PWS_and_attachments_1_to_13.pdf

Precious Metals Recovery Contract

TABLE OF CONTENTS

1.0 Introduction

1.1. Required Items for Bid

1.1.1. Processing Plan

1.1.2. Bid (CLIN) Schedule

1.2. Pre-Award Requirements

1.3. Post-Award Meeting

2.0 Scope of Work

3.0 Facility Requirements

3.1. Secured Storage Areas

3.2. Scales

3.3. Baghouse and Scrubbers

3.4. Safety

3.5. Permits

3.6. Environmental Compliance

3.7. Trade Security Control Clearance

4.0 Functionality of Contract

4.1. Contract Manager for Contractor

5.0 Government Representatives Onsite Access

5.1. Environmental Review Team

5.2. Defense Contract Management Agency

5.3. Property Requiring Government Representative Witness and Verification of Destruction

(DEMIL/Declassification)

6.0 Transportation of Precious Metals Bearing Scrap

6.1. Transportation of Precious Metal Bearing Scrap By Government

6.2. Transportation of Precious Metal Bearing Scrap By Contractor

6.2.1. Pick-up Hours of Operation

6.2.2. Government Right to Inquire Transporter

6.2.3. Transporter Spill Responsibility

7.0 Receipt and Verification of Precious Metal Bearing Scrap

7.1. Minor Shipment Discrepancies

7.2. Major Shipment Discrepancies

7.3. Resolution of Major Shipment Discrepancies

8.0 Monthly Inventory Report for Unprocessed Precious Metal Bearing Scrap

9.0 Authorization to Process Precious Metal Bearing Scrap

10.0 Processing Precious Metal Bearing Scrap

10.1. Sampling

10.1.1. Melt Settlement Sampling

10.1.2. Mill Ash Settlement Sampling

10.1.3. Sampling for Non-Smelting Precious Metals Recovery Technologies

10.1.4. Slag Residue Sampling

10.1.5. Baghouse Residue Sampling

11.0 Analysis for Precious Metals, Copper and Return Limits

11.1. Melt, Mill, and Non-Smelting Return Limits

11.2. Slag and Baghouse Residue Return Limits

12.0 Sample Preparation, Distribution and Analysis

13.0 Release of Residual Material

13.1. Release of Recovered Material

14.0 Reports

14.1. Assay Report

14.2. Production Report

14.3. Certificate of Destruction

15.0 Settlement Procedures

15.1. Settlement Steps

15.2. Alternate Settlement Methods – Converting Recovered Metals into Other Precious Metals

15.2.1. Converting Copper Recoveries into Other Precious Metals, CLIN(s) 0101-0128, 1101-1128, 2101- 2128, 3101-3128, 0201-0208, 1201-1208, 2201-2208, 3201-3208

15.2.2. Converting Precious Metal Recoveries into Other Precious Metals, CLIN(s) 0101-0128, 1101-1128, 2101-2128, 3101-3128, 0201-0208, 1201-1208, 2201-2208, 3201-3208

15.2.3. Converting Rhodium, Ruthenium and Iridium Recoveries into Other Precious Metals, CLIN(s) 0101-0128, 1101-1128, 2101-2128, 3101-3128, 0201-0208, 1201-1208, 2201-2208, 3201-3208

16.0 Umpire Process

17.0 Delivery of Refined Metals (Precious Metal Deposit)

18.0 Payment And Invoicing

19.0 Contract Deliverables, Documentation, and Reports

20.0 Acceptable Performance Level(s) (APL)

-------List of Attachments------

1. Acronyms/Definitions

2. How DLA Manages PM Scrap (SCL/LSN)

3. LSN/SCL Descriptions

4. Net Weights of SCL’s Sent in FY16, FY17

5. MRO Description

6. RPT-RI2E-1 Description

7. Processing Approval Example

8. Monthly Inventory Example

9. Assay Report Example

10. Production Report Example

11. Settlement Calculations General/Umpire

12. Alternate Settlement Calculations

13. Settlement Letter Example

14. DLA 1182: End Use Certificate

15. DLA 2507-1: Qualified Facility List Application

16. DLA 2503: Transporter Qualification Review Application

1.0 INTRODUCTION

a. 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. DLA Disposition Services is headquartered in Battle Creek, Michigan, with numerous sites collecting precious metals (PM) bearing scrap located worldwide. The purpose of this contract is to acquire services to recover the maximum amount of precious metals from precious metal bearing scrap material. In addition, services will include the recovery and conversion of non-precious metal bearing material (e.g. copper) 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 4).

b. 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 precious metal bearing scrap material.

