Attachment_A_Statement_of_Work_SOW.pdf

Tantalum Statement of Work v3.20180606

STATEMENT OF WORK (SOW)

FOR

TANTALUM

1. INTRODUCTION

This is a Supply contract to provide tantalum (Ta) concentrate. The basis for the Ta will be tantalum pentoxide (Ta2O5).

2. BACKGROUND

The Defense Logistics Agency (DLA) Strategic Materials received authority to procure Ta in the fiscal year (FY) 2017 National Defense Authorization Act (NDAA). The Government intends to store this material for an extended period of time; thus, the material should have a form and packaging conducive to long term storage at an enclosed Government warehouse.

3. SCOPE OF WORK

The DLA Strategic Materials intends to purchase 10,000 kilograms, contained weight, of Ta2O5 in the base period. With two option periods, in each option period, DLA Strategic Materials intends to buy an additional amount of 10,000 kilograms contained weight of Ta2O5 .

4. PERIOD OF PERFORMANCE

The period of performance shall be for one (1) base period of 18 months, with two (2) option periods of 18 months each.

The delivery for each performance period must take place within that performance period.

5. APPLICABLE DOCUMENTS

The following documents are incorporated by reference:

a. Occupational Safety & Health Administration (OSHA) 29 Code of Federal Regulations (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. United States (US) Customs and Border Protection (CBP) Form 7501

e. US CBP Form 6059, General Declaration

f. US CBP Form 5106 (Request for Importer Number, or Notification of Importer Number)

g. Department of Transportation (DoT) Hazardous Materials Regulations (49 CFR 170-189)

h. Nuclear Regulatory Commission (NRC) Part 71 – Packaging and Transportation of Radioactive

Material (10 CFR 71)

i. Requirement of report regarding disclosure of registrant’s supply chain information regarding conflict minerals (17 CFR 240.13p-1)

j. Importation of Strategic and Critical Materials (50 U.S. Code § 98h – 4)

6. TECHNICAL REQUIREMENTS

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

Attachment A v3.20180606 transportation.

6.1 Material Description

6.1.1 There are two classes of material. The Contractor may submit bids for either or both classes of material.

6.1.2 Non-Radioactive Concentrate shall meet the chemical specification in Table 1.

Table 1. Chemical Specification for Non-Radioactive Concentrate

Ta2O5 Min 20.% As Max 0.25% Sb Max 0.2%

U + Th < 0.050%

6.1.3 Radioactive concentrate shall meet the chemical specification in Table 2.

Table 2. Chemical Specification for Radioactive Concentrate Ta2O5 Min 20.%

As Max 0.25% Sb Max 0.2%

U + Th Max 2.0%

6.1.4 If the Contractor provides a natural concentrate it must be chemically unmodified.

6.1.5 If the Contractor provides a synthetic concentrate it must be from a currently running recycling process.

6.1.6 The Contractor shall certify that the material offered to the Government meets the requirements of a smelter certified as “conflict free” pursuant to the Responsible Minerals Initiative. The Contractor may satisfy this requirement by submitting a written certification from a smelter certified as “conflict free” pursuant to the Responsible Minerals Initiative. This certification shall be written on official company letterhead and shall include the following. (this is not required for synthetic concentrate)

6.1.6.1 Name and title of a certifying representative of the smelter;

6.1.6.2 Address of the smelter;

6.1.6.3 Email address and phone number of the certifying representative of the smelter;

and

6.1.6.4 A statement certifying that the material offered by the Contractor would be considered “conflict free” pursuant to the Responsible Minerals Initiative and due diligence requirements established by 17 CFR 240.13 p-1.

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

6.2 Testing: Certificate of Analysis (COA) and Third Party Sampling and Conformance Testing

6.2.1 The contractor shall provide a COA for each lot.

6.2.1.1 The COA shall be in English.

6.2.1.2 The COA shall have a statement certifying that the material meets and or exceeds the specifications 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 shipment to the delivery point.

