Draft_IFB 33-4012_e-Recycle Scrap_MDCOS.pdf

DEFENSE LOGISTICS AGENCY

DISPOSITION SERVICES

74 WASHINGTON AVENUE NORTH

BATTLE CREEK, MICHIGAN 49037-3092

INVITATION FOR BID (IFB)

FOR SALE OF

e-RECYCLING DEMILITARIZATION/MUTILATION AS CONDITION OF SALE (DCOS/MCOS)

SCRAP ELECTRONICS RESIDUE SALE

IFB 33-4012

SEALED BID TERM SALE

FOR

DLA Disposition CONUS Wide Sale

Offer Closing Date/Time: TBD, local time Battle Creek, Michigan, USA

Inspection Period Begins: TBD, By appointment only.

Sales Contracting Officer: Edwin Moreland

EMAIL: Edwin.Moreland@dla.mil

PHONE: 269-961-5594

A GENERAL STATEMENTS OF CONTRACT:

A.1 Firm Fixed Price Contract:

A.2 Property Streams:

A.3 Historical Data:

A.4 Military Electronics:

A.5 Future Volumes:

A.6 Transportation, Removal and Disposal:

A.7 Facilities:

A.8 Purchaser to take material offered:

A.9 National Security:

A.10 Quarantine Tool:

A.11 Office Space:

A.12 Financial Requirements:

A.13 No Cause Termination Fee:

A.14 Trade Security Controls:

A.15 Export Control Summary:

B TERMS AND CONDITIONS

B.1 Item Description:

B.2 Property Streams:

B.3 Table 1 IFB Item Number Details:

Table 2: CLIN, Material, SCL, Descriptions:

B.4 Historical Weight Removals by Site:

B.5 Base Access Requirements:

B.6 Useful Websites:

B.7 Packing:

B.8 Inspection:

B.9 Loading and Removal:

C ADDITIONAL TERMS AND CONDITIONS OF SALE

C.1 FAR Provision 52.204-24:

C.2 FAR Provision 52.204-25:

C.3 D4R:

C.4 Demilitarization (DEMIL) / Demanufacturing Section (DMF):

C.5 NSA processing Requirements:

C.6 Accountability of Property:

C.7 Training C.8 Demilitarization/Mutilation Operations:

C.9 Comingling property:

C.10 Equipment:

C.11 Meetings:

C.12 Personal Protective Equipment (PPE):

C.13 Inventories:

C.14 Certifier/Verifier:

C.15 Demilitarization/Mutilation Timeframe:

C.16 Military Markings:

C.17 Title:

C.18 Hazards:

C.19 Quarantine Tool:

C.20 Reuseable boxes:

C.21 Facility Inspection:

C.22 Troubled Property:

C.23 Processing area:

C.24 Planograph:

C.25 Office space for embedded DLA employees:

C.26 Responsible Recycling / BASEL compliance facility:

C.27 Reports/Metrics:

C.28 Mission Essential Returns:

C.29 Material resold – Not removed from the Point of resale:

C.30 Material resold- Removed from point of resale:

C.31 Firm Fixed Price Contract:

C.32 Historical Data:

C.33 Military Electronics:

C.34 Future Volumes:

C.35 Transportation, Removal and Disposal:

C.36 Facilities:

C.37 Trade Security Controls:

D SALE BY REFERENCE (SBR)

D.1 SBR Part 1:

D.2 SBR Part 2:

D.3 SBR Part 3:

D.4 SBR Part 4:

D.5 SBR Part 5:

D.6 SBR Part 6:

D.7 SBR Part 7:

D.8 SBR Part 8:

D.9 SBR Part 9:

D.10 SBR Part 10:

E BID EVALUATION AND CONTRACT AWARD

E.1 Bidding Process:

E.2 Identification of Sales Purchaser:

E.3 How to Bid:

E.4 A Responsive Bid:

E.5 How to Modify/Cancel Bid:

E.6 Bid Evaluation:

E.7 Ineligible Bidder:

E.8 Pre-Award Survey:

E.8.1 Environmental Responsibility Determination (ERD):

E.9 Necessary Licenses, Permits and Certifications Shall be Reviewed:

E.10 Contract Award:

E.11 Start Work Meeting:

F Contract Deposits and Financial Retention:

F.1 Bid Deposit:

F.2 Payment Deposit:

F.3 Performance Bond/Financial Guarantee Bond:

F.4 Bond Requirements:

G PARTIES TO THE CONTRACT

G.1 Purchaser Information:

G.2 Transfer and Hypothecation:

G.3 Contract of Sale:

G.4 Authority of Sales Contracting Officer (SCO):

G.5 Authority of Sales Point of Contact (SPOC):

H CONTRACT PERFORMANCE

H.1 Performance Period:

H.2 Option Quantities:

H.3 Extensions:

H.4 Performance Phase-In Period:

H.5 Regulatory Compliance:

H.6 Environmental and Safety Notice:

H.7 Termination for Default:

H.8 No Cause Termination by the Purchaser:

H.9 Termination for Convenience of Government:

H.10 Records:

I PAYMENTS

I.1 The Billing Cycle:

I.2 Types of Acceptable Payments:

I.3 Payment Confirmation:

I.4 Consequences of Late or Short Payments:

J AUTHORIZED AND UNAUTHORIZED MATERIAL

J.1 Classified Material:

J.2 Material Potentially Presenting an Explosive Hazard (MPPEH):

J.3 Radioactive Property:

J.4 Hazardous Property:

J.5 Foreign Attachment, Miscellaneous Debris and Dunnage, and Email Notification J.6 Notice of Default/Cure Notice:

