Attachment 5 - REDACTED_ORIGINAL_JA 4N Purity Indium Metal.pdf

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Indium Metal
Solicitation number
SP8000-26-R-0011
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This is a Justification for Other than Full and Open Competition submitted by the Defense Logistics Agency (DLA) Strategic Materials division for a procurement of 4N purity indium metal to support the National Defense Stockpile (NDS).

DLA intends to solicit and award a fixed-price with Economic Price Adjustment (EPA) Indefinite-Delivery Indefinite-Quantity (IDIQ) contract over a three-year base ordering period. The acquisition will be executed as a Request for Proposals (RFP) under FAR Parts 12 and 15 procedures, utilizing the combined synopsis and solicitation procedure, with publication on SAM.gov for approximately two weeks to allow potential offerors reasonable opportunity to respond. The estimated contract value is redacted in the document. DLA Strategic Materials seeks to procure indium from domestic manufacturing companies integrated into the Defense Industrial Base. The statutory authority for this non-competitive action is 10 U.S.C. § 3204(a)(3)(A) as implemented by FAR 6.302-3(a)(2)(i), which permits restriction of competition to maintain a facility, producer, or manufacturer available for furnishing supplies in case of national emergency or to achieve industrial mobilization. The justification additionally cites FAR 6.302-3(b)(1)(iv)(A) to restrict competition to companies manufacturing indium in the United States or its outlying areas, thereby strengthening the domestic industrial base as directed by Executive Orders 14241, 14154, and 14156 concerning American mineral production and energy independence.

Market research, conducted through discussions with the Office of the Secretary of Defense (OSD), DLA's Small Business Innovation Research Office (SBIR), defense conferences, and a formal Request for Information (RFI) posted on SAM.gov from August 26 through September 9, 2025, identified two domestic suppliers capable of meeting NDS requirements: Indium Corporation of America (3CWK7) and AIM Products LLC (4CHM9), both of which expressed written interest in the acquisition. The Contracting Officer will determine fair and reasonable pricing based on comparison of proposed prices with an independent government cost estimate (IGCE) or other means outlined in FAR 15.404-1(b)(2). DLA Strategic Materials maintains a Broad Agency Announcement offering funding to qualified manufacturers for strategic materials; however, no companies submitted proposals for indium qualification or viable alternatives, indicating the necessity of limiting competition to existing domestic producers to maintain production capability for national defense.

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Executive Order (EO) 14241 (Immediate Measures To Increase American Mineral Production) states: �It is imperative for our national security that the United States take immediate action to facilitate domestic mineral production to the maximum possible extent�; EO 14154 (Unleashing American Energy) states: �The high energy costs devastate American consumers by driving up the cost of transportation, heating, utilities, farming, and manufacturing, while weakening our national security. It is thus in the national interest to unleash America's affordable and reliable energy and natural resources�; and Executive Order 14156 (Declaring a National Energy Emergency) references the urgency to address the strategic materials crisis. Within these documents, the urgency to stockpile these materials utilizing the fullness of the industrial base is addressed. It is therefore appropriate that this statutory authority allows for use of other than competitive procedures in the event that there are domestic sources available to supply strategic materials to the National Defense Stockpile.

5) Demonstration that the proposed contractor�s unique qualifications or the nature of the acquisition requires use of the authority cited:

There are at least two (2) domestic sources capable of manufacturing indium metal that are able to fulfill the requirements of the NDS. It is known that Indium Corporation of America (Indium Corp.)

(3CWK7) and AIM Products LLC (AIM) (4CHM9) currently manufacture refined indium for end-product manufacturers that are integrated into the Defense Industrial Base. Both companies have indicated interest in supplying the NDS. Per FAR 6.302-3 (a)(2)(i), �full and open competition need not be provided for when it is necessary to award the contract to a particular source or sources in order to maintain a facility, producer, manufacturer, or other supplier available for furnishing supplies or services in case of a national emergency or to achieve industrial mobilization.� Per Title 50, section 98 of U.S. Code, the Strategic and Critical Materials Stock Piling Act, the NDS procures �strategic and critical� materials that are necessary to decrease the dependence upon foreign sources in times of national emergencies. �Strategic and critical materials� are defined in 50 U.S.C. 98h-3 as: materials that would be needed to supply the military, industrial, and essential civilian needs of the United States during a national emergency and are not found or produced in the United States in sufficient quantities to meet such need. Pursuant to FAR 6.302-3 (b)(1)(iv)(A), this procurement will allow for the restriction of competition to companies whose manufacturing of indium is in the United States or its outlying areas, thus strengthening the industrial base as ordered under the aforementioned Executive Orders. This acquisition ensures that companies who domestically produce indium will be able to maintain this capability.