6.2.1.4 The COA shall include the following at a minimum:

a. Lot number.

b. Weight and number of containers the COA covers.

c. Results of chemical analysis by lot.

d. A statement that the material delivered is derived from the same recycling process that the contractor had in place at the time of award. (synthetic concentrate only)

e. A chemical analysis covering majority components of the material: analysis shall identify and provide percent weight values of each non-atmospheric component contained in the material that is present in amounts greater than or equal to 5.0% by weight of the material

f. Name and signature of analyst.

6.3 Producer/Supplier Responsibility for Independent Third-Party* Conformance Testing and

Verification.

Note: The detailed requirements for the Third Party testing are addressed in Attachment 1 of this

SOW.

* Herein, a “party” is defined as:

a. 1st Party = Producer/Supplier

b. 2nd Party = DLA Strategic Materials

c. 3rd Party = Independent company not affiliated with the other two (2) parties.

6.3.1 The Contractor shall submitting a COA for the material, and their independent third-party sampling and testing to verify that its material conforms to all specifications set forth in Section 6.1 and 6.2 of this SOW.

6.3.2 Selection of the third party sampling and testing company(s) and their qualifications are subject to approval by the Contracting Officer.

6.3.3 The specifications required in Section 6.1 and 6.2 shall be incorporated into the conformance sampling and testing procedures. [See Attachment 1, DLA Strategic Materials Requirements Regarding Independent Third-Party Conformance Testing].

6.3.4 All samples shall be collected by an independent professional sampler in accordance with applicable standards for collection of samples of like or similar material and who is recognized for their experience in collecting samples of like or similar materials. The sampler shall determine the proper chain of custody of the sample(s).

6.3.5 To ensure compliance with NRC regulation, if the material is radioactive, sampling must occur at a facility that has an appropriate NRC license.

v3.20180606

6.3.6 The Contractor shall use an independent sampling company to collect a representative sample of each lot of material to be shipped to the Government.

6.4 Packaging

6.4.1 The material shall be packaged in new UN 1A2 compliant steel drums with a rated capacity of 30 or 55 gallons or metric equivalent capacity. The Contractor shall package all material delivered throughout the performance of this SOW in the same size and type (identical in all aspects) of drum.

6.4.2 The steel drums shall have a bolt and ring closure.

6.4.3 The steel drums shall have a synthetic neoprene gasket to prevent the admission of moisture.

6.4.4 The steel drums shall contain a polyethylene liner.

6.4.5 The steel drums’ exteriors shall be hot dipped galvanized or painted with a rust preventive coating.

6.4.6 The steel drums’ interiors shall be hot dipped galvanized or painted with a rust preventative coating.

6.4.7 A copy of the drum manufacturer’s certification shall be packaged with each shipment representing all drums in that shipment. This certificate shall be in English.

6.4.8 Upon delivery, the drums shall be intact and shall be free of damage. Containers shall be free of contamination and leaks, including radioactive leaks.

6.4.9 Drums shall be placed on wooden pallets.

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

6.4.11 The drums shall be banded on the pallets.

6.4.12 All shall be packaged in accordance 6.4.1 through 6.4.11 of this SOW. If the material is radioactive, it shall satisfy any other requirements prescribed in NRC Part 71 – Packaging and Transportation of Radioactive Material.

6.4.13 A copy of the Safety Data Sheet (SDS) for the contained material shall be provided external to the packed material with each lot delivery. The SDS shall be in English.

6.5 Labeling: All drums shall be identified with attached tags(s)/label(s) as follows;

6.5.1 General Tag/Label Requirements:

a. Font: All information on tag(s)/label(s) shall be in English.

b. Font Size: The font size utilized to enter the required information on each tag/label shall be of sufficient size to be legible to the unaided eye (size 14 minimum).

c. Ink Used to Print Tags/Labels: Any ink used to print tags/labels shall be permanent and suitable for use in unheated warehouses where temperature extremes (both hot and cold) exist. The use of paint on tags/labels is not an acceptable method to enter the required information on each tag/label.

d. Embossment of Tags/Labels: Embossment to enter the required information on each tag/label is an acceptable method. Each letter and number shall be completely, individually and legibly v3.20180606 embossed with the embossed surface raised a minimum of 0.05 inch above the flat obverse tag surface.

e. Tag/Label Material: The tag/label material shall be durable and suitable for use in unheated warehouses where temperature extremes (both hot and cold) exist. The tag/label material shall not react with the commodity being tagged/labeled (e.g. aluminum tags/labels breakdown when in contact with tungsten ores & concentrates). Tag/label material shall have an expected lifespan of a minimum of 20 years with no degradation.

f. Physical Dimensions of Tag/Label: All tags/labels shall be of sufficient size to permit the listing of all required information.

