Ferroniobium_SOW_2015_7-29-15.pdf

Ferroniobium (FeNb)

Statement of Work (SOW)

1. BACKGROUND

Niobium is a soft and ductile element commonly found in nature with tantalum, in deposits of a mineral called pyrochlore. Pyrochlore is a mineral which can be easily processed into ferroniobium (FeNb) or niobium pentoxide (Nb2O5). Ferroniobium is most commonly used as an additive to enhance steel strength and a component in super alloys used in aerospace.

The National Defense Stockpile (NDS) currently has 10 Metric Tons (MT) of niobium metal ingots in inventory. One MT of metallic niobium is stoichiometrically (chemically) equivalent to 1.6 MT of ferroniobium in the low-alloy, stainless steel or superalloy production.

2. SCOPE

The Defense Logistics Agency, intends to purchase 410 MT of ferroniobium for the NDS. Authority to acquire ferroniobium was provided in the Fiscal Year (FY) 2014 National Defense Authorization Act (NDAA). DLA Strategic Materials intends to purchase the 410 MT of ferroniobium over a four-year period, from FY 2015 to FY 2018 (Table 1). The authority to acquire quantities of ferroniobium in each option year is subject to the Annual Materials Plan (AMP) authorization for the fiscal year and the availability of funding.

Table 1 Planned procurement quantities and schedule for: Low-Alloy Steel, Stainless Steel and High- Purity Grades of Ferroniobium

Fiscal Year (FY) Low-Alloy Steel Grade (MT)

Stainless Steel Grade (MT)

High-Purity Grade (MT) Total (MT)

Base Period 50 5.0 3.0 58 Option Year 1 90 6.0 4.0 100 Option Year 2 110 9.5 6.5 126 Option Year 3 110 9.5 6.5 126

Total (MT) 360 30 20 410

3. APPLICABLE DOCUMENTS

3.1. Packaging and Marking

3.1.1. National Defense Stockpile Identification Specification T-l-R5, Tags:

Aluminum, Embossed, dated 15 May 1991

3.1.2. American Society for Testing and Materials (ASTM) D3951, Standard Practice for Commercial Packaging, edition of 15 August 2010

3.1.3. Occupational Safety & Health Admiration (OSHA) 29 CFR 1910.1200

3.1.4. United Nations Globally Harmonized System of Classification and Labelling of Chemicals (GHS)

3.2. Ferroniobium Product Standards

3.2.1. ASTM A550 - 06, Standard Specification for Ferrocolumbium, edition of 1

October 2010

3.2.2. International Organization for Standardization (ISO) 5453, Ferroniobium --

Specification and Conditions of Delivery, first edition of 1 December 1980

3.3. Sampling and Analysis Standards

3.3.1. ASTM E367 – 09 Standard Test Methods for Chemical Analysis of

Ferroniobium, edition of 1 October 2009

3.3.2. ISO 4552-2, Ferroalloys -- Sampling and Sample Preparation for Chemical Analysis -- Part 2: Ferrotitanium, ferromolybdenum, ferrotungsten, ferroniobium, ferrovanadium, first edition of 15 December 1987

3.3.3. ISO 3713, Ferroalloys -- Sampling and Preparation of Samples -- General rules, first edition of 15 December 1987

3.4. Tariffs

3.4.1. Harmonized Tariff Schedule, the Tariff Act of 1930, and the Trade Act of

4. TECHNICAL REQUIREMENTS

The following sections define the technical requirements for the contract, including the material to be delivered, and the requirements for material packaging and transportation.

4.1. Material Description

4.1.1. The contractor must be able to produce one or more of the three grades of ferroniobium: Low-Alloy Steel Grade, Stainless Steel Grade and High-Purity Grade, defined by ASTM Standard Specification for Ferrocolumbium (Designation: A550 – 06). The material must meet the specifications of the basic Chemical Requirements (Table 1 in ASTM A550 – 06) defined by ASTM A550 - 06. The Supplemental Chemical Requirements (Table 2) in ASTM A550 - 06 are not required for this requirement.

4.1.2. All grades must meet the “2 inches by down” Standard Sizes and Tolerances defined by Section 5 and Table 3 of ASTM A550 - 06.

4.1.3. The contractor shall include a Safety Data Sheet (SDS) that shall be compliant with Occupational Safety and Health Administration (OSHA) for the material with each delivery. The contractor shall include a SDS for the material in accordance with Section 4.2.3.

