Draft_IFB 33-5019_SPP East_08132025.pdf

DEFENSE LOGISTICS AGENCY

DISPOSITION SERVICES

74 WASHINGTON AVENUE NORTH

BATTLE CREEK, MICHIGAN 49037-3092

INVITATION FOR BID (IFB)

FOR SALE OF

IFB 33-5019

SEALED BID

TERM SALE

AT

DLA Disposition US Northeast and Southeast locations in:

All Disposition Services and Receipt in Place Sites in the Agency’s Northeast and Southeast Regions which includes all Disposition Services and Receipt in Place Sites East of the Mississippi River to include the US territories of Puerto Rico and the Virgin Islands.

Offer Closing Date/Time: TBD, 2025, 1:00 p.m., local time Battle Creek, Michigan, USA

Inspection Period Begins: TBD, 2025, 1:00 p.m.PST By appointment only.

STEP TWO OF THE TWO-STEP SOLICITATION

Sales Contracting Officer: Jenifer Sestina

EMAIL: Jenifer.Sestina@dla.mil

PHONE: 269-961-4072

A GENERAL STATEMENTS OF CONTRACT:

B ITEM DESCRIPTION

C PROPERTY GENERATIONS DATA AND USEFUL LINKS

D SALE BY REFERENCE (SBR)

D.1 SBR Part 1:

D.2 SBR Part 2:

D.3 SBR Part 3:

D.4 SBR Part 4:

D.5 SBR Part 5:

D.6 SBR Part 6:

D.7 SBR Part 7:

D.8 SBR Part 8:

D.9 SBR Part 9:

D.10 SBR Part 10:

E TERMS AND CONDITIONS OF SALE:

E.1 ARTICLE ONE: FAR Provisions

E.1.1 FAR Provision 52.204-24:

E.1.2 FAR Provision 52.204.25:

E.2 ARTICLE TWO: Bid Evaluation and Contract Award E.2.1 Bidding Process:

E.2.2 Identification of Sales Purchaser:

E.2.3 A Responsive Bid:

E.2.4 Where to Submit Bid:

E.2.5 When to Send Bid:

E.2.6 How to Modify/Cancel Bid:

E.2.7 Bid Evaluation:

E.2.8 Ineligible Bidder:

E.2.9 Pre-Award Survey:

E.2.10 Trade Security Control (TSC) Requirements:

E.2.11 Contract Award:

E.2.12 Post-Award Conference & Start of Work Meeting:

E.3 ARTICLE THREE: Parties to the Contract:

E.3.1 Purchaser Information:

E.3.2 Transfer and Hypothecation:

E.3.3 Contract of Sale:

E.3.4 Authority of Sales Contracting Officer (SCO):

E.3.5 Authority of Sales Point of Contact (SPOC):

E.4 ARTICLE FOUR: Contract Deposits and Financial Retention:

E.4.1 Bid Deposit:

E.4.2 Payment Deposit:

E.5 ARTICLE FIVE: Insurance and Bond Requirements E.5.1 Financial Guarantee Bond:

E.5.2 Insurance and Bond Contract Requirements:

E.6 ARTICLE SIX: Contractor Performance:

E.6.1 Performance Period:

E.6.2 Performance Phase-In Period:

E.6.3 Termination for Default:

E.6.4 Termination for Convenience of Government:

E.6.5 Cessation of Property Referrals:

E.6.6 Contract Closure:

E.7 ARTICLE SEVEN: Payments E.7.1 The Billing Cycle:

E.7.2 Types of Acceptable Payments:

E.7.3 How to Submit Payment:

E.7.4 Payment Confirmation:

E.7.5 Consequences of late or short payments:

E.8 ARTICLE EIGHT: Product Pool, Property Referrals, and Exclusions E.8.1 Product Pool:

E.8.2 Line-Item Excessive Value:

E.8.3 NSN/LSN Acquisition Values and the Challenge Process:

E.8.4 Property Referrals:

E.8.5 Dangerous Property:

E.8.6 Classified Material:

E.8.7 Material Potentially Presenting an Explosive Hazard (MPPEH):

E.8.8 Radioactive Property:

E.8.9 Unique Items and Special Circumstances:

E.8.10 Other than Demilitarization Code A, Q6, or F Property:

E.8.11 Demilitarization Code Assignment:

E.9 ARTICLE NINE: Property Inspection, Loading, and Title Transfer E.9.1 Base Access Requirements:

E.9.2 Property Inspection:

E.9.3 Packing:

E.9.4 United States Government Certificate to Obtain Title of a Vehicle:

E.9.5 Loading:

E.9.6 Title Transfer:

E.9.7 Risk of Loss:

E.10 ARTICLE TEN: Discrepancies and Reimbursable Items E.10.1 Credit for Line-Item Discrepancies:

E.10.2 Standard Form (SF) 364 Report of Discrepancy (ROD):

E.10.3 Requests for Reimbursable Emergency and Extraordinary Costs:

E.11 ARTICLE ELEVEN: Property Storage and Removal:

E.11.1 Temporary Staging Areas on Government Facilities:

E.11.2 Purchaser Owned Storage Facilities:

E.11.3 Property Removal:

E.11.4 Removal Extensions for Special Circumstances:

E.11.5 Resale-In-Place at Government Facility:

