IFB33-0065 JSZV Anchorage Tires.pdf

INVITATION FOR BID (IFB)

SCRAP TIRES SALE

IFB 33-0065

SEALED BID

TERM

DEFENSE LOGISTICS AGENCY (DLA) DISPOSITION SERVICES

74 Washington Ave. North Battle Creek, Michigan 49037-3092

Bid Opening Date July 27, 2020; 1:00 PM EST

Inspection Period Begins June 26, 2020; 1:00 PM EST

By appointment only.

Anchorage Alaska

Sales Contracting Officer (SCO) Drew Pearson Room 2-6-C2

E-mail: drew.pearson@dla.mil Phone: 269-961-5668 mailto:drew.pearson@dla.mil

IFB 33-0065

i

CONTENTS

INTRODUCTION

ITEM DESCRIPTION

TERMS AND CONDITIONS OF SALE

1) SALE BY REFERENCE (SBR)

2) Bid Evaluation and Contract Award

3) Parties to the Contract

4) Contract Financial Retention & Insurance and Bond Requirements

5) Contract Performance

6) Distributions/Payments

7) Product Pool, Material Referrals, Title Transfer, Returns and Material Breach

8) Compliance with Government Regulations

9) Purchaser Responsibilities

10) Government Furnished Equipment (GFE) & Purchaser Owned Equipment

11) Government Facilities

12) Contract Compliance, Audits and Reviews

13) Disputes and Claims

14) Miscellaneous Provisions

15) Government Required Reports

16) Additional Contract Advisements

TABLES:

Table 1: IFB Item Number Details …….………………………………………………….Page 1 Table 2: CLIN, Material, SCL, Descriptions ……………………………………………...Page 1 Table 3: Common Container Size Chart …………………………………………………..Page 23

ATTACHMENTS:

ATTACHMENT A: Sale By Reference pamphlet ATTACHMENT B: Bid Sheet (SF114 and SF114A) ATTACHMENT C: Schedules Workbook (MS Excel)

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

INTRODUCTION

Defense Logistics Agency (DLA) Disposition Services (hereinafter, the “Agency”) is offering a three-year term sales contract for scrap through this Invitation for Bid (IFB). Purchaser shall not be required to perform Scrap Yard Management (SYM).

ITEM DESCRIPTION

Scrap tires (vehicle and/or aircraft) located at or near Anchorage, Alaska.

Generally, scrap material sourced to the resulting contract(s) is considered safe to sell and have no additional restrictions by this Agency. The scrap material issued under this contract shall be assigned a Demilitarization Code of A and B and will be categorized into the SCL(s) listed below. Over the duration of the base period the Government guarantees to issue the Purchaser a minimum total weight equal to the Total QTY identified per SCL specified below, subject to variations as authorized by SBR Part 4, Article 5.

Table 1 provides specific information for the location, material and quantity.

Table 1: IFB Item Number Details

State Site Plant Region Item Material Total QTY

(TONS)

AK Anchorage JSZV Pacific 1 DS000G01A 38 AK Anchorage JSZV Pacific 2 DS000G02A 350 AK Anchorage JSZV Pacific 3 DS000G02B 1

NOTE: Bid is submitted based on Tons, however, bid price will be converted to price per pound due to system parameters. Example: Bid of 0.01000 per Ton would equal 0.000005 per pound.

Table 2 provides information for the Contract Line Item Number (CLIN) for the material listed in Table 1.

Table 2: CLIN, Material, SCL, Descriptions

CLIN MATERIAL SCL DESCRIPTION

1 DS000G01A G01 Rubber tires, Aircraft, with/with-out rim

2 DS000G02A G02 Rubber tires, vehicular, with/with-out rim

3 DS000G02B G02 Not MLI, SOUM Mutilation required/performed, Rubber tires, vehicular, with/with-out rim, Notes

Packing: Loose on ground, packaged and unpackaged, loose in cardboard cartons, wooden boxes, crates and on pallets which are included in sale. Some material may be package in containers that must be returned to the Government. The returnable containers will be identified prior to removal and annotated on the removal documents.

Removal: Base access requirements: Applicant must show vehicle registration, proof of current vehicle insurance and identification that meets the requirements of the REAL ID ACT of 2005. Business hours are Tuesday – Thursday 08:00AM - 2:30PM.

Inspection: Inspection is by appointment only and requires 48-hour notice. Base access requirements: Applicant must show vehicle registration, proof of current vehicle insurance and identification that meets the requirements of the REAL ID ACT of 2005. Business hours are Tuesday – Thursday 08:00AM - 2:30PM.

Bidders interested in inspecting the property under this IFB may travel to the designated site to perform inspection and sampling for the purposes of bidding on this IFB. If the State or local community has “shelter in place” or “stay at home” orders in place for COVID-19, Bidders are authorized to travel as part of the Defense Industrial Base, Essential Critical Infrastructure Workforce for the purpose inspecting property prior to bid opening. The awardee of this sale will also be authorized to perform the conditions of this sale as part of the Defense Industrial Base, Essential Critical Infrastructure Workforce. The SCO can provide letters of confirmation to any bidder to confirm status under Defense Industrial Base, Essential Critical Infrastructure Workforce guidance. Bidders should also be advised that both military installations and Disposition Service sites will be taking additional precautions for entry due to COVID-19. Bidders should contact the POC at least 48 hours before seeking entry to a military installation or Disposition Site in order to be informed on entry requirements.

