PMRP_PWS_Sep_3 _2014.docx

Performance Work Statement Precious Metals Recovery

1.0 INTRODUCTION

The primary mission of the Defense Logistics Agency (DLA) Disposition Services is to dispose of Department of Defense (DoD) excess and surplus personal property generated by the military services. This is accomplished through reutilization to other DoD activities, transfer to other Federal agencies, donation to authorized state and local organizations, sale to the general public, or ultimate disposal through abandonment or destruction. DLA Disposition Services is headquartered in Battle Creek, Michigan, with a variety of field sites worldwide. The purpose of this contract is to acquire services to refine and recover precious metals from precious metal bearing scrap material. In addition, services will include the recovery of non-precious metal bearing material from precious metal bearing scrap material. The Precious Metals Recovery Program anticipates shipping approximately one million pounds of precious metal bearing scrap material per year for processing (see Attachment 2).

Desired qualifications of the precious metals refiner are innovation, and state of the art recovery processes which can recover optimum returns of precious metals and non-precious metals from precious metals bearing scrap material. The objective of this recovery contract is to (1) safeguard the precious metal bearing scrap material, and (2) maximize the return of the contained precious metals and other valuable materials (i.e. copper, ferrous, and non-ferrous metals) from the precious metal bearing scrap material.

The contractor is encouraged to review provided historic usage data, scrap code list definitions, and posted photographs, and when feasible to visit DLA Disposition Service sites to obtain further information on the types and quantities of precious metal bearing scrap material which may be processed under this contract. The Government shall make available for inspection precious metal bearing scrap material representative of that offered for this contract at DLA Disposition Services site(s) until the solicitation closing date. (Note: Not all sites will have a representation of all of the CLINs listed on the bid schedule.) It is the responsibility of the contractor to contact the KO and identify which site(s) they wish to visit. A Point of Contact will be provided so that an appointment can be arranged at that site to inspect precious metal bearing scrap material. Scheduling is required in advance of a visit and precious metal bearing scrap material will only be available for inspection during the site’s hours of operation. Not all sites are manned and visitation may not be feasible. Additionally, not all sites will have representation of all the CLIN materials at one location/site. Contractors are encouraged to ask when making the appointment which CLIN material is available for inspection at the site to be visited.

2.0 SCOPE OF WORK

The contractor shall provide all personnel, equipment, tools, materials, supervision, other items, and non-personnel services necessary to perform precious and non-precious metal recovery from precious metal bearing scrap material identified as containing precious metals as defined in this Performance Work Statement except as specified as Government-furnished property. The contractor will return to the government all precious metals recovered (or the equivalent amount of precious metals contained in the precious metal bearing scrap material). The Contractor will also separate, accumulate, and store non-precious metal materials (i.e. copper, ferrous, and non-ferrous metals) recovered from the processing of precious metal bearing scrap material that is identified as containing precious metals. The non-precious metal materials stored by the contractor will be sold by the Government on a separate sales contract(s), or in some cases the value converted to a precious metal and deposited.

The precious metal bearing scrap material under this contract consists of precious metals bearing scrap materials in various forms, which may also include precious metals bearing hazardous material. Contractors shall be able to process or provide a means to handle all hazardous material such as mercury, lead, beryllium etc. Hazardous substances, materials and wastes generated during the precious metals recovery process are to be managed and disposed of by the contractor at the contractor’s expense. In addition, disposal of any non-hazardous waste, such as pallets, triwalls, packaging, etc. will be the responsibility of the contractor at no expense to the Government. The contractor is encouraged to reuse the triwall containers shipped to the contractor’s facility to accumulate non-precious metal material (i.e. copper, ferrous, and non-ferrous metals) recovered from the processing of precious metal bearing scrap material. Radioactive material shall not be processed under this contract.

All shipments to the contractor shall be Government shipped. The precious metal bearing scrap material under the CLINs appearing on this contract may or may not be identified by a SCL, NSN, or LSN. The SCL may be identified by pound, troy ounce, or gram. The NSNs and LSNs may be identified as “each”, but will also contain pound or gram references to weight to the batch/lot/quantity of NSNs/LSNs to be shipped to the contractor. The SCLs may contain varying amounts of metallic and nonmetallic materials/attachments. In addition, some material will require additional special storage requirements and government observation during recycling. An example of this material is medical or dental film containing privacy act data. The unit of issue on the bid schedule for each line item will be inclusive of any and all cost to provide service or perform as described in the CLIN description.

3.0 DEFINITIONS/ACRONYMS

CBL

Commercial Bill of Lading

COR

DEMIL

Contracting Officer Representative Demilitarization

KO

KTR

LB

Contracting Officer Contractor Pound

Accumulation: Accumulated or accumulation for purposes of this contract shall mean non-precious metal material recovered (as a result of processing precious metal bearing scrap material) being placed in a triwall box until that triwall is full (Full meaning; DOT or container rated capacity, or physically unable to add more material). Accumulation ends when the triwall is full.

