e-Recycle_IFB 33-4012 Consolidated Answers to Questions as of 15 Jan 2025.docx

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e-RECYCLING DEMILITARIZATION/MUTILATION ASCONDITION OF SALE (DCOS/MCOS) SCRAP ELECTRONICS RESIDUE SALE
Solicitation number
RFTP-33-4012
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This is a Questions and Answers document for IFB 33-4012, addressing bidder inquiries about a nationwide electronic recycling contract for the Defense Logistics Agency. The contract allows up to 2 processing sites (reduced from 3 in previous contracts) and requires contractors to process approximately 2 million pounds per month of military and commercial electronic equipment, including items like laptops, printers, TVs, and keyboards.

Key details clarified include: contractors have 5 business days to pick up full loads from approximately 25 pickup locations; title transfers after demilitarization/mutilation is completed and verified; current contracts (4000749801, 4000857801, 4000893900) end on 11/30/2025; historical pricing was $0.6801/lb; the contract includes a 60-month base period with four potential 20,000,000 lb options; technical proposals are due by 3:00 p.m. EST on January 27, 2025; questions were due by January 16, 2025; and contractors must maintain R2 and eSteward certifications. The document also clarifies that CMMC cybersecurity requirements do not apply to this contract, and on-site certified scales are required for weighing material.

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Bidder Questions and Agency Answers in re IFB 33-4012 As of 15 January 2025

1. Has this form of a contract for electronic residue nationwide always been offered as such, or was it ever multiple contracts broken down by region?

ANSWER: Our previous contracts have been nationwide contracts, allowing up to 3 different sites to process material, while the IFB being solicited currently is a nationwide contract allowing up to 2 sites.

2. Freight expenses in providing only one hub for mutilation are grossly enlarged. If we were to provide an alternative of multiple locations that still met compliance and certifier/ verifier standards and protocols would we be wasting everyones time or would it be considered?

ANSWER: The IFB being solicited currently is a nationwide contract allowing up to 2 sites for processing material. Due to agency requirements to have personnel embedded at these sites, we can only support up to 2 locations.

3. Typically in E waste when handling industrial accounts that are of a similar nature to the formatting of this contract, those customers are paying for the removal, hauling, and proof and documentation of destruction of property, rather than getting payed for the end use mutilated goods that can be recycled and sold to end users. The scope and the scale of the investment size to properly perform on this contract with ownership or rental of property, dedicated equipment, several forms of large installments of deposits, and insurance bonds is a lot of overhead and therefore requires a lot of data to bid aggressively. The only photos we could find of this material were screen monitors and some key boards and PC towers. Are there any photos from the previous contract or makes and model #’s of equipment that better exemplify this contract that could be provided to the public?

ANSWER: Additional pictures have been uploaded as “Attachment D” to the IFB being solicited. As the IFB states, any pictures provided by the Agency as part of this sale are for illustrative purpose only and may not be a current representation of item (s) for sale, site location (s), or other images displayed in the pictures. Bidders are highly encouraged to perform a pre-bid site inspection to make an intelligent bid.

4. Given the public listed sales history on this contract being $0.6801/lb. picked up, we are very perplexed. We have depth and experience in a background of purchase and sales points for many categories and commodities in the e-Recycling space and are very perplexed in how to appropriately formulate an offer. With what we are currently knowledgable of what is being scrapped, it does not add up. Perhaps with your certifier/ verifier inventory report history on e-recycling materials and the historical volumes of the different grades of DS00DMFB and DS000D4RA, can historical inventory sheets be provided in public domain to help gauge volumes of multiple price points to better aggressively bid material? With full understanding that these figures do not dictate future volumes of commodities within the several classifications of DS00DMFB and DS000D4RA.

ANSWER: Historical data is uploaded as “Attachment B” on SAM.gov with the IFB being solicited.

5. A better and full understanding of the freight logistics needs. Will trucks definitely get fully loaded at individual field sites and not have to make multiple stops along the way? Do they all have to report to one port location only with in the 5 days? Can sorting hubs with DIMC and DLA agents for certifier/verifier be established in multiple locations? We team up with a freight logistics company with proprietary API software that saves us time and money in freight carrier methods but need precise carrier guidelines in order to cut our costs when handling over 20 sites for this contract and could lead to partnering with over a dozen freight carriers.

