Attachment A - Statment of Objectives Hydrazine.pdf

STATEMENT OF OBJECTIVES

HYDRAZINE PROPELLANTS

01 MAY 2025

1. SCOPE OF REQUIREMENT: The Defense Logistics Agency (DLA) Aerospace Energy, as the Department of Defense (DoD) Integrated Materiel Manager (IMM) for Aerospace Energy products and related services, requires production of Hydrazine fuels and stated services, in support of National Defense, National Interest, and other United States Space Programs. The contractor shall provide all production related facilities, raw materials, supplies, management, tools, storage, equipment, and labor necessary for the manufacture of Hydrazine. Utilizing the Raschig production method to produce hydrazine will be given priority over the Ketazine method when contract award is determined. In addition, the contractor shall offer DLA the capacity to store DLA Aerospace Energy owned finished goods, manage government owned real property packaging cylinders, and transportation of finished products in proper packaging cylinders or bulk trailers to DLA customers and/or Energy Aerospace Storage Point (EASP). The government’s estimated quantities, which are an aggregate of all DLA customer requirements are shown in the schedule. Quantities required may be ordered as bulk, cylinder, or in drums as needed to support the DLA mission.

2. FACILITY AND OPERATIONS: It is critical that all DLA customers have a reliable and dependable supply of hydrazine. 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 product located at the Contractor’s site, the facility shall be designated a EASP and the Contractor shall comply with all requirements stated in DLA Energy P-11 Energy Aerospace Storage Points. Documentation shall be submitted to dlaenergyaerospaceresolutionspecialist@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.

2.1. MAINTENANCE AND FACILITY FEE: DLA hydrazine orders shall take precedence over all other contractor operations. The contractor shall develop and maintain the plant's production capabilities for the products identified in the contract schedule throughout the contract's duration. This includes maintaining a qualified workforce in a ready state exclusively for DLA orders. To offset the associated expenses, DLA intends to reimburse the contractor through a Maintenance & Facility Fee (MFF).

The proposed MFF shall include the following fixed costs:

• Manpower

• Equipment purchases and maintenance mailto:dlaenergyaerospaceresolutionspecialist@dla.mil

• 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)

• EASP operations

• Required bulk tank costs

• Provision of eight HPH trailers

The MFF will be calculated as a percentage of DLA demand/orders relative to the overall plant capacity. The contractor shall provide all necessary Material Handling Equipment (MHE) for loading and unloading specified containers.

The MFF excludes variable costs associated with hydrazine production. These variable costs, including but not limited to raw materials, natural gas, electricity, and direct labor, shall be proposed separately as product costs.

MFF payments will commence on the first day of the month following First Article Batch approval and will be paid in equal monthly installments throughout the contract period of performance.

3. PRODUCT PURCHASE PRICE: Offered prices shall include all variable and incremental costs associated with production of products except for labor, which shall be included in the maintenance and facilities fees.

4. CONSIDERATIONS FOR USE: DLA Aerospace Energy requires only the use of production capabilities and facilities 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 minimum production quantities are expected not to be met due to commercial demands, the contractor shall coordinate in advance with the DLA Contracting Officer (CO). If approved, DLA CO will negotiate a reduction in the unit price of appropriate line item, Monthly Maintenance Facility Fee, and reimbursement for plant development costs as consideration for the use of the facility.

5. QUALITY: The government prefers the Raschig process to be used when producing hydrazine. If a Ketazine production process is used, the contractor shall deliver to the government a detailed manufacturing process description for the Ketazine produced hydrate. Once approved by the government, the contractor shall ensure that the Ketazine hydrate process does not change without government notification and approval. Process changes may require additional analysis prior to approval. Hydrazine production requirements include manufacturing of the products listed below. There are limitations to the MIL-PRF specification limits which require samples of products to be analyzed for additional trace components that may have deleterious effect on space launch systems. This is a process that will be completed by the government, for products that have not been previously offered. This testing will be required as part of the determination of technical acceptability. If new deleterious trace components are identified, then limits will be established contractually until the specification can be updated through the DoD standardization process.

a. High Purity Hydrazine (HPH), which conforms to the requirements of MIL-

PRF-26536G w/Amendment 1, dated 13 July 2021. The specification shall be modified to include the following limits/requirements:

1) Elemental analysis samples shall be prepared by obtaining the NVR residue by the hot plate method (D.2.1) using platinum dishes referenced in MIL-PRF-26536G/amendment 1 issued 13 July 2021. The propellant residue obtained from the NVR analysis shall be processed for instrumental analysis using nitric acid for all pertinent steps in Appendix C of MIL-PRF- 6536G/amendment 1 issued 13 July 2021.