Audit Trail: A chronological sequence of audit records, each of which contains evidence directly pertaining to and resulting from the execution of a process or function.

Base Metal: The metals contained in the Government furnished property/material other than the precious metals.

Contracting Officer: The individual with the authority to enter into, administer, and/or terminate contracts

COR: Contracting Officer Representative - The Contracting Officer Representative is the individual designated in writing by the KO to act as his/her authorized representative within the scope and limitations as defined by the KO.

CLIN: Contract Line Item Number (number for each deliverable on the bid schedule)

Demilitarization (DEMIL): The act of destroying the military offensive or defensive advantages inherent in certain types of equipment or material.

Government Representative (GR): Government representatives may include, but are not limited to, industrial specialists, operations analyst, safety specialists, security specialists, property administrators, or commercial surveillance firms hired by the Government.

Gross Weight: The overall total weight of material, exclusive of tare.

High Grade Property/Material: Property/Material which is 50% or greater in precious metals purity level as original Government furnished property/material or after processing.

Homogenous: A state achieved when the differing molecules of a substance are evenly dispersed throughout that substance. Homogeneity is necessary in a furnace melt, solutions or ash blend for selection of uniform samples. The assay of a homogeneous sample will then be representative of the entire batch and equitable settlements can be effected.

Low Grade Property/Material: Precious metals bearing property/material, which by weight contains less than 50%, contained precious metals.

Net Weight: The remaining weight after the deductions of all tare weight.

Personally Identifiable Information (PII): PII is any piece of information which can potentially be used to uniquely identify, contact, or locate a single person, For the purpose of this contract, PII could be found on used medical and/or dental film.

Precious metal bearing scrap material: Includes material from which precious metals are to be recovered as well as all metals, slags, solutions, dust or other residues resulting from processing. The KO will provide the contractor notification of any visit by a GR other than COR.

Tare Weight: A deduction from the gross weight of a substance and its container made in allowance for the weight of the container.

SCL Code: A code developed by DLA Disposition Services for and used in sorting, segregation, and lotting of scrap into categories. (See Attachment 3 for a complete list of SCL codes and definitions).

Shipping/Transportation Audit Trail: Documents/paperwork (CBL, GBL, Manifests, etc.,) that will prove the transportation audit trail from shipping locations to refining facility.

4.0 CONTRACTOR FURNISHED PROPERTY AND SERVICES

Unless otherwise noted elsewhere as Government furnished, the contractor shall provide all facilities, labor, materials, equipment, supplies (including sample bags/bottles), required insurances, and security for the processing, and sampling of the precious metal bearing scrap material and any processing residues (e.g., slag, solutions, and flue dust). The contractor will receive precious metal bearing scrap material from government sites. The contractor will separate and recover both precious metal and non-precious metal bearing material (i.e. copper, ferrous, and non-ferrous metals) from the precious metal bearing scrap material that is identified as containing precious metals.

4.1 SECURED STORAGE AREAS

The contractor shall provide a warehouse/storage type facility capable of being locked and secured to receive and hold precious metal bearing scrap material for processing. The contractor is responsible for the security and integrity of the precious metal bearing scrap material at any time precious metal bearing scrap material is at the contractor’s facility until release of the material by the COR (i.e., after metal deposit or being sold under a separate government sales contract). Precious metal bearing scrap material provided by the Government will remain separated and will not be mixed with any other materials, scrap, etc. during all phases of processing. The contractor shall provide secured storage areas of sufficient size to hold all the precious metal bearing scrap material, recovered non-precious metal materials, any slags, sludge, solutions, or other residues resulting from the processing of precious metal bearing scrap material. This also includes providing security for those items identified as PII (to ensure the integrity of the information on the PII film).

The contractor shall hold precious metal bearing scrap material in a designated “Government use only” secure storage area until processing begins. After precious metal bearing scrap material has been processed and sampled the contractor may elect to keep the precious metal bearing scrap material in a more secure area than that defined by the Government. The precious metal bearing scrap material shall be secured in these areas when not being processed.

The secured area must be within a building and must be enclosed on four sides with a barrier, which prohibits unauthorized entrance. Access to the storage area is by authority of the contractor. Government precious metal bearing material must be easily identified and physically separate from non-government material.

The contractor will ensure only authorized contractor personnel are able to have access to locations holding PII films prior to incineration. Once incineration has taken place, PII is no longer valid.

Non-precious metal material recovered while processing precious metal bearing scrap material shall also be accumulated and stored in the contractor’s facility. Copper, ferrous, and non-ferrous metals will be separated and placed in Triwall boxes. Because of the quantities of electronic scrap anticipated to be processed under this contract, the contractor should be able to store at a minimum 120,000 pounds of recovered accumulated copper, ferrous and non-ferrous metals. Each of the non-precious metal type (i.e., copper, aluminum, ferrous, and non-ferrous) is expected to be collected and then sold by the Government in lots of 40,000 pounds. The contractor shall notify the COR when an accumulation of 40,000 pounds is reached, and the Governments will initiate a sales action. Once a sales action has been initiated the material is considered to be in storage. The material will remain in storage until such time that the material is removed under DLA Disposition Services term sales contract.