6.5.2 Information Required on Tag/Label: The information in items 1 through 10 below shall be listed on each tag/label. The marking shall not include a security classification or anything indicating DLA Strategic Materials ownership other than the contract number, purchase specification number and date.

1) Commodity Name

2) Commodity Grade, Type or Form

3) Country of Origin

4) Producer Name

5) Gross Weight in pounds and metric units. (Metric units to be in parentheses.)

6) Net Weight in pounds and metric units. (Metric units to be in parentheses.)

7) Lot Number

8) Drum Serial Number. (The serial number is the individual drum number in relation to the total number of drums in the lot; e.g. drum 6 of 33 drums in the lot.)

9) Government Contract Number

10) Manufacturer’s Specification, Name, Number and Date

6.5.3 Attachment of Tags/Labels: Tags/Labels shall be attached to each drum in a permanent manner that prevents accidental detachment. The means of attachment shall be suitable for use in unheated warehouses where temperature extremes (both hot and cold) exist. Attachment by mechanical means (e.g. wire) or adhesive means (e.g. glue, adhesive backed tag/label etc.) are acceptable. Tags/labels shall be pre-formed to the surface to which it will be attached (e.g., a tag to be attached to the curved exterior surface of a drum shall be pre-formed to the same curvature as the drum to ensure proper attachment of the tag).

6.5.4 Number of Tags/Labels to be attached to each drum: Three tags/labels shall be attached to each drum.

6.5.5 Location(s) of Attachment of Tags/Labels to Each Drum: All drums shall have tags/labels attached at three locations on each drum. One tag/label shall be attached to both flat surfaces of the cover/lid (interior and exterior surfaces of each cover/lid). Additionally, one tag/label shall be attached on the side of each drum midway down on the exterior surface of the container.

6.5.6 Additional Labeling Requirements: If the material is considered hazardous as defined by OSHA 29

CFR 1910.1200 and/or the United Nations GHS, a label will be prepared and affixed to each drum in accordance with those requirements.

6.5.7 In accordance with The Hazard Communication Standard (HCS) (29 CFR 1910.1200(g)), the SDS shall contain the chemical name and concentration or concentration range of all ingredients which are classified as health hazards and are: present above their cut-off/concentration limits, or present a health risk below the cut-off/concentration limits.

6.6 Transportation

6.6.1 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. The transportation of this material shall comply with all relevant Federal, State, and Local laws, including the DoT Hazardous Materials Regulations (49 CFR 170-189) where appropriate, including SDS documentation inclusion in shipping requirements.

6.6.2 If the material is radioactive it shall be labeled and transported in accordance with NRC Part 71 –

Packaging and Transportation of Radioactive Material.

6.6.3 The Contractor, its agents, and employees shall comply with the Environmental, Safety, and

Occupational Health (ESOH) Policy of DLA Strategic Materials (see Attachment #3) while in storage facilities where stockpile material is stored. The policy can also be found on the DLA Strategic Materials website: http://www.dla.mil/HQ/Acquisition/StrategicMaterials/iamthekey.aspx

7. TARIFF

7.1 Exemption of Tariffs

This purchase of tantalum concentrate by DLA Strategic Materials is exempt from 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

7.2 Execution of Exemption

The exemption forms shall be filed by the Contractor and executed on the US Customs and Border Protection (CBP) Form 7501 (Entry Summary), where the code (9808.00.40, plus additional code entries) shall 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.

7.3 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.

8 DELIVERY AND ACCEPTANCE

8.1 Delivery Point

8.1.1 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.

http://www.dla.mil/HQ/Acquisition/StrategicMaterials/iamthekey.aspx v3.20180606

8.1.2 The Contractor shall deliver materials to the Government Storage Depot within the unloading hours of 7:00 AM – 2:30 PM, Monday – Friday.