E.11.6 DLA Disposition Services Infrastructure:

E.11.7 Storage Charges:

E.12 ARTICLES TWELVE: Government Furnished Equipment (GFE) and Purchaser Owned Equipment:

E.12.1 Material Handling Equipment (MHE):

E.12.2 Requirement for Purchaser to use Purchaser owned MHE:

E.12.3 Government Furnished Equipment (GFE):

E.13 ARTICLE THIRTEEN: Demilitarization Codes, Export Control Requirements, and Prohibited Sales: ... 41 E.13.1 Demilitarization Codes:

E.13.2 Export Control Requirements:

E.14 ARTICLE FOURTEEN: Inventory Assurance:

E.14.1 Do-Not-Sell (DNS) List:

E.14.2 Demilitarization Code Change (DCC) List:

E.14.3 Purchaser Responsibilities for Property Assurance:

E.14.4 Sales Participation of Non-Responsive Resale Buyers:

E.15 ARTICLE FIFTEEN: Property Returns:

E.15.1 Controlled Property Not Resold – Located at Purchaser’s Facilities:

E.15.2 Controlled Property Resold – Not Removed from Purchaser’s Facilities:

E.15.3 Controlled Property Resold – Removed from Purchaser’s Facility:

E.15.4 Mission Essential Return:

E.16 ARTICLE SIXTEEN: Government Required Reports:

E.16.1 Inventory Reports:

E.16.2 Resale and Returns Report:

E.16.3 Reimbursable Item Report (Formerly Known as Seller Indirect Cost (SIC) Report):

E.16.4 Non-Responsive Resale Buyer Report:

E.17 ARTICLE SEVENTEEN: Contract Operational Requirements:

E.17.1 Purchaser Web-Based Application (Q-Tool):

E.17.2 Purchaser Awareness of the Agency’s Environmental Management System (EMS):

E.17.3 Inventory Assurance by Purchaser:

E.17.4 Handling Ozone Depleting Substances (ODS) Containing Personal Property:

E.17.5 DLA Disposition Services Inspection of Property:

E.17.6 Food and Drug Administration (FDA) Certification for Medical Devices:

E.17.7 Letter of Authorization (LOA):

E.17.8 Purchaser’s Use of Sub-Contractor:

E.17.9 Duties of Care and Loyalty:

E.18 ARTICLE EIGHTEEN: Material Breach E.18.1 Notice of Material Breach:

E.18.2 Response to Notice:

E.18.3 Termination:

E.18.4 Intentional Breach:

E.18.5 Remedies for Material Breach by Purchaser:

E.18.6 Indemnification of DLA Disposition Services by Purchaser:

E.19 ARTICLE NINETEEN: Contract Compliance, Audits, Investigations, and Reviews E.19.1 Compliance with Applicable Laws and Regulations:

E.19.2 Licenses and Permits:

E.19.3 Prohibited Activities:

E.19.4 Purchaser Cooperation in DoD Investigations/Audits:

E.19.5 Purchaser’s Responsibility for Independent Audit at Government’s Request:

E.19.6 Purchaser Record Retention:

E.19.7 Records Maintenance:

E.19.8 Inspection of Records and Workplace by Government:

E.19.9 Purpose and Content of Compliance Audits, Investigations, Reviews, and Further Reviews:

E.19.10 Methods and Procedures for Compliance Reviews and Investigations:

E.19.11 Further Reviews:

E.19.12 Compliance Notification:

E.19.13 Contracts with Third Parties:

E.19.14 Notice of Audit Adjustment:

E.19.15 Procedures for Adjudication of Audit Adjustments:

E.19.16 Remedies for Audit Adjustments:

E.20 ARTICLE TWENTY: Disputes and Claims E.20.1 Disputes:

E.20.2 Alternative Dispute Resolution (ADR):

E.21 ARTICLE TWENTY-ONE: Miscellaneous Provisions E.21.1 Binding Effect:

E.21.2 Notices:

E.21.3 Severability:

E.21.4 Headings:

E.21.5 Survival:

E.21.6 Waiver:

E.21.7 Force Majeure:

E.21.8 Use of the Agency Name and Public Communications:

E.21.9 Tense and Gender:

E.21.10 Entire Agreement and Modification:

E.21.11 Computation of Time:

E.21.12 Electronic Communication:

E.21.13 Firm Fixed Price Contract:

F ADDITIONAL CONTRACT ADVISEMENTS:

F.1 Public Law Pertaining to Location Operations:

F.2 Public Law Pertaining to Material:

F.3 Contract Related Data Disclosure:

F.4 Public Law 98-575, Commercial Space Launch Act (“CSLA”), dated October 30, 1984:

F.5 Wildfire Suppression Aircraft Transfer Act of 1996 dated January 3, 1996:

F.6 Public Law 106-181, Oil Spill Containment Act:

F.7 Hazardous Property:

F.8 Resource Conservation and Recovery Act (RCRA) Notice:

F.9 Spill Response:

F.10 Chemical Agent Resistant Coating (CARC) Paint:

F.11 Refrigerant:

F.12 Warranty for Surplus Aircraft Components/Parts:

F.13 Aircraft Insignia and Markings:

F.14 Kitchen Stoves:

G DEFINITIONS

A GENERAL STATEMENTS OF CONTRACT:

Certain contents and provisions of this IFB, including Attachments, are described in general. The following General Statements of Contract are not intended to be complete and do not take precedence over the terms and conditions of this contract. The requirements for all matters discussed in the General Statements are fully defined in the Terms and Conditions Section of this IFB. Any historical data provided in this IFB was derived using existing sources and is presented for general reference only.

