Call 005 Questions and Answers 1.pdf

FA8650-19-S-5010-CALL-005

1. What constitutes a “domestic source”?

Response: As stated in Section 1.0, Scope, on page 1 of the Statement of Objectives, “Solicitations are restricted to domestic sources, as defined in the Defense Production Act of 1950: “A business concern that performs in the United States or Canada substantially all of the research and development, engineering, manufacturing, and production activities required of such business concern under a contract with the United States relating to a critical component or a critical technology item; and that procures from domestic sources substantially all of any components and assemblies required under a contract with the United States relating to a critical component or critical technology item.” Territories and possessions of the United States, and the District of Columbia are considered part of the domestic United States.”

2. Can the proposed capability be physically located in Canada?

Response: Yes the proposed capability can be physically located in Canada. As stated in Section 1.0 Scope, on page 1 of the Statement of Objectives, “Solicitations are restricted to domestic sources, as defined in the Defense Production Act of 1950: “A business concern that performs in the United States or Canada substantially all of the research and development, engineering, manufacturing, and production activities required of such business concern under a contract with the United States relating to a critical component or a critical technology item; and that procures from domestic sources substantially all of any components and assemblies required under a contract with the United States relating to a critical component or critical technology item.” Territories and possessions of the United States, and the District of Columbia are considered part of the domestic United States.”

3. Can the offerer be a Canadian owned entity?

Response: Yes the offeror can be a Canadian owned entity as long as the definition of domestic source is met. Note that under Section VII.3.g.(7), Summary Business Plan, on page 12 of the Call Announcement, it is requested an offeror “Provide complete company ownership structure, including all holding companies or intermediary operating companies. If applicable, identify all foreign ownership/investments in your company. Foreign ownership/investments are any non-US citizens or non-US based organizations, possessing any type of financial investment, passive or active, in your company.”

4. Can the offerer be a foreign owned entity proposing a capability that is physically located in the

United States or Canada?

Response: Yes the offeror can be a foreign owned entity as long as the definition of domestic source is met. Note that under Section VII.3.g.(7), Summary Business Plan, on page 12 of the Call Announcement, it is requested an offeror “Provide complete company ownership structure, including all holding companies or intermediary operating companies. If applicable, identify all foreign ownership/investments in your company. Foreign ownership/investments are any non-US citizens or non-US based organizations, possessing any type of financial investment, passive or active, in your company.” Also refer to Article 6.030, Foreign Access to Technology, of the Sample TIA provided as Appendix II to the Defense Production Act (DPA) Title III Expansion of Domestic Production Capability and Capacity Funding Opportunity Announcement Number FA8650-19-S-5010.

5. Can the proposed capability be located in more than one location?

Response: Yes as long as the definition of domestic source is met.

6. Can the proposed capability be a collaboration of multiple entities?

Response: Yes the proposed capability may be a collaboration of multiple entities, however, solicitations are restricted to domestic sources, as defined in the Defense Production Act of 1950: “A business concern that performs in the United States or Canada substantially all of the research and development, engineering, manufacturing, and production activities required of such business concern under a contract with the United States relating to a critical component or a critical technology item; and that procures from domestic sources substantially all of any components and assemblies required under a contract with the United States relating to a critical component or critical technology item.” Territories and possessions of the United States, and the District of Columbia are considered part of the domestic United States.”

7. Does a feedstock need to be mined in the United States?

Response: No the feedstock does not need to be mined in the United States. As stated in Section 1.0, Scope, on page 1 of the Statement of Objectives, “Proposed capabilities are required to separate and process an overall minimum annual yield of 500 Metric Tons (MT) of end product from a Light Rare Earth Element (LREE) bearing feedstock (ores and mineral concentrate, recycled feedstock, industrial or mining byproducts, or any other feedstock).”

The objective of this effort, as stated in Section 3.0, Objective & Approach, on page 2 of the Statement of Objectives, is “to modify, expand, or equip one or more domestic sources of REE separation and processing capability for Government and commercial needs in order to restore and protect the REE supply chain.”

8. Can a feedstock be from a non-domestic source?

Response: Yes the feedstock can be from a non-domestic source. As stated in Section 1.0, Scope, on page 1 of the Statement of Objectives, “Proposed capabilities are required to separate and process an overall minimum annual yield of 500 Metric Tons (MT) of end product from a Light Rare Earth Element (LREE) bearing feedstock (ores and mineral concentrate, recycled feedstock, industrial or mining byproducts, or any other feedstock).” The objective of this effort, as stated in Section 3.0, Objective & Approach, on page 2 of the Statement of Objectives, is “to modify, expand, or equip one or more domestic sources of REE separation and processing capability for Government and commercial needs in order to restore and protect the REE supply chain.” Offerors must comply with all local, state, and federal laws and regulations.

