Attachment 1 DLA-Energy-Sol-Provisions.pdf

Attachment 1 - SPE600-12-R-0411

SOURCE SELCTION INFORMATION – SEE FAR 2.101 AND 3.104

DLA ENERGY SPECIAL CONTRACT PROVISIONS SECTION C - DESCRIPTION/SPECIFICATIONS

C-0001 C13, SIZE, SIZE CONSIST, AND PREPARATION (DLA ENERGY AUG 1997)

(a) DEFINITIONS.

(1) TOP SIZE. The sieve (screen) designating the upper limit or top size of a series of screens with the smallest openings upon which coal is cumulatively retained. This is cited as a percentage by weight of coal larger than the defined top size. This requirement is found in the Schedule section of the solicitation/contract (e.g., no more than 5% retained on a 1 ¼ inch screen). The defined top size is not to be confused with the size of the largest lot.

(2) BOTTOM SIZE. The sieve (screen) designating the lower limit or bottom size of a series with the largest openings through which the coal passes. This is cited as a percentage by weight of coal smaller than the defined bottom size that passes through a defined bottom size screen. This requirement is found in the Schedule section of the solicitation/contract (e.g., no more than 15 percent passing through a ¼ inch screen). The defined bottom size is not to be confused with the size of the smallest particles in the lot.

(b) TEST METHODS. ASTM D 4749-87, Standard Test Method for Performing the Sieve Analysis of Coal and Designating Coal Size (Reapproved 1994); ASTM D 2013-86, Preparing Coal Samples for Analysis Reapproved 1994).

(c) SIEVE APPARATUS.

(1) In addition to conforming to all other specifications set forth in this contract, all coal delivered shall be substantially of the size or sizes specified, determined as follows:

(i) In all double screened coal (known as prepared sizes), the maximum and/or minimum top size specified shall pass through a round hole perforated screen (or its equivalent), the perforations of which are equal in diameter to the maximum and/or minimum top size specified. The maximum and/or minimum bottom size specified shall be retained on a round hole perforated screen (or its equivalent), the perforations of which are equal in diameter to the maximum and/or minimum bottom size specified.

(ii) In all single screened coal (known as screenings, slack, or mechanically fired steam coal) the maximum and/or minimum top size specified shall pass through a round hole perforated screen (or its equivalent), the perforations of which are equal in diameter to the maximum and/or minimum top size specified. As single screened coal is purely a resultant product, no maximum and/or minimum bottom can be specified and no bottom screening required.

(iii) Where "crushed run of mine" or "crushed prepared sizes" are accepted upon award for screenings and/or slack coal as described in (ii) above, the maximum and/or minimum top sizes may be determined by adjusting the crusher to that position where the crushed product will not exceed the maximum top size or be less than the minimum top size required.

Where such crushed coal is furnished, no screening is required. Run of mine coal shall be full of the mine with no sizes removed.

The maximum size will be limited by the contract terms; and lumps exceeding that maximum size shall not be removed but shall be broken or crushed to come within the maximum size limitations.

(d) SAMPLE SIZE.

(1) When a definite size consist is required, the Schedule for coal will specify the minimum percentage for coal which will be retained or the maximum percentage of coal that will pass through the screen(s).

(2) A size consist sample shall be no less than 1,000 pounds which shall be drawn in equal increments from not to exceed 5 carloads or truckloads of coal in any one shipment.

(3) The size consist sample shall be drawn in equal increments from 9 points in the car(s) or truck(s). Lay out 3 diagonals (example: [\\\] ) across the car(s) or truck(s), beginning at the right front corner, diagonally across the car(s) or truck(s) to the other side. Three equally spaced collection points shall be designated for each diagonal. The first increments should be taken from the inside of the first diagonal {\\.\]. The 9th increment should be taken from the left rear corner of the 3rd diagonal in the car(s) or truck(s) [‘\\\].

(e) SAMPLING. Where single screened and/or crushed coal of a definite size consist is required by the contract, all coal delivered there under shall meet or be better than the size consist specified in the Schedule for coal as determined and reported in accordance with ASTM D 4749, using Round-hole screens. Sampling will not be required if it is obvious upon a visual inspection that the coal fails to meet size consist requirements, and that fact is acknowledged by a Contractor’s representative.

The screening test at the receiving activity shall be conclusive as to whether the size consist requirement has been met.

(f) NOTIFICATION OF REJECTION AND SAMPLE RETENTION.

(1) If the size consist of the car(s) or truck(s) is sampled and screened as described above and fails to meet the sizing required by the Schedule, the coal may be rejected by the Contracting Officer, the Contractor will be required to remove the coal at its expense. As an alternative, coal rejected for noncompliance of size consist requirements may be accepted at an adjusted price recommended by the receiving activity and agreed to by the Contractor and the Contracting Officer.

(2) The screened sample shall be retained in a protected place for seven full days, not counting the day the sample is screened, and shall be available for inspection by the Contractor and/or the Contracting Officer.

Example: Sample Screening Date: Nov 15 Holding Period: Nov 16-22 Destroy Sample: Nov 23

C20 SULFUR CONTENT GUARANTEE (DLA ENERGY APR 2007)

The sulfur content of the coal to be furnished under this solicitation must be that percentage specified in the Schedule under MINIMUM QUALITY, or that percentage prescribed by applicable state law or local ordinance in effect on the date specified for receipt of offers, whichever is lower. In the event an applicable State law or local ordinance prescribes a lower percentage of sulfur content than that specified in this solicitation, the lower percentage shall be inserted in the Guaranteed Analysis and the applicable State law or local ordinance shall be identified in the Schedule.