2. Maximize the return of the contained precious metals and other valuable materials (e.g. copper) from the precious metal bearing scrap material.

3. Arrange for and complete transportation of H/W and H/M bearing precious metals along with specialty shipments requiring Government escorts of sensitive precious metal bearing scrap.

4. Completing/certifying destruction of DEMIL/MUT required property.

5. Have one centralized location to receive, store, and process Government’s precious metal bearing scrap.

c. For list of PM bearing scrap to be processed and functionality of the contract, the Contractor is encouraged to review provided attachments, scrap code list definitions (Attachment 3), estimated quantities to be turned in (Attachment 4), and other attachments to this performance work statement. Attachment 2 provides background on how DLA manages PM scrap.

1.1 REQUIRED ITEMS FOR BID

After reading requirements set forth in this Performance Work Statement (PWS), and reviewing all attachments, Contractor shall submit a Processing Plan (see 1.1.1) and a filled out the Bid (CLIN) Schedule (see 1.1.2).

Contractor is also encouraged to send in any current certificates their company has (e.g. ISO, R2, etc.).

1.1.1 PROCESSING PLAN

Processing Plan needs to describe following:

-Address requirements in this PWS.

-Minimum weight to process certain CLINS/SCLs and/or minimum weights for combination of CLINs/SCLs.

-Overarching operation to complete the end-to-end processing of Government PM bearing scrap.

1.1.2 BID (CLIN) SCHEDULE

Bid (CLIN) Schedule needs to have the following:

-Fill in for each line item, cost per net pound/gram to cover end-to-end operations (excluding reimbursable

CLIN)

1.2 PRE-AWARD REQUIREMENTS

After Contractor is selected by Government, Contractor shall need to meet below requirements before award of contract. If unable to meet requirements, selected Contractor will not be awarded.

-Environmental Team Review (Section 3.6 and Section 5.1) -Submit DLA FORM 2507-1 (Section 3.6) -Obtaining trade security control clearance (Section 3.7)

1.3 POST-AWARD MEETING

-Awarded Contractor shall meet with Government before performance period starts to go over requirements and provide details necessary to perform.

2.0 SCOPE OF WORK

a. The Contractor shall provide all personnel, equipment, tools, materials, supervision, insurances, permits, non-personnel services, and all other required items/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 PWS.

This is to include (but not limited to) receiving/warehousing/processing precious metals bearing scrap, converting recovered PM/non-PM values to other PM, depositing recovered PM, disposing of residual materials and providing administrative services.

b. The precious metal bearing scrap material under this contract consists of precious metals bearing scrap materials in various forms to include precious metals bearing hazardous material/waste. 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 shall be managed and disposed of by the Contractor at the Contractor’s expense. Radioactive material shall not be processed under this contract. In addition, disposal of any non-hazardous waste, such as pallets, triwalls, packaging, etc. shall be the responsibility of the Contractor at no expense to the Government.

c. The Contractor shall return to the Government all precious metals recovered.

d. The Contractor shall keep Government precious metal bearing scrap stored by itself and not to be co-mingled with other non-Government scrap. See Section 3.1 for requirements.

e. Contractor shall allow Government Representatives onsite to perform a variety of oversight functions that will not interfere with Contractor’s production process. See Section 5.0 for requirements.

f. Most precious metals bearing scrap sent to the Contractor will be shipped by the Government. The Government will alert the Contractor to these shipments. See Section 6.1 for further detail.

g. There will be certain shipments the Contractor shall be responsible to transport (e.g. H/W, H/M, escorted shipments). The Government will reimburse Contractor for transportation costs. See Section 6.2 for requirements.

h. The Contractor shall only process Government precious metal bearing scrap by itself and to not be co-mingled/co-processed with other non-Government PM bearing scrap. See Section 10.0 for requirements.

i. DEMIL/MUT required precious metals bearing scrap may be sent to the Contractor. Contractor shall meet DEMIL/MUT requirements set by the DOD. This may include providing a certificate of destruction for MUT required property and/or signing as a certifier for DEMIL required property. See Section 10.0 and 14.0 for requirements.

j. The Government reserves the right to keep ingots, dust, slag, and other residual materials resulting from processing Government precious metals scrap. See Section 13.0 for further detail.

k. Contractor shall convert recovered precious metals into another precious metal and recovery/conversion of copper into a certain precious metal. See Section 15.2 for requirements.

l. The Contractor is heavily encouraged to make paper (pool) transfers in lieu of physical shipment of recovered PM.