8.1.3 The Contractor shall abide by the rules, laws, and regulations when accessing/delivering the material to the Government storage depot as referenced in the DLA Strategic Materials Depot On-Site Rules.

See Attachment 2.

8.2 Material Delivery Inspection Point. Delivery inspection for identification of material, drum condition, labeling, and required documentation will be conducted at the Delivery Point.

8.3 Delivery Date

8.3.1 The contractor shall deliver material within the period it is ordered.

8.4 Delivery Inspection

8.4.1 The Contractor shall submit COA results for each lot of material to the COR for review and approval prior to shipment to the delivery point.

8.4.2 DLA Strategic Materials will review these submitted documents to ensure acceptability and compliance with the requirements listed in this SOW. DLA Strategic Materials will complete this review and notify the Contractor of DLA Strategic Materials’ determination of acceptability of each submitted COA within 10 business days of receipt of the submitted COA by the Government.

8.4.3 After the CO has reviewed and accepted both the Contractor’s and the Independent Third-Party’s

COAs, the COR will authorize the Contractor to ship material to the DLA Strategic Materials depot.

8.4.4 Written notification to the Contractor of final acceptance or rejection of material will be provided after a visual examination upon receipt of material at the delivery point.

8.4.5 All material deliveries and tests, analyses, samples shall be accomplished within the prescribed period of performance in this SOW.

8.4.6 If any lot or lots do not conform to the SOW, the Government will reject the nonconforming lot or lots. The Contractor shall be responsible for removal and replacement of rejected lots, including all associated costs, within 90 calendar days.

9. List of Abbreviations / Acronyms

ASTM American Society for Testing and Materials CBP Customs and Border Protection CFR Code of Federal Regulations CIP Carrier and Insurance Paid To COA Certificate of Analysis COR Contracting Officer’s Representative DLA Defense Logistics Agency DoT Department of Transportation ESOH Environmental, Safety and Occupational Health ESOHMS Environmental, Safety, and Occupational Health Management System FY Fiscal Year GHS Globally Harmonized System of Classification and Labeling of Chemicals ISO International Organization for Standardization NDAA National Defense Authorization Act NRC Nuclear Regulatory Commission OSHA Occupational Safety & Health Admiration SDS Safety Data Sheet SOW Statement of Work US United States

ATTACHMENT 1

DLA Strategic Materials Requirements Regarding Independent Third-Party Conformance Testing

DLA Strategic Materials Testing Requirements

1. Both the Sampling Company and the Testing Company shall have expertise/experience in sampling and laboratory analysis of the material described in this Statement of Work or related or similar materials in similar form, resulting in an established reputation for excellence.

2. Both the Sampling Company and the Testing Company shall provide all labor, supplies, equipment (including any appropriate personal protective equipment), and materials necessary to perform their tasks.

3. Both the Sampling Company and the Testing Company shall produce proof of certification(s) accepted by industry as applicable to sampling and to analysis of the material described in this Statement of Work, or related or similar materials in similar form. The Contractor shall provide a Quality Control Procedure/Plan from the Sampling Company, which cites applicable standards the Sampling Company will use, and/or a rationale that the proposed procedure and plan will ensure the sample is efficiently obtained and each sample is representative of each lot of material. The Contractor shall provide a Quality Control Procedure/Plan from the Testing Company, detailing the procedures that will be used to ensure data reported in the third party Certificate of Analysis is accurate within the standard errors of the proposed procedure(s), the proposed procedure(s) are generally accepted in industry and/or the scientific community as appropriate for generating the data for the material or similar materials, and the data is representative of the sample that is analyzed.

4. Sampling shall be performed at a location within the continental United States of America and subject to approval by the Government. The Sampling Company will be responsible for retention and maintenance of the chain of custody of the sample until the sample’s custody is transferred to the Testing Company. The Contractor shall be responsible for all costs associated with the transfer of samples between the Sampling Company and the Testing Company. The Testing Company shall perform all tests within the continental United States of America.