FOR ALASKA: The sulfur content of the coal to be furnished under this solicitation shall not exceed the percentage specified in the Schedule of Supplies under MINIMUM QUANTITY. In the event applicable State law or regulation is changed during the contract term to prescribe a sulfur content other than that specified in the Schedule of Supplies of this solicitation, the percentage shall be inserted in the Guaranteed Analysis and the applicable State law or local ordinance shall be identified in the Schedule.

DLA ENERGY SPECIAL CONTRACT PROVISIONS SECTION E – INSPECTION AND ACCEPTANCE

E-0001 E1.03 CONTRACTOR INSPECTION RESPONSIBILITIES (COAL) (DLA ENERGY DEC 2011)

(a) The Contractor shall provide and maintain, and assure that subcontractors provide and maintain, an inspection system acceptable to the Government. The Contractor shall prepare, and assure that subcontractors prepare, a written description covering their procedures and operations directly relating to the supplies to be furnished under this contract:

(1) receiving, (2) sampling, (3) testing, (4) calibration of testing and measuring equipment, (5) loading and shipping, and (6) records and reports. The description shall also include the designation of key operational positions. The inspection system, including operations related thereto and performed pursuant to this contract provision, shall be subject to surveillance by the Quality Representative.

(b) The Contractor shall either perform, or provide an independent laboratory acceptable to the Government (see the QUALITY PROVISIONS contract provision) to perform, all sampling and acceptance tests set forth in this contract in order to substantiate conformance of such supplies to the quality required by this contract; when such tests are performed at origin on supplies to be accepted at destination, the Contractor shall further provide, or cause to be provided, at the point and time of acceptance, such evidence of quality that will enable the Government to verify original test results. Such evidence of quality shall consist of an analytical test report, which shall also include barge, railcar and/or truck numbers, mine and seam (or blends) from which the coal originated. The analytical test report will include the air dry loss, as well as the weights of the samples and the number of increments taken. The method of sampling will also be annotated somewhere in the analysis.

(c) At the time of each shipment under this contract, the Contractor shall prepare and furnish to the Government a Material Inspection and Receiving Report (DD Form 250 series) in the manner and to the extent required by DoD FAR Supplement Appendix F, Material Inspection and Receiving Report, or as stated elsewhere in the contract. The mine and seam (or blends) from which the coal originated will also be annotated on the DD Form 250.

(d) The Contractor shall inspect, prior to loading, all shipping conveyances to determine that such conveyances are suitable for loading.

(e) The Contractor shall keep all quality and quantity records, including DD Form 250 series documents, complete and available to the Government during the performance of this contract and for 3 years after final payment under this contract.

E-0002 E1.04, QUALITY PROVISIONS (COAL) (DLA ENERGY NOV 2007)

RESPONSIBILITY FOR INSPECTION. Unless otherwise specified in the contract, the Contractor is responsible for the performance of all inspection requirements as specified herein. Except as otherwise specified in the contract, the Contractor may use its own or any other facilities suitable for performance of the inspection requirements specified herein, unless disapproved by the Government. The Government reserves the right to perform any inspection deemed necessary to assure supplies and services conform to the contract specifications.

(a) QUALITY CONFORMANCE INSPECTION. Individual lots shall be examined as specified herein and subjected to tests for all requirements cited in the Schedule.

(b) INSPECTION LOT. A lot shall consist of a heterogeneous mixture of coal to be represented by a gross sample.

(c) SAMPLING.

(1) SAMPLING FOR VERIFICATION OF PRODUCT QUALITY. Each lot of coal shall be sampled for verification of product quality in accordance with ASTM D 2234, except as otherwise approved by the Contracting Officer's Quality Representative.

(2) GROSS SAMPLE. A gross sample is a sample representing one lot of coal and composed of a number of increments on which neither reduction nor division has been performed. One gross sample shall represent one lot of a quantity not to exceed 1,000 tons. FOR ALASKA: One gross sample shall represent one lot of no greater than 10,000 tons. Collect samples in accordance with ASTM D 2234 except that the number of increments collected shall be based on the lot size and shipment loading particulars according to the following schedule: One sample increment shall be taken systematically by the “full-stream cut” condition.

(3) INCREMENT. An increment is a small portion of the lot collected by one operation of a sampling device and normally combined with other increments from the lot to make a gross sample.

(4) INCREMENT COLLECTION CLASSIFICATION.

(i) The type of increment to be collected from the bulk lot shall be Type I as defined in ASTM D 2234.

(ii) The condition of increment collection shall be either Condition A or Condition B as defined in

ASTM D 2234.

(iii) The spacing of increments shall be Systematic 1 as defined in ASTM D 2234 and be distributed throughout the entire lot.

(iv) The number and weight of the increments shall be as specified in Table 2 of ASTM D 2234. For example, raw coal with a top size of 2" will require a minimum of 35 increments taken systematically by either "stop-belt" or "moving stream" "condition" from the lot of 1,000 tons or less. Each increment shall weigh a minimum of six pounds.

FOR ALASKA. For purposes of determining size consist, the sampling procedure for stop-belt samples shall be as follows: A size consist sample shall be one stop-belt, two increment samples of a minimum of 25 pounds each. Two increments shall be collected each time the belt is stopped and the belt shall be stopped at least once for every 1,000 tons of coal. The total number of stop-belts shall not exceed three per lot. If the daily total quantity shipped is between 1,000 and 1,500 tons, a second stop-belt will be taken. For example, if the total tonnage shipped to the U.S. Government installations totals 1,140 tons for the day, then two stop-belts with two incremental samples/stop-belt shall be required. For each day’s lot of coal, the first pair of stop-belts shall be taken at approximately 500 tons with successive pairs taken at approximately 1,000-ton intervals thereafter for a maximum of six incremental samples per lot. Each pair of samples shall be taken as far apart as practical between the tripper and the end of the A-Frame building.

