RFI-La2O3_FCC.1.docx

DEFENSE LOGISTICS AGENCY

STRATEGIC MATERIALS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6223

REQUEST FOR INFORMATION (RFI)

1.0 INTRODUCTION

The Defense Logistics Agency (DLA) Strategic Materials is issuing this Request for Information (RFI) and Sources Sought (SS) (hereinafter "notice") to solicit interest and information on how an interested contractor could provide Lanthanum oxide (La2O3). This notice and attachments are strictly for information and acquisition planning purposes only. Market Research is an essential step in the Federal Government acquisition process. This notice will be utilized as a tool in determining market interest and feasibility in accordance with Federal Acquisition Regulation (FAR) Part 10, Market Research. This RFI does not constitute a Request for Proposals (RFP)/Request for Quote (RFQ) or a Government-issued solicitation. DLA Strategic Materials, at this time, is not seeking proposals and will not accept any unsolicited proposals. All interested parties are encouraged to submit a response to this RFI. Failure to respond to this notice does not preclude a firm from responding to a future solicitation; however, a lack of interest in this requirement may prevent this effort from moving forward competitively. The potential opportunity for set-asides for various small business concerns will be considered; but cannot be guaranteed by the Government on a possible future acquisition. This notice shall not be construed as a commitment or authorization to incur costs in anticipation of an award. The Government is not bound to make any awards under this notice. All costs associated with responses to this RFI are the sole responsibility of the interested party. If a future acquisition is determined appropriate, it will be synopsized on the beta.SAM.gov website. It is the responsibility of all interested parties to monitor the beta.SAM.gov website site for additional information pertaining to future acquisitions.

2.0 DESCRIPTION

The Defense Logistics Agency (DLA) Strategic Materials Contracting Directorate is seeking information on how an interested contractor could provide for a potential acquisition of Lanthanum oxide (La2O3).

2.1 Potential Government Quantity: the government seeks to do business having a REQUIREMENT for 4,092 metric tons of FCC-grade lanthanum oxide and/or its equivalent (e.g. carbonate).

2.2 Potential Government Delivery Timeframe: Acquisition would occur over four years for the acquisition and storage with an additional 6 years for the rotation of the inventory bringing the total time to10 years.

(2020-2021, 2021-2022, 2022-2023, 2023-2024 acquisition and Period of Performance expiration on Dec 31, 2030).

3.0 BACKGROUND

DLA Strategic Materials is the operational agent of the Stockpile Manager, Under Secretary of Defense, Acquisition and Sustainment (USD (A&S) charged with implementation of the provisions of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. Section 98 et seq., hereafter referred to as the “Act”). Section 2(b) of the Act requires the Stockpile Manager to “…provide for the acquisition and retention of stocks of certain strategic and critical materials…, to decrease and to preclude when possible a dangerous and costly dependence by the United States upon foreign or single sources of supplies for such materials in times of national emergency.”

4.0 INSTRUCTIONS TO INTERESTED PARTIES

This RFI and SS for a potential acquisition of Lanthanum oxide (La2O3) is open to firms and businesses of all sizes. Small businesses and large businesses are invited to respond to this notice. The North American Industry Classification System (NAICS) code for this procurement is 325180 Other Basic Inorganic Chemical Manufacturing with a size standard of 1000 employees. https://www.census.gov/eos/www/naics/

Interested parties under this notice must submit a capabilities statement package , double-spaced, using 12-point Times New Roman font with one inch margins on standard 8 ½ by 11-inch paper demonstrating the ability to fulfill the requirement as specified within this notice.

Interested parties should provide a statement of interest on company letterhead no later than 5:00 PM Eastern Standard Time (EST) on June 29, 2020. Responses shall be submitted via e-mail; only to SMContracting@dla.mil. Proprietary information, if any, MUST BE CLEARLY MARKED. To aid the Government, please segregate proprietary information. Please be advised that all submissions become Government property and will not be returned. All responses MUST include the criteria depicted in Sections 5.0, “Submission Requirements” and 6.0, “Government Requested Information” subsections. If responses cannot be provided in accordance with this notice, the interested party must provide a brief explanation disclosing the reasoning the entity could not provide the requested information.