The contractor is also expected to be able to store precious metal bearing scrap material that will be shipped to their site for processing prior to the scrap being processed. The contractor is advised that the frequency and type of shipped material will vary.

4.1.1 CLIN 0401, 1401, 2401, 3401

The contractor shall use CLIN 0401, 1401, 2401, or 3401 to be compensated for the storage of non-precious metal material awaiting pickup by the term sales contractor. See section 6.2.2 for further information on the sale of non-precious metal material. CLINs 0401, 1401, 2401, and 3401 are only applicable for material that has been in storage for more than 30 days after the sale awardee was notified to pick up the material (i.e., the first day charges can begin on the 31st day after the term contractor was notified by the Government to pick up the material). The COR will notify the contractor of the date the sale awardee was notified to pick up the non-precious metal material. The storage time period ends on the date that the material is removed from the contractor’s facility.

The unit of issue for CLINs 0401, 1401, 2401, and 3401 is “each”. One “each” equals one calendar day of storage, as described in this section, for an identified type of metal (i.e., copper, aluminum, ferrous, and non-ferrous) in 40,000 pound (net weight) increments.

4.2 SCALES

The contractor shall provide scales that have been certified and calibrated according to state or local regulation. Scales and verifying weights used to weigh precious metal bearing scrap material shall have been calibrated within 90 days prior to initial precious metal bearing scrap material receipt at the contractor’s facility. The contractor shall furnish proof of independent certification of scales and test weights by a label attached to scales and maintaining in file, a copy of the calibration report from the independent laboratory. In addition, all scales used in the weighing of ingots or final production lots/batches shall be subjected to random verification of accuracy throughout the scale’s range to be used on the contract. The contractor shall make a range of certified test weights and/or calibration report if requested by the KO or COR for verification of scale accuracy.

4.3 BAGHOUSE AND SCRUBBERS

Precious metal bearing scrap material shall be processed in a manner, which enables any dust, fumes or any other particle emission to be collected to preclude losses of precious metals. The precious metals contained in the dusts and sludge collected during the processing of precious metal bearing scrap material shall remain precious metal bearing scrap material until sampled and released by the COR. The contractor shall clean any baghouse or scrubber immediately prior to, and as a minimum, immediately following the processing of any batch of precious metal bearing scrap material (except when subsequent batches will be processed without interruption). Dusts, fumes and particles resulting from the processing of precious metal bearing scrap material must be isolated from the processing of the contractor’s or their customer’s material (i.e., contractor must have a dedicated baghouse as there will be no proportionate splitting of residues).

4.4 SAFETY

The contractor must perform all operations in a prudent, conscientious, safe and professional manner. At a minimum, contractor's personnel and equipment shall comply with applicable state, federal, local and installation laws, safety regulations and procedures, and the contractor will ensure that its agents, employees, and transporters perform in a safe manner. The contractor shall ensure that personnel involved in handling and packaging of any hazardous waste be trained for the level of expertise required for the proper performance of the delivery and, in particular, in the areas of chemical incompatibility, general first aid procedures, and spill response procedures. The contractor shall provide handling and personnel protective equipment.

4.5 PERMITS

The contractor shall, without additional expense to the Government, be responsible for obtaining any necessary licenses and permits, and for complying with any applicable federal, state and local laws, codes, and regulations in connection with performing the work.

4.6 ENVIRONMENTAL COMPLIANCE

The Contractor agrees to provide all services necessary for the processing, and sampling of the precious metal bearing scrap material and any processing residues (e.g., slag, solutions, and flue dust) in accordance with all applicable Federal, state, international, local regulations, and terms found within this contract.

5.0 GOVERNMENT FURNISHED PROPERTY AND SERVICES

The Government will designate and or authorize various sites (DLA Disposition Sites, Military Services, Federal Civil Agencies, plant clearance contract locations) to ship/mail/transport material to the contractor’s facility. All transportation cost to include packing, crating and handling and shipping cost to transport precious metal bearing scrap material to the contractor will be at Government expense. In addition, material not conforming with the requirements of this contract, including precious metal bearing scrap material mistakenly shipped to the contractor will be returned to the Government at the expense of the Government.

Precious metal bearing scrap material may include electronic scrap (i.e., shredded and non-shredded circuit boards, circuit breakers, contacts, plugs, relays, connectors, wave guides, wiring harnesses, etc.), precious metal containing batteries, photographic films, ash from photographic films, exhausted chemical recovery cells, chemicals, metal bodied electron tubes, filters and dust. Precious metal bearing scrap material will contain precious and non-precious metals. The contractor will be required to process and separate both precious and non-precious metals under this contract. Precious metal bearing scrap material may also contain military grade materials and other valuable metals that may require on-site Government oversight during processing. Precious metals bearing scrap is accumulated and accounted for by Scrap List Code (SLC) codes. These codes have been developed to identify material by precious metals content and commodity, recovery process/technique, and estimated percent of recovery of precious metals. For a complete listing of SCL codes and definitions see Attachment 3.