5. The Sampling Company shall sample all material by lot. The mass and number of sample increments and the sampling method shall be in accordance with the appropriate International Organization for Standardization (ISO) or American Society for Testing and Materials (ASTM) standard(s) or procedure(s) recognized as the standard practice in the industry. The Sampling Company shall combine all sample increments from a lot into an aggregate sample for that lot, and then split the aggregate sample into three (3) separate portions: a laboratory sample for subsequent analysis, and two (2) reserve samples. The Sampling Company shall weigh, package, label, and seal these samples in accordance with appropriate standards or standard industry practice and in a manner which will preserve the material’s properties, and shall follow chain-of-custody protocols.

The sample identification (ID) label shall show an ID number that clearly links it to the parent lot, and the material name, acquisition contract number, lot number, location, and date.

6. If the Sampler is also providing the Testing services, the Sampling Company shall be responsible for transfer of the sample to their laboratory. Each of the Producer/Supplier and the COR/other DLA representative will retain one (1) of the two (2) reserve samples.

v3.20180606

7. The Testing Company shall conduct analyses/measurements of each laboratory samples of every lot separately, using the standard methods or standard practice in the industry, for chemical, and/or physical, and/or mechanical, and/or electrical/electronic properties listed in Section 6.1 and 6.2 of this SOW.

8. After the analyses/property tests have been completed, the Testing Company shall return the remainder of each laboratory sample to the Contractor who will in turn transfer custody to the COR, less an appropriate portion for archival retention by the Testing Company.

9. The Contractor shall provide the COR with a report from the Sampling Company, summarizing the sampling procedure used. The Contractor shall provide the COR with a separate certificate for each sample performed by the Testing Company for each sample, in English, showing the results of the chemical, physical, mechanical, and/or electrical/electronic properties of each sample. Each certificate shall also contain the Commodity Name, Type of Material, Lot Number, Sample Number, Sampling Date, Sampling Location, Name and Signature of Sampler, Analysis Date, Contract Number, and Name and Signature of Analyst.

10. In all cases, the Government reserves the right to be present and witness the sampling and/or the testing. The Contractor shall advise the Government of the location and date the sampling and/or testing is to begin 10 business days prior to the commencement of the sampling and/or testing.

ATTACHMENT 2

DLA Strategic Materials Depot On-Site Rules

Security: Visiting personnel must comply with all security measures deemed necessary by DLA Strategic Materials.

Environmental, Safety, and Occupational Health: Visiting personnel must comply with all Federal, State, and local regulations relevant to the performance of the work.

1. DLA Strategic Materials’ Environmental, Safety, and Occupational Health Management System

(ESOHMS): Visiting personnel must comply with all aspects of the DLA Strategic Materials’ ESOHMS set forth in the “Orientation Guide for Contractors and Visitors” which will be made available by the COR prior to arrival.

2. Safety Data Sheets (SDS): Visiting personnel who may contact or be in the proximity of the material being sampled must review the pertinent SDS, which provides specific toxicity- and health-related data for the protection of human health and the environment. A copy of the SDS for the material must be made available by the Producer/Supplier prior to arrival.

3. Safety Training / Mishap Reporting: The Producer/Supplier must determine the need for personal protective equipment, and, if such equipment is necessary, must ensure that personnel performing sampling have it and are trained in its use. The COR will advise visiting personnel on how to respond properly to emergency conditions (e.g., fire). Visiting personnel must notify the COR immediately of all injuries, property damage, equipment damage, or vehicle mishaps that occur during the performance of sampling, and must complete and submit a written report of any such incident to the COR to document the occurrence.

4. Transportation: The transportation of samples must comply with all relevant Federal, State, and local regulations, including DoT Hazardous Materials Regulations (49 CFR 170-189) where appropriate. Samples being sent off-site must be labeled with the proper Hazard Communication information, if applicable; and must be accompanied by the SDS.

5. Waste Disposal: All wastes generated from sampling must be disposed of in accordance with all relevant Federal, State, and local regulations.

ATTACHMENT 3

Environmental, Safety, and Occupational Health (ESOH) Policy of DLA Strategic Materials

9. List of Abbreviations / Acronyms