Question_and_Answer_V.3_-_RFQ_SP4510-18-Q-1026.docx

Question and Answer - RFQ SP4510-18-Q-1026

1. Will the government provide historical precious metal content data for the various LSN/SCL categories of material?

Answer: The best the government can supply is the historic recoveries for each fiscal year. Due to the wide range of scrap material that gets turned in, it is impossible to set a standard precious metal content to expect per SCL that is turned in. See below for recoveries for the each SCL that was processed for the government’s FY 16 and 17.

Precious Metals Recovered per SCL – FY16 and FY17 (Fiscal Year for Government runs from 1 Oct. to 31 Sept.)

***NOTE: Although DLA had received different SCL’s throughout FY16 and FY17 (see attachment 4 of RFQ SP4510-18-Q-1026) the SCL’s received may have not been processed in the same FY. Below shows the precious metals recovered for FY16 and FY17***

FY17 Precious Metal Recovered (in Troy Ounces)

FY16 Precious Metal Recovered (in Troy Ounces)

2. Will the government provide the complete winning bid for the last contract?

Answer: DLA is able to provide the winning contract number (SP4510-15-D-0001) and overall contract award amount ($3,671,676 for four years of performance)

3. Silver-Bearing Film

a. Is there any manner to reduce the annual quantity or omit it completely?

Answer: This is a firm requirement as DLA needs the capability for the vendor to process this property.

b. Can the material be granulated on-site and sent to a properly-vetted downstream for final disposition?

Answer: This can be acceptable. DLA will not reimburse the downstream (third-party) vendor and the primary vendor would incur all costs for this process. The primary vendor needs to keep in mind that DLA would expect the same type reports (Production and Assay) from the third-party vendor in addition to the third-party vendor allowing for government representatives to perform onsite inspections to review their processes.

4. Batteries

a. Do they need to be retorted before processing?

Answer: It depends. Typically, to meet environmental requirements, retorting is required to process any of the mercury containing precious metal batteries. If the vendor is able to clearly describe how they can process mercury containing precious metal batteries without retorting and also meet the environmental requirements, DLA will consider that satisfactory.

As a reminder, a part of the pre-award process is having a government sponsored Environmental Review Team that will assess the vendor’s facility to ensure that said processes are in compliance with environmental regulations (see section 5.1 of the Performance Work Statement).

5. Financial

a. When a pool account is created, does the Defense Logistics Agency (DLA) wish to get paid out via wire or precious metals?

Answer: DLA requires that 100% of the precious metals recovered will be deposited into DLA’s account. No money, only settled amounts of precious metals in troy ounces. See section 17.0 for precious metal deposits of the Performance Work Statement.

b. If so, how frequently will final payments be issued?

Answer: The precious metal deposits will be required 30 days after settlement has been agreed to. See section 15.0 for settlement procedures and 17.0 for precious metal deposits of the Performance Work Statement.

The more frequently the vendor processes “lots” of government precious metal bearing materials, the more frequent the vendor would deposit recovered precious metals. It will depend on how much throughput the vendor can/will be able to accomplish.

6. Section 1.1.1. Processing Plan – What is meant by “Overarching operation”?

Answer: The vendor is expected to explain how the government’s precious metals scrap will be handled, processed, and deposited into the government’s designated storage vendor. An outline can include the following:

- Shipping/Pickups: Explain how the company sets up and completes pickup of precious metals bearing scrap (i.e. has internal shipping company, outsources pickups to other vendors, anything of interest about meeting section 6.2 “Transportation of Precious Metal Bearing Scrap By Contractor”.)

- Receiving: Explain how the site will receive government’s property (document, label, weigh, etc.)

7. Section 1.1.2 Bid (CLIN) Schedule - What is meant by "excluding reimbursable

CLIN" ?

Answer: There are no reimbursable CLIN’s and this statement shall be dis-regarded.

8. Section 3.6 Environmental Compliance - Paragraph b, line 3 references completing DLA FORM 2507-1 (Attachment 15 - Qualified Facility List Application) A Qualified Facility, on the DLA / DRMS website, is referenced as a TSDF (Treatment, Storage & Disposal Facility). Is this (completing DLA FORM 2507-1) required of a non-TSDF bidder?