4.1.4. That contractor shall include a Certificate of Analysis (COA) that consists of the lot number, the piece (drum) count, the net and gross weights, the results of chemical analyses, and ensures that material meets purity levels.

4.1.5. The contractor shall include the monthly operation report(s) for the material being produced.

4.2. Packaging and Labeling

4.2.1. The material shall be packaged in a United Nations (UN) compliant steel drum with a minimum volume of 16 gallons and a maximum of 30 gallons.

4.2.2. The drums shall be free of damage that affects the longevity of material storage or standard handling ability.

4.2.3. A copy of the SDS shall be packaged with each drum.

4.2.4. The contractor shall use wooden pallets to load, unload, and transport the drums.

4.2.5. The wooden pallets shall be in the long by wide dimensions of 76 cm (30 in) x 76 cm (30 in) or 122 cm (48 in) x 122 cm (48 in).

4.2.6. The contractor shall label the drums in accordance with National Defense Stockpile Identification Specification T-l-R5, Tags: Aluminum, Embossed, dated 15 May 1991 (EXHIBIT A).

Three conforming tags shall be attached to each drum:

4.2.6.1. One tag shall be glued to the top of the lid on the outside of the drum.

4.2.6.2. One tag shall be glued to the bottom of the lid on the inside of the drum.

4.2.6.3. One tag shall be glued to the side of the drum outside.

4.2.7. A label should be generated and affixed to each container in accordance with all requirements in 29 CFR 1910.1200 and consistent with the provisions of the United Nations Globally Harmonized System of Classification and Labelling of Chemicals (GHS).

4.3. Transportation

The ferroniobium at the size of 2 inches by down is a non-hazardous material and stable under the normal conditions (atmospheric temperature and pressure).

Ferroniobium can react with strong acid, alkaline and oxidizing materials. The following sections describe the requirements for transporting the material.

4.3.1. The contractor shall be responsible for transport and Customs Insurance

Freight (CIF) of the material to point of delivery, the Government Depot in Hammond, Indiana, United States.

4.3.2. The contractor shall transfer title of the material at the point of delivery, the Government Depot in Hammond, Indiana, United States.

5. TARIFFS

5.1. Exemption of Tariffs

According to the Harmonized Tariff Schedule under the provisions of 19 U.S.C. 1202 (Line 9808.00.40, Strategic and Critical Materials Stock Piling Act), 19 U.S.C. 2461, 19 U.S.C. 2463 and 19 U.S.C. 3007 from the Art. I, sec. 8, U.S. Const., as for a strategic and critical material, this purchase of ferroniobium by DLA shall be exempt from tariffs.

5.2. Execution of Exemption

The exemption should be filed and executed on the US Customs and Border Protection (CBP) Form 7501 (Entry Summary), where the code (9808.00.40, plus additional code entries) should be entered on the form with the notation that the Duty and Internal Revenue Taxes are "0," along with the declaration (Form 6059, General Declaration).

In addition, the Customs Service requires the Form 5106 (Request for Importer Number, or Notification of Importer Number), along with the invoice for the material, the packing list (if available or applicable), and shipping documents.

5.3. Signature of Certificate

The Form (along with its declarations/entries) shall be signed by an "Authorized Agent," who would be the same individual receiving the shipment.

6. DELIVERY and ACCEPTANCE

6.1. Delivery Point

The contractor shall deliver materials to the Government Storage Depot with the following address and unloading time:

Defense Logistics Agency / DNSC-MOHA 3200 Sheffield Avenue Hammond, Indiana 46327-1003 United States of America Telephone: (219) 937-5383 Out Loading Hours: 7:30 AM – 3:30 PM Monday – Friday Accessibility: Truck/Rail scale is available (Weight Capacity 4,000,000 lbs. or 1,800,000 kg)

6.2. Inspection Point- Destination

The material Sampling and Inspection Point is at the same location as the Delivery Point in Hammond, Indiana.

6.3. Acceptance Point- Destination

The material Acceptance Point is at the same location as the Delivery Point in Hammond, Indiana.

6.4. Acceptance Inspection

6.4.1. The Government will use EXHIBIT B, the Material Delivery Inspection

Checklist to verify compliance with this SOW.

6.4.2. The Government will inspect the COA to ensure it matches the chemical composition of the material that was bid.

6.4.3. The Government will perform visual inspection of the material to ensure it conforms to the sizing requirements set for in Section 4.2.2 of this SOW. If an obvious dispute from the requirement exists, a physical (screening) sizing analysis may be conducted by an independent third-party company.