See Section 17.0 for requirements.

3.0 FACILTIY REQUIREMENTS

3.1 SECURED STORAGE AREAS

a. 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 KO/COR. 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).

b. 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.

c. The secured area must be within a building and must be enclosed on four sides with a barrier (e.g. a chain link fence within the building), 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.

d. 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.

3.2 SCALES

The Contractor shall use scales that have been certified and calibrated according to state/local regulation and/or to standard industry practice (such as NIST standards). The Contractor shall furnish proof of independent certification of scales and test weights. The Contractor shall furnish proof per request of KO/COR. 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.

3.3 BAGHOUSE AND SCRUBBERS

If the Government’s 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).

3.4 SAFETY

Contractor's personnel and equipment shall comply with applicable Federal, State, local safety laws and regulations.

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.

3.5 PERMITS

The Contractor shall, 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.

3.6 ENVIRONMENTAL COMPLIANCE

a. 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.

b. Prior to award and/or throughout the performance period(s), the Contractor shall be required, to provide upon Government request, up-to-date; permits, pollution insurance, facility closure mechanism if applicable, most recent regulatory inspection report with findings, corrective actions for violations and a completed DLA FORM 2507-1.

Failure to provide any of these up-to-date items and/or failure to meet environmental compliance may result in no award and/or the termination of contract.

3.7 TRADE SECURITY CONTROL CLEARANCE

a. Once the Contractor has been selected by the Government, but before award, the Contractor shall submit a completed DLA 1182 (End Use Certificate) to the KO. For further information/assistance on filling out the DLA 1182, the KO may be contacted to get correct Government POC’s to assist.

b. See Attachment 14 for DLA 1182 form.

4.0 FUNCTIONALITY OF CONTRACT

a. The period of performance for this contract is one-year from date of contract award with three one-year options.

b. During performance period(s), the COR will coordinate and provide direction to the Contractor on behalf of the KO. E-mail/correspondence containing shipping/disposition instructions from the COR shall suffice as an audit trail of events.

c. All CLIN items are estimates. The Government has unilateral right to increase and decrease CLIN quantities

4.1 CONTRACT MANAGER FOR CONTRACTOR

The Contractor shall be solely responsible for the overall performance of the contract. The Contractor shall designate a contract manager and alternate contract manager, who will have full authority to act for and make binding contractual decisions on behalf of the Contractor. Within five (5) days after contract award, the Contractor shall provide the name of the primary and alternate contract managers in writing. The contract manager or the alternate shall be available during normal operating hours to meet with Government personnel. The contract manager and the alternate must be able to speak, read, write and understand the English language.

5.0 GOVERNMENT REPRESENTATIVES (GR) ONSITE ACCESS

The Government requires certain GR to perform site visits. The Government will advise Contractor in advance to coordinate site visits.

5.1 ENVIRONMENTAL REVIEW TEAM

Prior to award and/or throughout the performance period(s) of the awarded contract, Contractor shall allow a Government funded environmental review team to perform site visit(s) at the Contractor’s facility to assess environmental compliance.

5.2 DEFENSE CONTRACT MANAGEMENT AGENCY

DLA utilizes DCMA to inspect Contractor’s site to ensure adherence to contract terms and standard industry practices. A local DCMA representative will be assigned to this contract once awarded. Contractor will be informed of who the DCMA representative will be. The DCMA representative will coordinate with Contractor when inspections are needed. Inspection items may include (but not limited to):

-Witness/verify factory scales and calibration methods -Witness/verify lab equipment use and calibration methods -Witness/verify Contractor weighing/in-taking of received Government precious metals bearing scrap -Verify Government stored precious metals bearing scrap

5.3 PROPERTY REQUIRING GR WITNESS AND VERIFICATION OF DESTRUCTION (DEMIL/DE-

CLASSIFICATION)

a. 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 also require the Government to witness and verify destruction of the material. The Contractor shall allow GR to be physically present to review the property and witness the destruction performed by the Contractor’s recycling process. The GR will not stop and/or hinder the Contractors operations, but will only be validating as a witness for the Government that destruction was completed and document the destruction.

