, the contractor shall coordinate in advance with the DLA Contracting Officer (CO). If approved, the CO will negotiate a reduction in the unit price of appropriate line item, MFF, and reimbursement for plant development costs as consideration for the use of the facility.

5. Quality: The contractor’s facility shall be capable of producing N2O4 which conforms to the requirements of “Performance Specification, Propellants, Dinitrogen Tetroxide”, MIL-PRF-26539G dated 19 April 2017, with Amendment

a. The contractor shall ensure the product in cylinder or trailer storage remains on specification. If stored product on the contractor’s property falls off specification for any reason, then DLA will be refunded for the amount off specification. The contractor will be liable for the disposal of all off-specification products.

b. The contractor shall have the capability to perform routine quarterly lab analysis of each product and provide a COA upon request. Upon distribution of product from bulk tanks, contractor shall provide a COA in accordance with product specification requirements for each container and include a copy of the COA with delivery documents.

c. In addition to the reports required elsewhere within this contract, one copy of a COA for each sample required by the specification shall be emailed to tech.prop@dla.mil submitted as an attachment to the applicable Wide Area Work Flow (WAWF) invoice for new production.

The sample(s) used to generate this Certificate of Analysis will be representative of what is contained within the container(s) being shipped to the DLA Aerospace Energy.

6. PRODUCTION /AESP: DLA Aerospace Energy expects to issue DD Form 1155 (delivery Orders) by the DLA CO / Inventory Team to replenish inventory in the contractor-owned bulk tank. Each order’s quantity will be based on the available ullage needed to bring the tank to or near its maximum capacity. However, DLA Aerospace Energy reserves the right to prioritize or adjust delivery sequences as operational needs require.

a. When authorized the contractor will fill using N2O4 from production to into customer-provided equipment that may be stored at the contractor’s facility. This will be DLA owned product when stored. When the product is sold a Certificate of Analysis (COA) is required and accepted by the DLA Energy Quality Assurance Representative (QAR).

b. Contractor will store empty containers and filled containers pending scheduled pick up. Costs associated with routine product and container storage shall be included in the maintenance and facility fee.

c. The contractor’s storage site shall be designated AESP and shall require the documentation and submission of reports for accountability and control of DLA Aerospace Energy owned N2O4 per the terms of Clause

I116.05.100 RESPONSIBILITY FOR GOVERNMENT-OWNED ENERGY

AEROSPACE PRODUCTS (DLA ENERGY AUG 2022). Documentation shall be submitted to FEMCInventoryManagement@dla.mil .

7. DELIVERY ORDERS: DLA Aerospace Energy shall order product by issuance of a DD Form 1155 by the DLA CO and Inventory Team. Product shall be produced and available for delivery into customer-provided containers in accordance with paragraph” Production/Storage” unless a later date is otherwise stated on the delivery order.

8. DISTRIBUTION SERVICE & SHIPPING PREPARATION:

a. The contractor shall be capable of filling the various types of N204 containers and analyzing the product IAW applicable specification, and preparing the containers for shipping IAW applicable State and Federal requirements. Cylinders are shipped using multiple DOT special permits as determined by container type.

b. Contractor shall stay current with DOT special permit requirements.

c. Contractor shall provide MHE for loading and unloading containers listed herein. LOAD, BLOCK AND BRACE: Contractor shall use all best efforts to prevent damage during shipment of containers by ensuring blocking and bracing in compliance with CFR 49.

d. Customer Orders shall be distributed in an agreed format (i.e., Email upon award of contract and will be submitted by Aerospace Energy or Inventory Manager (IM) from Aerospace Energy

e. Contractor shall comply with 49 CFR in the preparation of shipping documents and any federal, state, county and/or local required transportation forms.

f. Cylinders (4BW): Cylinders shall be pressurized with nitrogen or helium to 25 ± 10 psig or in accordance with customer requirements (e.g. 85 ± 10 psig) (refer to checklist #17 for loading and checklist #18 for unloading). The filling pressure and the blanketing gas required shall be stipulated on the delivery order/DD Form 1155 or email. Cylinders are shipped under DOT SP 11580.

g. DOT 110A500W Cylinders. Cylinders shall be pressurized with gaseous nitrogen or helium to 20 ± 10 psig or IAW customer requirements. Refer to transportation inspection checklists for cylinder loading and unloading. The filling pressure and the blanketing gas required shall be stipulated on the delivery order/DD Form 1155 or email.

h. Bulk trailers designed to DOT Specification MC338 cargo tanks capable of holding about 2,500 gallons. After filling, trailers should be pressurized with gaseous nitrogen or helium to 20 ± 10 psig. The annular space between the inner and outer tank should be pressurized with gaseous nitrogen or helium to 7 ± 3 psig. Refer to transportation inspection checklists for trailer loading and unloading. Trailers are shipped under DOT SP 3121. Instructions will be provided on deliver order/DD Form 1155 or email.

i. DLA Energy reserves the right to add additional container configurations, to include bulk containers, which are to be determined. Requirements for such containers will be identified and coordinated with the contractor prior to inclusion.