The Defense Logistics Agency (DLA) Disposition Services (hereinafter, the “Agency”) is offering a term public sales contract for the sale of Surplus Personal Property through this Invitation for Bid (IFB).

This IFB is issued by the Agency to initiate Step Two of a two-step sealed bid auction process. The Agency will only consider those bidders that have submitted an acceptable technical proposal during Step One of this solicitation under the Request for Technical Proposal (RFTP) review.

This is a firm fixed price contract where the bid price is expressed as a percentage of acquisition value. This is not a sale by lot. The Agency expects the buyer to fulfill all the requirements under this contract at the bid price provided by the Purchaser. The Agency guarantees to issue the Purchaser 42,000 DTIDs of property within the 12-month base period, or property having a total acquisition value of $234 million, whichever is the lesser to meet contract minimums. The maximum amount of property issued within the 12-month base period will not exceed the greater of 225,000 DTIDs of property or property having a total acquisition value of $2 billion.

The Agency and Purchaser agree that the Agency may offer an option period under the terms of this contract prior to the expiration of the base period if the maximum quantities allowed under the base period have been met. The minimum and maximum quantities offered under such an early option period may not exceed the amount authorized under the original terms of this contract. Initiating this early option period shall reduce the total performance time allowed under this contract. All performance in this option period shall continue under the terms applicable to option periods in the IFB.

The Agency will determine items to be sold to the Purchaser regardless of Federal Supply Code or location. The Purchaser has no right to any property that is not issued to them under the terms of this contract. The Agency reserves the right to sell property or offer property through alternative sales or contract means for all property, whether it is considered part of this contract or not. Furthermore, this contract does not in any way restrict or prohibit the Agency from moving property received at Disposition sites or receipt in place (RIP) locations to other Disposition sites, whether they are in the same region or not. The Agency has absolute discretion to move property between Disposition sites or regions prior to issuing it on any contract.

This IFB relates to personal property assets that the Agency has determined to be surplus to the needs of the Department of Defense and the Federal Government. Property in the East Region which includes all Disposition Services and Receipt in Place Sites in the Agency’s Northeast and Southeast Regions which includes all Disposition Services and receipt in Place Sites East of the Mississippi River to include the US territories of Puerto Rico and the Virgin Islands.

Surplus personal property offered under this IFB is an item of personal property that has been determined to be safe to sell with a DEMIL code A, F, or Q6. Demil F property offered under this IFB will have completed DEMIL instructions by the DoD Military Generator prior to Receipt/Turn into the Agency. The Purchaser is NOT responsible to perform any DEMIL requirements under this IFB. Surplus personal property that is sold by DoD is in “as-is, where-is” condition. Under General Services Administration (GSA) regulations, federal agencies must make excess personal property available for: (1) reutilization within their agency or to special programs; (2) transfer to other federal agencies;

or (3) donation to specified eligible entities, before an item is eligible for sale to the public. Under section 102-36-240 of GSA regulations, excess personal property includes “new” property, “useable” property, “repairable” property, or “salvage” property as defined in that regulation.

Surplus personal property under this IFB has been determined to be “new”, “useable”, or “repairable” under the GSA definitions. Surplus personal property offered under this IFB does not meet the definition of scrap, which has no value except for its basic material content. While DoD turn-in customers provide a supply condition code of A-H on all DTIDs for all property turned into the Agency, these codes are used in the DoD supply system as classifications for material in terms of readiness for issue and use, or to identify action underway to change the status of material. They do not directly correspond to the suitability of property being made available for reutilization, transfer, donation, or sale. Agency personnel make an independent determination on whether the property should be classified as scrap because it has no value in excess of the item’s material content and/or whether an item is suitable for reutilization, transfer, donation, or sale as surplus.

All property covered under the contract is being sold “as-is” and “where-is.” No request for adjustment in price for any item or rescission of the sale will be considered. This is not a sale by sample and property issued under the terms of this contract may not be rejected by the purchaser, unless an item has a reported acquisition value in excess of $3 million dollars. The Purchaser has sole discretion in rejecting items with an acquisition value of over $3 million dollars. The United States Government (USG) is the sole arbiter of determining condition code and determining whether property is considered surplus under its property regulations and thus eligible for referral under this contract.

Purchaser’s opinion, ability to sell or market, or the availability of customers for items have no bearing on whether the government considers the item Surplus. The Purchaser has no right to challenge an in-scope determination and no changes, modifications, downgrades to scrap, or reduction of acquisition value will be applied.

In the East Region which includes all Disposition Services and Receipt in Place Sites in the Agency’s Northeast and Southeast Regions which includes all Disposition Services and receipt in Place Sites East of the Mississippi River to include the US territories of Puerto Rico and the Virgin Islands, DLA Disposition Services sites may also receive property that is not located at a DLA Disposition Services facility and may refer for sale to the Purchaser at a RIP location within the geographic areas included within the awarded contract.