Loading: Purchaser is responsible for loading Tuesday – Thursday 08:00AM - 2:30PM. Government is not required to assist in loading.

Hours of Operation: Monday-Thursday 08:00AM - 2:30PM excluding Federal Holidays.

Container(s)/Trailers shall be in place within five calendar days after Post-Award conference.

Pick up locations:

1. DLA Disposition Services Anchorage, 12745 Davis Highway, Elmendorf AFB, AK 99506

Primary POC: Kathy Wigginton, Phone: 317-552-0554, Email: Kathy.Wigginton@dla.mil Alternate POC: Patrick A. Smith, Phone: 253-240-3354, Email: patrick.a.smith@dla.mil

Refer to “Schedule F-1” for additional pickup locations.

mailto:Kathy.Wigginton@dla.mil mailto:patrick.a.smith@dla.mil

TERMS AND CONDITIONS OF SALE

Certain contents and provisions of this IFB, including Appendices, Attachments and Schedules, are described in general. Any historical data provided in support of this IFB was derived using existing sources and is presented for general reference only.

1) SALE BY REFERENCE (SBR)

The following general information, instructions and special conditions of sales contained in DLA Disposition Services pamphlet entitled the “Sale by Reference Instructions, Terms and Conditions Applicable to Department of Defense (DOD) Personal Property Offered for Sale by DLA Disposition Services”, published July 2012, are hereby incorporated by reference and become a part of this IFB and any contract resulting from acceptance of a bid submitted pursuant to this IFB as fully as though such instructions, terms and conditions had been specifically set forth herein:

The Terms and Conditions of this IFB supersede the Sales by Reference wherever conflicted.

(A) SALE BY REFERENCE PART 1: General Information and Instructions: All conditions apply except:

paragraph 2, 5, 8 and 12.

(B) SALE BY REFERENCE PART 2: Sale of Government Property General Sale Terms and Conditions: All conditions apply except: 13(c), 19, 28, 29 and 34. Condition 33. DISPUTES is changed to read “Any contract awarded as a result of this sale is subject to the Contract Disputes Act 1978 (41 USC 7101- 7109)”

(C) SALE BY REFERENCE PART 3: Sale of Government Property Special Sealed Bid Conditions: All conditions apply except: D. Read and understand Article E: ALL-OR-NONE BID.

(D) SALE BY REFERENCE PART 4: Sale of Government Property Special Sealed - Term Conditions: Does not apply. Terms and Conditions of this IFB supersede the Sales by Reference Part 4.

(E) SALE BY REFERENCE PART 5: Additional Special Circumstance Conditions - Miscellaneous: All articles apply except: Article A and G. Article D is modified in Part 4, Section 2 of this IFB.

(F) SALE BY REFERENCE PART 6: Additional Special Circumstance Conditions - Demilitarization and Mutilation: Does not apply.

(G) SALE BY REFERENCE PART 7: Additional Special Circumstance Conditions - Hazardous and Dangerous Property: All articles apply.

(H) SALE BY REFERENCE PART 8: Additional Special Circumstance Conditions - Foreign Excess Personal Property: Does not apply.

(I) SALE BY REFERENCE PART 9: Special Spot Bid Conditions of Sale of Government Property: Does not apply.

(J) SALE BY REFERENCE PART 10: Sale of Government Property Special Auction Conditions: Does not apply.

2) Bid Evaluation and Contract Award

Section 1 – Bidding Process: The bid shall consist of an amount per unit of issue specified in U.S. currency.

Prospective bidders should be aware of certain risk factors that could affect a Bidder’s assessment of this contract and the calculations supporting the resulting bid. Under no circumstances is the Agency or the Government responsible for any assumptions, planning factors, or decisions the Bidder made related to determining their high bid. This is a firm fixed price contract where the bid price is expressed in US currency specified by the Bidder, per unit of issue. The Government expects the Bidder/Purchaser to perform all the requirements under this contract at the bid price submitted by the Bidder. At no time shall the Government pay the Purchaser to take material offered.

There shall be no reimbursement to the Purchaser under this contract except for the limited circumstances related to reimbursement of actual expenses incurred for return of property directed by the Government. The Government is not responsible for any indirect, inconsequential, or completeness (through assumption of sales value, act or omission of factors) of expenses related to performance under this contract. The measure of the Government’s liability, in any case where liability of the Government to the Purchaser has been established, shall not exceed refund of such portion of the purchase price as the Government may have received.

(A) How to bid: Bidders shall use the SF114 and SF114A (Attachment B) or SF114A Local Reproduction (Schedule H, Bid Worksheet) documents provided with this IFB to submit a bid. Bidder shall enter bid as a price per unit of issue, as defined in Table 1, not to exceed five decimal places (example 0.01005).

Minimum bid is .01000 per unit of issue. Multiply your bid price by the quantity specified for extended bid amount.

(B) Where to submit bid: DO NOT email bids or call in bids directly to the SCO.