5.1 MATERIAL ISSUE METHODS

The Government will provide to the contractor precious metal bearing scrap material through the issuance of a delivery order from the KO. The COR will coordinate and provide direction to the contractor on behalf of the KO. The DO will contain sites name, CLINs, quantity, points of contact, etc., required by the contractor to keep track during the receipt and processing of precious metal bearing scrap material. Delivery orders may contain multiple CLINs and SCL types from multiple sites. They may have property that is scrap hazardous material, and/or hazardous waste, and may also have requirements for specific processing procedures. After issuance of a delivery order, e-mail/correspondence containing shipping/disposition instructions from the COR shall suffice as an audit trail of events.

Containers may be triwalls, drums, ammunition cans, plastic bags, coffee cans, cardboard boxes, etc. as well as those authorized, approved, or designated for use by special transport agencies such as Federal Express, United States Postal Service, United Parcel Service, military service base transportation offices, etc. Precious metal bearing scrap material may be shipped to the contractor via military transport, United States Postal Service, or by commercial transportation companies.

The Government will provide the contractor with a courtesy copy (e-mail or fax) of a pending shipment that has been authorized by the COR. The courtesy copy will include the name of the location where the material is coming from, point of contact, type of material by CLIN, authorized requisition number, SCL code (and related NSN/LSN if applicable), weight (both gross and net weights in either pounds or grams), and container type and quantity.

If the contractor suspects that material is missing from a received shipment, the contractor must contact the COR immediately. All efforts to locate the missing material at the contractor facility will be made/attempted by the contractor. The COR will be responsible for research of the missing material/shipment from the Government site to the contractor site. All documents to validate the shipment audit trail will be gathered by the contractor and submitted to the COR. If the material is never found and the determination is found to be the responsibility of the Government, then there is no further action other than adjustments to the delivery order, which may be by modification. If the determination is found that the responsibility for missing material lies with the contractor, then the government will follow procedures outlined in subsection 6.1.1. in this contract.

5.2 PROPERTY REQUIRING GOVERNMENT WITNESS AND/OR VERIFICATION OF DESTRUCTION

There may be times when precious metal bearing scrap material shipped to the contractor falls within the scope of the contract CLINs for material content, but may also require the Government to witness and verify destruction of the material. The contractor shall allow government representatives to be physically present to review the property and or witness for verification and certification that the material has been destroyed by the contractor as part of the recycling process. The Government representatives will not stop and/or hinder the contractors recycling process, but will only be validating as a witness for the Government that destruction was done to allow the Government to certify and verify documents proving destruction.

Precious metal bearing scrap material that requires witness and or verification may include property types such as DEMIL required circuit boards, DEMIL required connectors, resisters, and metal bodied electron tubes, and/or film (medical or dental) containing privacy act data. Contractor will attempt to ensure that any such property as identified by the Government requiring to be witnessed for material destruction is processed expeditiously through the destruction process (i.e., incineration, mutilation, etc.) to allow the Government representatives to spend the least amount of hours at the Contractor’s facility. The witness and verification process is not expected to alter the contractor’s processing method. Material on a delivery order that requires witnessing by a Government representative(s) will not be processed in combination with other like CLINs unless the Government representative has authorized destruction with other materials to be acceptable. For material requiring de-classification (DEMIL P), the owning generator will provide the needed personnel to witness and verify for their process.

A Government representative for precious metal bearing scrap material that requires witnessing and verification will break the seal of the transporter being off-loaded, and validate the load for piece count and pickup site/receiving information. The Government representative will then immediately escort the precious metal bearing scrap material into the contractor’s secure storage area. The Government representative will be responsible for witnessing the destruction of the required materials. The Government representative along with the contractor are responsible for annotating in a place that is visible on the shipment site’s DD Form 1348-1a the contractor processed net weight, date of process, along with the Government representative and contractor signatures. The contractor will provide the original shipping document back to the COR for distribution to the shipment site.

5.3 RELEASE OF MATERIAL

The government (COR or KO) are the only ones authorized to release the processed material (i.e., ingots, ash, sweeps) to the Contractor. A release may be authorized by the COR by; 1) in the settlement notice for processed material going for deposit, or 2) by a disposition notice after deposit of the precious metals as stated in the settlement notice. All paper work generated by the contractor for the movement of processed materials that are authorized to be released to the contractor prior to deposit, shall be clearly marked as “Government Property” (title for processed material remains with the Government until a deposit has been made). No processed material will be authorized for release if the contractor has any deposits that are past due.