(5) MECHANICAL COAL SAMPLING. (i) In response to this solicitation, Contractors proposing to use mechanical sampling equipment to satisfy the collection method for condition B, full stream cut as defined in ASTM D 2234, must include with the offer a detailed description of the sampling procedures, including drawings and operating instructions.

(ii) Contractor's written procedures, will also describe whether this sample method is ASTM approved (or equivalent) and complies with the collection criteria in D 2234 for obtaining a gross sample of coal.

(iii) Mechanical coal sampling systems, procedures and operations related thereto are subject to surveillance by the Quality Representative (QR) and must be acceptable to the Government. The Government's acceptance will be based on an evaluation of the above data and the recommendation/checklist submitted by the QR in accordance with ASTM D 4702.

(d) PREPARING COAL SAMPLES FOR ANALYSIS. The gross sample shall be prepared for analysis in accordance with ASTM D 2013.

(e) TEST METHODS. The standard test methods used for coal to determine conformance to chemical and physical requirements of the contract shall be conducted in accordance with ASTM standards listed in Table I:

E-0002, E1.04 Cont’d

TABLE I

TEST ASTM TEST METHOD NUMBER

Moisture, Total (as received) D 3173, D 3302 (D 2013), or D 2961 (to be used for bituminous coal only, total moisture content not to exceed 10% Volatile Matter, Dry D 3175 Ash, Dry D 3174 Sulfur, Dry (1) D 4239 (Method B or C) BTU, Dry D 2015, D 3286, D 1989, or D 5865 Ash Softening Temperature oF (2) D 1857 Mercury, ppm D 3684, D 6722 Chlorine, Percent D 2361, D 6721, D 4208 Fluorine D 3761, D 5987

TEST ASTM TEST METHOD NUMBER

Free Swelling Index D 720 Hardgrove Grindability D 409 Sieve Analysis/Coal Size (3) D 4749 Sodium (Na2O) (4) D 3682 Major and Minor Trace Elements (Mineral Ash) D 6357; D 6349 or D 4326 Slagging and Fouling Characteristics (5) Multi-process calculation

FOOTNOTES

(1) Authorized Alternative Method A or B, ASTM D 3177.

(2) Report ash fusion temperature as tested in a reducing atmosphere.

When H=1/2W is indicated in the Schedule of Supplies, the analysis will report the Hemispherical Temperature (HT).

(3) Disregard Table 3 (D 4749) for gross sample quantity and utilize the Raw (Uncleaned Coal) section of Table 2, ASTM D 2234. Collect the gross sample for sieve analysis by doubling the number of increments listed for Raw (Uncleaned Coal), according to top size, for General Purpose Sampling Procedure (Table 2). The actual weight of the gross sample tested will be shown on the analytical test report. This gross sample is intended for sieve analysis determination only.

(4) When specified in the contract.

(5) Determination process requires initial testing of Major and Minor Trace Elements (Mineral Ash).

(a) Step 1 – Determine the base/acid ratio: (Fe2O3 + CaO + MgO + K2O + Na2O) / (SiO2 + TiO2 + A12O3)

(b) Step 2 – Determine the fouling factor: base/acid ratio is multiplied by NaO value.

(c) Step 3 – Determine the Slagging Factor: base/acid ratio is multiplied by the as received sulfur percent.

(f) LABORATORY ACCEPTANCE.

(1) For evaluation by the Government, the Contractor's laboratory will have available and submit to the QR, at a minimum, the information required by the Sample Worksheet (FIG.X1.1), ASTM D 4182, unless evidence of laboratory accreditation from an independent laboratory association can be supplied by the Contractor.

(2) When applicable, the following requirements will be added as a continuation to the sample worksheet evaluation:

VII GRINDABILITY (Hardgrove - Machine).

A Date of last calibration. Was calibration chart prepared?

B Is revolution counter operating and does it stop automatically after setting at 60 revolutions?

C Are sieving and weighing operations carried out without delay?

VIII FREE-SWELLING INDEX.

A Are proper temperature and rate of temperature rise for either electric or gas heating maintained?

B Do test buttons compare well to the standard profiles?

IX SIEVE ANALYSIS/COAL SIZE.

A Are round hole sieves with a staggered pattern used when sizing for 1/4" or larger coal?

B Do sieve plates show any visible damage?

C Are sieve plates painted, plated, or coated?

D Is a continuous mechanical sieve shaker used?

E Before and after sieving, is the test sample/sieved coal weighed to within .5% or better?

F. Does the scale have a calibration certificate?

E-0003 - E22 LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS (DLA ENERGY DEC 2011) The following lists shall be used to identify the Government inspection office assigned inspection responsibility for DLA Energy contracts in a particular geographic area. These contracts include, but are not limited to, those for bulk petroleum products and additives, into-plane refueling, petroleum storage and laboratory services, coal, aerospace energy (including compressed gases), and posts, camps, and stations. The area of inspection responsibility and corresponding office code are assigned in paragraphs (a) and (b). The address and phone number of each inspection office by office code is provided in paragraph (c). Unless a particular inspection office is identified in another part of the contract, the assignments in this contract provision shall apply.