• Bids shall be submitted via email only to: DRMSSALESBIDS@DLA.MIL

(C) A responsive bid is a bid that complies with the terms and conditions of the sales offering, and satisfies the requirements as to the method and timeliness of the submission. Only responsive bids may be considered for award. A responsive bid submission shall contain at a minimum:

1. SF114 (Attachment B) completed and signed

2. SF114A (Attachment B) or SF114A Local Reproduction (Schedule H, Bid Worksheet)

(D) When to send bid: Bids must be in the possession of the Agency’s Public Sales Contracting Division by the bid opening date and time specified in this IFB. If the bid is not submitted on time, it shall be considered non-responsive.

(E) How to modify/cancel bid: In addition to SBR Part 3, Articles B and C, by submitting a new bid in the same manner as the previous bid. Separately, without disclosing bid amounts, notify the SCO of the modification. To cancel a bid submit a zero (0) bid in the same manner as the original bid. Notify the SCO of the bid cancellation (specify date, time and method of bid submission).

(F) Bid Acceptance Period: The bid must remain valid 90 calendar days from the bid opening unless otherwise modified or cancelled.

(H) Technical Issues with the E-sales website: Call 1-877-DLA-CALL (1-877-352-2255).

Section 2 – Bid Evaluation: A responsible bidder is one that has the necessary organization, experience, financial resources, accounting process, operational controls, technical equipment and facilities, or the ability to obtain them, to perform the requirements of the sales contract, and has no disqualifying factors (i.e., is not suspended, debarred or an ineligible transferee). A responsive bidder is one that has complied with all instructions for properly submitting a bid. A responsible bidder is one that is able to pass the vetting process and is determined through the screening process to be an eligible transferee. Submitting the highest bid price does not convey any special right nor does it imply that the Purchaser shall be the primary removal company or exclusively allowed to remove throughout the term of this contract. The Government reserves the right to reject any bids that are not in the best interest of the Government. The general standards in FAR Part 9 on contractor responsibility determinations that are applicable to procurement contracts are not directly applicable to sales contracts awarded under 40 U.S. Code § 545, but may be considered by the Sales Contracting Officer in evaluating bidder responsibility.

Section 3 – Ineligible Bidder: Bidder will not be eligible for award if they are:

(A) Excluded from Federal programs by the General Services Administration as identified in the System for Award Management at https://beta.sam.gov/.

(B) Subject to denial, suspension, debarment, or other sanctions pursuant to export control and related laws, regulations, or orders administered by the DOS, DOC, DHS, or USTD. The DOS, DOC, DHS, and USTD name these entities, individuals, and countries in the Federal Register and at the following website: Consolidated Screening List Search Engine (https://legacy.export.gov/csl-search).

Section 4 – Pre-Award Survey: After bid opening and prior to award, the Government will conduct a Pre-Award survey of only the Apparent High Bidder. The Apparent High Bidder will be required to submit a DLA Form 2536 Statement of Intent (SOI) parts 1-6 must be complete and signed. The Apparent High Bidder shall be required to provide detailed information on every storage location the Apparent High Bidder intends to use within the region.

The Pre-Award survey may be conducted at the Apparent High Bidder’s facility(ies) or other location(s) as deemed necessary by the Government and may include but is not limited to a review of Apparent High Bidder’s facilities and equipment, financial capability or disclosure of the Apparent High Bidder’s financial condition, quality assurance, safety, environmental responsibility and transportation capabilities. The Apparent High Bidder shall cooperate in the Pre-Award process by assisting in arrangements and/or by providing requested information in a timely manner. The Apparent High Bidder is advised that a positive Pre-Award survey or providing documents to the Government is part of the evaluation to determine their responsibility and is not a guarantee that the Apparent High Bidder will receive the award of a contract. Once notified that you are the Apparent High Bidder, you will have three working days to complete and return the DLA Form 2536 (SOI) to the SCO. The SCO will provide the form(s) at notification.

(A) Pre-Award Survey may include but is not limited to the following:

(1) When determined by the SCO, the Purchaser’s facility shall pass an inspection by Agency personnel prior to contact award.

(2) Environmental Responsibility Determination (ERD)

(a.) The Environmental Support Branch of Disposition Services will conduct an ERD on sale destinations to verify if the DOD purchased property will be managed in accordance with the Invitation for Bid, Statement of Intent, Federal, State, and local regulations. All downstream facilities receiving Government property to be processes shall be listed in the Statement of Intent.

Downstream recipients of Government property which has already been processed need not be listed.

(b.) ERDs may take up to 10 business days to complete. Any findings annotated by the Government during an ERD must be corrected prior to a proposed destination/facility’s use.

Purchaser is not authorized to process Government material at a site other than those listed on the

SOI.

(c.) Should Purchaser desire to use an alternate or additional destination at any time during the performance period, Purchaser will provide an updated SOI. Purchaser is not authorized to use a https://beta.sam.gov/ facility that has not been through the ERD process.

(3) Necessary licenses, permits and certifications shall be reviewed.