9. Does a feedstock need to be identified prior to submission of the proposal?

Response: Yes a feedstock does need to be identified prior to submission of the proposal. As stated in Section VII.3.g.(3), Technical Discussion and Information, on page 9 of the Call Announcement, “In addition to the information outlined in the Funding Opportunity Announcement (FOA) Number FA8650-19-S-5010, issued on 12 July 2019, develop and propose a master implementation plan and master schedule to include, but not be limited to the following.” For technical discussion regarding feedstock, refer to numbers 2 and 10, found on page 10 of the Call Announcement.

10. Is a feedstock required to be secured or formally procured prior to submission of the proposal?

Response: No feedstock is not required to be secured or formally procured prior to submission of the proposal.

11. Will the price for domestically produced end product be stabilized by the Government under this effort?

Response: No the price for domestically produced end product will not be stabilized by the Government under this effort.

12. Can the offeror propose building a new capability?

Response: Yes the offeror can propose building a new capability.

13. Will the Government guarantee a purchase of end product?

Response: No the Government will not guarantee a purchase of end product.

14. Does the Government have a preference of certain Light Rare Earth Element end products?

Response: Yes the Government does have a preference of certain Light Rare Earth Element end products. As stated in Section 1.0 Scope, on page 1 of the Statement of Objectives “The proposed capabilities are required to produce LREE end products of neodymium (Nd)/praseodymium (Pr) mixed oxide and/or neodymium oxide (Nd2O3) and praseodymium oxide (Pr6O11). The proposed capabilities are also required to have the ability of separating and processing to the end products of lanthanum oxide (La2O3) and samarium-europium-gadolinium (SEG+) concentrate.”

15. Can the offeror propose production volumes above the required minimum annual yield of 500 Metric Tons (MT) of end product from a Light Rare Earth Element bearing feedstock?

Response: Yes the offeror can propose production volumes above the required minimum annual yield of 500 Metric Tons (MT) of end product from a Light Rare Earth Element bearing feedstock.

16. Can the offeror propose a cost share that is not 50% Government share and 50% Recipient share?

Response: Yes the offeror can propose a cost share that is not 50% Government share and 50% Recipient share; however, as stated in Section III.2, Proposed Cost Sharing or Matching, of the Defense Production Act (DPA) Title III Expansion of Domestic Production Capability and Capacity Funding Opportunity Announcement Number FA8650-19-S-5010, ”The Government is required to seek cost sharing in the amount of 50% Recipient and 50% Government to the maximum extent practicable pursuant to DoDGARs Part 37.215 for TIAs. Cost sharing other than 50/50 requires preparation and approval of a special waiver. If the proposal does not include a cost share of at least 50%, the Recipient should provide justification which should address, in detail, factors that demonstrate vested self-interest and/or commitment to the success of the project as discussed in DoDGARs Part 37.215.”

17. Can the Government adjust the number of awards and size of awards?

Response: Yes the Government can adjust the number of awards and size of awards. As stated under the Anticipated Number of Awards on page 2 of the Call Announcement, “The government envisions awarding up to one large separation and processing capability producing greater than 5,000 Metric Tons (MT) annually for up to approximately $35M of Government funding, and one or more small capabilities producing between 500 – 5,000 MT annually for up to approximately $5M Government funding for this Call. This is a funding profile, it is an estimate and is likely subject to change. The Government reserves the right to make multiple awards, a single award, or no award based on technical solutions proposed and funding availability.”

18. The Project Topic Area for this Call Announcement is Sustainment of Critical Production. Does that imply the Call Announcement is only for existing rare earth processing technologies?

Response: No it does not imply the Call Announcement is only for existing rare earth processing technologies. Sustainment of Critical Production is defined in Section I.1.a. on page 3 of the Call Announcement, as “Efforts to create, maintain, protect, expand, or restore industrial base capabilities essential for national defense.” The objective of this effort, as stated in Section 3.0, Objective & Approach, on page 2 of the Statement of Objectives, is “to modify, expand, or equip one or more domestic sources of REE separation and processing capability for Government and commercial needs in order to restore and protect the REE supply chain.”