The Agency will not be providing the Purchaser with permanent indoor or outdoor storage space for property, or any space to store equipment, including material handling equipment (MHE), at any location where the Purchaser is required to remove property. Temporary storage areas with a minimum capacity of twenty-four (24) pallet spaces will be provided for property to accumulate before Purchaser removal. Additionally, space equivalent to three (3) pallet spaces will be provided for packing, crating, and handling supplies. Agency Area Managers may approve additional temporary storage space on a case-by-case basis. MHE and/or other equipment may not be stored in these temporary storage areas unless approved by the Agency Area Manager IAW Article Twelve, section E.12.1, Material Handling Equipment, of this IFB.

Property that is referred for sale to the Purchaser shall be made available for inspection prior to issuance and removal.

The Agency and the Purchaser must conduct a physical joint inventory of the property pending issuance at the Agency’s field site and/or RIP site prior to the property being released for shipment out of the Agency’s control. The Agency field site shall notify the Purchaser in writing via email to schedule joint inventory. The Purchaser shall confirm the schedule within three (3) business days from the date of the notice. Special circumstances may arise where the Agency will allow certain property not to be joint inventoried at an Agency field Site and/or Government facility after email notification for joint inventory has been given; however, written authorization from the SCO for anything beyond the original three (3) working days is required. The joint inventory will be conducted and documentation signed by both the issuer (the Agency or authorized representative) and the receiver (Purchaser) with all identified discrepancies annotated. Line-item discrepancies must be identified to the Agency at the time of the joint inventory prior to the transfer of title to the Purchaser. In all situations involving property inspection, the provision in section B, Item Description, of this IFB applies with regard to whether the property is within the scope of the contract.

Discrepancies are limited to quantity overage/shortage and/or item mis-description by Local Stock Number (LSN).

LSN challenges must be handled in accordance with provisions in Article Eight, section E.8.3, NSN/LSN Acquisition Values and the Challenge Process, of this IFB.

Property must be removed from Government facilities and title transfer completed within five (5) business days upon the Agency’s removal request notification to the Purchaser containing a list of property pending removal. Reporting property pending removal will be provided from the Agency’s current property accounting system in a format at the discretion of the Government. Removals must be scheduled to occur during the Agency field sites’ normal working hours. The Purchaser will pay for all packing, handling, crating and transportation costs associated with shipments.

RIP locations will be identified to the Purchaser by the Government on the provided list of property pending removal.

Reporting property pending removal will be provided from the Agency’s current property accounting system in a format at the discretion of the Government. RIP locations are located at alternate sites that are not under the Agency’s direct control. They may be on or off military installations. The physical joint inventory must be conducted in-person IAW Article 9, section E.9.2, Property Inspection, of this IFB. Property must be removed from Government facilities and title transfer completed within fifteen (15) business days upon the Agency’s removal request notification to the Purchaser containing a list of property pending removal. Removals must be scheduled to occur during the RIP personnel’s normal working hours through coordination with the Agency Sales POC. The Purchaser will pay for all packing, handling, crating and transportation costs associated with shipments.

Special circumstances may arise where the Agency will allow certain property to remain at a Government facility beyond the allocated five (5) or fifteen (15) business days; however, prior written authorization from an Agency Area Manager for these exceptions are required. The Agency Area Manager may authorize additional time for the property to be removed, typically not to exceed a total removal time of thirty (30) calendar days. Removals requiring more than thirty (30) calendar days must be approved by both the Agency Area Manager and the SCO, not to exceed sixty (60) calendar days.

On a limited basis, special circumstances or projects may arise that require more than sixty (60) calendar days to remove property. The Agency will coordinate with the Purchaser to establish a removal timeframe; however, the Agency will make the final determination on the appropriate amount of time for the property to be removed which will be stipulated in writing to the Purchaser.

The Purchaser will pay for all transportation costs associated with removals and shipments of surplus property from DLA Disposition Service sites or RIP locations. The purchaser will coordinate with the Sales POC for Purchaser’s conveyance pick-up time frame. On the agreed day of pick-up, the Agency will load up to the maximum capacity of the equipment at the Agency field site only. Agency personnel will make the initial placement of the property on conveyance(s) furnished by the Purchaser and the initial placement of the Purchaser's conveyance will be determined by the Government. The Government will not block, chock, brace, lash band, or in any other manner secure the cargo on such conveyance(s) furnished by the Purchaser. Purchaser personnel will not be permitted to operate the Government-owned MHE. The Purchaser is cautioned that RIP location loading will be the responsibility of the Purchaser. The Agency or the USG will not provide MHE or any assistance to remove the property from RIP locations.

For bidding on this contract, Bidders shall not assume that property may be resold on a Government facility or at RIP locations. The resale of property at Government facilities or RIP locations will be on an extremely limited basis and must be approved by the Area Manager, DSD, and SCO. Property authorized to be resold on a government facility or at RIP locations must be removed within thirty (30) calendar days or storage charges may be charged.

The Purchaser will receive a blank SF-97, "The United States Government Certificate to Obtain Title to A Vehicle" document for all vehicles prior to property removal. SF-97 is not a title; it is documentary evidence that provides a Purchaser with the ability to obtain a Title at the appropriate Department of Motor Vehicles (DMV). SF- 97 is accepted in all 50 states and U.S. Territories. The Government makes no representation or claims as to the acceptance of this form outside of these areas. The SF-97 in no way serves as a waiver for payment of registration fees, nor county or State taxes assessed to the vehicle after its purchase from the Government. See Article 9, section E.9.4, USG Certificate to Obtain Title of a Vehicle, of this IFB for additional information.