2) 0.1 ppm max cadmium (Cd)

3) 5 ppm max silicon (Si)

4) Toluene analysis samples shall be prepared using the standard preparation procedures listed in the carbonaceous assay (G.2.1) referenced in MIL-PRF-26536G/amendment 1 issued 13 July 2021. The stock standard used shall be sufficient to detect 1 ppmw toluene. The elution order of the compounds is as follows:

UDMH < IPA < MMH < toluene < hydrazine < aniline.

1 ppmw toluene Chromatograms for carbonaceous assay shall be included in the data package to DLA Energy when submitting product test results.

b. Propellant, Hydrazine Water 70-30 (H70), which conforms to the requirements of MIL-PRF-87930C, w/Amendment 1 dated 26 Jun 2021 produced into vendor provided drums.

c. In addition to the reports required elsewhere within this contract, one copy of a Certificate of Analysis for each sample required by the specification shall be emailed to tech.prop@dla.mil submitted as an attachment to the applicable Wide Area Workflow (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 government.

d. The contractor shall attach a “follower” of paperwork to every batch indicating batch #, date of manufacture, and assay data taken that remains with each container until is removed from the contractor facility. The contractor shall retain duplicate copies of paperwork for the life of this contract and provide it upon request.

6. PRODUCTION & STORAGE: The government anticipates issuing one delivery order for the estimated annual requirement for each product at the start of the contract and at the beginning of each following year. The intent is to allow the contractor to schedule the production runs for each product in the most economical manner. However, the government may prioritize or adjust the order of product deliveries depending on demand and inventory posture.

a. The contractor shall be capable of producing the annual estimated quantity of each product within the 12-month annual contract period. In the event there are product needs which are not identified in the annual requirement, the DLA CO will issue a separate delivery order. The contractor shall produce and have ready for delivery the product ordered outside of the annual requirement within 30 days of order unless otherwise specified in the delivery order.

b. The contractor’s storage site shall be designated Energy Aerospace Support

Point (EASP) and shall require the documentation and submission of reports for accountability and control of DLA Aerospace Energy owned products per the terms of Clause I116.05.100 RESPONSIBILITY FOR GOVERNMENT-OWNED

ENERGY AEROSPACE PRODUCTS (DLA ENERGY AUG 2022).

c. The government-ordered quantities will be filled into contractor-supplied and/or Government Furnished Equipment (GFE) containers or bulk trailers and shipped to the DLA-provided shipping address. Ownership of the product will occur once delivery is accepted. DLA also intends to store DLA-owned inventory at the contractor's site in contractor-provided bulk storage tanks.

The annual estimated bulk quantity is 198,000 lbs of High Purity Hydrazine (HPH) and 5,200 lbs of drummed H-70. The Contractor shall provide a minimum of two (2) bulk storage tanks with a combined useable capacity of at least 250,000 lbs and adequate warehouse storage space for drummed product.

d. The government may seek additional product and container storage in accordance with the DLA Energy P-11 Regulation. The anticipated maximum mailto:tech.prop@dla.mil number of containers requiring storage is estimated at 100 each, including bulk MC338 trailers. Product storage will not exceed twice the annual requirements for each product. The contractor shall provide product reporting in accordance with DLA Energy P-11 Regulations.

7. DELIVERY ORDERS: The government shall order product by issuance of delivery orders by the DLA Energy CO. Product shall be produced and available for delivery into contractor furnished container or GFE 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 containers listed below and on attachment titled “Hydrazine Container”, analyzing the product IAW applicable specification, and preparing the containers for shipping IAW applicable State and Federal requirements.

b. The contractor shall provide Material Handling Equipment (MHE) for loading and unloading containers listed herein.

c. Shipments shall be scheduled in accordance with DD Form 1149 issued by

DLA Energy Supplier Operations.

d. The contractor shall comply with 49 Code of Federal Regulation (CFR) in the preparation of shipping documents and any federal, state, county and/or local required transportation forms. This includes palletizing drums.

e. Generic Propellant Transfer Unit (GPTU): After filling, GPTU shall be pressurized with gaseous helium to 25 ± 10 pounds per square inch gauge (psig). The annular space between the inner and outer tank shall be pressurized with gaseous nitrogen or helium to 7 ± 3 psig. (refer to NASA checklist OMI Q3861 Appendix B for loading, Appendix C for unloading as contained in Attachment 27).