5.0 SUBMISSION REQUIREMENTS/CAPABILITY STATEMENT

5.1 The entity name, mailing address, overnight delivery address (if different from mailing address), phone number, fax number;

5.2 The name of the primary Point of Contact (POC) to discuss the Capabilities Statement, inclusive of the POC’s phone number and email address, in addition to, an alternate POC inclusive of their phone number and email address;

5.3 The Commercial and Government Entity (CAGE) Code

5.3.1 The CAGE is a five-character ID number used extensively within the federal government, assigned by the Department of Defense's Defense Logistics Agency (DLA). If a formal solicitation is issued based on this notice, a CAGE is required to accompany all responding proposals. More information can be found at System for Award Management (SAM) at https://www.sam.gov/SAM/ regarding registering entities in order to do business with the United States Government;

5.4 Business Type and affiliated NAICS with your entity

5.4.1 (i.e. Large business, small business, small disadvantaged business, 8(a)-certified small disadvantaged business, HUBZone small business, woman-owned small business, very small business, veteran-owned small business, service-disabled veteran-owned small business) based upon NAICS 325180 Other Basic Inorganic Chemical Manufacturing with a size standard of 1000 employees. “Small business concern” means a concern, including its affiliates that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria and size standards in 13 CFR part 121. A small business concern for the purposes of this procurement is generally defined as a business, including its affiliates, with a size standard of 1000 employees. Annual receipts of a concern that has been in business for 3 or more complete fiscal years means the annual average gross revenue of the concern taken for the last 3 fiscal years. Annual receipts of a concern that has been in business for less than 3 complete fiscal years means its total receipts for the period it has been in business, divided by the number of weeks including fractions of a week that it has been in business, and multiplied by 52. If your entity is a small business concern under the applicable NAICS, please also provide information on which subcategory (i.e. certified by Small Business Association (SBA) as HUBZone SB, self-certify as a SDB, WOSB, VOSB, and/or SDVOSB) you are qualified in. Additional standards and conditions apply. Please refer to Federal Acquisition Regulation FAR 19 for additional detailed information on Small Business Size Standards. (http://farsite.hill.af.mil.)

5.5 Organizational and staff capability

5.5.1 Tailored capability statements should addressing the particulars of this effort, with appropriate documentation supporting claims of organizational and staff capability

5.5.2 If significant subcontracting or teaming is anticipated in order to deliver technical capability, organizations should address/discuss the administrative and management structure of such arrangements.

5.6 A list of contracts for similar and related work completed previously. The response should include: (1) the contract number, (2) the Government/commercial agency point of contact affiliated with the work, and (3) whether your entity acted as a primary or subcontractor on the work

5.6.1 Please submit lessons learned from current or previous contract awards that are similar to the potential acquisition.

5.7 Delivery time frames are extremely important to the federal government. Please provide your company’s delivery lead-time for the potential effort.

5.8 Indicate whether you would be performing as a manufacturer or a supplier for the potential acquisition

5.8.1 If your entity would be performing as a manufacturer, please provide a list of approved distributors or suppliers, if any. (your list should include entity names, addresses and the location of each source, CAGEs if known)

5.8.2 If your entity would be performing as a distributor or supplier, please provide your manufacturer or source. (your list should include entity names, addresses and the location of each source, CAGE if known)

5.9 Recommended contract strategy.

5.9.1 The response should outline what contractual vehicles your entity would recommend, if any and why. (i.e. GSA (provide schedule), or any other existing contract vehicle)

6.0 GOVERNMENT REQUESTED INFORMATION

6.1 Manufacturing-based product volume. Based on a plant specific average annual FCC production rate, please provide specific (annual estimate) information and unit price breakdown of FCC catalyst product material applicable to extended metric ton quantities of La2O3.

6.1.1 Oxide Base Price—please provide the current unit price (USD per kilogram) FOB China price for FCC catalyst product material La2O3 that will be used as a basis in the indicative price offering (please provide current indicative price this is for information purposes only).

6.1.2 Packaging Cost (drums, pallets, bags)—Please identify and describe conventional packaging/vessels used to contain the La2O3 powders and if packaging is custom designed please identify why standard commercial packaging would not be suitable for holding inventory stocks.

Examples:

6.1.2.1 Sling Sacks (vapor barrier super sacs with double plastic liners?) 1 metric ton or other.

6.1.2.2 Steel Drums (e.g., 55 gallon UN 1A2 Rated containing a number of 50 kilogram charged oxide powders in double bagged poly plastic bags) this method is typical for long term storage in terms of years rather than months.

6.1.2.3 Other.

6.1.3 Transportation Costs—provide breakdown of logistics route and total estimated FOB price, listing source (provide place and country of origin), through city and country of export, through U.S. import city and state, and freight costs to vendors warehouse (city and state) where third party testing occurs, and finally freight costs to final destination; please estimate, number of pallets per container and number and type of containers in the cargo load, for international and domestic shipping and insurance (plus inflation rate).

6.1.4 Domestic Plant Location(s) – What is the physical location (address) of each of the domestic plants where FCC catalysts are manufactured (this information is used in estimating logistics and strategic correlation).

