Final SOO DPA Title III Lithium Seawater Batteries Call 002 17 Sep 2019.pdf

FOR OFFICIAL USE ONLY (FOUO)

LiSB Project

FA8650-19-S-5010

Call 002

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Defense Production Act Title III Lithium Seawater Batteries Project

Statement of Objectives 17 September 2019

1.0 SCOPE

This Defense Production Act (DPA) Title III project shall expand the domestic capability for producing lithium seawater batteries (LiSB). Emphasis will be placed on creation and/or expansion of affordable production processes and effective utilization of industrial manufacturing capabilities to produce LiSB that meet Department of Defense (DoD) performance specifications. The recipient will be a viable, domestic manufacturer who is responsive to customer requirements with respect to quality, delivery and price. Attention will be paid to enhancing merchant supplier capabilities to effectively serve the broad DoD and commercial communities.

2.0 BACKGROUND

The Office of Naval Research (ONR) has developed Next Generation Airborne Passive Sensor

(NGAPS) sonobuoys which have additional energy requirements that existing available batteries are unable to meet. ONR has determined that LiSB would meet the NGAPS energy and form factor requirements. The additional energy provided by LiSB enables substantial increases in

Anti-Submarine Warfare (ASW) sonobuoy endurance, improving the capability of Navy ASW forces to detect, track, and pinpoint potentially hostile submarines that could be threats to Navy carrier battle groups or other forces. Other potential applications for LiSB include deep ocean pipeline monitoring, environmental measurement for oceanographic studies, and commercial studies of seismic activity. The objective of this DPA Title III project is to develop and strengthen the domestic, economically viable production capacity of lithium seawater batteries for sonobuoys and other applications.

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3.0 OBJECTIVES

The objectives identified in Sections 3A, 3B, 3C, and 3D are standard requirements for a DPA

Title III project. The objectives identified in Section 3E are the specific technical requirements for this particular project.

A. Program Management, Administration, and Reporting

1. Manage and implement the project. Monitor and control the project’s cost, schedule, and performance parameters.

2. Establish a cumulative monthly expenditure profile baseline for the government funds. Track the actual and forecasted monthly expenditures against the baseline and report it to the government quarterly.

3. Participate on the project’s Integrated Product Team (IPT) and interface with DPA

Title III project managers and contracting (agreements) personnel.

4. Conduct Quarterly Project Management Reviews (PMRs) and ad hoc Technical

Interchange Meetings (TIMs) as required. At least one PMR in any year shall be conducted at the recipient’s facility. Remaining PMRs shall be conducted by conference call, at the recipient’s facility, or at the DPA Title III Program Offices at

Wright-Patterson Air Force Base. Key sub-awardees should actively participate in

PMRs.

5. Conduct a Technical Project Kickoff Meeting no later than 30 days after contract award.

6. Insure, maintain, operate and service all government and non-government owned capital equipment and tooling (if any) required to produce LiSB. Update and provide the Government Equipment Property List at the time of quarterly PMRs and upon request.

7. Prepare for a No Cost Monitoring Phase (NCMP) after the conclusion of the technical period of performance to demonstrate and support the long-term goals of this project.

This NCMP shall provide the government with insight into the continuing operations and business viability of the recipient, and continued insight into equipment utilization, in the event equipment was procured on this project.

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8. Establish and track Key Performance Parameters (KPPs) with DPA Title III IPT concurrence. Threshold (minimum) and Objective (stretch) targets shall be established for at least two KPPs in each of the following four categories: Product

Quality/Performance, Manufacturing Process efficiency, Financial, and Marketing.

Report KPP performance at quarterly PMRs and as required.

9. Conduct the following reviews as appropriate: preliminary and critical design reviews, test readiness reviews, manufacturing readiness reviews, post-test reviews, and any anomaly reviews. For the manufacturing readiness reviews, a baseline manufacturing readiness assessment (MRA) shall be conducted at the beginning of the project and a final MRA shall be conducted near the conclusion of the project.