Answer: Yes, this form is required. There is a space on the form for “Other” that the vendor can fill in as “Precious Metals Recovery”. The vendor is expected to complete the form after they have been selected as part of the pre-award steps. We will have staff to assist the vendor through the form as there may be areas that do not apply to the vendor.

We understand that many (if not all) precious metals recovery operations do operate in an exclusionary area per the environmental regulations (thus not being a TSDF), however the government needs to ensure that the vendor has and still does comply with other environmental regulations that could apply to the facility as precious metal bearing hazardous wastes and hazardous materials will be sent for processing.

9. Section 3.7 Trade Security Control Clearance - This section references Attachment 14 as DLA FORM 1182 an "End Use Certificate”. On the bottom of Attachment 14 and on the DLA website an "End Use Certificate" is referred to as DLA FORM 1822.

Per the DLA website, a Trade Security Control Clearance and DLA FORM 1822 pertains to prospective buyers or recipients of surplus Government property defined as U.S. Munitions List (USML) by the US Department of State or defined as Commerce Control List (CCL) by the US Department of Commerce.

As the purpose of this contract (SP4510-18-Q-1026), per Section 1.0, is to process Government scrap to recover the contained Precious Metals, the concerns and/or Requirements of Section 3.7 would not be applicable, correct ?

Answer: On the PWS, DLA FORM 1182 is a typo and should read as DLA FORM 1822 throughout.

10. Section 6.2, paragraph “d” locations and estimated quantities – Are these numbers accurate?

Answer: Beale AFB is a typo and should be a Hazardous Material shipment and not a Hazardous Waste.

All other estimates are the best judged numbers from historical turn-in. DLA is unable to predict the output of DOD sites located around the country. The site volumes/locations may change but DLA will negotiate with awardee in future to ensure a fair price is reached to complete these pickups.

11. Section 13.1 Release of Recovered Material - Paragraph c. reads: "Any recovered material for which release has not been made shall not be authorized for release to the Contractor.....". Should this statement read..."Any recovered material for which deposit has not been made shall not be authorized for release to the Contractor...."?

Answer: No. The purpose of this statement is to clarify that the government can hold onto the recovered material (i.e. ingots, Ash, solution containing majority of PM) at any time. Typically the government will authorize the release in the Processing Request (section 13.1 a. 1.). If the vendor is not performing correctly (i.e. incorrect deposits, consistent incorrect analysis, etc.) the government needs to have a mechanism to be able to withhold said recovered material.

12. If unable to process certain types of PM bearing materials (such as x-ray/film or certain batteries), can all material in question be sent directly to a Down Stream Vendor (DSV), in lieu of ours, if they are pre-vetted by the DLA and allow for Government Observance instead of our facility?

Answer: Yes, this is acceptable to directly ship this property to the DSV for them to process the material on behalf of the prime contractor if DSV is meeting the requirements set by the contract.

13. What is the ratio of X-Rays to Dental to Film?

Answer: DLA does not currently track this type of information as all turned in silver-containing film is classified as just SCL “P04”. Just from experience of recent turn-in’s (past two years) the silver-bearing film has been roughly 60% aerial photography, 30% medical X-Ray film (Includes Dental and other medical x-rays), and 10% industry X-ray film (from Non-Destructive Inspections (NDI)).

14. Will the Film/X-Ray material in question come as a steady 33,000lbs.-40,000lbs. per month or would we expect no film/x-ray material one month, but 4 containers the subsequent month?

Answer: For the past two years’ experience, you can expect a mixture of both and in between. Some months DLA sends one pallet of silver film weighing 400 pounds. Another month, DLA may send 90,000 pounds of silver film (90 pallets) to the vendor. Other months, DLA may send something in between those weights. Please bear in mind that DLA does not expect the vendor to process everything immediately knowing that it is uneconomical to process small batches of PM bearing materials. That being said, the vendor is encouraged to have enough space to be able to store this influx that may come. Vendor will be notified well in advance (month or more) before DLA would send be shipping any PM bearing material in.