J.7 Response to Notice:

K COMPLIANCE WITH GOVERNMENT REGULATIONS

K.1 Bureau of Industry and Security (BIS):

K.2 Disposition and Use of Property:

L PURCHASER RESPONSIBILITIES

L.1 Weighing:

L.2 Letter of Authorization (LOA):

L.3 Purchaser will not be allowed to sell material at Agency locations:

L.4 Purchaser use of sub-contractors:

L.5 Containers:

M CONTRACT COMPLIANCE, AUDITS AND REVIEWS

M.1 Compliance with Applicable Laws and Regulations:

M.2 Duties of Care and Loyalty:

M.3 Prohibited Activities:

M.4 Purchaser’s Cooperation is Investigations/Audits/Compliance Reviews:

M.5 Purchaser Record Retention:

M.6 Inspection of Records and Workplace by Government:

M.7 Compliance Notification:

M.8 Contracts with Third Parties:

N DISPUTES AND CLAIMS

N.1 Disputes:

N.2 Alternative Dispute Resolution (ADR):

O MISCELLANEOUS PROVISIONS

O.1 Binding Effect:

O.2 Notices:

O.3 Severability:

O.4 Headings:

O.5 Survival:

O.6 Waiver:

O.7 Force Majeure:

O.8 Use of the Agency Name and Public Communications:

O.9 Tense and Gender:

O.10 Entire Agreement and Modification:

O.11 Computation of Time:

O.12 Electronic Communication:

O.13 No Reimbursements:

O.14 Market, Resale and/or Export:

P GOVERNMENT REQUIRED REPORTS

P.1 Government Use of Purchaser Reported Information:

Q ADDITIONAL CONTRACT ADVISEMENTS

Q.1 Public Law Pertaining to Location Operations:

Q.2 Public Law Pertaining to Material:

Q.3 Resource Conservation and Recovery Act (RCRA) Notice:

Q.4 Chemical Agent Resistant Coating (CARC) Paint:

Q.5 Refrigerant:

Q.6 Pollution Prevention and Right-to-Know Information Definitions (As used in this clause):

R DEFINITIONS

A GENERAL STATEMENTS OF CONTRACT:

Certain contents and provisions of this IFB, including Attachments, are described in general. The following General Statements of Contract are not intended to be complete and do not take precedence over the terms and conditions of this contract. The requirements for all matters discussed in the General Statements are fully defined in the Terms and Conditions Section of this IFB. Any historical data provided in this IFB was derived using existing sources and is presented for general reference only.

The Defense Logistics Agency (DLA) Disposition Services (hereinafter, the “Agency”) is offering for sale of electronic scrap originating from both controlled and non-controlled military grade, as well as commercial grade electronic equipment. Controlled property requires Demilitarization or Mutilation and certification prior to title transfer. Oversight of property processing will be conducted by a Government DEMIL verifier.

The Government makes no warranty as to whether any property is suitable for repair, refurbishment or resale. Property has been turned in under DoD definition for scrap.

This contract covers the processing of materials at a facility owned or leased by the Purchaser, which is located off-site. Please note that this contract does not accommodate or permit the issuance of a letter of intent to lease.

This IFB is issued by the Agency to initiate Step Two of a two-step sealed bid auction process. The Agency will only consider those bidders that have submitted an acceptable technical proposal during Step One of this solicitation under the Request for Technical Proposal (RFTP) review.

A.1 Firm Fixed Price Contract:

This is a firm fixed price contract where the unit of issue is pounds and the bid price per pound is expressed in US dollars and cents which may be specified to the fifth decimal place. This is not a sale by lot. In this type of contract, the price is set and agreed upon at the outset, and the Purchaser assumes the risk of any cost overruns or savings.

This means the Purchaser pays a fixed amount regardless of the actual costs incurred. See Section C.31.

A.2 Property Streams:

1. DEMIL required Property: DEMIL required property refers to property that is subject to demilitarization requirements. "DEMIL" stands for demilitarization, which is the process of rendering military items or equipment that are no longer needed or are being disposed of incapable of being used for military purposes. This type of property is typically regulated by the U.S. State Department. In essence, DEMIL required property is managed with strict protocols to ensure that sensitive or potentially dangerous items are appropriately rendered non-functional for military use before they are disposed of or transferred. See Section B.2.

2. Mutilation Required Property: Mutilation Required Property is a term used in the context of Government disposal and management of certain types of property. It refers to items that, due to their nature or sensitivity, must be physically altered or destroyed to prevent them from being used for their original purpose or to ensure they cannot be exploited or misused. This type of property is typically controlled by the Bureau of Industry and Security (BIS). This type of property will be designated by the Agency’s Standard Waste and Scrap Classification (SCL) of DMF. DMF is Demanufacturing required electronics. See B.2.

3. Electronic Scrap: Obsolete or excess commercial-grade electronics, basic off-the-shelf items not modified by the Department of Defense and are typically rendered to scrap. However, following a Controlled Property Verification Process, through the Quarantine Tool, then these items may be sold as-is or after refurbishment. See B.2.

A.3 Historical Data:

Historically, the total estimated annual weights for the three property streams are:

D4R: 18,304,000 lbs.

DMF/DEMIL: 7,171,000 lbs.

Note: See Attachment B for a three-year breakdown of weights by site. See C.32.

A.4 Military Electronics:

Purchaser should consider that this contract entails the processing of robust military electronic equipment. This equipment is specifically engineered to withstand harsh environmental conditions, electromagnetic interference, and physical stress while reliably performing critical functions in various military operations. These assets pose processing challenges that surpass those typically encountered with commercial grade electronic equipment. See C.33.