6.1.5 Third Party testing—please also provide costs on third party independent inspection, sampling and assaying in the United States based on ASTM International Standards B215-15. (Please include the name and location of the facility that would be utilized for this purpose).

6.2 FCC manufacturing consumption factors for catalyst La2O3.

6.2.1 What are the lanthanum oxide consumption specifications used in manufacturing of FCC catalyst produced, sold, or required by your company (percent lanthanum in zeolite FCC component and percent lanthanum in finished FCC catalyst-annual volume in metric tons)?

6.2.1.1 Specifications can be commercial or company specific. (Proprietary specification information submitted to the Government will be held as Business Confidential and not disclosed outside of DLA Strategic Materials or the chain of command responsible for the operation of the National Defense Stockpile (NDS). Specification information is important as it helps ensure that the materials potentially acquired for the NDS could be released to industry for the production of end items in the event of a National Emergency.)

6.2.2 What is your rare earths annual overall consumption/throughput of individual purified rare earth material that are used as raw materials for the FCC catalyst manufacturing industry (lanthanum oxide powders)?

6.2.3 What other forms and types of Rare Earth oxide materials are sold as additives to FCC catalyst manufacturing industry customers (cerium, neodymium, praseodymium, samarium, gadolinium, yttrium, others, etc.) and how does the volume of those forms sold compare to sale of lanthanum oxide forms and what volumes are consumed annually?

6.2.4 What is your plant/distribution capacity and territorial distribution per year of FCC contained La2O3?

6.2.5 How does the time of year effect availability of material?

6.2.6 What is the main source country of origin from where you procure the majority of your La2O3 used in the domestic manufacture of FCC catalyst?

6.2.7 Is your company procuring La2O3 from more than one country source of origin and if so, which countries

6.2.8 Is your company sourcing a number of different supply plants where La2O3 material supply originates in the same country and if so what is the number of supply plants sourced in that country, and please identify that country?

6.2.9 What is the supply interruption risk and possible rare earth material alternatives to use of La2O3, and are there procurement strategies or stockpiles of these alternative materials for substitute use in the event of a disruption?

6.2.10 Hygroscopic character concerns of La2O3—how much does the absorption of moisture interfere with FCC manufacturing performance and what is the acceptable measure of water content in the La2O3 that can occur over time; and how long can this water absorption be tolerated with stockpiled inventory before the materials is considered unacceptable or must be treated in some manner?

6.3 Product Quality Information

6.3.1 Material Requirement Specification Sheet—please provide an acceptable industry spec sheet for each of the La2O3 purity relative to total rare earth oxide (TREO) purity that includes maximum limits of rare earth impurities and non-rare earth impurities that meet industry standards for the application of FCC catalyst raw materials.

6.3.1.1 For each of the individual La2O3 products, what should be the purity level percentage range be relative to TREO for each of the products.

6.3.1.2 Please provide material specifications which includes La2O3 purity levels as a percent (%) of total rare earth oxides (%TREO); and other Rare Earth impurities (as %/TREO).

6.3.1.3 Please provide a listing of limits for other non-RE impurities (measured % as non-rare earth oxides or ppm) and non-rare earth impurities that may affect optimal FCC catalyst manufacture (e.g., iron, barium, lead etc.).

6.3.2 Safety Data Sheet (SDS) and example Certificate of Analysis (COA)—please provide SDS and COAs of La2O3, market convention products acceptable for FCC catalyst raw materials for material requirements.

6.3.3 Are other forms of lanthanum used in appreciable amounts for the manufacture of FCC catalysts (such as carbonates or chlorides and please provide annual volume estimates consumed of those forms with COAs and SDS.

6.3.4 What is the range of oxide purity for La2O3 products to use as a base level that will meet specification requirements for any grade of FCC catalyst?

6.3.5 What is the measure of radioactivity (Bq/g) maximum limit for the individual lanthanum oxide products used in the manufacture of FCC catalysts?

6.3.6 Are there any crucial non-RE impurities that have adverse effects on in the manufactured FCC catalysts and what are the limits of those impurities in lanthanum oxide products that are specified as restrictive?

6.3.7 Which assay test methods are conventionally used to measure RE impurities and non-RE impurities (e.g., ICP-OES; ICP-MS, GDMS, Titration, Spectrophotometric, Turbidity etc.)? Please specify which method for which element or compound.

6.3.8 Do you test the material you receive as a purchaser to determine whether it meets the material specifications you request?

6.3.9 Do you have your own laboratory perform the material testing (chemical and physical)? (If yes, please provide the location of the laboratory and address if different than the address denoted on the cover page)

6.3.10 How is the powder particle size measured and reported and what method is used to measure particle size distribution (PDS)?