(4) Prior to the award of a contract, the SCO or his authorized representative shall determine whether the potential Purchaser has the necessary permits/licenses, experience, organization, and technical qualifications (either through its own facilities or facilities of a subcontractor) to perform the work specified in this contract and is capable of complying with the applicable Federal, State and local laws, ordinances and regulations.

(B) If at any point the SCO determines the bidder that submitted the apparent high, responsive bid cannot be found responsible, the next highest bidder will be assessed in the same pre-award survey process. This same process of vetting the next highest responsive bidder may continue, at the sole discretion of the Sales Contracting Officer, until a responsive bidder is identified and is determined to be responsible.

(C) In the event that two or more bidders submit responsive bids for the exact same bid amount, and both are considered the apparent high bidder, the Sales Contracting Officer will conduct the pre-award survey vetting process on all apparent high bidders that have submitted responsive bids for the same amount. After the vetting process is completed, if the Sales Contracting Officer determines that there are two or more apparent high bidders and both are determined to be responsible, other factors of the sale (i.e. capability, capacity, removal rate and processing etc..)

that would make one offer more advantageous to the government will be considered to make an award.

Section 5 – Contract Award: The SCO shall determine if each bid is responsive and responsible prior to award of the contract. The contract shall be awarded to the highest responsive, responsible bidder. In the event of a termination of the original Purchaser within 90 calendar days of the date of bid opening, the SCO may award the contract to the next highest responsive, responsible bidder if bids have not expired, and such award is otherwise determined to be in the Government's best interest.

(A) This is not a service contract awarded or administered in accordance with the Federal Acquisition Regulations (FAR). This is a sales contract for the sale of scrap that will be awarded and administered pursuant to the provisions in Title 40, US Code, Chapter 5.

(B) The Government intends that a single award will be made to a responsible bidder with the highest priced responsive bid, unless a determination is made to reject the bid under 41 CFR § 102-38.205.

(C) Under 41 CFR § 102-38.205, the Agency reserves the right to accept or reject any or all bids. The Agency may reject any or all bids when such action is advantageous to the Government, or when it is in the public interest to do so.

(D) When you have successfully completed the pre-award assessment as the apparent high bidder, you will receive a Notice of Award indicating a prepayment of 20% of the total bid price. Submit payment within three business days of the Notice of Award.

(E) When prepayment is posted and confirmed by the SCO; and all other vetting has been completed, the official signed Notice of Award DLA Form 2541 will be sent to the Purchaser. At this time property is authorized for release. Purchaser shall have 30 days from this official notification to become fully mission capable.

Section 6 – Post-Award Conference: The Government shall conduct a post-award conference within 10 calendar days after award. The purpose of the conference is to ensure the Purchaser fully understands the terms and conditions of this contract. The Agency shall determine the method, date, time and location of the post award conference. The Purchaser is responsible for any cost incurred by their organization and staff. The Government shall not provide any compensation for costs incurred to attend meetings.

3) Parties to the Contract

Section 1 – Purchaser Information: Within 10 calendar days of the date of contract award, the Purchaser shall provide the Agency the following information: Designation of key persons, to include their full name, title, telephone number, email address and a synopsis of their duties under the contract. Purchaser shall provide the SCO notification of any changes to the above within 10 calendar days of the change.

Section 2 – Transfer and Hypothecation:

(A) General Prohibition - Except as specifically provided herein or specifically approved by the Agency in writing, the Purchaser shall not directly or indirectly sell, transfer, assign, pledge, offer as collateral or otherwise hypothecate all or any part of its rights or obligations under the contract.

(B) Attempted Transfer - Any attempted transfer in violation of the provisions of this Article shall be invalid and shall constitute a material breach of this contract.

Section 3 – Contract of Sale:

(A) Relationship of Parties - This contract is an agreement for the sale of the material by the Agency as seller to the Purchaser. Purchaser and the Agency expressly disavow the creation of any other relationship, including without limitation principal-agent, master-servant, employer-employee, general or limited partnership, or joint venture, between the Agency and the Purchaser.

(B) Parties to the Contract: The parties to this contract are the Agency and the Purchaser.

Section 4 – Authority of Sales Contracting Officer (SCO): On behalf of the Agency, the SCO has the authority to represent the Agency and to commit the Agency to take such actions as permitted or required and to extend or waive timing requirements or deadlines as may reasonably be required under the performance of this contract. The exclusive representative of the Agency for all purposes under this contract is the SCO, and all notices, demands, requests, consents, approvals, declarations, reports and other communications to the Agency from the Purchaser shall be deemed invalid unless addressed to the SCO. Communications from the Purchaser to anyone other than an SCO shall not be deemed received by the Agency.

Section 5 – Authority of Sales Point of Contact (SPOC): The SPOC acts as the eyes and ears of the SCO. The SCO designates the SPOC to provide direct oversight of the Purchaser and/or their agents to ensure they meet the terms and conditions of the contract.

4) Contract Financial Retention & Insurance and Bond Requirements

Section 1 – Prepayment: Within ten calendar days of contract award, Purchaser shall provide the Agency a prepayment in the amount equal to 20% of the total extended bid value. The prepayment shall be in the form of a guaranteed instrument (cashier’s or certified check), Electronic Funds Transfer (EFT), or via wire payment. Payment options and instructions will be provided to the apparent high Bidder with the Notice of Award.