. Utilizing the procurement procedure of limiting this acquisition in accordance with FAR 6.302-3 (b)(1)(iv)(A), the U.S. will be able to maintain domestic production of indium and assure that the goals of the aforementioned Executive Orders are attained. In addition, this acquisition ensures that domestic companies who are able to furnish supplies in case of a national emergency by providing a steady demand signal.

6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies:

As this proposed action will be executed as a Request for Proposals (RFP) under FAR Part 12 and Part 15 procedures utilizing the combined synopsis and solicitation procedure under FAR 12.603, it will be synopsized/solicited on SAM.gov for approximately two weeks which will afford potential offerors a reasonable opportunity to respond.

7) A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer anticipates that the final price for the indium in this justification for other than full and open competition will be determined fair and reasonable based on either a comparison of proposed prices with the independent government cost estimate (IGCE) or other means outlined in FAR 15.404-1(b)(2). An IGCE was provided that sufficiently demonstrates the market research that was conducted, the basis of estimates, cost calculations, and the appropriate validations. In addition, the material being purchased is considered �commercial� and the terms and conditions found at FAR 52.212-4 contain the same and/or similar language found in most commercial agreements used within the industry and defined as �commercial� in accordance with FAR 2.101. The Contracting Officer will only proceed with the planned action after evaluating and confirming that the resulting price is fair and reasonable in accordance with FAR 15.404. The Government may require other than certified cost or pricing data if deemed appropriate.

8) Description of market research conducted and results or a statement of the reason market research was not conducted:

Market research was conducted via a combination of efforts including discussions within the U.S.

Government, including Office of the Secretary of Defense (OSD), and the DLA Small Business Innovation Research Office (SBIR), as well as discussions at defense conferences.

A formal Request for Information (RFI) was posted by DCSO to Sam.gov on August 26th, 2025, and closed on September 9th, 2025. Two companies responded, as summarized below:

Based on the RFI, there are at least two (2) domestic suppliers who are able to meet the NDS requirements. This is consistent with our market research.

9) Other facts supporting the use of other than full and open competition:

Utilizing the procurement procedure of limiting this acquisition in accordance with FAR

6.302-3 (b)(1)(iv)(A), the U.S. will be able to maintain domestic production of indium and ensure that domestic companies who are able to furnish supplies in case of a national emergency by providing a steady demand signal.

10) Listing of sources that expressed, in writing, an interest in the acquisitions:

Indium Corporation of America (3CWK7) AIM Products LLC (4CHM9)

11) Actions, if any, the agency will take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

DLA Strategic Materials has a Broad Agency Announcement to provide interested companies an opportunity to seek funding to become qualified manufacturers for any strategic materials authorized under the Strategic and Critical Materials Stock Piling Act (50 U.S.C. § 98 et seq.). Interested companies were encouraged to submit a proposal to request funding to qualify their material(s) and/or produce viable substitutes. No companies submitted proposals for funding the qualification of indium metal and no companies submitted proposal for indium metal alternatives, indicating no substitution is viable. However, we will continue to conduct market research in an effort to identify additional sources.

12) Certifications and approval

Requirements / Technical Certification

I hereby certify that the supporting data for which I am responsible, and which form a basis for this justification are complete and accurate to the best of my knowledge and belief.

Material Engineer Strategic Materials

Contracting Certification

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. The estimated total contract value of this acquisition is

RACHEL L. LEAK

Contracting Officer DLA Contracting Services Office � Columbus 3

I hereby certify and approve this justification.

MATTHEW R. BEEBE

Senior Procurement Executive

DLA

File details come from the government source that posted it. Updated .