(a) AREAS OF RESPONSIBILITY AND OFFICE CODES WITHIN THE CONTINENTAL UNITED STATES

(CONUS):

Alabama 110 Maine 110 Oklahoma 110 Arizona 120 Maryland 110 Oregon 120 Arkansas 110 Massachusetts 110 Pennsylvania 110 California 120 Michigan 110 Rhode Island 110 Colorado 120 Minnesota 110 South Carolina 110 Connecticut 110 Mississippi 110 South Dakota 110 Delaware 110 Missouri 110 Tennessee 110 District of Columbia 110 Montana 120 Texas 110 Florida 110 Nebraska 110 Utah 120 Georgia 110 Nevada 120 Vermont 110 Idaho 120 New Hampshire 110 Virginia 110 Illinois 110 New Jersey 110 Washington 120 Indiana 110 New Mexico 120 West Virginia 110 Iowa 110 New York 110 Wisconsin 110 Kansas 110 North Carolina 110 Wyoming 120 Kentucky 110 North Dakota 110 Louisiana 110 Ohio 110

EXCEPTIONS:

(1) The El Paso, Texas, area is assigned to Code 120 (DLA Energy Americas – West).

(2) The Newcastle, Wyoming, area is assigned to Code 110 (DLA Energy Americas – East).

(b) AREAS OF RESPONSIBILITY AND OFFICE CODES OUTSIDE THE CONTINENTAL UNITED

STATES (OCONUS) (INCLUDING ALASKA AND HAWAII):

Afghanistan 400 Cyprus 200 Malaysia 300 Singapore 300 Africa 2001 Egypt 4001 Maldives 300 South America 110 Alaska 300 Europe (Continental) 200 Malta 200 South Korea 300 Antarctica 300 Georgia 200 Mauritius 200 Sri Lanka 300 Armenia 200 Greenland 200 Mexico 110 Syria 400 Ascension Island 110 Hawaiian Islands 300 Midway Island 300 Taiwan 300 Australia 300 Hong Kong 300 Mongolia 300 Tajikistan 400 Azerbaijan 200 Iceland 200 Myanmar 300 Thailand 300 Azores 200 India 300 Nepal 300 Turkey 200 Bahrain 400 Indonesia 300 New Zealand 300 Turkmenistan 400 Bangladesh 300 Ireland 200 North Korea 300 United Arab Bermuda 110 Iran 400 Oman 400 Emirates 400 Bhutan 300 Iraq 400 Pacific Islands United Kingdom 200 Brunei 300 Israel 200 (Central & South) 300 Uzbekistan 400 Cambodia 300 Japan 300 Pakistan 400 Vietnam 300

E-0003 - E22 LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS (DLA ENERGY DEC 2011) Cont’d

Canada 110/1202 Jordan 400 Papua New Guinea 300 Wake Island 300 Canary Island 200 Kazakhstan 400 Philippines 300 Yemen 400 Caribbean Islands 110 Kuwait 400 Qatar 400 Central America 110 Kyrgyzstan 400 Russia 200 Chagos Archipelago 300 Laos 300 Ryukus Islands, Japan 300 China 300 Lebanon 400 Saudi Arabia 400 Comoros 200 Madagascar 200 Seychelles Is. 420

[1] Except for Egypt, which is assigned to DLA Energy Middle East (Code 400), all other countries in Africa fall under DLA Energy Europe (Code 200).

[2] The provinces of Manitoba, Ontario, Quebec, Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island are assigned to DLA Energy Americas East (Code 110). The rest of Canada falls under DLA Energy Americas West (Code 120).

(c) INSPECTION OFFICES AND CODES.

110. DLA Energy Americas East 3 ATTN: Quality Manager Federal Building, Room 1005 2320 LaBranch Street Houston, TX 77004-1091 Phone: (713) 718-3883, ext. 162/161/160

FAX: (713) 718-3891

120. DLA Energy Americas West 3 ATTN: Quality Manager 3171 N Gaffey Street San Pedro, CA 90731-1099 Phone: (310) 241-2806/2807

FAX: (310) 241-2836

200. DLA Energy Europe 3 Mailing Address:

DLA Energy Petroleum Lab ATTN: Quality Manager

CMR 422

APO AE 09067-0422

[Location: Kaiserslautern, Germany] Phone: 49-631-3406-2285/2286 4

FAX: 49-631-3406-2289 4

Shipping Address:

DLA Energy Petroleum Lab ATTN: Quality Manager Rhine Ordinance Barracks , Bldg 320 Am Opelkreisel 67663 Kaiserslautern, Germany

E-0003 - E22 LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS (DLA ENERGY DEC 2011) Cont’d

300. DLA Energy Pacific 3 ATTN: Quality Manager 1025 Quincy Avenue, Building 479, Suite 2000 Pearl Harbor, HI 96860-4512 Phone: (808) 473-4307/4287

FAX: (808) 473-4232

400. DLA Energy Middle East 3 ATTN: Quality Manager PSC 451, Box DLA Energy-ME

FPO AP 09834-2800

[Location: Juffair, Bahrain] Phone: 973-17-85-4658/4665 4

FAX: 973-17-85-4670 4

[3] Designated location of the DLA Energy Regional Quality Manager/Pre-Award Survey Monitor.

[4] Dial 011 before these numbers when calling from the U.S. When calling these numbers from outside the U.S., use the appropriate international long distance prefix for the country where the call originates.

E-0004 E24.03 INSPECTION AND ACCEPTANCE (COAL) (ALASKA) (DLA ENERGY DEC 2011) (REV)

(a) All coal shall be (1) reasonably free from slate, bone, sulfur balls, dirt, tramp iron, frozen coal, extraneous foreign matter, and other characteristic impurities, (2) is not oxidized or weathered, (3) is properly prepared and meets the contract size requirements, and (4) is of the analytical quality equal to or better than the Minimum Specification Quality Required.

