Attachment_A--SOW_DyFe.pdf

Attachment A Ferrodysprosium Statement of Work

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STATEMENT OF WORK (SOW)

FOR

FERRODYSPROSIUM

1. INTRODUCTION

Ferrodysprosium is an iron alloy with a minimum of 80% dysprosium. Dysprosium is a rare earth metal used in several applications, such as an alloying element to produce high performance neodymium-iron-boron (NdFeB) magnets. These magnets are used in defense platforms including the tail section of the Joint Direct Attack Munitions (JDAM) missile. The dysprosium improves the magnet’s ability to resist demagnetization in demanding service environments and maintain performance characteristics under high temperature conditions.

Defense Logistics Agency (DLA) Strategic Materials currently has no form of dysprosium in its stockpile.

2. BACKGROUND

DLA Strategic Materials received authority to procure dysprosium in the Fiscal Year (FY) 2014 National Defense Authorization Act (NDAA).

3. SCOPE OF WORK

In order to reduce the risk of import reliance in the dysprosium supply chain, Strategic Materials intends to purchase an inventory of 500 kilograms (kg) of ferrodysprosium. The Contractor shall provide 500 kilograms (kg) of ferrodysprosium in accordance with the statement of work.

4. PERIOD OF PERFORMANCE

The period of performance shall be for one (1) base year of 12 months

5. APPLICABLE DOCUMENTS

a. Occupational Safety & Health Administration (OSHA) 29 CFR 1910.1200

b. The United Nations Globally Harmonized System of Classification and Labeling of

Chemicals (GHS)

c. Harmonized Tariff Schedule, the Tariff Act of 1930, and the Trade Act of 1974.

d. US Customs and Border Protection (CBP) Form 7501.

e. US Customs and Border Protection (CBP) Form 6059, General Declaration.

f. US Customs and Border Protection (CBP) Form 5106 (Request for Importer Number, or

Notification of Importer Number).

g. Department of Transportation (DoT) Hazardous Materials Regulations (49 CFR 170-

189)

6. TECHNICAL REQUIREMENTS

The following sections define the requirements for the material, material packing, labeling and material transportation.

6.1.1 Material Description

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6.1.2 The material shall be at least 80% dysprosium by weight.

6.1.3 The material shall meet the following chemical standards:

DyFe Alloy (% by weight)

Dy / TREM ………….. 99.50 %

Dy ………….. 80. min %

Fe ………….. Remainder

Si ………….. < 0.05 %

Al ………….. < 0.10 %

Ca ………….. < 0.01 %

Mg ………….. < 0.01 %

C ………….. < 0.05 %

Mo ………….. < 0.05 %

W ………….. < 0.01 %

Cr ………….. < 0.03 %

Ni ………….. < 0.01 %

Mn ………….. < 0.02 %

Ti ………….. < 0.01 %

Ta ………….. < 0.01 %

O ………….. < 0.05 %

N ………….. < 0.01 %

Cl ………….. < 0.01 %

6.1.4 The ranges and testing methods to verify the chemistry will be discussed in the post award meeting.

6.1.5 The pieces must be at least 2” x 2” and not exceed 5” x 5”.The Material should be in the form of chunks, lumps, or ingots. This material will be stored for an extended period, larger pieces with a lower ratio of surface area to volume are preferred.

6.1.6 The Contractor shall ensure that the material from each production lot is segregated from the material from any other production lot. Co-mingling of multiple production lots into one larger lot will not be accepted. The Contractor shall assign a unique lot number to each production lot.

6.2 Testing: Certificate of Analysis (COA)

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6.2.1 The contractor shall provide a Certificate of Analysis (COA) with each production lot.

6.2.1.1 The COA and SDS shall be in English.

6.2.1.2 The COA shall have a statement certifying that the material meets and or exceeds the specification of this SOW.

6.2.1.3 The COAs must be sent to the Contracting Officer’s Representative (COR) for review and approval prior to acceptance and delivery of each delivered production lot.

6.2.1.4 Statement certifying that the material meets and or exceeds the specification of the contract

6.2.1.5 The COA shall include the following at a minimum:

6.2.1.5.1 Lot number.

6.2.1.5.2 Weight and number of containers the COA covers.

6.2.1.5.4 Results of chemical analysis by lot(s).

6.2.1.5.5 Name and signature of analyst.

6.3 Packaging

The material shall be packaged for long term storage (20 plus years).

6.3.1 The material shall be packaged in two separate polyethylene plastic bags. The intent of the bags is to protect the chunk/ingot material from scratching the internal surfaces of the drum and damaging its epoxy coating.

6.3.2 The bags shall be a minimum thickness of 6 MIL (thousandth of an inch) and a maximum of 8 MIL.

6.3.3 The bags shall be filled with argon gas. The bags shall be sealed in non-resealable bags and to prevent gas leakage.

6.3.4 The bagged material shall be packaged in new UN steel drums.

6.3.5 The steel drums shall have an interior coating.

6.3.6 The steel drums shall have an exterior coating of rust preventing paint.

6.3.7 The steel drum is not to be smaller than 3 gallons and not to be larger than 5 gallons.

6.3.8 Drum manufacturer certification shall be packaged with each shipment representing all drums in that shipment.

6.3.9 The same size drum shall be used for all deliveries.

6.3.10Each drum shall be loaded with a minimum of 20 kg and a maximum of 30 kg of material.

6.3.11 Upon delivery the drums structural integrity must be intact and should be free of damage that affects the longevity of material storage or standard handling ability.