b. Precious metal bearing scrap material that may require witnessing and/or verification will be identified by the Government and includes property types such as DEMIL required circuit boards, DEMIL required electronics, metal bodied electron tubes, and/or film (medical or dental) containing privacy act data.

c. Contractor shall 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, shredding, etc.) to allow the GR 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 that requires witnessing by GR will not be processed in combination with other like CLINs unless the GR and COR has authorized destruction with other materials to be acceptable. Above process is also applicable to material requiring de-classification.

d. A GR for precious metal bearing scrap material that requires witnessing and verification of destruction shall be able to do the following:

-If applicable, break the seal on the transporters conveyance.

-Witness material offloaded and weighed.

-Escort the material to the Contractor’s secured storage area.

-Escort the material to Contractor’s processing area(s).

-Witness destruction.

-Review material processed to verify destruction.

6.0 TRANSPORTATION OF PRECIOUS METALS BEARING SCRAP

The Government will transport a bulk of PM bearing scrap to the Contractor’s facility by Government made transport (see 6.1). There are some transportation in which the Contractor shall need to complete transport (See 6.2)

6.1 TRANSPORTATION OF PRECIOUS METAL BEARING SCRAP BY GOVERNMENT

The Government will designate and or authorize various sites (E.g. DLA Disposition Sites, Military Bases/Installations, and Federal Civil Agencies) 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.

6.2 TRANSPORTATION OF PRECIOUS METAL BEARING SCRAP BY CONTRACTOR

a. The COR will notify Contractor for transportation of PM bearing scrap and provide pertinent details of shipment (i.e. weights, material, pick-up site points of contacts, etc.). The Contractor shall arrange for transportation, scheduling, pickup, and shipment from identified Government site(s) to the Contractor’s facility. The precious metals bearing scrap material transported may include PM bearing scrap that is or is a combination of non-hazardous, classified (requiring Government escort), hazardous material (HAZMAT) and/or hazardous waste. PM bearing scrap shall be picked up by the Contractor within thirty days of COR providing pertinent details. If the Contractor cannot pickup the material within thirty days, the Contractor shall notify the COR and KO in writing to request an extension.

b. The Government will load the precious metals bearing scrap material onto the Contractor’s conveyance at the location identified by the COR. Precious metals bearing scrap material will be containerized in tri-walls, drums, ammunition cans, plastic bags, coffee cans, cardboard boxes, etc. If precious metals bearing scrap material is hazardous, Government will be responsible to containerize in DOT compliant container. Complete loading, blocking, bracing, and any other work necessary to make the load suitable for transportation shall be the responsibility of the Contractor and Contractor’s transporter. In addition, Contractor and Contractor’s transporter shall be responsible to provide the correct DOT markings/labels for the hazardous waste containers at the Government site and to have the correct DOT placards for the truck. The Government will not furnish any additional containers for the Contractor’s use other than the containers the material is stored at the pickup site. The Government does not warrant that the containers are suitable for transportation in accordance with Department of Transportation regulations. The Contractor is cautioned to ascertain and assess the material being picked up for any need to over pack and or re-containerize, label, placard or markings.

c. The Contractor shall be responsible to submit a price per pound (gross weight needing to be transported) on the bid schedule. Refer to 6.2. paragraph d. for locations and estimated quantities (gross weights). Refer to 18.0 “Payment and Invoicing” for further detail on payment for transportation. There may be new sites not listed that may require Contractor transport. These new sites will be brought up by the COR to the Contractor and evaluated on an individual basis for cost.

d. Below are locations and estimated quantities requiring pickup:

1. Langley Air Force Base:

3-6 times annually; 1,000 pounds in 10, 55-gallon drums for each pickup (Hazardous Material PM bearing)

2. Tyndall Air Force Base:

1 time annually; 4,000 pounds in 30, 55-gallon drums for each pickup (Hazardous Waste PM bearing)

3. Tobyhanna Army Depot:

4 times annually; 37,000 pounds on 20 to 30 stackable pallets for each pickup (Non-Hazardous PM bearing, standard freight, requires escort from GR)

4. Elmendorf Air Force Base:

1 time annually; 9,000 pounds on 12 pallets for each pickup (Hazardous Material and non-hazardous PM bearing)

5. Hill Air Force Base:

1 time annually; 7,000 pounds on 40 stackable pallets for each pickup (Light weight, bulky hazardous waste PM bearing).