(b) If upon visual inspection the Government determines that any coal delivered hereunder is (1) not reasonably free from slate, bone, sulfur balls, dirt, tramp iron, frozen coal, extraneous foreign matter, or other characteristic impurities, (2) is oxidized and/or weathered, or (3) does not meet contract size requirements, and (4) is not of analytical quality equal to or better than the Minimum Specification Quality Required, the Contracting Officer or his designated representative may reject the coal by prompt telephonic or telegraphic notice, confirmed in writing, to the Contractor. All notices of rejection shall state the car numbers containing the rejected coal and the specific reason or reasons for the rejection.

(c) All coal delivered under this contract must be the size specified in the “Contractor’s guarantees” on DLA Energy Form 6.37-A incorporated in the contract. If upon visual inspection double-screened coal obviously exceeds the top size or obviously fails to meet the minimum bottom size guaranteed by the Contractor, the Contracting Officer or his designated representative may reject the coal by prompt telegraphic or telephonic notice, confirmed in writing, to the Contractor. The rejected coal shall not be unloaded and a size consistent sample shall be taken from the tops of the railcars. Collection and preparation of the samples will be in accordance with ASTM D 4915, Manual Sampling of Coal from Tops of Railroad Cars. The Sampling Pattern, Method of Increment Collecting, and Coal Quantity Represented by a Sample are described in Section 6, paragraph c, Collection of Size Consistent Samples, of DLA Energy M 4185.1, Quality Assurance Procedures for Receipt of Coal Procured through DLA Energy. Sieve analysis will be performed in accordance with ASTM D 4749, Standard Test Method for Performing the Sieve Analysis of Coal and Designating Coal Size, paragraph 11, Procedure, using round hole plates for the maximum and minimum sizes. An automatic shaker will be used to perform the actual sieving of the coal sample. The time the automatic shaker will be run will be that time recommended by the manufacturer of the shaker for the type of coal being sampled. The size consist test at destination (using installation) taken by the car top method will be conclusive. All notices of rejection shall state the car numbers containing the oversize and/or the undersize coal, the approximate size of the coal declared to be oversize and/or undersize, and the approximate percentage of this oversize and/or undersize coal. Coal so rejected may be later accepted at an adjustment in price in accordance with subparagraph (d)(3) of this contract provision.

(d) In the event that coal is rejected pursuant to (b) above, the Government, at its option, may exercise one or more of the following rights:

(1) Require the Contractor at the Contractor's expense to replace the rejected coal with an equal quantity of coal that meets the requirements of this contract.

(2) Require the Contractor, in the event coal is frozen to the sides or bottom of the rail cars, to bear the additional expense involved in unloading at destination or diverting the cars.

(3) Accept the previously rejected substandard coal in which event the contract price shall be reduced in an amount to be agreed upon by the Contractor and the Contracting Officer. Failure to agree to the amount of the reduction shall be considered a question of fact within the meaning of paragraph (d), Disputes, of the CONTRACT TERMS AND CONDITIONS

- COMMERCIAL ITEMS contract provision.

(e) The Contractor shall be liable for any damage to the Government's crushing and conveying equipment caused by the presence of tramp iron or other foreign bodies in the coal at the time of loading into the rail car at the tipple.

E-0005 E25.03 SAMPLING AND EVALUATION (COAL) (ALASKA) (DLA ENERGY JUL 2002)

(a) The Contractor shall sample all coal at the tipple as the coal is being loaded into the rail cars. The Government may have a representative present during coal loading and sampling. The Contractor shall collect samples consistent with standard methods prescribed by the American Society for Testing Materials. The Contractor shall send the sample for analysis to the U.S. Army TARDEC Petroleum Center Laboratory in New Cumberland, PA. The U.S. Army TARDEC Petroleum Center’s analysis of the sample shall be final and conclusive for both parties with respect to the actual tonnage sampled.

(b) If the heating value of the coal falls below the guaranteed analysis stated on the Award Continuation Sheet, the Contractor will be debited an amount equal to 1 percent of the delivered price for each 100 BTU/lb. that the monthly average (rounded to the nearest 100 BTU/lb.) exceeds the Contractor’s guaranteed As Received BTU/lb. The delivered price for this calculation is the f.o.b. mine price per ton plus transportation charges, or f.o.b. destination price, which includes all transportation charges paid by the Contractor, plus any applicable handling or product treatment costs.

(c) If the heating value of the coal exceeds the guaranteed analysis stated on the Award Continuation Sheet, the Contractor will be credited an amount equal to 1 percent of the delivered price for each 100 BTU/lb. that the monthly average (rounded to the nearest 100 BTU/lb.) exceeds the Contractor’s guaranteed As Received BTU/lb. The delivered price for this calculation is the f.o.b. mine price per ton plus transportation charges, or f.o.b. destination price, which includes all transportation charges paid by the Contractor, plus any applicable handling or product treatment costs.

(d) The debits and credits will be adjusted every six months by the Government by subtracting the total credit amount from the total debit amount based on weighted monthly averages of the total amount of coal delivered and its corresponding analysis(es). If the total debits exceed the total credits, the Contractor shall pay the Government the difference between the credits and the debits. The Government may elect, at its option, to have the Contractor repay amounts owing to the Government by cash payment or as a credit against existing unpaid invoices due the Contractor. The Contractor shall not be paid and the contract price shall not be increased if the total credits exceed the total debits.

(e) The Government, at its option, may take samples of coal delivered under this contract for verification of Contractor samples.

E-0006 E26.01 SOURCE INSPECTION OF BULK DELIVERIES (COAL) (DLA ENERGY DEC 2011)

(a) The activity assigned coal procurement inspection responsibility for the geographical area wherein the point of bulk shipment (loading) is located is responsible for assuring compliance with the CONTRACTOR INSPECTION RESPONSIBILITIES contract provision.