The successful bidder commits to purchasing property issued under this contract for a twelve (12) month performance period commencing from the date of submission of the initial inventory to the Purchaser. The Agency may exercise an option period(s) to extend the performance period for up to an additional forty-eight (48) months based on Government requirements. Option periods will normally be in one-year increments; however, the Government reserves the right to exercise option periods for shorter periods of time. The entire length of the contract, if all option periods are exercised and the extension authorized in E.6.1, shall not exceed sixty (66) months.

For any option period issued after the base period that is issued for a period of time less than 12 months, such as with a 12-month option period, the minimum and maximum will be adjusted and calculated as a percentage of the stated base period requirement. For illustrative purposes, if contract had a minimum requirement for 42,000 DTID’s or property having a total acquisition value of $234 million, whichever is the lesser amount to meet the contract minimum, for a 12-month base period, then the exercise of a one-year option period for the same contract would have a minimum requirement of 42,000 DTID’s or property having a total acquisition value of $234 million, whichever is the lesser amount to meet the contract minimum for the 12-month option.

For the same option period mentioned above as an illustrative example, the maximum of the option period would also be calculated as a percentage of the stated base period requirement. For illustrative purposes, if contract had a maximum requirement for 225,000 DTID’s or property having a total acquisition value of $2 billion, whichever is the greater amount to stay within the limits of the contract maximum, for a 12-month base period, then the exercise of a one-year option period for the same contract would have a maximum requirement of 225,000 DTID’s or property having an annual acquisition value of $2 billion, whichever is the greater amount to stay within the limits of the contract maximum of the 12-month option.

This means the government can provide a minimum of 42,000 DTID’s or property having an annual acquisition value of $234 million, whichever is the lesser amount to meet the option contract minimum in that one-year option period for this illustrative example. It also means that the government can provide a maximum of 225,000 DTID’s or property having an annual acquisition value of $2 billion, whichever is the greater amount to stay within the limits of the contract maximum in the 12-month option period for this illustrative example.

Purchaser(s) should exercise caution when incurring obligations based on an anticipated period as the performance period refers only to the amount of time the Agency must meet its commitments to provide the minimum quantities of items advertised to the Purchaser. It does not confer any right to surplus property throughout the performance period; instead, the Agency promises only to provide the minimum quantities.

An offeror’s bid will consist of a bid percentage specified by the bidder for the Government’s acquisition value of all property received. There is no minimum bid requirement. The contract will be offered to the responsive responsible bidder offering the highest bid percentage, however, the Government reserves the right to reject any or all bids received when such action is determined to be advantageous to the Government. In accordance with 41 CFR § 102- 38.205, the Government reserves the right to accept or reject any or all bids. The government 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. The successful bidder agrees to pay the Government the bid percentage offered based on the Government’s acquisition value for each line item issued. This is referred to in the contract as the billing payment. The same bid utilized for the base period will be automatically considered for the option periods.

Within seven (7) calendar days of notification of the SCO, the Purchaser will provide the Agency with the deposit.

The amount of the deposit required is the average estimated acquisition value of such material to be generated during a 3-month period multiplied by 20 percent of the bid price. For deposit purposes only, $234 million will be used to calculate the deposit. For illustrative purposes, this IFB has a base period of 12-months and one of the contract minimums is listed as property having a total acquisition value of $234 million, then $234 million divided by 12-months equals $19,500,000.00 ($234,000,000/12). This is the average of the acquisition value of property generated per month. The $19,500,000.00 would be multiplied by 3 months to get $58,500,000.00 ($19,500,000.00 x 3). This is the average of the acquisition value of property generated over 3 months.

If the Apparent High Bidder (AHB) had bid 3.5% as their bid percentage, then $58,500,000.00 (average of the acquisition value of property generated over 3 months) times the bid percentage of 3.5% equals $2,047,500.00. The deposit requires 20% of the $2,047,500.00 ($2,047,500.00 x .20), which is $409,500.00. The deposit would be $409,500.00.

This deposit is in addition to the $100,000 bid deposit required for bid submission. The deposit will be held by the Agency until the conclusion of the contract. The Purchaser is also required to provide a financial guarantee bond in the amount of $3 million dollars within seven (7) calendar days of award.

The deposit must be made via guaranteed instrument wire transfer or Electronic Funds Transfer (EFT). The Agency will retain the deposit until the completion of the contract. The deposit will be applied to any unpaid billings or to offset any other claim that the Agency may have against the Purchaser. The Agency will return any available balance of the deposit, without interest, to the Purchaser upon completion of contract closure when all lines of accounting have been reconciled by the Agency. The Bidder or Purchaser hereby agrees that the Agency may use all or any portion of any refund due to satisfy, in whole or in part, any debt arising out of prior transactions with the Agency.