10. Manage, including flow-down requirements, partnerships or other business arrangements needed to complete productization and qualification of the tool/equipment to be implemented under Section E of this project.

B. Strategic Business Planning

1. Develop and maintain a strategic business plan:

a. Submit initial plan nine months after initial award; update and resubmit the plan on an annual basis thereafter.

b. Include in the planning the key issues related to the establishment of a competitive and commercially viable merchant supplier of LiSB.

c. Provide performance-to-plan evaluations at regular intervals, with management review comments, to the DPA Title III IPT so long as a contractual relationship exists.

d. Regardless of effort’s period of performance, the comprehensive strategic business planning should cover a minimum outlook of three years, and preferably five years, including all financial statements, actual and forecasts.

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C. Market Planning and New Business Development

1. Develop and maintain a Marketing Plan:

a. Submit initial plan six months after initial award; update and resubmit the plan on an annual basis thereafter.

b. Address current and future customer needs for LiSB.

c. Survey, be responsive to, and report to the government on, (DoD and commercial) customer needs, requests, and trends for LiSB.

d. Provide performance-to-plan updates at regular intervals, including reports on business capture plans (target business awards, actual awards, and missed opportunities), to the DPA Title III IPT as long as a contractual relationship exists.

e. Communicate other factors relevant to markets for the material produced by this facility.

D. Business Viability and Manufacturing capability/experience

1. Address the availability of resources to be employed in developing a plan (Non-deliverable) to become, or maintain a position as, a competitive, economically viable, responsive merchant supplier to the government and commercial sectors for LiSB.

2. Provide evidence of technical understanding and institutional knowledge with respect to LiSB for both the US Government and commercial markets. Evidence may include, but is not limited to, intellectual property, documented manufacturing capability and experience, technical specifications for existing devices, and dossiers of key personnel.

E. Manufacturing Process Development

1. Develop and implement a comprehensive plan (Non-deliverable) detailing all necessary engineering, equipment, facility expansion, sub-recipient requirements, FOR OFFICAL USE ONLY (FOUO) 5 materials, labor hours, and processes required to build LiSB production capacity in a cost effective manner:

a. Install and commission a LiSB pilot line capable of producing circular electrodes, catalyzed cathodes, and LiSB assembly.

b. LiSB system must conform to the A-Size form factor (Inner housing dimensions:

4.75”). Typically 4.5” to allow for LiSB housing and clearance from the sonobuoy housing.

c. LiSB system must be capable of providing 360 mW/in of average power. The nominal usage profile is 50% duty cycling between full power and 5% of full power.

The nominal duty cycle period (ON plus OFF) is 40 minutes.

d. LiSB system must also be capable of providing 214 W-hr/in of energy capacity.

e. LiSB system must also be able to survive water entry impact forces of a minimum of 500-g with 4 milliseconds duration, have an nominal shelf-life of at least 5 years, produce required average power and energy capacity at pressures, temperatures, and dissolved oxygen content commensurate with ocean depths exceeding 15,000ft, and be of a material that can be certified for use aboard US Navy aircraft.

f. The pilot line rate of production requirement is 1,000 LiSB a year in FY24, with a projected full rate production requirement of 13,000 LiSB a year in FY26.

g. Reduce the costs associated with the raw materials required to produce LiSB.

h. The recipient shall identify and establish manufacturing KPPs for the production of LiSB against which targeted objectives to be achieved will be compared, tracked, and periodically evaluated during the program.

i. During manufacturing process development, the recipient shall implement manufacturing improvements to minimize process variation, to improve product quality and yield, and to reduce production costs. This shall be accomplished by incorporating Six Sigma, Lean and other relevant Manufacturing principles as appropriate and as required.

j. The entire manufacturing process shall be under configuration control and auditable by US Government, therefore the recipient shall develop and apply

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Statistical Process Control (SPC) and Design of Experiments (DOX) during production, as appropriate, to meet KPPs and project objectives.

2. Initial LiSB production shall be tested at an independent lab. Detailed analysis of the test results from the independent lab shall be compared and corroborated with the recipient’s internal test results. A comparative analysis of test results shall be included in the recipient’s quarterly Progress, Status and Management Report or in the Final Technical Report, whichever occurs first.