6. Beale Air Force Base:

1-2 times annually; 700 pounds on 1-2 pallets for each pickup (Hazardous Waste)

e. Entry to some Government installations requires prior approval by base security personnel. The Contractor is responsible for identifying and meeting those requirements prior to attempting any pickups. This includes REAL I.D. requirements (see https://www.dhs.gov/secure-drivers-licenses for more information).

f. The Contractor shall comply with, and ensure that all applicable transporters comply with all applicable requirements of the US Department of Transportation (DOT) regulations and US Environmental Protection Agency (EPA) regulations.

g. Hazardous material and hazardous waste transporters used under this contract must be approved for use by DLA Disposition Services. A list of DLA Disposition Services hazardous waste transporters can be found on the DLA Disposition Services web site at:

http://www.dla.mil/DispositionServices/Offers/Disposal/HazardousWaste/HazWasteDisposal.aspx

h. If the Contractor wishes to use a hazardous material/hazardous waste transporter not appearing on the qualified transporter list, the Contractor shall request permission to utilize the transporter, or to add the hazardous waste transporter to the qualified transporter list. This will be done by email providing the COR or KO with the name of the transporter, address, EPA identification number, a copy of the transporters hauling permit, and a completed DLA Form 2503. The Contractor agrees that no hazardous material/hazardous waste transporters, other than those on the approved list, shall be used without obtaining the approval of the COR or KO.

i. The Contractor shall review the COR submitted information to determine if a Uniform Hazardous Waste Manifest will be required for removal of precious metal bearing scrap material. The Contractor shall be responsible for the manifesting from the pickup sites to their facility. This may include use of e-Manifest. The Contractor must coordinate with the POC identified by the COR, as necessary, to complete the manifest in accordance with all federal, state, and local regulations. The Contractor shall discuss manifest requirements with the POC and provide copies of the manifest prior to the pickup date. The Contractor shall notify the COR or KO if there are any issues involving the paperwork and/or scheduling of the pickup. The designated authorized personnel from the pickup site will sign the manifest as generator, provide the generator EPA ID number, complete address, waste profile sheet(s), proper shipping names, EPA/State waste codes, etc. The Contractor is responsible for the completion of the manifest and all transportation arrangements. The Contractor shall annotate the manifest with the contract number and delivery order number in Block 14 “Special Handling Instructions and Additional Information”. This is solely for the purpose of maintaining a contract audit trail. If there are issues preventing the pickup of manifested material from a location that caused rescheduling of a transport vehicle, the Contractor shall have the responsibility to provide to the COR and KO documents (names, telephone calls, emails, dates, etc., ) showing that the fault belongs http://www.dla.mil/DispositionServices/Offers/Disposal/HazardousWaste/HazWasteDisposal.aspx with the Government. Otherwise, all rescheduling of transport costs shall be borne by the Contractor. The KO will make the final decision regarding any rescheduling shipment costs responsibility once all documents have been received.

j. In addition to the federal manifest requirements for return of signed manifests to the Generator, the Contractor shall furnish a copy of the manifest by email, signed by the Contractor, to the COR within 35 days of pickup by the initial transporter. If Manifest has not been received by day 35 and no explanation provided, COR/KO will document the failure to meet the Acceptable Performance Level. Furthermore, If the manifest is not returned within 40 days, the Contractor shall prepare the Exception Report and provide a copy to the COR and Generator within 45 days after pickup. COR/KO will take appropriate actions if Contractor fails to meet any of the requirements provided in this Section.

6.2.1 PICK-UP HOURS OF OPERATION

The Contractor agrees that, for those portions of the services provided on a Government installation, the services shall be provided during normal hours of operations for the installation. The normal hours of operations for installations on this contract are available upon request from the identified POC(s) given by the COR.

6.2.2 GOVERNMENT RIGHT TO INQUIRE TRANSPORTER

The COR or other Government representative has the right to request any identification and/or occupational endorsements from the driver beyond what is identified in additional specific Sections in this contract and refuse commencement and/or completion of pickups if any unusual or suspicious actions occur. Any potential demurrage associated with the driver verification process and/or the unexpected halt or commencement of pickups shall not be grounds for reimbursement by the Government.

