PWS CF PWS_Final_11-16-2022.pdf

Polyacrylonitrile (PAN) Carbon Fiber PWS

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Performance Work Statement

STORAGE AND ROTATION OF NATIONAL DEFENSE STOCKPILE

Polyacrylonitrile (PAN) Carbon Fibers

1 INTRODUCTION

The Defense Logistics Agency (DLA) Strategic Materials, also referred to as the Government, has six (6) different types of Toray Industries Inc. polyacrylonitrile (PAN) carbon fibers in the National Defense Stockpile (NDS). DLA Strategic Materials intends to award a single, Firm Fixed Price (FFP) contract to store, maintain, and rotate those carbon fiber materials which will be provided as Government Furnished Materials (GFM).

2 BACKGROUND

The synthetic high-performance carbon fibers are used in various critical Department of Defense (DoD) and National Security Space (NSS) applications such as rocket motors, missiles, pressure vessels, manned and unmanned military aircraft, helicopter blades, commercial launch vehicles, wing structures, and satellites. These systems are critical for global precision, intelligence, surveillance, and reconnaissance (ISR), and sustained engagement capabilities.

There are many types of PAN carbon fibers, and most are produced to proprietary specifications unique to individual companies rather than to an agreed upon set of public standards. As a result, individual fibers are unique to single firms and, for defense and space applications, are qualified on a sole-source basis. T800H, T1000G, M46J, M55J, M60J (3K), and M60J (6K) are all manufactured in Japan by Toray Industries Inc. (Toray). T800H and T1000G – a high-strength, intermediate modulus fiber, M46J – a high modulus fiber, and M55J and M60J (3K and 6K) – ultra-high modulus fibers, are critical constituents in advanced composite materials. These synthetic fibers are used in key missile defense systems such as the United States Army Patriot Advanced Capability-3 (PAC-3) and the United States Navy (USN) Standard Missile-3 (SM-3);

high priority unmanned intelligence, surveillance and reconnaissance (ISR) aircraft such as the United States Air Force Global Hawk and Predator, and the USN Broad Area Maritime Surveillance-Demonstrator (BAMS-D); and numerous space and satellite systems, such as THEMIS satellite and James Webb Space Telescope, as well as various classified programs.

To ensure DoD and NSS has access to a supply of these materials, DLA Strategic Materials received Congressional authority to procure high modulus and high strength carbon fibers.

Through research on these fibers, the Government has procured (6) different types of Toray PAN carbon fibers that include T800H, T1000G, M46J, M55J, M60J (3K), and M60J (6K) for the

NDS.

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3 SCOPE

The Contractor shall store, maintain, and rotate a domestic inventory of T800H, T1000G, M46J, M55J, M60J (3K), and M60J (6K) that will be provided by the Government as GFM). The existing NDS inventory of these materials is provided in Table 1. The Contractor is required to maintain an inventory of these carbon fibers equal to the quantities described in this PWS. The Contractor must agree to hold the inventory levels, as stated in Table 1 and not sell these materials unless authorized by the Contracting Officer.

The Contractor shall also rotate the inventory. For context, rotation is defined by selling the material through Contractor to Contractor sales, and then replenishing the inventory back to 100% with new material.

As part of the Deliverables outlined in Section 10, the Contractor shall develop a schedule plan for rotation and delivery outlining the amount, type of fiber, and anticipated re-stock dates. The rotation schedule must identify lots of each fiber and their amounts in pounds (lbs).

Table 1: NDS Quantities by Each Carbon Fiber Type

EXECUTION

YEAR

NDS INVENTORY (LBS.) TOTAL

MATERIAL

(LBS.)

M46J M60J (6K)

M60J (3K) M55J T1000G T800H

FY23-FY25 17,989.620 194.010 198.410 11,190.601 10,846.684 9,471.006 49,890.318

The period of performance is one (1) base year and two (2) option years for storage and rotation of the carbon fiber materials.

A Contracting Officer’s Representative (COR) will be appointed at time of contract award.

4 Tasks The following section describes the Contractor specific tasks.

4.1 Store the strategic carbon fiber materials within the Continental United States in a manner to ensure chain of custody using the existing storage process established by the Contractor and agreed upon by the Government. The Contractor storage facility shall have 24 hours per day, 7 days per week continuous security surveillance. With approval from the Government, use the established inventory to support other Contractor to Contractor sales.

Re-stock to 100% inventory levels within 120 calendar days after approval date of rotation requests. The Government will verify that the stock is back to 100% within 60 calendar days of the restocking.