A.5 Future Volumes:

The future volume, quality, condition, market value, types (i.e., distribution of property referrals across Federal Supply Classes (FSCs)), and geographic concentrations (i.e., referrals for sale at delivery points) of the property cannot be predicted. See C.34.

A.6 Transportation, Removal and Disposal:

Purchaser is responsible for removal and disposal of all scrap, to include all metallic and non-metallic material resulting from the DEMIL/Mutilation process, at no cost to the Agency. The Purchaser will provide transportation services from the Agency’s designated pick-up locations to the specified destination(s) designated by the Purchaser.

See C.35.

The Agency maintains approximately 25 pick-up site locations, which are detailed in Attachment A.

A.7 Facilities:

Purchaser shall be allowed to have a maximum of two facilities across the continental United States. Location(s) shall be up to the discretion of the Purchaser. See C.36.

A.8 Purchaser to take material offered:

The Government expects the Purchaser to perform all the requirements under this contract at the fixed bid price submitted by the Purchaser. See E.1.

A.9 National Security:

The contract requires that the Purchaser fulfill certain requirements related to national security, customer service, and compliance review. See M.4.

A.10 Quarantine Tool:

Purchaser must develop a web-based application for use on this contract with regard to reviewing property to determine and confirm sales eligibility. The Government and Purchaser will refer to this application as the Quarantine Tool. Ultimately, the Quarantine Tool will serve as a 15-business day Government preview area of all items the Purchaser is preparing to offer items for sale. See C.19.

A.11 Office Space:

Purchaser is required to furnish suitable office accommodations equipped with electricity to accommodate a minimum of six and maximum of 12 (if only one location is selected) Agency employees at each designated location, facilitating the seamless execution of their daily responsibilities. See Section C.25.

A.12 Financial Requirements:

Summary of deposit and financial retentions for this contract:

1. $200,000 Bid Bond, GSA SF 24.

2. $3,000,000 Payment Deposit.

3. $8,000,000 Performance Bond, GSA SF 25. See Section F.

A.13 No Cause Termination Fee:

In the event that the Purchaser terminates this contract without cause or ceases performance, the Government reserves the right to retain a fee of $1,500,000. This termination fee is intended to compensate the Government for incurred costs regarding personnel and the potential personnel reassignment and transfer actions that will be required should a contractor breach its obligation to perform. See Section H.8.

A.14 Trade Security Controls:

Prior to award of this contract, the Purchaser will be required to obtain a TSC (Trade Security Control) assessment/clearance by providing the SCO a properly completed EUC (End Use Certificate) in the form of an Agency Form 1822, within two (2) business days of notification of being the Apparent High Bidder (copy available on the Agency web site, http://www.dla.mil/DispositionServices/Offers/Public-Sales-Offerings/Forms/. The clearance may need to be renewed during the performance period of this contract and at the request of the Government. See Section C.37.

A.15 Export Control Summary:

Purchaser must comply with all U.S. Export control laws on resale of any property derived from DoD equipment.

See Section K.

B TERMS AND CONDITIONS

B.1 Item Description:

It has been determined that after the completion of the DOD/Agency Reutilization, Transfer, and Donation process, the items within the property pool are surplus by the Department of Defense or Federal Government and consist of electronic scrap originating from both controlled and non-controlled military grade, as well as commercial grade electronic equipment.

The government makes no warranty as to whether any property is suitable for repair, refurbishment or resale.

Property has been turned in under DoD definition for scrap.

This contract covers the processing of materials at a facility owned or leased by the Purchaser, which is located off-site. Please note that this contract does not accommodate or permit the issuance of a letter of intent to lease.

Purchaser should consider that this contract entails the processing of robust military electronic equipment. This equipment is specifically engineered to withstand harsh environmental conditions, electromagnetic interference, and physical stress while reliably performing critical functions in various military operations. These assets pose processing challenges that surpass those typically encountered with commercial grade electronic equipment.

The Agency has no control over what specific property is turned in for disposal. The property streams will consist of DEMIL codes A, B, C, D, E, F, and Q. DEMIL G (only with Material Documented as Safe (MDAS) certificate) or DEMIL P (only with declassification certificate).

A- Items subject to the Export Administration Regulations (EAR) in parts 730-774 of Title 15, Code of Federal Regulations (CFR) (CCLI or EAR99) and determined by the DoD to present a low risk when released out of DoD control. No DEMIL, MUT, or end use certificate is required. May require an export license from DOC.

B- United States Munitions List (USML) Items Mutilation (MUT) to the point of scrap required worldwide.

C- USML or CCL Military Items DEMIL required. Remove or demilitarize installed key point(s) items as DEMIL code D.

D- USML or CCL Military Items DEMIL required. Destroy item and components to prevent restoration or repair to a usable condition.

http://www.dla.mil/DispositionServices/Offers/Public-Sales-Offerings/Forms/

E- DoD DEMIL Program Office reserves this code for its exclusive-use only. DEMIL instructions must be furnished by the DoD DEMIL Program Office.

F- USML or CCL Military Items DEMIL required. Item managers, equipment specialists, or product specialists must furnish special DEMIL instructions.

G- USML or CCL Military Items DEMIL required ammunition and explosives (AE). This code applies to both unclassified and classified AE items. Must be accompanied by a Material Documented as Safe (MDAS) certificate.

P- USML Items DEMIL required. Security classified items. Must be accompanied by a declassification certificate.