The Agency shall retain the prepayment until the completion of the contract closure period, no later than 120 days after the end of the performance period. The prepayment shall be applied to any unpaid billings or to offset any other claim that the Agency may have against the Purchaser. The Agency shall return any available balance of the prepayment, without interest, to Purchaser at the completion of the contract closure process.

Section 2 – Insurance and Bond Contract Requirements: Purchaser shall obtain and maintain the following insurance and bond requirements throughout the performance and wind-down period:

(A) Modification of Special Circumstance Conditions: Sale by Reference (SBR) Part 5 - Additional Special Circumstance Conditions – Miscellaneous (DRMS Form 86, Oct 93), Article D, Liability and Insurance, paragraphs (a)(2) and (a)(3) is modified as follows:

(1) Bodily Injury Insurance in an amount of not less than $250,000 any one individual and

$1,000,000 for any one accident or occurrence.

(2) Material Damage Liability Insurance in the amount of $250,000 (which shall include any and all material whether or not in the care, custody or control of Purchaser). The annual coverage shall be not less than one million dollars $1,000,000.

(B) Further Modifications: Sale by Reference Part 5, Article D, paragraph (a) is also amended as follows:

(1) All risk coverage for fire and other material perils for all material owned by Purchaser with aggregate coverage of $5,000,000.

(2) Umbrella liability coverage not less than $2,000,000.

(3) Fidelity or blanket bond coverage for $5,000,000. Purchaser shall obtain and maintain such coverage with a responsible surety company with respect to all of Purchaser's employees, officers and directors to protect Purchaser against losses, including, without limitation, those arising from theft, embezzlement, fraud, or misplacement of funds, money, or documents. The issuer, policy terms, forms, and amounts of coverage, including applicable deductibles, shall be satisfactory to the Agency, and the policy shall include a provision that the issuer shall notify the Agency in writing within five business days of the cancellation or termination of any such coverage or of any modification of such coverage. Purchaser shall notify the Agency in writing within five business days after filing a claim under such coverage.

(4) Comprehensive general liability, automobile liability, umbrella liability, Worker’s compensation and other insurance coverage as may be required by law. At its option, Purchaser may obtain and maintain such additional insurance, including directors and officers coverage and errors and omissions coverage, as Purchaser deems appropriate.

(C) Evidence of Insurance: Within 10 calendar days from the date of award, Purchaser shall provide the

SCO copies of policies, certificates of insurance or other proof evidencing the coverage required.

Purchaser shall obtain the minimum coverage specified unless the Agency approves a variance from such minimum coverage.

5) Contract Performance

Section 1 – Performance Period: The performance period of the contract resulting from the IFB shall consists of a 36-month base period, followed by two 12-month option periods that may be exercised at the Sales Contracting Officer’s (SCO) discretion. The contract also contains an available six-month extension period that may be offered at the SCO’s discretion at the end of each performance period, under the same terms and conditions of the contract.

In the event the extension is utilized, the SCO shall advise the contractor in writing 30 calendar days prior to the expiration of the current period of performance period. The extension may be utilized in 30-day increments, a combination of 30-day increments, or in its entirety. The entire length of the contract, if all option periods and extension are used, shall not exceed five years.

Section 2 – Regulatory Compliance: The Purchaser shall assume full responsibility and liability for compliance with all applicable Federal, State, local codes and DOD regulations pertaining to the health and safety of personnel and environmental management during the execution of loading and Demilitarization/Mutilation operations. All work shall be completed and performed IAW the best practices of the trade and in compliance with all applicable Federal, State, local codes and IAW regulations.

Section 3 – Environmental and Safety Notice: It is the responsibility of the Purchaser to ensure that the ultimate end use of the property is performed in an environmentally compliant manner. As such, prior to the award of any hazardous item, each high bidder’s premises and/or the intended disposal facility may be subject to an on-site inspection by a Government representative. All Bidders/Purchasers are advised that they must comply with all applicable Federal, State and local laws, ordinances, regulations, etc. with respect to human safety and the environment during the processing, use, or disposal of material purchased from the DOD.

Section 4 – Termination for Convenience of the Government: The Government may terminate performance of work under this contract in whole or, from time to time, in part if the SCO determines that a termination is in the Government’s interest. The SCO shall terminate by delivering to the Purchaser a Notice of Termination specifying the extent of termination and the effective date.

After receipt of a Notice of Termination, and except as directed by the SCO, the Purchaser shall immediately proceed with the following obligations, regardless of any delay in determining or adjusting any amounts due under this clause:

(A) Stop work as specified in the notice.

(B) Unless otherwise directed by the SCO, place no further subcontracts.

(C) Terminate all subcontracts to the extent they relate to the work terminated.

(D) Coordinate with the SCO the return of any material issued to the Purchaser to the Government in which title has not transferred.

(E) With approval or ratification to the extent required by the SCO, settle all outstanding liabilities and termination settlement proposals arising from the termination of subcontracts.