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4.1.1 Changes that negatively impact the Contractor’s capability to deliver the products must be reported in writing to the Contracting Officer within ten (10) business days after the Contractor becomes aware of such an impact. Such notification shall be submitted to the Contracting Officer and COR. The notification must include the Contractor’s proposed corrective action(s) and date when the Contractor can attain the required capability.

4.1.2 The Contractor is authorized (with approval of the Government) to conduct rotation sales of the materials from one contractor to another contractor, which may be a part of the rotation of the Government inventory under schedule or shelf-life changes.

4.2 The Contractor shall certify that the restocked materials meet the specifications outlined in Table 2 of this PWS, using the procedures established for the Contractor’s existing inventory, and as established by the Contracting Officer (KO). For each lot of material rotated and restocked, the Contractor shall provide to the Contracting Officer lot acceptance test results ensuring all quality specifications, as part of the Material Certification Package shown in Section 5, have been met. Any lot of material that is not conforming to the Contractor’s quality specifications as presented in Table 2 of this PWS is not to be considered part of the National Defense Stockpile. The Contractor shall ensure that the carbon fiber materials are readily accessible for testing if requested by the COR.

4.2.1 Any material not conforming to the specifications outlined in Table 2 will be rejected by the Government. The Contractor shall be responsible for all appropriate remedies in accordance with FAR 52.212-04(a). The Contractor shall replace rejected material at its expense within 120 calendar days from the date of its rejection. If 120 days does not remain in the period, the material must be replaced before the end of the performance period.

4.2.2 If any of the synthetic carbon fiber materials, rotated from the NDS inventory are deemed to be nonconforming since its rotation, the Contractor shall replace the remaining material that came from the same material batch/lot. This shall be done at the cost of the Contractor, and the COR will be present at the time of this replacement. The Contracting Officer (KO) and COR must be notified if material from any lot fails to meet the specifications and is considered unacceptable after contractor-to-contractor sale. In case a lot fails the acceptance criteria, the Contracting Officer (KO) shall impose a fine not to exceed 1% of the amount of the total unaccepted lot.

4.3 The Contractor shall have the ability to replace the carbon fiber inventory materials.

The Government will not purchase stock for the purpose of rotation. The carbon fibers to be rotated out of inventory shall be used by the Contractor or sold with approval from the Contracting Officer (KO) and then re-stocked. The Contractor shall follow the rotation schedule approved by the Contracting Officer (KO) and COR.

4.3.1 The Contractor shall not let the inventory fall below 60% of its original product type quantities. The Government reserves the right to cancel the rotation schedule in emergency situations.

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4.3.2 In accordance with the Strategic and Critical Materials Stock Piling Act, 50 U.S.C. § 98 et seq., in case of a National Emergency the Contractor must have the ability to sell or release the NDS inventory material to any parties as required by the Government.

4.4 The Contractor shall deliver a program management plan and status reports as summarized in the Deliverables section.

5 MATERIAL VERIFICATION

The following section describes the material verification requirements for each of the six (6) PAN carbon fibers being stored and rotated.

5.1 Each production lot that is being delivered after a rotation shall be delivered for acceptance with a Material Certification Package. The package must include verification of the material specifications being met shown in Table 2.

Table 2: Toray Carbon Fiber Material Specifications Fiber Type

Parameter Units T800H T1000G M46J M55J M60J-3K M60J-6K Tensile

Strength (min)

Kgf/mm2 (ksi)

(740)

(853)

(540)

(526)

(498)

(498)

Tensile Modulus tf/mm2 (Msi)

28.5 – 31.5 (40.5 – 44.8)

28.5 – 31.5 (40.5 – 44.8)

42.5 – 46.5 (60.4 – 66.1)

52.0 – 58.0 (74.0 – 82.5)

57.0 – 63.0 (81.1 – 89.6)

57.0 – 63.0 (81.1 – 89.6)

Elongation (min.) % 1.7 1.9 0.8 0.6 0.5 0.5

Yield g/1000m 425 – 465 463-507 425 – 465 208 – 228 93 – 113 196 – 216 Density g/cm3 1.77 – 1.85 1.76 – 1.84 1.80 – 1.88 1.87 – 1.95 1.89 – 1.97 1.89 – 1.97 Sizing

Amount % 0.8 – 1.6 0.3 – 1.1 0.8 – 1.6 0.8 – 1.6 1.2 – 2.0 1.0 – 1.8

Twist T/m -3 to 3 -3 to 3 -3 to 3 -3 to 3 -3 to 3 -3 to 3

5.2 The Material Certification Package presented at delivery following a rotation must be for lots that have passed all applicable tests outlined in Table 2.