Any processed material for which settlement has not been made, or if the processed materials are going through umpire procedures, shall not be authorized for release to the contractor and will remain in the contractor’s approved storage area. Residual materials (materials generated as a result of refining precious metals), solutions, baghouse, dust and slag, which will not be used in later processing, will be authorized for release to the contractor by the COR after weighing/volume determination and sampling.

6.0 PERFORMANCE REQUIREMENTS

The intent of this contract is to maximize the recovery of precious metals returning silver, gold, platinum, and palladium, and to identify non-precious bearing material (i.e. copper, ferrous, and non-ferrous metals) and recover these non-precious bearing materials which may be sold by the government. All shipments of precious metal bearing scrap material shall be shipped by the Government to the contractor’s facility.

6.1 RECIEPT, VERIFICATION, AND AUTHORIZATION TO PROCESS PRECIOUS METAL BEARING SCRAP MATERIAL No CLIN will be processed in combination with any other CLIN on this contract or with other contractor’s or non-government property without government approval. Following shipment arrival, but prior to processing, the contractor will count, weigh, sort, and segregate any precious metal bearing scrap material shipped to the contractor by CLIN type. The Contractor will ascertain that all parts of the shipment have been received. The contractor shall work with the COR, KO, and generating site to resolve any discrepancies found during the receiving process. See Section 6.1.1 for description of discrepancies. The contractor shall notify the COR via email (within 10 days after arrival) that the property has arrived at the contractor’s facility as indicated in the accompanying paperwork (CBL and MRO/1348-1A). The email shall include a scanned copy of the CBL showing the date and time of arrival, weight (both net and gross), piece count, and signature acknowledging receipt. The contractor shall assign a sequential receipt verification number to each MRO/1348-1A received.

Once the precious metal bearing scrap has been received and verified, in a separate email, the contractor will request to begin processing the received precious metal bearing scrap material. This request shall be sent as soon as the contractor has the minimum amount of material necessary to begin processing for that CLIN as noted in the processing plan. The contractor will not process precious metal bearing scrap material without authorization from the COR. The request to process will include a summary of what precious metal bearing materials will be processed, herein referred to as the Delivery Order Shipment Report. See Attachment 4 for an example of a delivery order shipment report. Contractor may create his own delivery order shipment report, but it must contain, at a minimum, the following information;

· Report Number (sequentially numbered throughout the performance of the contract).

· Receipt Verification Number

· Contract/Delivery Order/CLIN numbers.

· Truck Seal number.

· Shipment piece count (how many tri-walls or boxes made up the CLIN).

· Government Gross and Net weights in pounds or grams (which is reflective of the CLIN unit issue).

· Contractor Gross and Net weights in pounds or grams (which is reflective of the CLIN unit issue).

· Annotation as to whether MRO/ DD Form 1348-1a was or was not received.

· Remarks section to explain any required audit trail requirements.

· Contractor signature and date.

· Shipping document utilized by shipping site (MRO/DD Form 1348-1a, CBL, GBL, Manifest, DRMS Form 1367, etc.)

The COR will review all submitted paperwork. If no discrepancies are noted, or when all discrepancies are resolved, the COR will authorize the contractor (via email) to begin processing the precious metal bearing scrap material. The contractor shall have 30 calendar days to process the material. Processing is considered complete when and all processing of the material is complete and when all reports (production, processing, assay, etc.,) are received by the COR.

6.1.1 SHIPMENT DISCREPANCIES

The following list identifies those discrepancies that should be reported on the shipment report but “NOT” submitted to the COR for disposition:

· Shipment Site failed to provide a DD Form 1348-1/1a (or MRO).

· Shipment Site failed to properly complete the DD Form 1348-1/1a (or MRO). (Form must contain at a minimum, the DRMOs complete name and address for mailing purposes, the Contract/Delivery Order/CLIN Numbers, material type, net/gross weight and piece count.)

· Net weight of delivery order CLIN received is more than 10% of total CLIN net weight identified on the delivery order. (If contractor determines that the variance is the fault of one or more shipment locations/sites, then this information must also be identified.)

· No seal on the transporter vehicle (if applicable) – identify the location that failed to utilize a seal and/or who may have removed a prior site seal and didn’t replace the seal.

The following list identifies discrepancies that should be reported within 24 hrs. of discovery, and/or the first available workday, to the COR by e-mail notice or telephone. (NOTE: If the COR cannot be reached for a discrepancy issue identified in this Section, then contractor shall contact the KO). The contractor will ensure that detailed information about any found discrepancy is made available to the COR. Lack of specific information can cause a delay in COR disposition instructions/resolution. The contractor will hold precious metal bearing scrap material in the secured area without further processing pending COR instructions.

· Net weight of total shipment of material is less than 10% of the authorized total net weight identified on the MRO/CBL, and or piece counts identified on the DD Form 1348-1/1a (or MRO) are less than or more than the piece count received. The contractor will evaluate the discrepancy prior to notifying the COR. If the contractor determines that the variance is the fault of one or more shipment locations/sites, then this information must also be provided within the e-mail.)