Prior to the award of this contract, the Purchaser will be required to obtain a trade security control (TSC) assessment/clearance by providing the SCO with a properly completed end use agreement (EUC) in the form of a DLA Form 1822, within two (2) business days of notification of being the AHB (copy available on the Agency web site, http://www.dla.mil/DispositionServices/Offers/Public-Sales-Offerings/Forms/. The clearance may need to be renewed during the performance period of this contract and at the request of the Government. The clearance investigation determines that the entity is who it claims to be, doing business at the name and location claimed, and that there is no disqualifying factors present (i.e., convictions for illegal export of military technology, debarment by a Government activity, etc.). The Purchaser is required to comply with all current or future TSC procedures as mandated during the performance period of this contract. Such new requirements may impose higher costs upon the Purchaser to comply. Purchasers shall not expect any equitable relief or any other type of relief that is based upon or related in any manner to an unanticipated level of effort or additional effort necessary related to TSC procedures.

U.S. export control regulations will apply to all subsequent sales or transfers of property purchased from the agency.

The purchaser is responsible for compliance with those laws. For further information, see Article 13, section E.13.2, Export Control Requirements, of this IFB.

All property that the Agency issues under this contract requires property assurance responsibilities on the part of the Purchaser which may result in the property being returned to the Government. The Agency will furnish the Purchaser a Do-Not-Sell (DNS) List (to include updates as often as necessary) and a Demilitarization Code Change (DCC) List (also updated as often as necessary) representing items that are or have become prohibited from sale.

The Purchaser shall return any item on the DNS and DCC lists prior to release to resale customers and will identify the return by the applicable issuance and Disposal Turn-In Document (DTID). The contract terms preclude the resale of items that the Agency has identified as becoming controlled or DEMIL required and placed on the DNS or DCC List. After the USG has cleared the property for shipment to a Disposition site, Purchaser shall perform all packing, handling, and crating to include loading blocking and bracing of the Governments conveyance as needed.

Purchasers shall send a transportation request via email to the SCO for controlled property return transportation request. The Government will refund the Purchaser its purchase price for such items. The Purchaser shall not expect any other type of relief that is based upon or related in any manner to an unanticipated level of effort or additional effort necessary to the handling of any item on the DNS and DCC lists prior to release to resale customers.

The Purchaser must develop a web-based application for use on this contract with regard to reviewing property to determine and confirm sales eligibility. The Government and Purchaser will refer to this application as the Quarantine Tool (Q-Tool). Ultimately, the Q-Tool will serve as a 5-business day Government preview area of all items the Purchaser is preparing to offer items for sale. During the 5-business day preview, the Purchaser is not allowed to make property visible to the general public. The Government must notify the Purchaser of any item not eligible for sale within the 5-business day preview time. All issued property must be submitted for Agency Q-Tool review IAW Article Seventeen, section E.17.1, Purchaser Web Based Application (Q-Tool), of this IFB, to confirm eligibility for resale prior to the end of the performance period or the effective date of termination. Property identified as controlled in the Q-Tool must be returned to the Agency prior to the end of the performance period or the effective date of termination.

There may be occasions where property issued to the Purchaser may have become controlled where the DEMIL codes may have changed after transfer, making them ineligible for further sales, or the Government may request the return of property due to it being mission essential for the USG or its programs. See Article 15, Property Returns, of this IFB for further information.

Purchaser agrees to fully cooperate with the Government when informed by the Agency of an ongoing investigation by any DoD or Federal Government investigation service or agency or during DLA Compliance Reviews, Investigations or Audits. The purchaser agrees to provide the Agency with all requested information regarding property or information relating to the Purchaser’s operations, and resale buyer(s). The purchaser must make all sales records pertaining to such investigations available to the Agency at the earliest available opportunity but no later than three (3) business days of the request. Requests for information will be provided in electronic format when possible. Purchaser personnel with knowledge of the subject matter must be available to cooperate with any Government investigation.

The Purchaser agrees to provide monthly and quarterly reports containing the following information, at a minimum, but not limited to: inventory reports of property issued and removed/not yet removed, and any other required documentation that is needed for the Agency upon request.

The contract requires that the Purchaser fulfill certain requirements related to national security, customer service, and compliance review. The Purchaser must be fully auditable and remain cooperative with Agency audit requirements to include accounting statements, insurance coverage, inventory control/asset tracking, inventory aging, and returning/retrieving controlled property, both prior to resale and after. All of the Purchaser’s records must be made available to the Agency. Records will be made available in either electronic or hard copy form as requested by the Agency within three (3) business days of request. Purchasers shall not expect any equitable relief or any other type of relief that is based upon or related in any manner to an unanticipated level of effort or additional effort necessary related to national security, DLA customer service, and/or compliance reviews.

The Purchaser’s bid shall consist of a percentage of Acquisition Value and must equal or exceed 3.5%.

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 Purchaser made related to determining their high bid.

The Government expects the Purchaser to perform all the requirements under this contract at the bid price submitted by the Purchaser. 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 the refund of such a portion of the purchase price as the Government may have received.

The future volume, quality, condition, market value, types (i.e., distribution of property referrals across Federal Supply Classes (FSCs), and geographic concentrations (i.e., referrals for sale at delivery points) of the property cannot be predicted. Applicable statutes, regulations, policies and inter-service agreements govern whether the disposition of particular items of excess is through the Agency or through other disposition methods. The volume and nature of the property referred for sale under this contract could be affected by such changes.