(F) Take any action that may be necessary, or that the SCO may direct, for the protection and preservation of the material related to this contract that is under title and/or in the possession of the Purchaser in which the Government has or may acquire an interest until surrendered to the Government or its agent. The Purchaser and SCO shall agree on payment for the preservation and protection of goods. Failure to agree on an amount shall be a dispute under the Disputes clause.

The Purchaser shall submit a complete termination inventory list, by location, containing SCL, description and quantity no later than 30 calendar days from the effective date of termination unless extended in writing by the SCO, upon written request of the Purchaser, during this 30 calendar day period. The Government will review the inventory list within 14 calendar days. The Purchaser shall receive an approved list of items of which they can retain title. The retention of title of these items shall be by mutual agreement. Purchaser shall submit a substantiated Request for

Equitable Adjustment (REA) for any expense incurred outside the scope of this contract. Projected lost revenue and expenses incurred for normal execution of the terms and conditions specified within this contract are not reimbursable. The cost principles and procedures of Part 31 of the FAR, in effect on the date of this contract, shall govern all costs claimed, agreed to, or determined under this clause.

If the Purchaser and the SCO fail to agree on the amount that may have been determined due to the Purchaser by the Government, due to the termination of the public sales contract, the Government will pay the Purchaser the amounts determined by the SCO within the specified time. Any amount due to be paid by the Purchaser and not paid within the specified time period shall be charged interest fees based on the rate determined by the Secretary of Treasury.

The Purchaser shall have the right of appeal, under the Disputes clause (see SBR Part 2, paragraph 33 as referenced above), from any determination made by the SCO, except that if the Purchaser failed to submit the termination settlement proposal or a request for equitable adjustment within the time provided.

The following shall be deducted from any amount due the Purchaser under this clause:

(1) Any claim which the Government has against the Purchaser under this contract; and

(2) The agreed price for, or the proceeds of sale of, materials, supplies, or other things acquired by the Purchaser or sold under the provisions of this clause and not recovered by or credited to the Government.

If contract is partially terminated, this clause has the same full effect.

Unless otherwise provided in this contract or by statute, the Purchaser shall maintain all records and documents relating to the terminated portion of this contract for six years after final settlement. This includes all books and other evidence bearing on the Purchaser’s costs and expenses under this contract. The Purchaser shall make these records and documents available to the Government, at the Purchaser’s office during normal business hours without charge. Records and documents may be digitally scanned for electronic storage at no cost to the Government. The SCO shall provide records management documentation to record the location(s) of physical and/or electronic records and documents.

Section 5 – Purchaser Early Cancellation Notice: If the Purchaser elects to terminate prior to the term of this contract the Purchaser shall provide the Government a notice to terminate and shall continue the terms of the contract for 30 calendar days following the termination to include the closeout process.

Section 6 – Purchaser Provisions: The Purchaser shall provide all properly trained labor, equipment, tools, personal protective equipment, material, licenses, fees, permits, certifications supervision, transportation, manifests, and all other items and services necessary to perform the recycling/disposal of used tires/scrap tires made available by the Government. The Purchaser shall provide the method of disposal to the Sales Contracting Officer when requested by the SCO through submittal of a DLA Form 1822, End Use Certificate (EUC). The Purchaser agrees to provide all services/items necessary for the recycling/disposal of all property listed in the schedule in accordance with all local, state and Federal laws and regulations, and the terms and conditions of this contract.

Section 7 – Purchaser Operations: The Purchaser must perform all operations in a prudent, conscientious, safe and professional manner. At a minimum, Purchaser’s personnel and equipment shall comply with applicable Federal State, local and installation laws, safety regulations and procedures. The Purchaser will ensure that its agents, employees, and subcontractors perform in a safe manner. The Purchaser shall ensure that all personnel involved in handling, transporting and recycling/disposal of scrap tires/rubber be trained for the level of expertise required for the proper performance of the task and, in particular, in the areas of use of material handling equipment, proper lifting techniques, general First Aid procedures and spills. Handling and protective equipment shall be provided by the contractor and must be appropriate to ensure safe handling of the scrap tires/rubber. When operating within an

Environmental Protection Agency (EPA) or state permitted Department of Defense (DOD) Hazardous Waste (HW) storage Facility, the Purchaser is required to use forklifts with specifications that meet the applicable permit requirements. When operating at a non-permitted DOD HW storage facility, the Purchasers are required to use only DY, EE, or EX rated forklifts to traverse through or within 50 feet of flammable property as defined by Occupational Safety and Health Administration (OSHA). The contractor agrees that his personnel and equipment are subject to safety inspections by Government personnel while on federal property.

Section 8 – Final Recycling/Disposal: For this action, recycling includes beneficial use, re-use, recycling or reclaiming the scrap rubber on this contract, and associated material such as metal when rims or full wheel assemblies are handled. Recycling and/or strictly disposal of the scrap rubber (and rims if include) without recycling are only authorized at facilities that are appropriately licensed/permitted by local/state agencies to conduct them.

The following also applies for all items removed under this contract that are beneficially used, re-used, recycled or reclaimed, or strictly disposed of.

(A) The Purchaser is also required to use transporters registered in the appropriate state(s)as necessary for transporting tires under this contract.

(B) An audit trail must be provided to the facility that will beneficially use, re-use, recycle, reclaim or dispose of the scrap rubber, or any component thereof.