(b) The following information will be dispatched by the Contractor so as to be available to the Government inspection activity for the shipping point 7 days prior to the date of shipment, unless other arrangements are made between the inspection activity and the Contractor, and that agreement is in writing:

(1) Contract number and item number;

(2) Date shipment is to be made;

(3) Name and location of preparation plant or tipple from which shipment is to be made;

(4) Identity of the consignee; and

(5) Quantity to be shipped.

(c) The office responsible for inspection, on behalf of the Government, shall be as follows:

SOURCE OF PRODUCT

ITEM(S) AND/OR SHIPPING POINT INSPECTION OFFICE

NOTE: The Government will designate the applicable inspection office on resultant award documents. If coal is shipped via multiple conveyances, the primary inspection office shall be where the tipple is located and the coal initially loaded. The primary inspection office shall request support for surveillance from the cognizant inspection office where any transloading is done. Copies of the request and the name/address/phone number/fax numbers of the inspection representative(s) assigned shall be provided to the Contract Administrator.

E-0007 E33.03 CONSIDERATION FOR EXCESS SULFUR AND ASH (COAL) (DLA ENERGY DEC 2011) In addition to those rights provided under the SAMPLING AND EVALUATION contract provision, the Government will take the following actions if coal delivered under this contract has not met the Minimum Specification Quality Required for sulfur and ash, based on U.S. Army Petroleum Center Analysis Reports:

(a) Assess damages against the Contractor based upon the unit price of the coal as follows:

For each 0.10 percent (one-tenth of one percent) that the sulfur content exceeds the Minimum Specification Quality Required, (DLA Energy Form 6.37-S), the unit price of the coal, for the quantity represented by the analysis report, shall be decreased $0.50 (fifty cents) per ton. The amount of these damages will be deducted from any payments due the Contractor. If payments are no longer due the Contractor, the Contractor shall promptly pay to the Government the amount of damages so determined.

(b) Assess damages against the Contractor based upon the unit price of the coal as follows:

For each 1.0 percent (one percent) that the ash content exceeds the Minimum Specification Quality Required (DLA Energy Form 6.37-S), the unit price of the coal, for the quantity represented by the analysis report, shall be decreased $0.25 (twenty-five cents) per ton. The amount of these damages will be deducted from any payments due the Contractor. If payments are no longer due the Contractor, the Contractor shall promptly pay to the Government the amount of damages so determined.

The ash penalty shall be assessed only when the delivered ash content of the coal exceeds the minimum specification quality required for ash by a full percent. Thereafter, penalties will be assessed for each fraction of a percent.

EXAMPLES:

ASH SPECIFICATION DELIVERED ASH PENALTY

6.0 6.5 NONE

6.0 7.0 $.25

6.0 7.5 $.38

(c) Require the Contractor to pay to the Government any penalties or fines imposed upon any using activity by any Federal, State, or local authority, arising out of the delivery of coal containing sulfur in excess of the Minimum Specification Quality Required, or arising out of the delivery of coal with an ash content in excess of the Minimum Specification Quality Required. The amount of these penalties or fines will be deducted from any payments due the Contractor. If payments are no longer due the Contractor, the Contractor shall promptly pay to the Government the amount of such penalties or fines.

(d) (1) FOR ALASKA. The Minimum Specification Quality Required for as received sulfur and ash shall be used to calculate damages on a weighted monthly average basis, consolidated every six months, with debit and credit calculation for heat value applied in accordance with the SAMPLING AND EVALUATION (COAL) (ALASKA) contract provision.

(2) ALL OTHERS. The Minimum Specification Quality Required for dry sulfur and ash shall be used to calculate damages on a per shipment basis.

E-0008 E33.06, MINES (DLA ENERGY APR 1997)

(a) Coal shall not be furnished from mines or tipples other than those stated on DLA Energy Form 6.37A (Award Continuation Sheet) for each installation or any modification thereto. Coal shipped from any other source may be rejected by the Government and the contract may be terminated pursuant to paragraphs (f), Excusable Delays, and (m), Termination for Cause, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause of the contract.

(b) Notwithstanding the above, the Government reserves the right to accept or deny the Contractor's written request to furnish coal from mines or tipples in addition to those shown in the contract award Schedule. When additional mines or tipples are added to the Schedule by the Government at the written request of the Contractor, the Government reserves the right to require consideration in the form of a price reduction.

E-0009 - E35 NONCONFORMING SUPPLIES AND SERVICES (DLA ENERGY DEC 2011)

(a) DEFINITION: As used in this contract provision:

Deviation is defined as a written authorization granted after contract award and prior to manufacture of an item, to depart from a particular performance or design requirement of a contract, specification, or referenced document, for a specific number of units or specific period of time, normally the duration of the contract.

Extraordinary situation means the matter cannot await resolution until the next DLA Energy business day (0800 to 1630 hours EST, Monday through Friday, Federal Holidays excluded).

Waiver is defined as a written authorization granted after contract award to accept a configuration item or other designated item which, during production or after having been submitted for inspection, is found to depart from specified requirements, but nevertheless is considered suitable for use “as is” or after repair by an approved method. Approval is on a case-by-case basis and is normally for a set period of time.

(b) The Government may, at its discretion, accept nonconforming supplies or services. In such cases, the Contractor must obtain a deviation or waiver from the Contracting Officer prior to acceptance.

(c) The following procedures shall be used to request a deviation or waiver.