ANSWER: Sites are told not to schedule a pickup unless they have a full load. The Purchaser is responsible to provide transportation services from the Agency’s designated pick-up locations to the specified destination(s) designated by the Purchaser. The Agency maintains approximately 25 pick-up site locations, which are detailed in Attachment A. When a site requests a removal from these sites, the purchaser has five business days from written notification to perform a removal from that site. The IFB being solicited currently is a nationwide contract allowing up to 2 sites.

6. Hello, section C, page 5 of the RFTP states “Questions should be emailed directly to the SCO at: DLADSSalesBids@dla.mil. The cutoff date for questions concerning the Draft IFB or RFTP will be 7 business days prior to the RFTP closing date of January 27, 2025. All questions received after January 16, 2025, will not be published.”

Will the questions and responses be published on a website or other public platform as they are received prior to this date? If so, can you include where they can be found?

ANSWER: Answers to questions will be updated monthly. All answers will be published on SAM.gov in the e-Recycling solicitation page prior to January 27, 2025.

7. Can we get a copy of the pricing on the current contract and any related materials?

ANSWER: See “Attachment C A0008124 Bid Abstract”.

8. C.5 NSA Processing Requirements (page 14 of IFB 33-4012) What type of equipment do processors typically use for the equipment that must be processed to NSA requirements?

ANSWER: Per the IFB, equipment may include, but is not limited to shredders, crushers, separation equipment, Dismantling Tools, Material Recovery Systems, Refining Equipment, Waste to Energy Systems, Environmental Control Systems, and Data Destruction Equipment. The Agency cannot recommend specific equipment.

C.10 Equipment:

Purchaser will supply all equipment and personnel to accomplish the Demilitarization/Mutilation of all property and associated parts/material processing. Purchaser’s equipment must be able to process the ~2,000,000 lbs. per month of robust and reinforced military and commercial electronic equipment. Equipment is required to be on a preventative maintenance schedule and Purchaser must have plans in place to process property when equipment fails or is down for maintenance. All equipment must comply with all Federal, state, and local environmental regulatory policies and permit requirements Equipment may include, but is not limited, Shredders, Crushers, Separation Equipment, Dismantling Tools, Material Recovery Systems, Refining Equipment, Waste to Energy Systems, Environmental Control Systems, and Data Destruction Equipment. The Purchasers facility will employ industry standard advanced equipment and techniques for efficient sorting, dismantling, and material recovery.

9. C.21 Facility Inspection- Just a note here- the contract requires both processing facilities to have a certified truck scale. facility does not have a truck scale. Do you know whether the facilities that serviced this contract in the past had truck scales installed?

ANSWER: Per the IFB: L.1 Weighing: Purchaser will use the on-site Certified Government Scale(s), for all material being processed. In the event a Certified Government Scale is unserviceable, the nearest Certified Scale shall be used at Purchaser’s expense. All weighing shall be observed by both parties, recorded on a DLA Form 1367 (filled out by Government personnel) and signed by both parties at the time of release. Weight tickets shall accompany the DLA Form 1367.

10. C.33 Military Electronics- This is the only section that really explains the scrap material at all, and it's just a small portion of what will come in on the contract. These items (Communication Systems, Electronic Warefare Systems, etc) are difficult to price as we don't have any data on the contents (types and percentages of metals, grades of circuit boards, etc).

ANSWER: The Agency has no control over what specific property is turned in for disposal. Historically some of the property turned in has included but is not limited to Laptops, Printers, TV’s and Keyboards.

11. Also is there was to get 2023 data by qty not model or weight. Like for laptops, lcds, printers, desktops ETC

ANSWER: The Agency tracks the property by weight as the property has been turned in under DoD definition for scrap.

12. C.17 Title - Purchaser would like to verify that title will pass as prescribed in Section C.17 of the IFB, and not in accordance with the requirements of the “Sale by Reference Pamphlet”. Section C.17 is silent on the timing of scrapping, whereas the pamphlet sets forth a requirement which states that title does not pass until scrapping is completed and that all scrapping has to be accomplished within 30 days after removal.