9. REPROCESSING SERVICES (Cylinder Quantities Only).

a. Reprocessing is the term used for the handling and/or processing of products that are no longer required by the user. Following reprocessing, the product shall be delivered to DLA Aerospace Energy on spec in the shipping container (that is, the sample for acceptance shall be drawn from the shipping container). There are four possible classifications of products that may require reprocessing as follows:

i. Usable Product. Products of known or determinable quality that meet specification requirements and is suitable for use. For example, a cylinder of MON-3 may be returned ¼ full of on-spec product that would need to either be consolidated with other container heels, top-filled or transferred into other cylinders as directed by the FEMC Inventory Manager. The reprocessing of usable products is considered part of the routine services included in the MFF and is not separately priced.

ii. Reclaimable Product. Products that do not meet its original specification, but which are through minimal processing, such as filtration or blending, can be returned to on-specification condition of the same or other type. For example, products that are high in iron can be brought back to specification quality by processing through a molecular sieve. Any grade of

N2O4 may be submitted for reclamation if the product is off- spec by not more than the following.

Nitric Oxide content – no more than 1% by weight absolute below the minimum requirement Water equivalent – no more than 1% by weight absolute over the maximum requirement Iron Content -- no more than 0.6 ppm absolute over the maximum requirement Particulate -- no more than 30 mg/L absolute over the maximum requirement.

iii. Recyclable Product. Products that do not meet their original specifications and cannot be reclaimed as described above but can be used as a feedstock in the manufacture’s industrial process to produce either the same or some other marketable product. For example, N2O4 is high in non-volatile residue and may be blended with feedstock to a nitric acid plant.

iv. Unsuitable Product. Products that do not meet their original specifications cannot be reclaimed and are unsuitable for use as a feedstock in the manufacturer’s industrial process and must be disposed of at an offsite facility. For example, products which are high in chlorine and the contractor is concerned could poison the catalyst if used as a feedstock in the production process.

The contractor shall be required to assist DLA Aerospace Energy by isolating, storing, and/or preparing the unsuitable product for shipment to a disposal agency. Prior to the contractor providing any of these services the cost shall be negotiated by the CO and Inventory Management Team under miscellaneous services CLIN 00XX.

v. Lab Analysis. The cost of performing routine lab analyses, such as initial contract quality assurance acceptance testing or analyzing the product in a returned cylinder, shall be included in the MMFF. Occasionally, the Contractor may be required to perform a non-routine laboratory analysis that may or may not be included in the product specification. For example, a density measurement may be required for a particular customer, a series of iron analyses may be required to test corrosivity of a container, or a full spec analysis may be required as part of a troubleshooting procedure.

10. CUSTOMER-PROVIDED CONTAINERS AND EQUIPMENT: DLA

Aerospace Energy will provide the contractor with customer-owned cylinders, micro-bulk containers, and trailers for finished product storage and shipment to DLA-designated receiving locations. These items are provided strictly to facilitate the fulfillment of this contract and are not classified as formal Government Furnished Equipment (GFE).

The contractor must manage and maintain these assets provided to ensure the safe storage and transportation of N2O4 products. A total of 120 customer-owned cylinders will transit and require temporary storage at the vendor facility throughout the period of performance. There shall be no more than 20 cylinders at the vendor facility at any given time.

a. Containers will arrive back from customers with minimal amounts of residue N2O4. The contractor shall receive returned containers and prepare the containers for refill. The contractor shall have disposal procedures in place for residual, unusable products, and residuals created during cleaning and disposal process. Refer to paragraph

“REPROCESSING SERVICES”.

b. When container cleaning is necessary the contractor will use aqueous based cleaning in accordance with specification KSC-C-123J to cleanliness level 100A. Cleaning shall be verified as adequate prior to filling. In the event a container is out of certification for filling, the contractor shall notify CO for instructions.

c. Minor container maintenance will involve installing new valves, plugs, seals, caps, other soft goods, or other minor needs to be deemed safe and in serviceable condition.

d. The contractor shall have the capability to update or change container identification plate information as directed by DLA.