(1) Requests for deviations and waivers shall be submitted by the Contractor to the Contracting Officer with a copy to the appropriate Inspection Office referenced in the LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS or QUALITY REPRESENTATIVE contract provision of this contract. Each request shall provide the following information:

Contractor name; name and contact information of the contractor’s authorized negotiator; contract number; contract line item number and product nomenclature, clause or contract provision number, paragraph and subparagraph, as appropriate; the nature of the request; the reason for the request; the corrective action being taken by the Contractor to correct and prevent recurrence of the condition(s) causing the nonconformance; and an agreement to pay an equitable price reduction, estimated and proposed by DLA Energy, over and above the administrative fee, contingent on the impact of the specific circumstances on DLA Energy relative to approval of the deviation or waiver.

(2) In extraordinary situations, the Contractor may initially submit a verbal request for a waiver, but not a deviation, to the Contracting Officer. Written requests shall be submitted to the Contracting Officer by the next DLA Energy business day (0800 to 1630 hours EST, Monday through Friday, Federal Holidays excluded). If the Contracting Officer cannot be reached, the Duty Officer shall be contacted to provide the necessary information to the proper individuals as soon as possible.

The Duty Officer's telephone number is (800) 286-7633 or (703) 767-8420.

(3) If a deviation or waiver is granted, the contract will be modified to accept the nonconforming supplies or services and to require the Contractor to provide an equitable price reduction or other adequate consideration commensurate with the deviation or waiver being granted. If the situation warrants, a deviation or waiver may be granted without prior agreement on price reduction or other consideration, subject to agreement by the Contractor, or its representative, to subsequent negotiation.

Such an agreement, in addition to a brief description of the terms of the deviation or waiver, shall be documented on the shipping document or other appropriate correspondence. After negotiations, failure to agree on adequate consideration shall be a dispute concerning a question of fact within the meaning of the Disputes paragraph of the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS contract provision of this contract.

(4) If a deviation or waiver is granted and the nonconforming supplies are accepted, then in no event will consideration be less than $500, which covers administrative costs, plus any additional cost of Government reinspection or retest, if necessary.

(5) If a deviation or waiver is granted modifying this contract, but the supplies accepted are subsequently determined to be in conformity with contract specifications, the Contractor shall still be obligated to pay the consideration originally agreed upon in support of the deviation or waiver. If, however, this consideration exceeds $1000, a second contract modification shall be issued reducing the Contractor's obligation to $1000 (the administrative cost of issuing the two required modifications), plus, if appropriate, any cost of Government reinspection or retest performed as a result of the deviation or waiver being granted.

E-0009 - E35 NONCONFORMING SUPPLIES AND SERVICES (DLA ENERGY DEC 2011) Cont’d

(d) When notification of nonconforming supplies is received after the supplies have been accepted, and the Government determines not to exercise its right to reject or to require correction under the INSPECTION OF SUPPLIES – FIXED-PRICE, INSPECTION OF SERVICES – FIXED PRICE, or CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS contract provision, then in no event will consideration be less than $500 to cover administrative costs. This $500 fee is in addition to—

(1) Consideration commensurate with the extent of nonconforming supplies; and

(2) Cost of Government reinspection or retest, if necessary.

The administrative fee will apply to each claim letter issued for off-specification product delivered to an activity.

(e) Contractors shall be held responsible for payment of any fines or penalties imposed on a receiving activity by an environmental enforcement agency, resulting from the delivery of nonconforming supplies under a DLA Energy contract.

(f) Repeated tender of nonconforming supplies or services, including those with only minor defects, will be discouraged by appropriate actions, including, but not limited to, rejecting the supplies or services whenever feasible and documenting the Contractor's performance records.

DLA ENERGY SPECIAL CONTRACT PROVISIONS SECTION F – DELIVERIES OR PERFORMANCE

F-0001 F17.04 CONDITIONS OF RAIL DELIVERIES (COAL) (DLA ENERGY JAN 2012)

When the Schedule calls for delivery by railcar, the following conditions shall apply:

(a) Each shipment from a single loading point shall be considered as one bulk lot as defined under the contract provision entitled QUALITY PROVISIONS and shall be represented by one gross sample if the lot is no greater in quantity than 1,000 tons.

FOR ALASKA: Each shipment from a single loading point shall be considered as one bulk lot as defined under the contract provision entitled QUALITY PROVISIONS and shall be represented by one gross sample if the lot is no greater in quantity than 10,000 tons.

(b) The gross sample shall be collected from the entire lot, prepared for analysis and tested to determine chemical and physical properties in accordance with the contract provision entitled QUALITY PROVISIONS. The analytical report and DD Form 250 shall reference the lot number it represents.

(c) The analytical test report and DD Form 250 pursuant to the CONTRACTOR INSPECTION RESPONSIBILITIES contract provision shall be forwarded to the destination by facsimile or First Class U.S. Mail to arrive prior to or concurrent with arrival of the shipment.

(d) No shipment will be made of coal that does not conform to the minimum specification quality that was advertised as required by the activity unless the Contracting Officer (CO) grants permission to ship.

(e) Permission to ship will be requested by the Contractor or its authorized representative, and, in the event the CO grants such permission, the DD Form 250 will be annotated with the following statement in Block 23:

"Test results at source indicate their shipment of __________ cars does not meet minimum Specification Quality Required: e.g., Ash ________% in lieu of Spec. Limit of ________%. DLA Energy (CO) grants permission to ship subject to the rights reserved by the Government under this contract. Reference telephone conversation CO/DLA Energy-BQ on ____________ (date)." The Contractor will not submit an invoice for any shipment that does not conform to the minimum specification until a modification is executed by the CO.

(f) The receiving activity will inspect each shipment in accordance with the DESTINATION INSPECTION AND ACCEPTANCE contract provision. Each shipment may be sampled and tested in accordance with the SAMPLING AND EVALUATION contract provision.