6 PACKAGING

The Contractor shall use the industry standard for packaging to store the materials. The Contractor shall notify the Contracting Officer and COR within 10 business days if the packaging standards have changed.

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7 TRANSPORTATION AND DELIVERY

The following section describes the transportation and delivery requirements for the carbon fiber materials that have been rotated and are being replenished.

7.1 The Contractor shall notify the COR at least 5 business days prior to unloading the replensished material for stocking and logging into the inventory, and to allow the COR the opportunity to witness the transfer.

7.2 The Contractor shall notify the COR at least 5 business days prior to pulling the material for rotation, and allow the COR the opportunity to witness the transfer.

ACCEPTANCE OF MATERIALS

8.1 The replenished material submitted for acceptance after a rotation shall be accompanied by Material Certification Packages, as explained in section 5.1

8.1.1 Carbon fiber type, E.g. T800H, T1000G, M46J, M55J, M60J-3K, M60J-6K

8.1.2 Material weight, in pounds (lbs)

8.1.3 Safety Data Sheet (SDS).

8.1.4 Certificate of Analysis (CoA) with all the materials specifications stated in

Table 2.

8.2 The COR will review all paperwork to confirm the correct fiber type and weight, material specification, and SDS were submitted by the Contractor.

8.3 The COR will notify the Contractor by email whether the materials met the terms and specifications of the contract. The notification will include the specific production lots that meet the terms and specifications of the contract. Contractor shall add a statement in the materials certification package that the material has passed all the requirements of the package.

8.4 The Government will reject those production lots which do not meet the terms and specifications of the contract.

8.5 The Contractor shall be responsible for any retesting and resubmission costs.

9 GOVERNMENT FURNISHED MATERIAL

The Government will be providing as Government-Furnished Material the T800H, T1000G, M46J, M55J, M60J (3K), and M60J (6K) carbon fiber quantities shown in Table 1 that will need to be stored and rotated.

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10 DELIVERABLES

Table 3 summarizes the contract deliverables that are further described below:

Table 3: Contract Deliverables Deliverable Due Approval

Program Management Plan No later than (NLT) 30 calendar days after contract award

30 calendar days after receipt by KO

Monthly Status Report Starting NLT 1 month after contract award

7 calendar days after receipt by COR

Lot Acceptance Report NLT 30 calendar days after lot delivery

30 calendar days after receipt by COR

10.1 Program Management Plan PMP The Program Management Plan shall define, at a minimum, the approach for acquiring and maintaining the inventory extension, operating and maintenance of the storage facility, rotation of the synthetic carbon fibers, distribution control and disposition at the conclusion of the contract. The PMP should address the following questions:

1. Contractor’s expected carbon fiber types and quantities anticipated to be sold or consumed during an average one (1) year period?

2. Contractor’s three (3) to five (5) year market predictions for the demand of each carbon fiber type?

3. How many years supply of each of the carbon fibers the Contractor is willing to inventory?

4. What are feasible lead times for purchase and recovery of inventory levels?

5. What is the rotation schedule plan for this program? The rotation schedule plan should include amounts and lots of each fiber type already in the stockpile inventory that plan to be rotated during the period of performance.

10.2 Quarterly telecon- Quarterly, the Contractor shall participate in the telecon with the Contracting Officer, COR, and technical Government representatives to discuss purchasing decisions and lot acceptance criteria.

10.3 Status Report- Monthly, the Contractor shall submit a report that documents all activity (customers, quantities, etc.) of the strategic inventory and certifies the chain of custody and current quantities in the inventory are at approved levels.

10.4 Lot Acceptance Report- Within 30 calendar days of receipt of each of the carbon fiber lots rotated under this PWS, the Contractor shall provide to the COR the results of a lot acceptance test certifying that the materials conform to the contract specifications outlined in Table 2.

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11 Exit Strategy At the conclusion of the base year period of performance and any exercised option years, the Government will review and decide the manner of disposition of the material in the Government's inventory. The Contractor will notify the Government about the potential transfer or disposal of material no later than ninety (120) calendar days before the period of performance ends. The Contractor shall provide to the COR a written report including an up-to-date inventory. The Government will determine the final disposition of the Government's material.

No later than 90 days in advance of the final disposition in the case of a decision to NOT exercise an option under contract, DLA Strategic Materials will notify the contractor of its intentions. DLA Strategic Materials shall reserve the right at the time to require the Contractor to package and prepare all material remaining under contract to current broadly accepted commercial standards for shipment to an address that will be provided in writing at the time of said notification. The Contractor shall ensure that all remaining material under contract is guaranteed to have 85% of remaining shelf life at the time of shipment from the Contractor.