6.3.12Drums should be placed on wooden pallets.

6.3.13The wooden pallets shall be of approximate size 122 x 122 centimeters (48 x 48 inches).

6.3.14The drums shall be banded or shrink-wrapped on the pallets.

6.3.15A copy of the SDS for the material shall be provided external to the packed

Final material with each lot deliver.

6.4 Labeling

6.4.1 Each drum shall have three (3) tags affixed to it. One (1) tag inside the drum, one (1) tag on top and one (1) tag affixed to the side.

6.4.2 The information on the tags shall be in English and imprinted using a permanent form of ink/paint/embossment

6.4.3 The information on the tags shall not include a security classification or anything indicating National Stockpile ownership other than the contract number, and purchase specification number and date.

6.4.4 The information listed below shall be on each tag:

6.4.4.1 Material Name.

6.4.4.2 Material Grade, Type, or Form.

6.4.4.3 Country of Origin.

6.4.4.4 Producer Name.

6.4.4.5 Gross weight in pounds and metric units (metric units to be in parentheses).

6.4.4.6 Net weight in pounds and net dry weight of DyFe and metric units (metric units to be in parentheses).

6.4.4.7 Lot number

6.4.4.8 Drum serial number (S/N). (The serial number is the individual drum or box number out of the total number in the lot; example “S/N 6 of 33”).

6.4.4.9 Government contract number.

6.4.4.10 Manufacturer's specification, name, number, and date.

6.4.5 If the material is considered hazardous as defined by the Occupational Safety & Health Administration (OSHA) 29 CFR 1910.1200 and the United Nations Globally Harmonized System of Classification and Labeling of Chemicals (GHS), a label will be prepared and affixed to each container in accordance with these requirements.

6.5 Transportation

6.5.1 The Contractor shall be responsible for transport, as well as for Carrier and

Insurance Paid To (CIP) of the material to point of delivery: the Government Storage Depot in Scotia, New York, United States. The transportation of this material shall comply with all relevant Federal, State, and Local laws, including the Department of Transportation (DoT) Hazardous Materials Regulations (49 CFR 170-189) where appropriate, including SDS documentation inclusion in shipping requirements.

6.5.2 The Contractor, its agents, and employees shall comply with the Environmental, Safety, and Occupational Health (ESOH) Policy of DLA Strategic Materials while in storage facilities where stockpile material is stored. The policy can be found in Attachment #1 or on the DLA Strategic Materials website:

http://www.dla.mil/HQ/Acquisition/StrategicMaterials/iamthekey.aspx

7 DELIVERY AND ACCEPTANCE

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7.1 Delivery Point

7.1.1 The Contractor shall deliver materials to the Government Storage Depot at the following address:

Defense Logistics Agency Scotia Depot Route 5, Building #12 Scotia, NY 12302-9463

Telephone: 518-370-3347 Accessibility: Material scale to a maximum of 4,000 lbs.

The Contractor shall deliver materials to the Government Storage Depot within the unloading Hours of 7:30 AM – 2:30 PM Eastern Standard Time, Monday – Friday

7.2 Material Delivery Inspection Point

Receiving inspection for identification of material, drum condition, labeling, and required documentation will be conducted at the Delivery Point in Scotia, New York.

7.3 Delivery Date

7.3.1 The contractor shall deliver material within nine months of the contract being completed.

7.4 Acceptance Inspection

7.4.1 The Contractor shall submit CoAs results for each lot of material to the Contracting Officer Representative (COR) for review and approval prior to delivery to the Government Depot.

7.4.2 DLA Strategic Materials shall review these submitted documents to ensure acceptability and compliance with the requirements listed in Section 6 of this SOW. DLA Strategic Materials will complete this review and notify the Contractor of DLA Strategic Materials determination within ten (10) buisness days of their receipt.

7.4.3 After the COR has reviewed the Contractor’s CoAs, permission will be given for the materials to be shipped to the DLA Strategic Materials storage depot.

7.4.4 Final acceptance of material will be given in writing after a visual examination and third party testing has been performed for compliance with the requirements listed in Section 6 of this SOW.

7.4.5 All material deliveries and COAs will be accomplished within the prescribed period of performance.

If any lot, or lots, of the material does not conform to the standards, the Government will reject the nonconforming lot, or lots. The Contractor shall be responsible for removal and replacement of rejected lots, including all attendant costs, within 90 calendar days of the final delivery.

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APPENDIX 1: List of Abbreviations/Acronyms

CBP Customs and Border Protection

CFR Code of Federal Regulations

CIF Customs Insurance Freight cm Centimeter

COA Certificate of Analysis

DLA Defense Logistics Agency

DNSC Defense National Stockpile Center

Dy Dysprosium Metal

DyFe Ferrodysprosium

FY Fiscal Year

GHS Globally Harmonized System of Classification and Labelling of Chemicals

IATA International Air Transport Association

IMO International Maritime Organization

JDAM Joint Direct Attack Munitions kg Kilogram lb Pound

MIL Thousandth of an inch

NDAA National Defense Authorization Act

NdFeB Neodymium-Iron-Boron

OSHA Occupational Safety & Health Admiration

RID/ADR European Agreements Concerning the International Carriage of Dangerous Goods by Rail and by Road

SDS Safety Data Sheet

SOW Statement of Work TREM Total Rare Earth Metal

APPENDIX 1: List of Abbreviations/Acronyms