Described generally, applicable statutes and regulations grant the Agency less flexibility to agree to amend a contract after award than prospective bidders may have experienced in other contractual settings. Purchasers shall not expect any equitable relief or any other type of relief that is based upon or related in any manner to an unanticipated level of effort or additional effort necessary to fulfill contract obligations as written. Prospective bidders will assume that the provisions of the contract cannot be significantly amended after award.

General notice on negotiated sale of limited amounts of other surplus personal property: On an infrequent basis, the Agency may offer personal property for sale that is not included within the scope of this IFB that requires partial mutilation, disassembly, or other services necessary to remove the property. The Purchaser is not required to accept such property under this IFB but may agree to accept the property under a separate negotiated sales contract offered by the Agency. The sales price for such property under any negotiated sale may not exceed $15,000 for the entire lot of property offered under such negotiated sale. If property is DEMIL required, Purchaser will be required to comply with all DEMIL training, surveillance requirements and DEMIL verification/certification requirements. Performance of any services under a negotiated sale (e.g., disassembly of furniture; moving and packing of furniture etc.) shall be taken into consideration in negotiating a sales price for the item or the lot. Such services shall not be compensated separately and shall not change the nature of the sales agreement under the Federal Property Management Regulations into a service contract under the Federal Acquisition Regulations (FAR). Property that may be offered under these limited negotiated sales would include, but not limited to, relocatable buildings, modular furniture, furniture located in barracks and office buildings that has not been removed or packed for shipment, and limited DEMIL F items that require limited mutilation or demilitarization. This provision does not constitute a right of first refusal to the Purchaser or an exclusive right to purchase such property. The Agency reserves the right, and it is within the Agency’s sole discretion to offer and award negotiated sales for such personal property to any individual or firm.

B ITEM DESCRIPTION

It has been determined that after the completion of the DoD/DLA Disposition Services Reutilization, Transfer, and Donation process, the items within the property pool are surplus by the Department of Defense or Federal Government and consist of surplus personal property at all Disposition Services and Receipt in Place (RIP) Sites in the Agency’s Northeast and Southeast Regions which includes all Disposition Services and RIP sites East of the Mississippi River to include the U.S. territories of Puerto Rico and the Virgin Islands.

The property issued under this contract has been identified by the Government as safe to sell with an assigned demilitarization (DEMIL) code of A, F or Q6. Surplus personal property under this IFB has been determined to be “new”, “useable” or “repairable’ under the GSA definitions. Surplus personal property is defined in the DEFINITIONS section of this IFB.

Described very generally, a demilitarization code is a single alpha character assigned to the item. For the purposes of this IFB, the following definitions are provided:

• DEMIL Code A – Items subject to the Export Administration Regulations (EAR) in parts 730-774 Title 15, Code of Federal Regulations (CFR) (CCLI or EAR99) and determined by the DOD to present a low risk when released out of DOD control. No further demilitarization or mutilation is required. May require an export license from the Department of Commerce.

• DEMIL Code F – United States Munitions List (USML) or Commerce Control List (CCL) Military Items.

Demil F property offered under this IFB will have completed DEMIL instructions by the DoD Military Generator prior to Receipt/Turn into the Agency. The Purchaser is NOT responsible to perform any DEMIL requirements under this IFB. Even though DEMIL has been completed, items may still require an export license from Department of Commerce.

• DEMIL Code Q6 – Commerce Control List Items (CCLI). Demil Q items with integrity code 6 are considered safe to sell in the United States. Export licenses will be required by Department of Commerce.

Surplus property refers to property that no longer meets the needs of federal agencies, whether due to excess, obsolescence, or changes in mission requirements. This status of property is not declared arbitrarily but is a result of a comprehensive analysis by the appropriate federal entities. Such property includes non-rolling stock and rolling stock, which consists of self-propelled wheeled and track mounted vehicles (such as passenger motor vehicles, trucks, and dozers) and trailers with or without property permanently affixed to it (such as semi-trailers, cargo trailers and special purpose trailers). The quality of the property tendered under this contract will vary and it is being sold “as is, where is” with no warranty as to its condition or suitability for its originally intended, or any other specific purpose.

Property that has an expired shelf life or shelf life that will expire within thirty (30) calendar days of joint inventory inspection (excluding tires), is deemed hazardous material or contains hazardous material, requires partial mutilation, disassembly, or other services necessary to remove the property shall be excluded from this sale. Items requiring performance of other services necessary to remove property may include, but are not limited to, items such as relocatable or modular buildings, modular furniture, furniture located in barracks and office buildings that has not been removed or packed for shipment, and items that require limited mutilation or demilitarization. These items are excluded from this sale but may be made available through a separate negotiated sales process.

This is not a sale by lot. The Agency guarantees to issue the Purchaser 42,000 Disposal Turn In Documents (DTIDs) of property having a total acquisitions value of $234 million, within the 12-month base period, whichever is the lesser to meet contract minimums. A DTID may be one item or a group of like items. The maximum amount of property issued within the 12-month base period will not exceed the greater of 225,000 DTIDs of property or property having a total acquisition value of $2 billion.

Base Period Minimum Base Period Maximum

DTIDs 42,000 225,000 Original Acquisition Value $234 Million $2 Billion

For purposes of this contract, the term surplus property excludes records of the Federal Government, and naval vessels of the following categories: battleships, cruisers, aircraft carriers, destroyers, and submarines.