· Non-conforming material to the delivery order/contract. (Contractor will provide documentation, pictures, gross weight, piece count, box/container markings, shipment location name, and any other information to help in identification of the non-conforming material.

Upon determination that there has been a loss/missing shipment and it has been determined to be the responsibility of the contractor, the COR will compute the amount of precious metals that the Government deemed was in the loss material. The contractor shall then deposit the metal as identified by the COR in the settlement without charging the Government any processing fees for loss materials.

6.1.2 RESOLUTION OF SHIPMENT DESCREPANCIES

Final resolution of discrepancies will be decided by the government (COR or KO). The COR or KO may solicit assistance from the contractor in the form of recommendations, pictures, and or documentation.

6.2 PROCESSING PRECIOUS METAL BEARING SCRAP MATERIAL

Witnessing and verification of precious metal bearing scrap material processing (except for where the Government may wish to witness and/or verify material destruction as described in Section 5.2) will only be required, as determined by the contractor, to ensure the process integrity. No CLIN will be processed in combination with any other CLIN on this contract, or with other contracts, or with non-Government property without DO modification. Under this contract, precious metal bearing scrap material under one CBL may be shipped to the contractor’s facility in small quantities (relative to the minimum quantity necessary to process the material as noted in the contractor’s processing plan). In these instances, the contractor will collect precious metal bearing scrap material until such time that the processing minimum quantity (as described in the contractor’s processing plan) for that CLIN is met. The COR may, via e-mail, authorize the contractor to process like CLINs from two different CBLs together.

Under this contract the contractor will be required to recover precious metals from precious metal bearing scrap material and to separate and recover non-precious metals (i.e., copper, ferrous, and non-ferrous metals). It is anticipated that electronic scrap (SCL DS000P8EA/B (P8E), CLINs 0209, 1209, 2209, and 3209) will account for the majority of precious bearing scrap material that will contain other non-precious metals. The contractor is expected to recover, as noted in the processing plan, as much non-precious metal from the electronic scrap as possible. The contractor may use a variety of methods to separate and process precious metal bearing scrap material including, but not limited to, mechanical separation without a chemical change, (i.e. hand sorting, magnetic, gravity, shearing, milling crushing, screening), stripping (i.e., chemical, enzyme, etc.), and pyro-metallurgical separation, ( i.e. Roasting, incinerations, smelting). Films that contain PII data (CLIN 0102, 1102, 2102, and 3102); smelting is the only approved processing option.

The contractor shall use best industry standards and practices to identify and recover the precious metals present in the precious metal bearing scrap material from non-precious metal bearing scrap. Technology such as fire Assay, Inductively Coupled Plasma (ICP), and other spectrometry methods, such as X-ray fluorescence (XRF) method, alloying etc., may also be used to identify and differentiate metals. The method and process will be described in the contractor’s processing plan. Materials to be processed via smelting will need to be processed to a homogeneous state from which representative samples shall be taken to determine the amount of precious metals present. See Section 7.3 for sampling methods.

After precious metals are recovered, the Contractor, based on the assays and settlement notification from the Government (usually the COR), will return an equal amount of precious metals due the Government as indicated in the assays for the material processed. The contractor will be paid for the net weight of processed precious metal bearing scrap material (as identified in CLINs appearing in this contract) after deposit of precious metals due.

6.2.1 NON-PRECIOUS METAL MATERIAL INVENTORY

Non-precious metals (i.e., copper, ferrous, and non-ferrous metals) will be separated by metal type, accumulated, and stored at the contractor’s facility. Storage of these materials at the contractor’s facility, when applicable, will be charged to CLIN 0401, 1401, 2401, 3401. (See Section 4.1.1) The contractor will maintain an inventory (by triwall) of these non-precious metal materials as they are being accumulated and stored at their facility. The inventory will be made available to the COR upon request. At a minimum the inventory will show; the CBL identification numbers and the CLIN(s) that make up the triwall, net weight of triwall, total number of full triwalls in storage, and date they were considered full.

6.2.2 SALE OF NON-PRECIOUS METAL MATERIALS

The Government will offer for sale through another government contract(s), lots of recovered copper, ferrous, and non-ferrous metals that were collected as a result of processing precious metal bearing scrap material. The Contractor will allow a Government Sales Contractor to access their facilities in order to pick up of materials by a sale awardee. The contractor shall notify the COR within three (3) calendar days of when an accumulation of copper, aluminum, ferrous, and non-ferrous reaches 40,000 pounds (net weight).

Note: When 40,000 pound (net weight) accumulations of non-ferrous metals are reached the contractor will include in the notification a report identifying the type and amounts (percent by weight) of metals found in the non-ferrous accumulation. (See Attachment 1 for an example of a non-ferrous metals report).