3. The recipient shall conduct a DoD MRA of the final production capability for producing LiSB for Navy Sonobuoys utilizing the NGAPS. The culmination of the final MRA shall include a visit by the Government IPT to review the manufacturing and Process Control Steps demonstrating the recipient’s ability to successfully and repeatedly manufacture LiSB for Navy Sonobuoys utilizing the NGAPS. The final

MRA/Government IPT review shall be conducted in conjunction with the project closeout meeting.

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4.0 SECURITY REQUIREMENTS

4.1 Operations Security (OPSEC) Requirements

All recipients shall participate in all activities associated with the disciplines of the organization’s Industrial Security, Information Security, Personnel Security, OPSEC, Antiterrorism, and Program Protection programs, following appropriate measures in each program as required for this particular agreement. These are required in an effort to reduce program vulnerability from successful adversary collection, exploitation of critical information, and violations of export control requirements. The recipient will ensure that all sub-awardees, if required, conform to these requirements as required by the recipient. Air Force Research

Laboratory/Materials and Manufacturing Directorate (AFRL/RX) Security can provide guidance as needed.

4.2 Program Protection Plan (PPP)

Any potential critical program information (CPI) generated, as part of this project, will be reviewed to determine the need for a PPP or to be included as part of an existing PPP.

4.3 Information Regarding Non-US Citizens Assigned to this Project

A Recipient must still comply as a domestic source, and if a non-United States of America citizen employee works on this project Sections 4.3 and 4.4 must be met:

a) Employees requiring access to United States Air Force (USAF) bases, AFRL facilities, and/or access to U.S. Government Information Technology (IT) networks in connection with the work on this agreement must be U.S. citizens. For the purpose of base and network access, possession of a permanent resident card ("Green Card") does not equate to U.S. citizenship. This requirement does not apply to foreign nationals approved by the

U.S. Department of Defense or U.S. State Department under international personnel exchange agreements with foreign governments. Any waivers to this requirement must be granted in writing by the Grant Officer prior to providing access. The above requirements are in addition to any other agreement requirements related to obtaining a

Common Access Card (CAC).

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b) For purposes of paragraph (a) above, if an IT network/system does not require AFRL to endorse a recipient’s application to said network/system in order to gain access, the organization operating the IT network/system is responsible for controlling access to its system. If an IT network/system requires an U.S. Government sponsor to endorse the application in order for access to the IT network/system; AFRL will only endorse the following types of applications; consistent with the requirements above:

1) Recipient employees who are U.S. citizens performing work under this agreement.

2) Recipient employees who are non-U.S. citizens and who have been granted a waiver. Any additional access restrictions established by the IT network/system owner apply.

4.4 Foreign Participation: Not at prime recipient level.

Foreign Nationals (FNs) can be employed by the US Prime Recipient or Sub-awardee; however, FNs will be limited to Public Domain information unless the recipient has obtained the proper

License of Technical Assistance Agreement that authorizes disclosure of CMI and/CUI to foreign entities pursuant to the Department of State’s ITAR or Department of Commerce’s EAR.

Public Domain information is defined as information that is releasable to the general public and sometimes referred to as open source material. Examples include but are not limited to newspapers, magazines and information posted on the internet.

Any proprietary information will have to be appropriately protected.

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5.0 DELIVERABLES:

The following reporting requirements are defined in TIA Section 7:

Deliverable Item Submittal Requirement

Property Control List Quarterly/As Required

Final Report Draft Final Report due 30 days after completion of the technical phase, Final Report due 90 days after completion of the technical phase Funds & Man-hour Expenditure Report Quarterly

Recipient’s Progress, Status and Management Report Quarterly

Strategic Business Plan 9 months ARO* and annually thereafter Presentation Materials As Required

Recipient’s Billing Voucher Monthly

Marketing Plan 6 months ARO* and annually thereafter

* After Receipt of Order (ARO)