Q- Commerce Control List Item (CCLI) MUT to the point of scrap required outside the United States. Inside the United States, MUT is required when the DEMIL integrity code (IC) is 3 and MUT is not required when the DEMIL IC is 6.

B.2 Property Streams:

1. DEMIL required Property: DEMIL required property refers to property that is subject to demilitarization requirements. "DEMIL" stands for demilitarization, which is the process of rendering military items or equipment that are no longer needed or are being disposed of incapable of being used for military purposes. This type of property is typically regulated by the U.S. State Department. In essence, DEMIL required property is managed with strict protocols to ensure that sensitive or potentially dangerous items are appropriately rendered non-functional for military use before they are disposed of or transferred. These items necessitate detailed line-item inventory controls and must be reduced to scrap level, as defined below. These items are categorized under the DEMIL codes of C, D, E, F, G, and P listed above.

2. Mutilation Required Property: Mutilation Required Property is a term used in the context of Government disposal and management of certain types of property. It refers to items that, due to their nature or sensitivity, must be physically altered or destroyed to prevent them from being used for their original purpose or to ensure they cannot be exploited or misused. This type of property is typically controlled by the Bureau of Industry and Security (BIS). This type of property will be designated by the Agency’s Standard Waste and Scrap Classification (SCL) of DMF. DMF is Demanufacturing required electronics. These items are subject to less stringent inventory controls compared to DEMIL required property and are accounted for by weight and must be reduced to scrap level, as defined below. These items are categorized under the DEMIL code of B as listed above.

Note: DMF material can be challenged through the Quarantine Tool for sale approval on a limited basis.

3. Electronic Scrap: Obsolete or excess commercial grade electronics, basic off the shelf electronics that have not been modified by the Department of Defense. The Agency makes no warranty that any of this property will be in a useable or repairable condition or have re-sale value. All property is turned in for disposal under the DoD definition of scrap noted below. However, after a controlled property verification process, these items can be resold. This type of property will be designated by the Agency’s Standard Waste and Scrap Classification (SCL) of D4R These items are categorized under the DEMIL code of A as listed above.

Scrap: Recyclable, waste and discarded materials derived from items that have been rendered useless beyond repair, rehabilitation, or restoration such that the item’s original identity, utility, form, fit and function have been destroyed.

Items can be classified as scrap if processed by cutting, tearing, crushing, mangling, shredding, or melting. Intact or recognizable USML/CCL items, components, and parts are not “scrap.”

Be advised that DoD generators of the property stream are not required to use the Agency for disposal and may choose other means to dispose of their material through other sales contracts, i.e., qualified recycling program

(QRP).

All potential Bidders are advised to read all terms and conditions of this IFB prior to submitting their bids to ensure they have a complete and full understanding of all requirements under this contract for sale. The Purchaser is cautioned that some requirements for information are required before the start of work on this contract. The

Purchaser agrees to provide all services necessary for the contract in accordance with all Federal, state, local laws, and regulations and in accordance with the terms of this contract.

The bidder awarded this contract will be awarded both material items or none of the items listed in Table 2 below.

Bidders must place a bid on each individual Item to be considered for award. Purchaser will be expected to pay the Unit Bid Price per pound based on weight.

Over the duration of the performance period, the Government guarantees to issue the Purchaser a minimum total weight equal to the “Minimum Guaranteed QTY (LBS.)” listed in Table 1. See Attachment A for CONUS locations.

B.3 Table 1 IFB Item Number Details:

Line Items Location Site Material Total QTY

(LBS.)

Minimum Guaranteed

QTY (LBS.)

Maximum Allowed QTY

(LBS.)

1 CONUS CONUS DS000DMFB 40,000,000 20,000,000 100,000,000

2 CONUS CONUS DS000D4RA 80,000,000 40,000,000 220,000,000

Option

QTY 1

CONUS CONUS Items 1-2 N/A N/A 20,000,000

Option

QTY 2

CONUS CONUS Items 1-2 N/A N/A 20,000,000

Option

QTY 3

CONUS CONUS Items 1-2 N/A N/A 20,000,000

Option

QTY 4

CONUS CONUS Items 1-2 N/A N/A 20,000,000

Note: Items 1 and 2 in Table 1 above represent materials from the DEMIL, Mutilation, and D4R property streams.

However, Table 2 lists only two material codes. This is because DEMIL and Mutilation-required property can be combined under a single code, DS000DMFB, once the title transfers. The D4R material, which can be resold, uses the material code DS000D4RA.

Table 2: CLIN, Material, SCL, Descriptions:

Table 2 is material description(s) for the Contract Line-Item Number (CLIN) for the material listed in Table 1.

Note: The SCL descriptions in the CAT Book advertised on Agency’s website and traditionally applicable to Agency sales is not controlling with regard to this IFB and sale. The description of the property within this sale IFB is controlling. This means that if an Agency MRO, 1367, bill, notice of award pre-populates the CAT Book SCL definition that the CAT Book SCL definition does not apply and that the parties are following the SCL description in this IFB.

B.4 Historical Weight Removals by Site:

See Attachment A for Agency pick-up location removal weights.

CLIN MATERIAL SCL DESCRIPTION

10 DS000DMFB

DEMIL/

MUT

Electronic scrap residue originating from both controlled military grade electronics and Demanufacturing electronics

20 DS000D4RA D4RA

Electronic residue not containing Precious Metals, Electronic

Scrap, DEMIL code A.

B.5 Base Access Requirements:

All locations where property is located may have strict rules that may prohibit access to some individuals. To access our facilities, an apparent high bidder or their agent shall be required to obtain base access through the host installation. The local location will be able to provide information on how to obtain base access. Purchaser is solely responsible for determining installation access requirements and complying accordingly. If necessary, the SCO or SPOC can confirm that Purchaser is performing requirements under this IFB and the resulting contract.