(C) Applicable Certificates of Recycling provided by the recycling facility, tire manifests and any other required certificates shall be provided to the DLA Disposition Services location’s Sales Point of Contact (SPOC) coordinating the removal (whether recycling is required by regulation, e.g. state requirements for the location(s), or the Purchaser voluntarily recycles the tires). Provide DLA Disposition Services’ SPOC copies of all documentation evidencing the quantity of weight removed matching the weight processed (destructed/mutilated, re-used, recycled, reclaimed or disposed).

6) Distributions/Payments

Section 1 - The Billing Cycle: Transactions from the 25th of the previous month to the 24th of the current month will be invoiced for the billing cycle.

Section 2 - Types of Acceptable Payments: All payments, including those for storage charges, liquidated damages and interest shall be in U.S. currency. Payments by Electronic Fund Transfer (EFT), cashier’s check, certified check, travelers check, bank draft, money order or credit card (Master Card, Visa, Discover Card, and/or American Express). Make checks payable to the U.S. Treasury are acceptable. When using a credit card method of payment, the credit card number, credit card security code (3-or 4-digit code on the back of the card), name as printed on the credit card, and the expiration date shall be provided. The U.S. Treasury limits all credit card transaction to $24,999.99. Transactions greater than $24,999.99 cannot be split into two or more credit card transactions. Bidders whose payment is accompanied by a letter of credit or who have on file an approved bid bond (SF 24 or SF 34) may make their payments by uncertified personal or company checks, but only up to an amount equal to the penal sum of their bond or the amount of their letter of credit.

Address all hand-carried or delivered payments to the following:

DLA Disposition Services ATTN: Cashier 74 N. Washington St.

Battle Creek, MI 49037

Credit Card payments within the United States can be made using the website at:

https://www.pay.gov/paygov/forms/formInstance.html?agencyFormId=25176217 Should Purchaser need to make a payment for less than $1.00, the website credit card payment method cannot be used. Instead, Purchaser will be required to complete the manual credit card form and fax it to (269) 961-7230.

Section 3 – Payment Confirmation: The Government does not provide payment confirmation. Purchaser shall submit proof of each payment to the SCO, showing type of payment, amount, and date submitted. The SCO will ensure payment is applied to the Purchaser’s account.

Section 4 – Consequences of late or short payments: If full payment is not received within 30 calendar days of the bill, interest shall be charged on the unpaid portion at the rate established by the U.S. Treasury from the date of the bill in accordance with Section 3717 Title 31 of the U.S. Code. After 30 calendar days from the bill date, the Government will collect from the pre-payment taking offset action against any of the Purchaser’s unpaid invoices. If the debt is forwarded to the DFAS Debt Management Office, Contract Pay Services, Columbus, Ohio; the Purchaser shall be assessed an administrative fee of $26 to cover costs specifically associated with the administration and collection of payments over 30 calendar days delinquent.

If full payment is not received within 90 calendar days from the date of the bill, the Government will transfer the debt to the Debt Management Office for collection and an additional administrative charge of $50 will be assessed. They will continue the collection process and if unsuccessful, shall transfer the delinquent debt to the Department of Treasury for further collection. Because of this transfer, the following actions may be taken:

(A) The debt shall be subject to the Department of Treasury offset from Federal payments due (owner or company, as applicable). A fee for each offset made will be added to the debt as part of the administrative charge. Federal payments eligible for offsets include contract payments, Federal income tax refunds, and other payments not exempt.

(B) The debt may be reported to a credit bureau.

(C) The debt may be referred to a private collection agency. In such instance, a fee for collections made shall be added to the debt as part of the administrative charge.

(D) The debt may be referred to the Department of Justice for litigation. In such case, an administrative cost will be added to the debt.

The Purchaser may inspect and/or request a copy of the records pertaining to this debt. If the Purchaser believes the debt is invalid or the amount is incorrect, please contact the SCO immediately. If the Purchaser is financially unable to pay the full amount of the debt, the Purchaser may request a written agreement to pay the debt in installments. The Purchaser’s request for an installment agreement shall be in writing and supported by certified statements of income and financial position covering the last 12 months. The point of contact for this debt is the Sales Contracting Officer listed on the Notice of Award document.

7) Product Pool, Material Referrals, Title Transfer, Returns and Material Breach

Section 1 – Product Pool: Generally, scrap material sourced to the resulting contract(s) is considered safe to sell and have no additional restrictions by this Agency. The scrap material issued under this contract shall be assigned a Demilitarization Code of A indicating that demilitarization or mutilation is not required and will be categorized into the SCL(s) listed below. Over the duration of the base period the Government guarantees to issue the Purchaser a minimum total weight equal to the Total QTY identified per SCL specified below subject to variations as authorized by SBR Part 4, Article 5.

Section 2 – Material Flow: The material is by SCL as weight in unit of issues (i.e. LB, TN, KG), by each location.

The Agency has established field locations and other receipt-in-place locations to meet the needs of our customers.

The Agency does not represent that the locations and the number of locations are enduring and does state that all locations are subject to change based on the needs of our customers.