6.2.3. TRANSPORTER SPILL RESPONSIBILITY

The Contractor is solely responsible for any and all spills or leaks during the performance of this contract which occur as a result of, or are contributed to the actions of its agents, employees or transporters (and regardless of where the incident occurs, be it a Government installation, a Contractor facility, or in transit). The Contractor agrees to clean up such spills to the satisfaction of the Government and in a manner that complies with applicable Federal, state, and local laws and regulations. The cleanup shall be at no cost to the Government. The Contractor shall report all such spills to the COR and KO immediately upon discovery. A written follow-up report shall be submitted to the COR and KO no later than 24 hours after the initial report. The written report shall be in narrative form and as a minimum include the following:

- Description of item spilled

- Whether amount spilled is EPA/state reportable, and if so, whether it was reported

- Exact time and location of spill including a description of the area involved

- Containment procedures initiated

- Summary of any communications Contractor has with the press or Government officials other than the KO

- Description of cleanup procedures employed or to be employed at the site including disposal location of spill residue

7.0 RECIEPT AND VERIFICATION OF PRECIOUS METAL BEARING SCRAP

a. The Government will provide the Contractor with a courtesy copy (email) of a pending shipment that has been authorized by the COR. The courtesy copy will include the sending site’s name, location, brief description of material, weights and MRO.

b. Following shipment arrival, but prior to processing, the Contractor will count, weigh, sort, and segregate all precious metal bearing scrap material shipped to the Contractor by CLIN type. Weights are determined as follows:

-Net Weight = PM bearing scrap in container/on pallet.

-Gross weight = Dunnage (triwall, cardboard box, pallet, etc.) plus the PM bearing scrap.

c. To prevent loss of material for high-value PM bearing scrap (i.e., CLIN x124, x125, x126, x127, x128), the Contractor is authorized to utilize the gross weights as the net weight for high-value scrap only.

Note: First digit of each CLIN indicates the performance period such as 0 = base period, 1 = 1st option year, etc.

d. The Contractor will ascertain that all parts of the shipment have been received. The Contractor shall work with the COR, KO, and sending site to resolve any discrepancies found during the receiving process. See Section 7.0.1, 7.0.2,

7.0.3 for description of discrepancies and resolution steps.

e. Sent in 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.

f. The Contractor shall notify the COR via email (within 10 business days after arrival) that the property has arrived at the Contractor’s facility. The email shall include the following:

-Scanned copy of the CBL/BOL showing the date and time of arrival, weight (both net and gross), piece count, and signature acknowledging receipt.

-Sign “received by” and “date” block as indicated on Attachment 5.

-Fill Contractor blocks and sign RPT-RI2E-1 as indicated on Attachment 6. If the Contractor utilizes and internal tracking number, this number shall also be documented on the RPT-RI2E-1.

7.1 MINOR SHIPMENT DISCREPANCIES

The following list identifies minor discrepancies that should be reported on the RPT-RI2E-1 but “NOT” submitted to the COR for disposition:

-Container placards identifying property not present.

-Piece count identified on the CBL/BOL/RPT-RI2E-1 is less or more than the piece count received.

7.2 MAJOR SHIPMENT DISCREPANCIES

a. The following identifies major discrepancies that shall be reported within 24 hours of discovery, and/or the first available workday, to the COR by e-mail notice or telephone:

-Net weight of CLIN(s) X124-X128 is greater than or less than 5% of the net weight identified on the RPT-RI2E-1 -Net weight of CLIN(s) X101-X123 is greater than or less than 10% of the net weight identified on the RPT-RI2E-1.

-Sent material does not match CLIN(s) identified on MRO/RPT-RI2E-1.

-Sent material is non-conforming to contract (i.e. material/property that is not PM bearing scrap).

b. For major shipment discrepancies, the Contractor shall ensure that detailed information about found discrepancy is made available to the COR. Lack of specific information can cause a delay in COR disposition instructions/resolution. The Contractor shall hold precious metal bearing scrap material in the secured area without further processing pending COR instructions.

c. For non-conforming material to the contract:

Contractor shall 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.

7.3 RESOLUTION OF MAJOR SHIPMENT DISCREPANCIES

a. The COR will be responsible for research of the major shipment discrepancies from the Government site to the Contractor site. All documents to validate the shipment audit trail shall be gathered by the Contractor and submitted to the COR.

b. 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.

c. For under 5% or 10% net weight variance:

-If determination is found to be the responsibility of the Government, then there is no further action other than adjustments to the received weights by the Contractor.