6.3 SAMPLING

Non-precious metal will be recovered from precious metal bearing scrap material provided under this contract. After separation and recovery of the non-precious metals, the contractor will smelt, chemically treat, or further process the remaining material to recover the precious metals. Sampling of materials (after separation of non-precious metals but prior to precious metal recovery) may be necessary to identify precious metal composition. However, using a sampling of any part of a shredded/granulated lot (prior to removal of the precious metals) for the purpose of settlement is not allowed. Settlement sampling is described in the following sections.

6.3.1 MELT SETTLEMENT SAMPLING

The contractor may choose to smelt the material and sample. If this option is chosen, then after the melt is determined to be homogeneous by the contractor and the slag has been removed, the contractor shall take three dip samples. The first sample, (A), shall be taken at the beginning of the pour; the second, (B), shall be taken at a halfway point during the pour and the third, (C), near the end of the pour. The contractor shall have the proper sampling equipment on hand to produce representative shot samples. The contractor shall slowly pour the dip sample into a container of water, thereby forming granules (shot). The shot may not be greater than three-eighths inch in diameter.

The contractor shall cone and quarter each dip sample (A, B, and C), as needed, to properly reduce the sample to 6 - 12 ounces. Extra shot will be weighed and either included in the melt weight or added to a subsequent melt. The contractor will then divide each sample into four equal parts of 2 - 4 ounces each and package in accordance with Section 6.4.

Contractor shall skid weigh the poured material (e.g., ingots) before it is placed in the storage area. If the material is contained in molds or the contractor plans to clean the ingots, then the contractor shall re-weigh after dumping/cleaning to determine melt weight. Material removed from the ingots shall be added to subsequent melts (on this contract only) except for ingots from the last melt, the residue of which, at the Government’s discretion, shall be sampled and settled upon. The contractor shall maintain the integrity of the poured bars until they are released by the Government.

6.3.2 MILL ASH SETTLEMENT SAMPLING

The contractor may elect to sample film when it is in the ash stage in lieu of taking it all the way to the smelting phase. The contractor shall process all of the material sufficiently to pass through at least a 40-mesh screen. The minus 40 fractions will be blended and containerized. Contractor shall sample each container by means of a spear sampler (one percent sample from each container). The contractor shall then combine these container samples and blend.

The contractor shall cone and quarter this lot (container samples) as needed to properly reduce the sample to approximately 4 pounds. The contractor shall then divide the sample into four equal parts of 1 pound each. One sample of ash will be used in determining the moisture content of the lot. Any overnight drying must be done in an oven capable of being sealed, or by an independent lab agreed to by both parties. Cost of this determination shall be borne by the contractor. The remaining samples shall be labeled and distributed in accordance with Section 6.4.

The plus 40 fraction material shall be milled with subsequent lots. Obvious non-precious metals material (e.g., staples, paper clips) are to be removed prior to milling. Any plus 40 material remaining after all the lots have been processed shall be weighed and then melted and sampled by either a drill, saw or shot method.

6.3.3 SLAG AND BAGHOUSE RESIDUE SETTLEMENT SAMPLING

The contractor shall maintain the identity of any slags produced to individual lot/batch number. The contractor will select random pieces of slag whose weight represents approximately two percent of the total weight of the lot/batch. As an alternative, the contractor may elect to grind all of the slag before samples are taken. If the contractor grinds the slag before sampling, the selected pieces shall be ground to less than ¼” in diameter. The contractor may also elect to screen the ground slag to obtain an oversize fraction sample (which may be melted) and a fines sample.

The contractor shall weigh the baghouse dust and sample each container by spear sampler or other suitable means. This initial sample shall represent at least one percent of the lot size. The contractor shall commingle baghouse dusts and sample in lot sizes of 2,000 lbs. or greater, except for the last batch which may be of a lesser weight. The contractor shall reduce the initial sample through proper reduction methods to approximately one pound. Sludges may be either solution samples (wet) or sweep samples (dry).

The contractor shall divide and package slags and baghouse samples in accordance with Section 6.4. The contractor will sign each envelope to certify the integrity of the sampling procedures.

If the Government determines that residues contain silver in amounts greater than 10 troy ounces per ton, gold or platinum (and other platinum family metals excluding palladium) in amounts greater than .30 troy ounces per ton, or palladium in amounts greater than .90 troy ounces per ton, then the contractor is responsible for reimbursing the Government for the overage, (i.e., any amount of precious metals which exceeds the allowable limits is returnable to the Government).

6.3.4 SAMPLING FOR NON SMELTING PRECIOUS METALS RECOVERY TECHNOLOGIES

When using technologies other than smelting to recover precious metals, the contractor will sample and provide analytical results to the COR that identify the type and amounts of metals present prior to initiating precious metal recovery. This information will be provided in the Production Report (See Section 6.5.2).