C PROPERTY GENERATIONS DATA AND USEFUL LINKS

A list of previously issued DTIDs may be issued upon request and will be published on the following Agency public sales webpage listed below. This list will provide historical information relating to past generations of surplus personal property similar to what is being offered in this IFB. The data provides a sales history to include returns of FSCs, DEMIL Codes, line items, and acquisition values. The government makes no guarantee on monthly generations of property and monthly generations may fluctuate and vary greatly. Bidders are advised that any sales history information provided is for informational purposes only. Prior year property generations and sales data are not predictors of future generations or sales; the Agency does not guarantee that the DTIDS on the list are what will be seen in future issuances. The geographic region in this IFB is significantly different from regions used in past STS or CV IFBs and all bidders are advised to use caution when comparing prior sales information that may not align with this geographic region.

The future volume, quality, condition, market value, types (i.e., distribution of property referrals across Federal Supply Classes (FSCs), and geographic concentrations (i.e., referrals for sale at delivery points) of the property cannot be predicted. Applicable statutes, regulations, policies and inter-service agreements govern whether the disposition of particular items of excess is through the Agency or through other disposition methods. The volume and nature of the property referred for sale under this contract could be affected by such changes.

See additional useful links below:

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://sam.gov/ Bureau of Industry and Security: https://www.bis.gov/ U.S. Department of the Treasury: https://home.treasury.gov/ Consolidated Screening List Search Engine: https://www.trade.gov/data-visualization/csl-search

D SALE BY REFERENCE (SBR)

The following general information, instructions and special conditions of sales contained in Agency’s Disposition Services pamphlet entitled the “Sale by Reference Instructions, Terms and Conditions Applicable to Department of Defense (DoD) Personal Property Offered for Sale by the 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 https://www.dla.mil/DispositionServices.aspx https://www.sales.dla.mil/dlab2b/init.do https://sam.gov/ https://www.bis.gov/ https://home.treasury.gov/ https://www.trade.gov/data-visualization/csl-search 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.

D.1 SBR Part 1:

General Information and Instructions: All conditions apply except 4 and 5.

D.2 SBR Part 2:

Sale of Government Property General Sale Terms and Conditions: All conditions apply except: 3, 4, 5, 6, 7, 9, 12, 13, 28, 29, 30 & 31.

Modified Paragraph 33. DISPUTES is changed to read “Any contract awarded as a result of this sale is subject to the Contract Disputes Act 1978 (41 U.S.C. 7101-7109)”

D.3 SBR Part 3:

Sale of Government Property Special Sealed Bid Conditions: Does not apply.

D.4 SBR Part 4:

Sale of Government Property Special Sealed - Term Conditions: All articles apply except: 1, 2, 5, & 7.

Article 2 is amended in its entirety to: See Article 4, section E.4.2

Article 6 is amended to: Unless otherwise provided in the Sale, this contract may be terminated by either party without cost to the Government upon 120 days’ written notice to the other, to be calculated from the date the notice is mailed.

D.5 SBR Part 5:

Additional Special Circumstance Conditions - Miscellaneous: All articles apply except: A, D & G.

Article D. Paragraph D(a) is amended to: The Purchaser will, at no expense to the Government and prior to contract performance, confirm with the Sales Contracting Officer the following Certificates of Insurance will be effective throughout the term of the contract or any extensions thereof.

D.6 SBR Part 6:

Additional Special Circumstance Conditions - Demilitarization and Mutilation: Does not apply.

D.7 SBR Part 7:

Additional Special Circumstance Conditions - Hazardous and Dangerous Property: All articles apply except: A, B, C, D, E, F, R, T & U.

D.8 SBR Part 8:

Additional Special Circumstance Conditions - Foreign Excess Personal Property: Does not apply.

D.9 SBR Part 9:

Special Spot Bid Conditions of Sale of Government Property: Does not apply.

D.10 SBR Part 10:

Sale of Government Property Special Auction Conditions: Does not apply.

A copy of the Sale by Reference is available on the DLA Auction website listed above in Section C, Property Generations Data and Useful Links.

E TERMS AND CONDITIONS OF SALE:

The following Articles apply and constitute the terms and conditions of this sale:

E.1 ARTICLE ONE: FAR Provisions E.1.1 FAR Provision 52.204-24:

FAR Provision 52.204-24 is applicable.

PROHIBITION ON CONTRACTING FOR CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT (AUG 2020)

Full clause text included in attachment. The provision at FAR 52.204-24 requires an offeror to represent, on an Offer-by-offer basis, whether it will or will not provide any “covered telecommunications equipment or services to the Government in the performance of any contract, subcontract or other contractual instrument resulting from this solicitation.”

The Representation that must be signed will be sent at the same time the Statement of Intent (SOI) is sent to apparent high bidder as part of the pre-award process.

https://www.acquisition.gov/far/52.204-24

Full clause text included in attachment.

E.1.2 FAR Provision 52.204.25:

FAR Provision 52.204-25 is applicable.

FAR Provision 52.204-25 titled, “Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment” is incorporated by reference from the Federal Acquisition Regulation.

https://www.acquisition.gov/far/52.204-25

Full clause text included in attachment.

E.2 ARTICLE TWO: Bid Evaluation and Contract Award E.2.1 Bidding Process:

This IFB is issued by the Agency to initiate Step Two of a two-step sealed bid auction process.