Applicant must show vehicle registration, proof of current vehicle insurance and identification that meets the requirements of the REAL ID ACT of 2005 to register for enrollment in the Defense Biometric Identification System

(DBIDS).

Purchaser is responsible to obtain all base badging for laborers and transportation drivers with coordination and assistance from the Government. All personnel accessing the base must have state-approved identification or state-approved appropriate driver’s licenses and be free of any warrants. The base will deny access to personnel with warrants or whose documentation or status does not meet their base access requirements. Base access requirements are subject to change and may vary by installation. It is the Purchaser’s responsibility to be aware of all changes and comply as needed. (Purchaser will provide a list of personnel who will work on base prior to start of work).

B.6 Useful Websites:

DLA Disposition Services: https://www.dla.mil/DispositionServices.aspx DLA Auction Site: https://www.sales.dla.mil/dlab2b/init.do System for Award Management: https://sam.gov/ Bureau of Industry and Security: https://www.bis.doc.gov/ U.S. Department of the Treasury: https://home.treasury.gov/ Consolidated Screening List Search Engine: https://legacy.export.gov/csl-search

The following is for reference only and does not indicate endorsement of the information provided.

Commercial Scale Locator: https://catscale.com/cat-scale-locator/

B.7 Packing:

Property is prepared for shipment by the Agency and is ready for shipment on pallets, in crates or boxes. Property will be stored indoors (when available).

B.8 Inspection:

Inspection is by photos only upon requests.

B.9 Loading and Removal:

Site specific hours of operation apply. Hours of operations are generally between 7:30AM – 2:00PM local time, Excluding federally recognized holidays. The loading of property at all Agency sites will be conducted by Agency personnel on to Purchaser provided transportation and witnessed by the Purchaser’s authorized personnel. Agency personnel and Purchaser’s authorized transportation personnel will both sign the completed Notice of Removal Form 1367 and witness all weighing.

Purchaser is responsible for transportation and removal of all property at the listed Agency locations and all cost associated with the transportation and removal. Purchaser will unload conveyances at their facilities.

Property will be removed within five business days of written notification from the Agency Site(s). Exception:

Direct shipment of materials from alternative locations i.e., Alaska, Hawaii, Guam, and other outside the contiguous United States (OCONUS) sites. The Agency shall endure the cost of transportation for direct shipments from OCONUS locations.

Locations: See Attachment A.

https://www.dla.mil/DispositionServices.aspx https://www.sales.dla.mil/dlab2b/init.do https://sam.gov/ https://www.bis.doc.gov/ https://home.treasury.gov/ https://legacy.export.gov/csl-search https://catscale.com/cat-scale-locator/

C ADDITIONAL TERMS AND CONDITIONS OF SALE

C.1 FAR Provision 52.204-24:

FAR Provision 52.204-24 is applicable.

PROHIBITION ON CONTRACTING FOR CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT (AUG 2020)

Full clause text included in attachment. The provision at FAR 52.204-24 requires an offeror to represent, on an Offer-by-offer basis, whether it will or will not provide any “covered telecommunications equipment or services to the Government in the performance of any contract, subcontract or other contractual instrument resulting from this solicitation.”

The Representation that must be signed will be sent at the same time the Statement of Intent (SOI) is sent to apparent high bidder as part of the pre-award process.

Full clause text included in attachment.

C.2 FAR Provision 52.204-25:

FAR Provision 52.204-25 is applicable.

FAR Provision 52.204-25 titled, “Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment” is incorporated by reference from the Federal Acquisition Regulation.

https://www.acquisition.gov/far/52.204-25

Full clause text included in attachment.

C.3 D4R:

Electronic residue not containing Precious Metals, Electronic Scrap, DEMIL code A.

D4R material delivered under the public sales contract is NOT considered sensitive and DOES NOT require destruction; however, all D4R property that is to be refurbished and resold, not scrapped, will be placed in a 15-business day quarantine period prior to Purchaser resale.

By definition, D4R material is scrap as defined in DoD regulations. The Agency makes no warranty that any of this property will be in a useable or repairable condition or have re-sale value.

D4R material is considered safe to sell and may be sold by the Purchaser or recycled for its material value.

D4R items the Purchaser wishes to refurbish and sell as an item must be submitted in the Quarantine Tool for proper vetting and approval from the Agency. The quarantine period is for Agency final review of property to ensure it is safe to sell to the public and DEMIL codes have not changed.

If selling this material for its original purpose, the hard drive will be erased and verified in accordance with R2 or e-Steward Standards.

C.4 Demilitarization (DEMIL) / Demanufacturing Section (DMF):

Other Department of Defense (DOD) agencies have the responsibility to identify property that requires Demilitarization/Mutilation by assigning the applicable demilitarization code. Due to changes in requirements, these codes are subject to change without notice.

SCO will provide the training materials to the Apparent High Bidder (AHB) during the pre-award process to ensure adequate time is allotted to train the AHB’s Certifiers. The Purchaser must complete training and submit an appointment letter with the Purchaser’s Certifier name and signature on it to the SCO before work can begin.

Training certificates are to be held by the Purchaser and made available to the SCO within 24 hours if requested.

https://www.acquisition.gov/far/52.204-25

C.5 NSA processing Requirements:

Occasionally, in accordance with National Security Agency (NSA) regulations, the Purchaser must possess the capability to thoroughly pulverize circuitry measuring equal to or less than 1mm, or subject to temperature above 2800 degrees Fahrenheit and crush ashes. Machinery utilized to meet this stringent tolerance must be officially registered with the NSA, a process involving the submission of detailed specifications including type and model numbers. The NSA will request the Purchaser to provide local security plans as part of the registration process.