i. Valve Pressure /Leak Test: The valve and valve body (to include valve seating and packing) shall be bubble tight when tested at approximately 25%, 50%, 75%, 100% and 150% of the maximum allowable working pressure (MAWP) of the vessel onto which it is to be installed (not to exceed 1.5 times the valve's pressure rating). Perform internal and external lead tests. Leak tests shall be performed with helium, or a nitrogen/helium mix with at least 10% helium. If leakage is not detected for at least one minute, the valve passes the pressure/leak test. If the valve passes the pressure/leak test, fully disassemble valve prior to cleaning the wetted flow path to level 100A in accordance with specification KSC-C-123J or equivalent and re-assemble with new soft goods. If the valve fails the pressure/leak test, please contact the Inventory Manager for instructions.

e. Recertification Testing for approved DOT containers:

Recertification is required on each cylinder every 5 years. The recertification must be accomplished by a DOT approved facility.

Recertification includes cleaning and decontamination of the cylinder, removal of all markings, hydrostatic testing IAW CFR 49 (or other approved method of recertification), precision cleaning IAW KSC-C-123J to level 100A, apply cylinder blanket of gaseous nitrogen/helium at 20± 10 psig, repainting and remarking IAW MIL-STD-1411, CFR 49 100-199 and MIL-STD 101.

f. Passivation: Prior to placing a new cylinder into N2O4 service, all critical surfaces (surfaces that come in contact with N2O4) must be treated to remove any free iron or other foreign material left over from the machining/manufacturing process and to prepare the surface to prevent iron build-up in the N2O4 that will be stored in the container. The Contractor shall follow the below procedures to prepare cylinders for N2O4 service. The Contractor shall passivate the cylinder in accordance with ASTM specification A 967 – Standard Specification for Chemical Passivation Treatments for Stainless Steel Parts utilizing either the nitric 2 or nitric 3 treatment. After the passivation treatment the cylinder(s) shall be precision cleaned in accordance with KSC-C-123H to a cleanliness level of 100A. The cylinder(s) shall then be filled with MON-1 or MON-3 ensuring all critical surfaces are in contact with the product, either by completely filling the cylinder, or by periodically (2-4 times/day) agitating the cylinder to wet all critical surfaces. Other methods may be employed to ensure all critical surfaces encounter oxidizer with prior approval from the Contracting Officer. Passivation Inspection: To ensure that the cylinders were properly prepared to prevent iron build-up in the product the Contractor shall randomly select a portion of the portion of the portion of the cylinders treated for inspection as follows:

i. The number of cylinders selected for inspection shall be IAW the table below.

ii. The cylinders selected for inspection shall be sampled once per week and tested for iron content in accordance with MIL-PRF-26539F. The cylinder shall be agitated prior to sampling to ensure a representative sample of the entire contents of the cylinder.

iii. All the cylinder(s) treated will be considered to have passed inspection if the iron content of the inspection cylinder(s) does not increase by more than 0.05 ppm absolute over a two-week period.

iv. After passing inspection the cylinders shall be emptied of all contents and filled with gaseous nitrogen to 20 ± 10 psig.

11. NON-RECURRING ENGINEERING (NRE) & MARKET ENTRY

CAPABILITY STAND-UP:

a. Objective: The objective of this Non-Recurring Engineering (NRE) effort is to establish a secure, reliable, and domestic production capability for N2O4. As a new market entrant, the contractor is responsible for the design, construction, installation, and qualification of a new production line capable of meeting DLA Aerospace Energy’s long-term volume and delivery requirements.

b. Capability Goals: The contractor shall design and construct a production facility and line that achieves the following high-level capabilities:

i. Production Line Setup: Establish a fully functional, safe, and environmentally compliant N2O4 production line capable of consistent, high-purity yield.

ii. System Integration: Integrate the production line with contractor-furnished bulk storage and DLA-provided customer-owned equipment (including cylinders, micro-bulk, and trailers) to support seamless, safe transfers.

iii. Regulatory Compliance: Ensure the newly established line, processes, and facility meet all federal, state, and local safety, environmental (EPA), and occupational health (OSHA) regulations for handling hazardous hypergolic propellants.

c. Operational Readiness and Qualification: Prior to commencing full-rate production, the contractor must demonstrate that the newly constructed line is fully capable of meeting the performance objectives of this contract.

i. The contractor shall establish an objective framework to demonstrate facility operational readiness, process control, and system integrity.

ii. The contractor shall successfully produce and analyze pre-production samples and first article batches to prove the newly established line meets the strict chemical purity standards required by DLA Aerospace Energy.

d. Measurement & Milestones: The contractor shall define a progressive milestone schedule in their proposal that aligns NRE progress with successful completion of critical stand-up phases (e.g., Facility Design Acceptance, Construction Completion, System Integration, and First Article Approval).