6.4.4. The Government will perform visual inspection of the drum tags and labels to ensure they conform to the requirements in Section 4.3, Packaging and Labeling, of this SOW.

6.4.5. The Government will perform visual inspection and may ask for proof of drum specifications to ensure that the packaging drums conform to the requirements in Sections 4.3, Packaging and Labeling, of this SOW.

6.4.6. The Government will perform visual inspection, which may include measuring, to ensure that the pallets conform to the requirements in Sections 4.3, Packaging and Labeling, of this SOW.

6.4.7. The Government will retain the services of an independent third-party company to determine if the material provided by the contractor conforms to the specifications declared on the contractor’s COA.

6.4.8. The independent analyst will take samples at the delivery point, the Government Depot in Hammond, Indiana, within ten business days of material delivery. The contractor may send a representative to witness the sampling.

6.4.9. The sampling processes and chemical analysis will be conducted by the Third Party following ISO 4552-2 and ISO 3713. The chemical compositions and impurities of the material are defined by Section 4.2.1 of this SOW. Oak Ridge National Laboratory (ORNL) has been referred as the Third Party for the sampling and analysis.

6.4.10. The Government will make the results of the analysis available to the contractor within thirty calendar days after the material arrives at the Government Depot in Hammond, Indiana.

6.4.11. If any lot or lots of the material do not conform to the specifications, the Government will reject those lots and the contractor shall be responsible for their removal and replacement, including all attendant costs, within 90 calendar days. The lot in this solicitation is defined as the material produced by a same batch of ore and production operating parameters.

6.4.12. If the contractor disputes the results of the sampler/analyst, the Government will retain the services of a mutually agreeable umpire sampler/analyst whose results will be binding. If their results confirm the initial results, the contractor shall pay all costs of the umpire sampling/analysis in addition to removal and replacement of the material.

6.4.13. Once the lot meets acceptance criteria, the contractor may invoice the Government.

6.5. Delivery Date

The contractor shall deliver material within 6 months after contract award to allow time for inspection and acceptance. Period of performance will be 365 days of contract award or the exercise of an option.

APPENDIX 1: List of Abbreviations/Acronyms

ASTM American Society for Testing and Materials

CIF Customs Insurance Freight cm Centimeter

COA Certificate of Analysis

DFARS Defense Federal Acquisition Regulation Supplement

DNSC Defense National Stockpile Center

FeNb Ferroniobium

FY Fiscal Year

GHS Globally Harmonized System in Inch

ISO International Organization for Standardization lb Pound kg Kilogram

MT Metric Ton

NDAA National Defense Authorization Act

NDS National Defense Stockpile

OSHA Occupational Safety & Health Admiration

SDS Safety Data Sheet

UN United Nations

USD United Stated Dollars

EXHIBIT A

T-1-R5 May 15, 1991

Supersedes T-1-R4 January 15, 1991

NATIONAL DEFENSE STOCKPILE

IDENTIFICATION SPECIFICATION

TAGS: ALUMINUM, EMBOSSED

1. Scope This specification covers embossed· aluminum identification tags for labelling packaging containers.

2. Material The tag shall be fabricated from flat-rolled cold-worked aluminum

0.010 ± 0.003 inch thick.

3. Physical Dimensions The tag shall be a minimum of 3 x 5 inches and a maximum of 5 x 6 inches in size.

4. Embossment Each letter and number shall be completely, individually, and legibly embossed with the embossed surface raised a minimum of

0.005 inch above the flat obverse tag surface. Each embossed character shall be a minimum of 0.125 inch in height. Printing or painting of the characters or tag surface shall not be accepted.

5. Information Required on Tag The information listed in (a) through (k) below, including any additional information required by the contract shall be embossed on each tag in English. The marking shall not include a security classification or anything indicating National Stockpile ownership other than the contract number, and purchase specification number and date. The tag format is illustrated below.

(a) Commodity Name

(b) Commodity Grade, Type, or Form

(c) Country of Origin

(d) Producer Name

(e) Gross Weight in metric units.

(f) Net Weight in metric units.

(g) Lot Number.

(h) Drum or Box Serial Number.

(The serial number is the individual drum or box number of the total number in the lot; e.g., S/N 6 of 33.)

(i) Government Contract Number.

(j) Purchase Specification Number and Date.