6.4 SAMPLE PREPARATION, DISTRIBUTION, AND ANALYSIS

The contractor will place dry (no liquid present) sample material into different envelopes that are marked with the following information:

- Contract, delivery order, CLIN number(s),

- Contractor Name

- Lot number identification and type, (e.g., K-141 Ash),

- Sample identification, (e.g., A, B, or C),

- Sample weight (net),

- Total lot weight represented by sample, and

- Contractor Signature, Printed Name and Date

The contractor will sign the sample bags. One set will be used by the contractor for analysis. The second set will be sealed and identified as the umpire set, then placed in a sealed drum in the secured storage area. This sample will be used in the event it is required to settle a dispute or disagreement relative to the results of the assay. The contractor will maintain custody of the third set, and the fourth set will be provided to the COR. Samples submitted to the COR shall be provided within three days (3) of being prepared. The COR set will be kept by the Government and possibly sampled at a later date as part of internal quality control procedures.

6.5 REPORTS

6.5.1 ASSAY REPORT

The assay report will be submitted as part of the production report to the COR. The report shall reference at a minimum the following information:

- Name of the recovery contractor’s assay firm and assay contract

- Refining CLIN numbers

- Lot/sample identification

- Assay result

- Total lot weight represented by the sample

- Amount of troy ounces by metal type recouped/reported to be present in the batch/lot

- Shot assays reported in parts per thousand (ppt). The contractor will provide the shot assays results of A, B, and C, as well as the average when three melt samples are taken. If precious metal bearing scrap material lot processed will not allow A/B/C, then contractor will identify in their assay and production reports when samples were too small for a three melt sample

- Sweeps, milled residue, baghouse, dust, slag fines, dried sludge, etc., shall be reported in troy ounces per ton (opt)

- Solutions reported in troy ounces per gallon (tog)

6.5.2 PRODUCTION REPORT

Upon completion of processing precious metal bearing scrap material, the contractor shall submit to the COR a production report (original and one copy – hard copy). At a minimum the report should contain the following information;

- Contractor Name

- Contract/Delivery Order/CLIN Numbers

- Report Date

- Contractor Gross, Tare, & Net Weights & Piece Count

- Date processing began and was completed

- Lot/Melt/Batch/Identification Numbers

- Material Identification by SCL, CLIN and Net weight processed

- How material was processed

- Residue produced and recoverable weights

- Sample weights (to also include umpire sample weights)

- Settlement weights for melts/pour, ash, dust, slags, solutions, clean-up, etc.

- Reprocess information

- Non-conforming information

- Contractor Signatures and Dates signed.

- Assay Report or metals sampling report (for materials not processed via smelting)

In addition to the required information, the production report will also include any other information necessary for an audit trail and/or for determining settlement. Production Report shall be verified, signed and dated by the contractor.

6.5.3 NON-PRECIOUS METAL RECOVERY REPORT (BY CBL)

The contractor shall provide a report of all non-precious metals recovered during the processing of precious metal bearing scrap material. The report will be provided to the Government for each CBL delivered to the contractor. In instances where the COR/KO has authorized multiple CBLs to be processed together, the contractor’s report shall reflect all of the CBLs authorized and processed together. The report will be submitted along with the Production Report. See Attachment 7 for an example of a “Report of Recovered Non-Precious Metal Bearing Quantities”. At a minimum the report will contain the following elements;

- Contract Number

- Shipment Report Number

- Delivery Order Number

- Contractor

- CLIN

- Gross and Net weight (pounds)

- Type of Non-Precious Metals Recovered

- Following Statement: "By emailing/signing this report to the COR, I CERTIFY THAT I HAVE WITNESSED THE WEIGHING OF THIS MATERIAL AND THAT ALL WEIGHTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE."

6.5.3 NON-FERROUS METAL REPORT

The contractor shall provide a report identifying the metals content of non-ferrous metals accumulations recovered during the processing of precious metal bearing scrap material. The report will be provided to the Government for each 40,000 pound accumulation of non-ferrous metals. The report will be submitted within three (3) calendar days of reaching 40,000 pounds in a non-ferrous accumulation. See Attachment 1 for an example of a non-ferrous metals report. At a minimum the report will contain the following elements;

- Contract Number

- Shipment Report Number

- Delivery Order Number

- Contractor

- CLIN

- Gross and Net weight (pounds)

- Date

- Identified metals and percentage by weight

6.6 SETTLEMENT PROCEDURES

The COR will review and validate the contractor’s assay and product reports in preparation of calculating/determining settlement. Settlement calculations/determination will include the review of assays on processed precious metal bearing scrap material for ingot, ash, dust, slag, solutions, sweeps, etc., as well as the melt/lot weights as applicable to the type of processing identified in the production report. If the COR approves the results, then the COR will determine the amount of precious metals due for the contractor to deposit into the Governments account.

If the COR disagrees with the information in the contractor’s assay report, then the COR will discuss the report data with the contractor for resolution and if need be, request corrected reports from the contractor. If no resolution is possible, and the Government challenges the validity of the contractor’s reports and assay results, then the COR will activate Umpire action on whatever melts/lot, processed material requires further testing and have the umpire…