Processing materials of this nature will necessitate additional on-site inspections conducted by authorized agencies, during which the Purchaser will demonstrate their adherence to NSA tolerances. All such site visits to ensure compliance with NSA standards will be coordinated through the SCO. Furthermore, the Purchaser's facility will undergo qualifying inspections carried out by Government agencies. The material must be processed on-site and is not authorized for processing at other facilities.

Purchaser agrees to fully cooperate with the Government when informed by the Agency of an ongoing investigation by any DOD or Federal Government investigation service or agency or during Agency Compliance Reviews, Investigations or Audits. Purchaser agrees to provide the Agency with all requested information regarding property or information relating to the Purchaser’s operations, and resale buyer. Purchaser must make all sales records pertaining to such investigations available to Agency at the earliest available opportunity but no later than three (3) business days of the request. Requests for information will be provided in electronic format when possible.

C.6 Accountability of Property:

Purchaser must have a robust system in place for maintaining accountability of property, including, for example:

1. Tracking all Property that has been removed from Agency locations and coordinated direct shipments.

2. Controlling and tracking all Demilitarization/Mutilation required property until property is properly demilitarized or mutilated as required by DOD regulations.

3.. Thoroughly documenting all D4R assets sold for the entire duration of the contract.

C.7 Training During the pre-award process the SCO will provide the Purchaser with “DEMIL Certifier” training material (MS PowerPoint or PDF version). Purchaser will retain the training certificate(s) and make them available to the Government within twenty-four (24) hours upon request. Purchaser must complete training certificate and submit an appointment letter on company letterhead in accordance with (IAW) DoDM 4160.28 Vol 2 with the Certifier(s) name and signature to the SCO before work can begin.

Purchaser certifiers will be re-trained annually and must send a new dated appointment letter for each certifier to the

SCO.

C.8 Demilitarization/Mutilation Operations:

Demilitarization/Mutilation operations will take place at the Purchaser’s facility(ies). DEMIL/MUT operations will be 0730-1600. May be changed upon mutual agreements/mission requirements (i.e. surges, compressed work weeks, etc.) minimum of 8-hour day.

Purchaser will be expected to process ~2,000,000 lbs. monthly comprised of property from all three property streams.

Purchaser is responsible for obtaining and providing all required permits to accomplish Demilitarization/Mutilation processing and transportation. All conveyances will display applicable Department of Transportation (DOT) placards. If an oversized vehicle or load is required, site will assist by providing a POC for base permits.

Agency Verifier(s) must be present for all Demilitarization/Mutilation operations. If the Agency Verifier is unavailable for any reason, Demilitarization/Mutilation operations are to be shut down until the Verifier(s) return.

At any juncture within the contract, the Government reserves the option to assume roles as both the Certifier and the Verifier, with adherence to DOD regulations.

If operation hazards are discovered during loading or Demilitarization/Mutilation operations, all work will cease immediately. SCO and Agency Operations will be notified by the SPOC. Operations will not resume until cleared by the SCO and Agency Operations.

Method and degree of Demilitarization recommended are in the best interest of the U.S. and according to DoDM

4160.28 Vol 2. The use of precision tools of ANY kind, including precision cutting tools, will not be permitted during the Demilitarization/Mutilation of this property.

C.9 Comingling property:

D4R/DEMIL/MUT property will not be comingled together or with any other property types until Title passes to the Purchaser.

C.10 Equipment:

Purchaser will supply all equipment and personnel to accomplish the Demilitarization/Mutilation of all property and associated parts/material processing. Purchaser’s equipment must be able to process the ~2,000,000 lbs. per month of robust and reinforced military and commercial electronic equipment. Equipment is required to be on a preventative maintenance schedule and Purchaser must have plans in place to process property when equipment fails or is down for maintenance. All equipment must comply with all Federal, state, and local environmental regulatory policies and permit requirements

Equipment may include, but is not limited, Shredders, Crushers, Separation Equipment, Dismantling Tools, Material Recovery Systems, Refining Equipment, Waste to Energy Systems, Environmental Control Systems, and Data Destruction Equipment. The Purchasers facility will employ industry standard advanced equipment and techniques for efficient sorting, dismantling, and material recovery.

C.11 Meetings:

Purchaser’s Certifier and the Agency’s Verifier will conduct end of week meeting to coordinate/determine work schedule for the following week. Agency onsite personnel, SCO, and the Purchaser will agree to a fixed date and time on a weekly basis at the start of work meeting. Deviations authorized (i.e. bi-weekly, monthly, etc.) based on mutual agreement between the Purchaser and Agency.

C.12 Personal Protective Equipment (PPE):

According to 29 Code of Federal Regulation (CFR) 1910.132-140, Purchaser is hereby informed of the requirement to supply/provide Purchaser employees safety gear needed to protect from lethal projectiles, hot metal, sparks, and flames. The act of Demilitarization/Mutilation to render the property to the point of scrap can be extremely dangerous and adequate safeguards must be adhered to by Purchaser. The Purchaser shall have on hand at all times hard hats, eye protection, and reflective vest to provide to and accommodate no less than five (5) Agency personnel performing a site visit.

C.13 Inventories:

Joint inventory of property will be conducted by the Purchaser’s Certifier and Government Verifier before property is Demilitarized/Mutilated. The Purchaser acting as Certifier is required to validate the line item inventories for DEMIL required items.