(g) Within 5 days of receipt of a delivery order from the ordering activity, the Contractor will submit a production/shipping schedule to the Contract Administrator, the Quality Assurance Representative, and the activity boiler plant point of contact. Once submitted, any significant changes must also be addressed in writing.

F-0002 F17.06 CONDITIONS FOR DELIVERIES BY MULTIPLE CONVEYANCES (COAL)

(DLA ENERGY JAN 2012)

When the Schedule calls for delivery by barge/truck or barge/railcar shipments, or is proposed by the Contractor, the following conditions shall apply:

(a) Sampling will be performed at the closest feasible site prior to delivery to the customer, agreed upon during negotiations.

(b) Product shall be represented by a gross sample. A gross sample shall be considered one bulk lot as defined under the contract provision entitled QUALITY PROVISIONS.

(1) The coal will be sampled in accordance with ASTM D 2234. Increment collection will be Condition A (Stopped-belt cut) or Condition B (Full-stream cut).

(2) The number of increments will be in accordance with Table 2 of ASTM D 2234 for lot size up to and including 1,000 tons.

(3) For lot size of over 1,000 tons, the number of increments, as stated in Table 2, will be increased as follows:

N2 = N1 V lot size tons 1,000 tons where: N1 = number of increments specified in Table 2

N2 = number of increments required

For example, a 1500-ton lot will require a minimum of 43 increments of 6 lbs. minimum weight each and be systematically collected from the entire lot.

(c) The gross sample will be prepared for analysis and tested to determine chemical and physical properties in accordance with the contract provision entitled QUALITY PROVISIONS.

(d) Each barge load will be assigned a shipment number to be referenced on the analytical test report and the DD Form 250.

(e) The analytical test report and DD Form 250, pursuant to the CONTRACTOR INSPECTION RESPONSIBILITIES contract provision, shall be forwarded to the destination by facsimile or First Class U.S. Mail prior to or concurrent with the arrival of the shipment at destination.

(f) No shipments will be made of coal that does not conform to the minimum specification quality required unless the Contracting Officer (CO) grants permission to ship.

(g) Permission to ship will be requested by the Contractor or his authorized representative, and, in the event the CO grants such permission, the DD Form 250 will be annotated with the following statement:

"Test results at source indicate this barge shipment number ____________ does not meet Minimum Specification Required: e.g., Ash _______% in lieu of Spec. Limit of _______%. DLA Energy (CO) grants permission to ship subject to the rights reserved by the Government under this contract. Reference telecon CO/DLA Energy-QE on ____________ (date)."

(h) All barge loads will be held in a segregated stockpile at the barge company's coal dock or other facility from which the trucks will be loaded.

(i) The SHIPMENT AND ROUTING contract provision, paragraph (f), will prevail for each truckload delivered from the stockpile.

(j) The WEIGHTS AND UNIT OF PURCHASE contract provision, paragraph (c), shall govern quantities delivered to the destination.

(k) The receiving activity at the destination will inspect each truck in accordance with the DESTINATION INSPECTION AND ACCEPTANCE contract provision. Each shipment may be sampled and tested in accordance with the SAMPLING AND EVALUATION contract provision.

(l) Within 5 days of receipt of a delivery order from the ordering activity, the Contractor will submit a production/shipping schedule to the Contract Administrator, the Quality Assurance Representative, and the activity boiler plant point of contact. Once submitted, any significant changes must also be addressed in writing.

F-0003 F21, CONTRACTOR NOTICE REGARDING LATE DELIVERY (DLA ENERGY MAY 2009)

In the event the Contractor encounters difficulty in meeting performance requirements, or when it anticipates difficulty in complying with the contract delivery Schedule or date, it shall immediately notify the Contracting Officer, in writing, giving pertinent details. This data shall not be construed as a waiver by the Government of any delivery Schedule or date or of any rights or remedies provided by law or under this contract.

F-0004 F62, SHIPMENT AND ROUTING (COAL) (DLA ENERGY NOV 2007)

(a) Upon receipt of a delivery order, the Contractor shall immediately proceed to make shipment, in the quantity stated, to the installation specified, at the rate of delivery required, and by the method specified in the Schedule. This does not affect the Contractor's obligations concerning quality inspection by the Government Quality Representative. Within 5 days of receipt of a delivery order from the ordering activity, the Contractor will submit a production/shipping schedule to the Contract Administrator, the Quality Assurance Representative, and the activity boiler plant point of contact. Once submitted, any significant changes must also be addressed in writing.

(b) If the coal is to be delivered f.o.b. railroad cars at the mine, the Contractor shall ship the coal under commercial shipping documents.

(1) When shipped under commercial bills of lading, such bills of lading shall be marked "Government Property, Collect" and shall be mailed promptly to the consignee for conversion to Government bills of lading at destination.

(2) When shipped under commercial documents other than commercial bills of lading, such documents shall be marked "Government Property, Collect." The carrier's destination freight bills will be converted to Government bills of lading at destination.

(3) Routing instructions for f.o.b. origin contracts will be furnished to the Contractor by the Installation Energy Directorate of the DLA Energy.

(c) If the delivery schedule should require shipment by the Contractor prior to his receipt of routing instructions as outlined in (b) above, the Contractor shall immediately proceed with shipments via the cheapest and most direct route to the receiving activity at the railhead and by the delivering railroad designated in the contract or in the preliminary wire or letter notice of award.

(d) The Contractor shall indicate on all shipping documents and notices of shipments all names, locations, and shipping points of the mines and the seam (or blends of mines and/or seams) from which the coal originates, the contract number, the quantity, and the exact size of the coal shipped.