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).

The filling pressure and the blanketing gas required shall be stipulated on the DD Form 1149 or the Delivery Order. Cylinders are shipped under Department of Transportation (DOT) Exemption 11173.

g. Palletized Drums: Air and moisture shall be purged from a drum prior to loading with dry nitrogen to a dew point of < 0 °F. Drums shall not be pressurized after filling but purged with nitrogen during the filling operation.

All drums must be properly palletized IAW industry and DOT standards for shipment prior to acceptance and/or shipment by DLA Aerospace Energy.

h. Bulk trailers are designed in accordance with DOT Specification

MC338 cargo tanks.

i. High-Capacity Tank (HCT): Shall be pressurized with nitrogen or helium to 25 ± 10 psig or in accordance with customer requirements (e.g. 85 ± 10 psig). The filling pressure and the blanketing gas required shall be stipulated on the DD Form 1149 or the Delivery Order. Cylinders are shipped under Department of Transportation (DOT) Exemption 14318.

j. DLA Aerospace 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. GOVERNMENT FURNISHED EQUIPMENT (GFE): The government will furnish the contractor with cylinders, micro bulk, and trailers for finished product storage and shipment to DLA receiving locations. This equipment must be managed and maintained by the contractor for safe storage (29 CFR) and transportation of hydrazine products per (49 CFR).

a. Containers will arrive back from customers with a minimal amount of residue hydrazine. 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 processes.

b. When container cleaning is necessary the contractor will use aqueous based cleaning in accordance with the specification ISO 14952 to cleanliness level 300A. Cleaning shall be verified as adequate prior to filling. In the event a container is out of certification for filling, the contractor shall recertify the container. Notify DLA Energy 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. Container maintenance services which exceed $499 shall be negotiated on a per cost basis using the appropriate line item for general services. The contractor shall not begin the repairs until a written authorization (delivery order) is received from the DLA Energy CO.

d. Annual 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 pressure rating). Perform internal and external leak 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, repair or replace the valve. Please contact DLA Energy CO for instructions.

e. Pursuant to FAR 45.5 as incorporated in the Clause entitled “Government

Property”, the contractor shall protect and safeguard all DLA Aerospace Energy equipment.

f. The contractor shall deliver a monthly serialized inventory of all GFE in possession of the contractor by the 5th of each month to DLA Energy CO/Inventory Accountable Officer.

10. TRANSITION PLAN - LEGACY DLA-OWNED INTO-STOCK PRODUCT

1. Product Phase-In Transition Plan:

a. The Contractor shall commence product phase-in activities immediately upon contract award.

b. The Contractor shall submit a Transition Plan as part of their proposal, detailing the seamless transfer, storage and transport of:

1) Approximately 150,000 pounds of HPH and H70

2) Both products are DLA-owned and located in Westlake, LA.

c. The Transition Plan shall include:

1) A structured timeline for transporting products from outgoing contractor’s manufacturing fill-point/ facility to incoming contractor’s manufacturing fill-point/ facility.

2) Inventory management and verification procedures. All trucks will be metered or weighed to ensure accurate product accountability.

3) Assumption of EASP responsibilities.

4) Availability of adequate storage tanks and warehouse space for drummed product.

5) Ensure product remains on-specification during the transition. Perform sample top, middle, and bottom testing on bulk tanks to ensure product is within specification. Notify the Contracting Officer, DLA Accountable Officer and Quality Assurance Representative (QAR) of any off-specification discrepancies at origin before any product is transferred.

d. The Contractor shall ensure full operational readiness at the conclusion of the phase-in period, meeting all **Statement of Objectives (SOO) requirements** for the start of full performance.

2. Phase-Out Transition Plan:

a. In the event of contract re-competition and selection of a new service provider, the Contractor shall execute a 30-calendar-day phase-out period before the contract conclusion date.

b. The Contractor shall:

1) Provide access to contractor-owned storage tanks.

2) Facilitate product loading into trailers for transfer to the incoming contractor's storage facility.

3) Conduct joint inventory verification with Government representatives, the incoming and outgoing contractors.

4) Ensure accurate accountability of product transfer through coordinated verification with the Government and the incoming contractor.

This transition process will ensure continuity of operations, maintain service quality, and prevent disruptions in DLA into-stock product management.