All dunnage and packaging material that is segregated or broken down will be weighed separately and is the responsibility of the Purchaser to properly dispose of or recycle. Purchaser will not be billed for the separated dunnage and packaging. The Purchaser is responsible to properly dispose of or recycle the dunnage and packaging material.

All weighing of the processed material, dunnage and packaging must be witnessed by Agency personnel and issued on a 1367, weight ticket and MRO. Purchaser and Agency personnel shall be required to retain a copy for their contract records.

C.14 Certifier/Verifier:

Purchaser Certifier will be present and watch or perform 100% of material being Demilitarized/Mutilated.

Government Verifier will be present and watch 100% of the process. Verifier will determine if property has been adequately Demilitarized/Mutilated. Any material not demilitarized/mutilated to the point of scrap will be further processed until proper destruction is accomplished.

C.15 Demilitarization/Mutilation Timeframe:

All Demilitarization/Mutilation performance will be completed prior to residue removal from Purchasers site. The receiving process begins once the verifier and certifier complete the Kind Count (KC) process, and the property has been turned over to the Purchaser for processing. Demilitarization/Mutilation Certificates will be completed for each item when verifier has confirmed processing has been completed according to Government requirements.

All Demilitarization/Mutilation performance will typically be completed within five (5) working days upon receipt.

However, for assets demanding intricate and time-sensitive destruction methods, the processing period may be extended to a maximum of ten (10) working days, pending approval by the Sales Contracting Officer or their designate. Extensions typically should not exceed an additional five (5) working days. Any discrepancies concerning processing timelines will be referred to the Sales Contracting Officer for a conclusive resolution. The Sales Contracting Officer holds the ultimate authority in determining processing timeframes.

C.16 Military Markings:

All military markings and data plates are to be destroyed during the Demilitarization process. All Technical Data is considered demilitarization required and must not be thrown away as dunnage. Demilitarization of Technical Data, Drawings, CD’s, Manuals, etc. must be destroyed by burning, cross-cut shredding or pulping according to Government regulations.

C.17 Title:

Title will pass to Purchaser when the Demilitarization/Mutilation has been completed and the Certificate of Demilitarization/Mutilation has been signed by both the Purchaser Certifier and the Agency Verifier and the 1367s is signed by both the Purchaser Certifier and the Agency Verifier. However, the risk of loss shall transfer to the Purchaser upon acceptance of physical custody and control of the property which will ordinarily occur no later than the point in time at which such property is loaded into a conveyance that is owned by, or who use has been arranged by the purchaser. See e.g., SBR Part 2, Article 14, Risk of Loss. The purchaser bears the risk of loss or damage to property subsequent to its removal from the government installation or designated pick-up location.

The transfer of the property title for the property described as D4R shall be executed once the inventory of the property has been completed and validated as eligible for sale pending the Quarantine Tool review. See Section C.19

For D4R not processed through Quarantine Tool for re-sale, Title transfers when it is processed as scrap for disposal or recycling

C.18 Hazards:

If operational hazards are discovered during loading or DEMIL/MUT operations, all work will cease immediately.

Operations will not resume until cleared by the Agency’s Verifier or the SCO.

Property may contain hazardous materials to perform their intended functions such as, batteries, beryllium and oils.

Purchaser will be responsible to drain and collect all fluids and possible hazardous materials (R-2 and E-Steward focus items). Accumulations during the processing will be the Purchaser’s responsibility to recover, store, and dispose of IAW Federal, state, and local laws and requirements.

C.19 Quarantine Tool:

Purchaser must develop a web-based application for use on this contract with regard to reviewing property to determine and confirm sales eligibility. The Government and Purchaser will refer to this application as the Quarantine Tool. Ultimately, the Quarantine Tool will serve as a 15-business day Government preview area of all items the Purchaser is preparing to offer for sale. During the 15-business day preview, the Purchaser is not allowed to make property visible to the general public. The Government must notify the Purchaser of any item not eligible for sale within the 15-business day preview time. All issued property must be submitted for Agency Quarantine Tool review to confirm eligibility for resale prior to the end of the performance period or the effective date of termination.

Property identified as controlled in the Quarantine Tool must be returned to the Agency prior to the end of the performance period or the effective date of termination.

The Quarantine Tool must be approved by the Agency and operational within 60 days of contract award.

The Purchaser shall also grant the Government, without charge and without restriction, data rights to all data and information contained within and generated by the Quarantine Tool including the right to display, use, modify, reproduce, release, perform, display, disclose data, compile or generate reports, prepare derivative works, use the data for program administration distribute copies to the public, and perform publicly and display publicly, in any manner and for any purpose, and to have or permit others to do so in whole or in part, within the Government.

The Purchaser’s grant of the license for application access and data provided to the Government does not provide the Government with rights in the underlying web-based application or computer software developed by the Purchaser solely at their expense. The Purchaser retains all rights in the Quarantine Tool application and database not granted to the Government.

Purchaser shall develop and maintain a web-based application to conduct D4R (only) property review and maintain a web-based application and provide access to Agency personnel assigned to conduct the property review for use on this contract to determine and confirm sales eligibility. The Purchaser is responsible to input all required information into the Quarantine Tool to allow the Agency to conduct the proper review. The Agency and Purchaser shall refer to this application as the Quarantine Tool. Ultimately, the Quarantine Tool will serve as a 15-business day Agency preview area of all items the Purchaser is preparing to offer for sale. Items may be added to the Quarantine Tool at the Purchasers discretion.