Section 3 – Material Referral: The Government has sole discretion to determine when and what material shall be issued to the Purchaser, and the Purchaser has a contractual obligation to purchase and accept all material referred by the Government as specified in the contract. The Purchaser is not required to take hazardous material or material that could pose a risk to national security, environmental or personnel safety or health issue such as mold and asbestos containing materials. Under no circumstances is culling for effecting partial or incremental removals authorized. The Agency reserves the right to sell material or offer material through alternative sales or contract means for all material not considered part of this contract.

Section 4 – Classified Material: Performance of this contract neither requires nor authorizes the Purchaser to handle classified property or documents. Should Purchaser’s employees handle actual or suspected classified property or documents, the Purchaser shall immediately secure the documents or property from both physical loss and compromise then immediately notify the Agency’s Site Lead and the SCO of the discovery. The Purchaser shall submit a SF364 ROD as outlined below. The Agency will arrange for pick up and removal of such material. Under no circumstances shall the Purchaser release the property or documents to anyone other than designated personnel. If the contents of said documents or property are at a level that requires debriefing, the Purchaser’s personnel shall be made available to the proper Government authorities for this action.

Section 5 – Material Potentially Presenting an Explosive Hazard (MPPEH): Performance of this contract does not require nor authorize the Purchaser to handle MPPEH. Despite all best efforts by the Government, MPPEH may be discovered; the Purchaser shall immediately take the necessary action for protection of personnel and property.

This shall include the evacuation and security of the immediate area. The Purchaser shall not attempt to handle or move the suspected property until a technically qualified trained Government representative investigates the incident. The Purchaser shall notify the Agency’s Site Lead and the SCO of the discovery immediately and submit a SF364 ROD outlined below. The Agency will arrange for pick up and removal of such material.

Section 6 – Radioactive Property: Performance of this contract does not require nor authorize the Purchaser to handle radioactive property. Despite all best efforts by the Government should property activate a radiation detector alarm; the Purchaser shall immediately take the necessary action for protection of personnel and property. This shall include the evacuation and security of the immediate area. The Purchaser shall not attempt to handle or move the suspected property until a technically qualified trained Government representative investigates the incident. The Purchaser shall notify the Agency’s Site Lead and the SCO of the discovery immediately and submit a SF364 ROD outlined in Part 15 starting on page 38. The Government will arrange for pick up and removal of such material.

Section 7 – Hazardous Property: Performance of this contract does not require nor authorize the Purchaser to handle Hazardous Property. Despite all best efforts by the Government, if Hazardous Property is discovered, the

Purchaser shall immediately take the necessary action for protection of personnel and property. This shall include the evacuation and security of the immediate area. The Purchaser shall not attempt to handle or move the suspected property until a technically qualified trained Government representative investigates the incident. The Purchaser shall notify the Agency’s Site Lead and the SCO of the discovery immediately and submit a SF364 ROD outlined below. The Government will arrange for pick up and removal of such material.

Section 8 – Other than "Demilitarization Code A” Scrap Property: Performance of this contract DOES NOT require the Purchaser to receive nor process other than “Demilitarization Code A” scrap property. Should Purchaser employees suspect other than “Demilitarization Code A” scrap property, the Purchaser shall immediately secure the property and notify the Agency’s Site Lead and the SCO of the discovery immediately. The Purchaser shall notify the Agency’s Site Lead and the SCO of the discovery immediately and submit a SF364 ROD outlined in Part 15 starting on page 38. The Government will arrange for pick up and removal of such material.

Section 9 – Safety of Use Message (SOUM) property: At the Government’s discretion, certain items may be deemed unsafe for use as identified in a SOUM. Under the terms of mutual agreement, Purchaser may elect to perform the required scrapping or return any items to the Government.

Section 10 – Material Surges: Purchaser acknowledges that during the performance of this contract, changes in Government processes, procedures, policies, regulations or laws could result in a large volume of material turned in to the Agency that could ultimately be referred under this contract. The Agency and the Purchaser agree to cooperate and institute special procedures as necessary in connection with processing material surges. Any costs of the increased workload upon the Purchaser would not be at any additional costs to the Government.

Section 11 – Disposition of Tires: The Government considers the Purchaser to be the Subject Matter Expert (SME) on making the determination for the disposition of tires. The Purchaser agrees to indemnify and hold harmless the Government for any liability resulting from the tires resold or repurposed.

Section 12 – Demilitarization Code Assignment: Other 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. The Agency has no control over the demilitarization coding of individual items or commodity streams. The Agency‘s customers determine material for turn-in. The Agency cannot forecast future commodity streams or quantities. Historical quantities are provided for planning purposes only and are not indicative, warranted, or guaranteed in any form that may indicate future commodity streams or quantities delivered under this contract.

Section 13 – Foreign Attachments: Most SCLs include foreign attachments as part of the total weight. The weight of foreign attachments is an important factor in determining bid amounts. Foreign attachments are not dunnage or miscellaneous debris.

Section 14 – Miscellaneous Debris and Dunnage: Any open container is susceptible to miscellaneous debris, which may include but shall not be limited to cardboard, dirt, sand, snow, water, rocks, glass, rubber pieces, wood…