6.3.11 Are there qualification requirements for La2O3 used with FCC manufacturing and if so what is entailed?

6.3.12 Will you be able to provide a letter of qualification from a producer stating that your FCC La2O3 material has met or exceeded manufacturing requirements in the past? (If no, please provide a reasoning).

6.3.13 What type of materials electronic accountability data system(s) are used to record lot sizes, weights material attributes, customs data etc.?

6.4 Stock Inventory.

6.4.1 Rotational Inventory

6.4.1.1 Nominal Stock—How much plant specific rare earth lanthanum oxide is stockpiled and how often is the standing inventory replenished?

6.4.1.2 Cycle time—what is the length of time in range of days and the number of tons of La2O3 that is held in rotational inventory to support FCC production?

6.4.1.3 Packaging methods for lanthanum oxide (La2O3). Please include any possible industry conventional versus non-conventional commercial options that relate to how the lanthanum oxide (La2O3) may be alternatively packaged.

6.4.2 Standing Inventory— is there standing inventory for emergencies and what is the volume in tons and the time duration for those holdings that is maintained?

6.4.2.1 Storage conditions for lanthanum oxide (La2O3). If there are strategic considerations for material that could be stored in reserve at a non-production warehouse with climate control for extended term storage, please include information on the following:

6.4.2.2 Shelf life (material quality degradation, impacts, how it affects costs, packaging etc.) estimated maximum based on known degradation factors.

6.4.2.3 Environmental impact (impacts, how it affects costs, packaging etc.).

6.4.2.4 Regulations that may impact prolonged storage.

6.4.2.5 Material Rotation Requirements (impacts, how it affects costs, packaging etc.).

6.4.3 Considering the hygroscopic nature of this material and the high volume of use, how would you recommend this inventory be best managed (please explain advantages and disadvantages)?

6.4.3.1 Warehouse stock

6.4.3.2 Under facility of the vendor

6.4.3.3 Vendor rotation of the inventory

6.4.3.4 Other

6.5 General Information on La2O3 capability, pricing, and contract structure

6.5.1 How do you typically price the material?

6.5.2 Are there frequent changes in the market price for this material? If yes, how do you address those changes?

6.5.3 Please provide a copy of a redacted commercial contract that includes standard terms and conditions for procurement of La2O3 product.

6.5.4 Do you have provisions for agreements longer than one year? If so, how long term is tolerable?

6.5.5 Do you provide spot deliveries? If so, typically how much could you provide and in what timeframe could you deliver?

6.5.6 What is your production/delivery capacity per year?

6.5.7 What is unit of measure that you use to price the required material?

6.5.8 Do you offer prompt payment discounts?

6.5.9 Do you have an active iRAPT account for submitting electronic invoices in the Wide Area Workflow System (WAWF)?

6.5.9.1 If a formal solicitation is issued as a result of this notice, the federal government typically requires organizations to be registered with a CAGE and setup for electronic payment within WAWF. (https://www.sam.gov/SAM/)

6.5.10 Delivery Methods for Lanthanum oxide (La2O3); will the material will be delivered to the vendor manufacturing plant facility or an alternate location?

6.5.11 What is the typical delivery time for lanthanum oxide (La2O3) from the date of receiving a contract/order?

6.5.12 Provide the sales data identifying the percentage of material that could be sold to the Government and the percentage of material sold to the general public

6.5.13 Would you agree to a contract that contains Federal Acquisition Regulations (FAR) clause 52.216-2-Economic Price Adjustment—Standard Supplies? (Economic Price Adjustment is described in the FAR 16.203 Fixed –price contracts with economic price adjustment. (If the answer is no, please provide the reasoning that your entity could not accept this clause)

7.0 DISCUSSIONS

DLA Strategic Materials representatives may or may not choose to meet with an interested party. Discussions, if conducted, would only be intended to get further clarification of potential capability to meet the requirements, especially any development and certification risks.

8.0 QUESTIONS

Questions regarding this announcement shall be submitted in writing by email to the Contracting office and email address above. Verbal questions will NOT be accepted. Questions will be answered by posting answers to Federal Business Opportunities (www.fbo.gov) website accordingly. Questions must NOT contain proprietary or classified information. The Government does not guarantee that any questions received after 5:00 PM EST on June 15, 2020 will be answered.

9.0 SUMMARY

THIS IS A REQUEST FOR INFORMATION ONLY to identify sources that can provide lanthanum oxide (La2O3) for a potential future acquisition. The information provided in the RFI is subject to change and is not binding on the Government. DLA Strategic Materials has not made a commitment to procure any of the items discussed. The sole purpose of the RFI/SSI is to solicit industry's assistance and best practices. Responses to this notice will be utilized to assist the Government in determining the best approach on future acquisitions.

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