-If determination is found 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 a settlement letter without charging the Government any processing fees for loss materials.

d. For over 5% or 10% net weight variance:

-If determination is found to be the responsibility of the Government, then there is no further action other than adjustments to the received weights by the Contractor.

-If determination is found to be the responsibility of the Contractor, the COR will inform Contractor to make weight correction to weighed material.

e. For material not matching CLIN(s) identified:

-If determination is found to be the fault of the Government, then there is no further action other than documenting the identification change.

-If determination is found to be the fault of the Contractor, the COR will inform Contractor to make CLIN identification correction to the identified material.

f. For non-conforming material:

-If determination is found to be the fault of the Government, then the property will be stored into the secured cage area and the Government will arrange to pickup property at the Governments expense.

-If determination is found to be the fault of the Contractor, the COR will inform Contractor to process the property as a listed CLIN in the bid schedule.

8.0 MONTHLY INVENTORY REPORT FOR UNPROCESSED PRECIOUS METAL SCRAP

The Contractor shall provide a report of the unprocessed PM Scrap Material that is warehoused at their site on a monthly basis (see Attachment 8 for example). The report shall be due within 10 days of the new month and reflect the current GFM stored in the warehouse for that month. (i.e. inventory report sent on 8 September would reflect 1 September inventory).This report shall be emailed to the COR. At minimum the report shall contain the following:

-Received date

-RO#

-Sending Site -DTID# (combination of DoDAAC, Julian Date, and Serial Number)

-DO#

-CLIN

-SCL

-Piece Count -Gross Weight -Net Weight -Unit of weight (i.e. pounds or grams)

9.0 AUTHORIZATION TO PROCESS PRECIOUS METAL BEARING SCRAP

a. After the Contractor has the minimum amount of PM bearing scrap necessary to begin processing for CLIN(s) as documented in the processing plan, the Contractor shall request to begin processing the received precious metal bearing scrap material. The Contractor shall not process precious metal bearing scrap material without authorization from the COR. The request to process shall include a summary of what precious metal bearing materials will be processed, herein referred to as the Processing Approval. See Attachment 7 for an example of a Processing Approval. Contractor may create their own Processing Approval, but it must contain, at a minimum, the following information;

-Report Number (sequentially numbered throughout the performance of the contract, (e.g. Lot #001).

-Receipt Verification Number -Contract/Delivery Order/CLIN numbers.

-Truck Seal number (if applicable) -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).

-Remarks Section to explain any required audit trail requirements.

-Contractor signature (digital or written) and date.

-Shipping document utilized by shipping site (RPT-RI2E-1, MRO/DD Form 1348-1a, CBL, GBL, Manifest, etc.)

b. The COR will review all submitted paperwork. If no discrepancies are noted, or when all discrepancies are resolved, the COR will authorize the Contractor to begin processing the precious metal bearing scrap material with signature on processing approval. The signed processing approval will be sent via email to the Contractor. The Contractor shall have 45 calendar days to process the material. Processing is considered complete when all processing of the material is complete and when all reports (production, processing, assay, etc.,) are received by the

COR.

10.0 PROCESSING PRECIOUS METAL BEARING SCRAP

a. It is encouraged for the Contractor to maximize processing Government PM bearing scrap in the most efficient lots possible. This means to co-mingle different Government PM bearing scrap CLINS and SCL’s when possible to maximize through put.

b. The Contractor shall recover precious metals and non-precious metals (e.g. copper) to be converted to PM equivalents from precious metal bearing scrap material. 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). Silver-bearing Films that may contain PII data (CLIN x101); thermal incineration is the only approved processing option.

c. 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 (i.e. X-ray fluorescence (XRF) method, alloying etc.) may also be used to identify and differentiate metals. 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 10.1 and sub-Sections for sampling methods and return limits.

d. The weight of the Contractor sample (as well as any unused samples) shall be included in the settlement weight.

e. If there are any production delay’s that will push production over the due date set on the Processing Approval, the Contractor shall notify COR via email with justification and request to extend. COR will authorize a new due date.

f. Contractor shall sign off as a DEMIL Certifier for certain DEMIL required property. The COR will notify the Contractor if this is needed. A GR will need to be present to also verify the destruction of the DEMIL property. This is not expected to be a common practice.

g. After precious metals are recovered, the Contractor, shall deposit the PM due (based on the assay(s) and receiving a signed Settlement Letter from the COR) into the approved deposit location (see Section 15.0 for settlement process and 17.0 for deposit requirements).