6. Attachment of Tags

Steel Drums: Tags are to be glued to both flat sides of the cover (lid) and one to the side of each drum midway between the locking ring and the upper rolling hoop on the outside using the following procedure: (a) Pre-form the tag to the side of the drum to the same curvature as the drum so that the tag will adhere properly, (b) Use dry cleaning solvent meeting the requirements of Federal Specification P-D-680, latest revision, to clean surface dirt and grease from those sections of the lid and drum to which tags are to be affixed. (c) Apply Class I stabilized chloroprene polymer adhesive meeting the requirements of Neoprene WRT, Federal Specification MMM-A-121, latest revision, to the back of the tags and wait for sufficient time to elapse so that the bonding material becomes “tacky” enough to ensure proper adhesion before affixing the tag.

Single copies of Federal Specification P-D-680 and MMM-A-121 may be obtained from Business Service Centers at the General Services Administration Regional Offices in Boston, New York, Washington, DC, Atlanta, Chicago, Kansas City, MO, Fort Worth, Denver, San Francisco, Los Angeles, and Seattle. Federal government activities may obtain copies of federal standardization documents, Handbooks and the Index of Federal Specification, Standards and Commercial Item Descriptions from the established distribution points in their agencies.

Wooden Boxes: Tags shall be attached on the outside of both ends of the box as follows: Drill one hole large enough to accept a #8 screw in each corner of the tag. Use four 1/2" x 8 cadmium-coated, slotted, round-headed screws to attach each tag to the box.

EXHIBIT B

Material Delivery Inspection Checklist Information

The Government will evaluate the material by appointing a Contracting Officer’s Representative (COR) to ensure material is received and acceptable in accordance with the Statement of Work (SOW). The COR will perform inspections in accordance with Section 6.4 ACCEPTANCE INSPECTION of the SOW.

The COR will utilize this Material Delivery Inspection Checklist (Table 1), referred to as “the Checklist,” to document the inspection. The Government will use the ratings documented in the Checklist as the basis for determining material’s acceptance. The Checklist will be maintained in the “COR File” in the Contracting Officer’s Representative Tracking (CORT) Tool.

The COR will assign a rating for each requirement in the Checklist. The contractor should read the referenced SOW paragraph to get the full text of each requirement. When multiple tasks are listed in the column, the contractor must satisfy all the listed tasks.

A requirement will be rated as “Pass” or “Fail.” A “Pass” rating will result in acceptance of the material. When a “Fail” rating is given, the material will be rejected and no payment will be made for the rejected amount of material.

The COR will notify the contractor within 48 hours each time a “Fail” rating is assigned. The COR may recommend corrective action(s). The contractor has 90 calendar days to correct the deficiency or replace/take back the material.

Table 1 Material Delivery Inspection Checklist

SOW

Para. Requirement

Task

Rating Remarks

4.2.1. Material composition Material complies with ASTM A550-06 grades.

4.2.2. Material size Material complies with ASTM A550-06 2” by down size.

4.2.3. SDS Material SDS included.

4.2.4. COA Material COA included with lot number, drum count, weights, and chemical composition.

4.3.1. Drums Material packed in steel drums.

4.3.2. Drums Drums free of damage.

4.3.3. Drums Drum volume no less than 16 gallons and no larger than 30 gallons.

4.3.4. SDS Copy of SDS with drum.

4.3.4. Pallets Pallets are wood.

4.3.5. Pallets Pallets are 76 cm x 76 cm (30” x 30”) or 122 cm x 122 cm (48” x 48”).

4.3.6. Labels Tags comply with NDS Specification.

4.3.6.1. Labels One tag glued to top of drum lid.

4.3.6.2. Labels One tag glued to bottom of drum lid.

4.3.6.3. Labels One tag glued to outside side of drum.

4.3.7 Labels OSHA and GHS labels

4.4.1. Transportation Supplier uses CIF transport to Government delivery point.

4.4.2. Transportation Title transfer occurs at delivery point.

6.1. Delivery Material is delivered to Government Depot address and during open hours.

Location of Inspection:_____________________________________________________

Date(s) of Inspection:_________________________

1. Add remarks here (When a “Fail” rating is assigned, all observed deficiencies must be documented):________________________________________________________________

Corrective Action(s) Required Yes/No:_______________

Corrective

Action(s):_____________________________________________________________________

Checklist Completed by (COR) Sign: _________________________________________

Date: ____________________________

Contractor Notified of Ratings Sign: _________________________________________

Date: ____________________________