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

The transfer of the property title for the property described as D4R shall be executed once the inventory of the property has been completed and validated as eligible for sale pending the Quarantine Tool review. See Section C.19 For D4R not processed through Quarantine Tool for re-sale, Title transfers when it is processed as scrap for disposal or recycling

13. H.7 Termination for Default – Section H.7 states that termination shall be effective immediately upon written notice from Government to Purchaser and does not allow Purchaser to cure any deficiency. However, Section J.6 allows for Purchaser to cure any material breach or default prior to Purchaser receiving a Notice of Default. Will the Government amend Section H.7 to reference the Purchaser's right to cure pursuant to Section J.6?

Answer: Section H.7 Termination for Default and Section J.6 Notice of Default/Cure Notice, are two separate actions. The Notice of Default/Cure Notice is the preliminary steps taken to notify the contractor that they are in default and give them an opportunity to correct the issue (cure) within a specified time. The Termination for Default is the formal action to terminate the contract due to failure to correct the issue and perform according to the contract’s terms and conditions.

14. What level of the DoD’s Cybersecurity Maturity Model Certification (CMMC) compliance would CompuCycle need in the event we receive this contract? Level 1? Level 2? Level 3?

Answer: This doesn’t pertain to the e-Recycle sales contracts. Purchaser’s do not store PII or CUI (Formerly FOUO) information. The terms and conditions in our IFBs require the purchaser to secure information found until recovered by the Government or other disposition instructions are provided. For e-Recycle contracts, the R2 and eSteward standards require the purchaser’s processes to erase this type of information according to NIST standards. This regulation more aptly applies to service and acquisition type contracts that would require the contractor to maintain electronic records containing CUI to comply with the certification levels indicated.

15. How can I buy Electronic scrap from DLA?

Answer: There is currently an electronic recycling sale being solicited on SAM.gov under “Contract Opportunities”. You can search 33-4012 to pull up the IFB/RFTP for this sale.

16. I am looking for previous awardee (s) for the e-RECYCLING DEMILITARIZATION/MUTILATION AS CONDITION OF SALE (DCOS/MCOS) SCRAP ELECTRONICS RESIDUE

Answer: See “Attachment C A0008124 Bid Abstract”.

17. Please advise in which Demil category do computers and laptops fall under.

Answer: Computers and laptops, like other equipment, can fall under different DEMIL codes depending on their use and configuration. Either of these could be considered DEMIL A if it is commercial off-the-shelf equipment with no sensitive or restricted component, software, or data.

18. We are performing independent research on the Presolicitation (RFTP334012).

We would like to know if this is a brand-new contract OR if there is (was) an incumbent performing these services. If not brand new, could you please provide the current / previous contract number?

Answer: There are current electronic recycling contracts that end on 11/30/2025. Contract numbers are 4000749801, 4000857801 and 4000893900.

19. C.5 NSA Processing Requirements (page 14 of IFB 33-4012) What type of equipment do processors typically use for the equipment that must be processed to NSA requirements?

Answer: The type of equipment is up to the contractor. The Government cannot dictate or direct the specific type of equipment, as long as it meets the capabilities and specifications outlined in the contract. It is the contractor’s responsibility to ensure that the equipment they select is capable of fulfilling the contract requirements effectively.

20. C.21 Facility Inspection- Just a note here- the contract requires both processing facilities to have a certified truck scale. facility does not have a truck scale. Do you know whether the facilities that serviced this contract in the past had truck scales installed? or we can Use independent certified scale located 5 miles away from our facility

Answer: Weighing: Purchaser will use the on-site Certified Government Scale(s), for all material being processed. In the event a Certified Government Scale is unserviceable, the nearest Certified Scale shall be used at Purchaser’s expense. All weighing shall be observed by both parties, recorded on a DLA Form 1367 (filled out by Government personnel) and signed by both parties at the time of release. Weight tickets shall accompany the DLA Form 1367.

21. can you please provide some pictures of few pallets available from the current contract

Answer: See “Attachment D Photos”.

22. Also is there was away to get YR 2023 or 2024 data by qty or weight .

Like for laptops , lcds , printers , desktops ETC . I just want to offer DLA the maximum value I can , and getting some data will help a lot because each 10 cent more than previous bid price by LB will result over 1 Million $ to DLA

Answer: The Agency tracks the property by weight as the property has been turned in under DoD definition for scrap. The data provided in “Attachment B Historical Site Data e-Recycle” is the only data we can provide.

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