The property being quarantined will be placed in the controlled area until review by Controlled Property Verification Office (CPVO) is completed. The Agency will approve, reject, or place into Research Status all items in the Quarantine Tool within the 15-business day preview time. Any item the Agency identifies as needing more information, it must be put into Research Status within the Quarantine Tool. Once the Purchaser has provided the Agency with the required additional data, the Agency will remove the material from Research Status and determine sales eligibility at that time. Any item left in Research Status for more than 45-business days after entering the Quarantine Tool will be automatically rejected. All property approved as a result of the Quarantine Tool application will be offered for sale on the Purchasers web site or retail centers with a system generated icon/marker identifying the item as having been reviewed by the Agency prior to posting for sale. If the Purchaser reassigns a previously approved item to another sales event, the item will be returned to the Quarantine Tool with the system generated icon/marker. The Quarantine Tool application will have the ability to export the data into a spreadsheet format and will include the following fields:

1. Purchaser Material ID Number/Lot Number Purchaser Site Location of the Property Federal Supply Class (FSC) (if available).

2. National Item Identification Number (NIIN) or Local Stock Number (LSN) (if available).

3. Item Name/Description.

4. Part Number and Manufacture Model Number.

5. Quarantine Date (date entered quarantine).

6. Photographs of Item (pictures of each side of the item and the data plate are required).

The Agency reserves the right to implement an Agency managed Quarantine Tool for property reviews.

Implementation of the Agency tool requires the Purchaser to transition from using their web-based tool and begin using the Agency’s tool for the purposes of conducting the property reviews to determine sales eligibility at no additional cost to the Agency. The Agency will provide a 120-calander day advanced notice to the Purchaser to allow for transition and implementation to the Agency Quarantine Tool.

At this point the Purchaser will be required to request access to the Government systems and successfully complete any Security and background checks.

C.20 Reuseable boxes:

Purchaser may retain commercially available D4R re-usable containers (e.g. Pelican cases) for re-sale. Cases that arrive in DEMIL or DMF are not authorized for re-sale. Purchaser must input all requested property into the Quarantine Tool for proper vetting. Once approved by the Agency’s Verification team and visually inspected by the Agency’s on-site personnel, Purchaser will be allowed to sell the case(s).

C.21 Facility Inspection:

Purchaser’s facility(ies) shall have:

1. Security fencing around entire facility, if the processing facility is fully enclosed fencing requirements do not apply.

2. Certified truck and pallet scales on-site that produce printed weight tickets.

3. Controlled entrances to DEMIL/MUT area.

4. Limited access to essential employees.

5. A 30-day minimum recording and retrieval capacity for the security cameras and access for Agency personnel to view if necessary. The number of security cameras shall be adequate to monitor all unprocessed property areas of the Government property.

Fencing requirements for non-enclosed facilities / outdoor material processing areas:

Industry standard fencing materials will be utilized and can vary depending on application. Some commonly used fencing materials that will meet the Governments requirement include:

1. Chain link Fencing made from galvanized steel wire woven into a mesh pattern.

2. Wrought Iron Fencing.

3. Aluminum Fencing.

4. Wood Fencing.

5. Vinyl Fencing.

6. Steel Fencing.

The fencing must be 6 feet tall, irrespective of the material used, and the gap between components will not exceed 4 inches.

Gates - The barrier will have a minimum equal or greater resistance to penetration as the adjacent fence. Manual vehicle gates will be secured with industry standard locking mechanisms.

The Purchaser may propose alternative fencing materials for consideration, provided they meet or exceed the standards outlined in this contract. Such materials shall be subject to approval by the Agency.

C.22 Troubled Property:

Provide a lockable cage for holding troubled property. Lockable cage must have a dedicated security camera with a 30-day minimum taping and retrieval capacity with access for Agency personnel to view if necessary. (Troubled property is defined as any property not appropriate for the terms and conditions in this public sales contract or property under DEMIL code challenge). Cage should be of adequate size to accommodate at a minimum of 12 pallets of material, or 24 pallets if only one facility is used. Cage material requirements are the same as identified in section C.21. The troubled property area must be within an indoor facility.

Purchaser’s Facility/worksite must pass an inspection by Agency personnel as part of the pre-award process in order for the SCO to find the Purchaser affirmatively responsible. Facility must be ready to receive and process property at contract award. Facility is required to be fully mission capable within thirty (30) days of Apparent High Bidder Notice (i.e., processing the estimated 2 million pounds per month average). This means that upon contract award that the Purchaser’s facility shall start receiving property and that the facility shall be equipped and manned to process up to 2 million pounds per month.

C.23 Processing area:

The area must be adequately sized to handle the unboxing and layout of up to six shipments of material for KC simultaneously, twelve if only one facility used. If the Purchaser operates only one facility for processing materials, the space should be sufficient to accommodate up to twelve shipments at once. Additionally, the facility must have the capacity to store up to 15 shipments awaiting processing or inventory. (One shipment is defined as up to 52 pallets.) For a single-processing facility, the storage capacity must be sufficient to hold up to 30 shipments pending processing.

C.24 Planograph:

After the award, the Agency Verifier and Purchaser will work together to create a planograph detailing storage locations and the layout of work areas for managing controlled and other property. The plan will include:

• Sixteen (16) storage pallet locations for general use, or (32) pallet locations if only one facility is used.

• 12 pallet locations for troubled property, or 24 pallet locations if only one facility is used.

• One (1) location for CPVO quarantined property, or Two (2) locations if only one facility is used.

Effective coordination between the Purchaser and the Agency is crucial to develop an optimal planograph. This requirement is part of the Agency’s warehousing system and procedures.

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