Tab 1 - JandA Vanadium Pentoxide SAM Posting_Redacted.pdf

This is a Justification for Other than Full and Open Competition (J&A) document from the Defense Logistics Agency (DLA) for the procurement of vanadium pentoxide (V₂O₅).

DLA intends to award a fixed-price Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract with Economic Price Adjustment (EPA) for high-purity vanadium pentoxide with a five-year ordering period utilizing fixed-price delivery orders. The contract will be awarded to Largo Inc. (CAGE: Pending) and US Vanadium, LLC (CAGE: 01G66) through other than full and open competition means, representing DLA's first time-buy for this material. The estimated contract value is undisclosed (redacted), with a maximum ceiling value also redacted. The material is critical for multiple Department of Defense-specific and aerospace applications, and suppliers must be certified for aerospace use under ISO 9001:2015. Market research confirmed that only Largo and US Vanadium possess the capability to produce aerospace-grade vanadium pentoxide within the Continental United States. China currently dominates global vanadium markets, causing price depression that has strained the industry; US Vanadium is the only domestic at-scale producer, while Largo, a Canadian company, is in financial danger and at risk of ceasing operations, threatening domestic supply security.

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 award to a particular source when necessary to maintain a facility, producer, or supplier available for furnishing supplies in case of national emergency or to achieve industrial mobilization. DLA will execute this procurement as a Request for Proposals (RFP) under FAR Parts 12 and 15, with synopsis and solicitation published on SAM.gov for approximately two weeks. The Contracting Officer (Felicia London) at DLA Contracting Services Office – Columbus Division 3 will determine fair and reasonable pricing based on market research, an Independent Government Cost Estimate (IGCE), and industry-standard commercial agreements. Eight companies responded to an August 26 to September 7, 2025 RFI posted to SAM.gov. DLA Strategic Materials is pursuing broad agency announcements and Title III MCEIP efforts to develop additional qualified manufacturers and overcome future supply barriers for this strategic material.