10.1 SAMPLING

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.

10.1.1 MELT SETTLEMENT SAMPLING

a. 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 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 (granules) samples.

b. The Contractor shall cone and quarter each dip sample (A, B, and C), as needed, to properly reduce the sample to 6 - 12 ounces. The Contractor will then divide each sample into three equal parts of 2 - 4 ounces each and package in accordance with Section 12.0.

c. Contractor shall skid weigh the poured material (e.g. ingots) before it is placed in the Government 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 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.

10.1.2 MILL ASH SETTLEMENT SAMPLING

a. 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.

b. 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 12.0.

c. 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 shot method as described is Section 10.1.1.

10.1.3 SAMPLING FOR NON-SMELTING PRECIOUS METALS RECOVERY TECHNOLOGIES

When using technologies other than smelting or mill ashing to recover precious metals, the Contractor shall 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 14.2).

10.1.4 SLAG RESIDUE SAMPLING

a. The Contractor shall maintain the identity of any slags produced to individual lot/batch number. The Contractor shall select random pieces of slag whose weight represents approximately two percent of the total weight of the lot/batch.

b. 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.

c. The Contractor may also elect to screen the ground slag to obtain an oversize fraction sample (which may be melted).

10.1.5 BAGHOUSE RESIDUE SAMPLING

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 co-mingle 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.

11.0 ANALYSIS FOR PRECIOUS METALS, COPPER AND RETURN LIMITS

Contractor shall test for gold, silver, platinum, palladium, and copper for all CLINs processed on this contract, unless otherwise directed by COR.

11.1 MELT, MILL, AND NON-SMELTING RETURN LIMITS

a. Contractor shall report and return to the Government greater than or equal to 0.01 parts per thousand (PPT) for each precious metal detected.

b. Contractor shall report percentages of copper greater than or equal to 0.01%. Copper contents shall be calculated to 0.01 pounds. If Contractor adds their own copper to processing method, this shall be subtracted from the copper to be returned to Government. If Contractor adds more copper than recovered, copper content shall report as 0.00 pounds.

c. This will be reported on the Assay Report (Section 14.1)

11.2 SLAG AND BAGHOUSE RESIDUE RETURN LIMITS

a. The Contractor shall reimburse the Government if the residues (from Section 10.1.4. [slag] and 10.1.5 [baghouse]) contain the following amounts of PM:

- Silver in amounts greater than 10 troy ounces per ton

- Gold, platinum, pallidum, and other platinum family metals in amounts greater than 0.30 troy ounces per ton

b. No copper testing is required.

c. This will be reported on the Assay Report (Section 14.1)

12.0 SAMPLE PREPARATION, DISTRIBUTION, AND ANALYSIS

a. The Contractor will place dry (no liquid present) sample material into different envelopes/container(s) that are marked with the following information:

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

- Contractor Name

- Lot number identification and type, (e.g. Lot# 002- Ash, Lot#056-Shot)

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

- Sample weight (net grams)

- Total lot weight represented by sample

- Contractor Signature, Printed Name and Date

b. There will be three sets of samples. The samples are to be managed as follows:

1) One set will be used by the Contractor for analysis.

2) The second set will be sealed and identified as the umpire set, then placed in the Government’s 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.

3) The third set will be provided to the COR.

c. Samples submitted to the COR shall be sent to the COR within three days (3) of being prepared. Postage and shipping cost shall be borne on the Contractor and will not be reimbursed by the Government. The mailing address for the COR samples is:

ATTN: Precious Metals Recovery Program COR Defense Logistics Agency Disposition Services, J3 74 N. Washington Ave Battle Creek, MI 49037-3092

d. The COR sample set will be kept by the Government and analyzed at a later date as part of an internal quality control. The Government may elect to have the Contractor to hold onto samples that are hazardous (e.g. corrosive solutions). The Government will send in COR samples that are unused back to the Contractor to process into the next applicable lot.

e. If there is a liquid and/or hazardous sample taken (e.g. corrosive solution), the Contractor shall keep the COR sample in an approved hazmat area onsite until further instruction from COR.

13.0 RELEASE OF RESIDUAL MATERIAL

Residual materials, materials generated as a result of refining precious metals (i.e. solutions, baghouse, dust and slag) which will not be used in later processing, is authorized for release to…