PWS.SMRRP_Reboot_v5.1.pdf

PERFORMANCE WORK STATEMENT

DEMILITARIZATION OF TURBINE ENGINE COMPONENTS

1. GENERAL INFORMATION

The Defense Logistics Agency (DLA) Strategic Materials requires aerospace vacuum induction melt (VIM) quality material reclamation services for end-of-life and excess-to-need turbine engine components. Such components are composed of strategic and critical materials, such as nickel, cobalt, titanium, and rhenium.

2. FUNCTIONAL REQUIREMENTS

2.1. The intent of this contract is to demilitarize (DEMIL) assets and transfer cleaned, VIM-quality scrap to the National Defense Stockpile. DLA Strategic Materials also seeks Contractors that have the capability to reclaim individual elements from VIM-quality scrap.

2.2. The Government will furnish the Contractor(s) with excess-to-need or end-of-life assets.

2.3. The Contractor(s) shall provide all labor, supervision, facilities, equipment, material, supplies, and all other necessary services to retrieve, transport, sort, DEMIL, remove coatings, and package / palletize VIM quality scrap and elemental reclamation products derived from Government-furnished asset lots. Such VIM quality scrap and elemental reclamation products shall be shipped to a DLA Strategic Materials depot.

2.4. The period of performance is multiple years.

2.5. The Contracting Officer’s Representative (COR) will be identified by a letter of appointment/designation signed by the Contracting Officer and provided to the Contractor at time of contract award. The COR monitors all technical aspects of the contract and assists in contract administration. The COR’s duties, responsibilities, and authorities will be stated in the COR Appointment Letter.

2.5.1. Assure that the Contractor performs the technical requirements of the contract;

2.5.2. Perform inspections necessary in connection with contract performance;

2.5.3. Maintain written and oral communication with the contractor concerning technical aspects of the contract; and

2.5.4. Monitor Contractor’s performance and notifies both the Contracting Officer and the Contractor of any deficiencies.

2.6. In response to this Performance Work Statement (PWS), Offeror(s) shall provide a technical approach that details and explains how they will successfully achieve the requirements of the PWS. Contractor(s) shall provide descriptions and explanations of how requirements will be met, providing details for planning, establishing, and implementing all processes the Contractor(s) intend to use to execute the PWS. Responses that materially reproduce the PWS without modification will be rejected as unacceptable.

3. TECHNICAL REQUIREMENTS

3.1. WORK MEETINGS

3.1.1. The Contractor shall participate in a Start of Work Meeting, in person or via teleconference, with DLA Strategic Materials within 10 business days after contract award.

3.1.2. At a minimum on a monthly basis, unless otherwise mutually agreed upon in writing between the COR and the Contractor, the Contractor shall participate in a Work Progress Meeting, in person or via teleconference. At the Work Progress Meetings, the Contractor shall report to DLA Strategic Materials on the following items:

3.1.2.1. All assets retrieved by the Contractor from DLA Strategic Materials and the status of these assets;

3.1.2.2. Any current or anticipated problems which may impede performance, as well as proposed corrective action(s) for any such problems;

3.1.2.3. Work to be performed up to the next Work Progress Meeting; and

3.1.2.4. Any other items deemed appropriate by the Contractor or the COR.

3.1.3. After sorting of an asset lot, the Contractor shall meet with the COR in person or via teleconference to determine the quantity and type of material to be processed pursuant to Section 3.5 or Section 3.6

3.2. ASSET LOTS & CONTRACTOR TRAVEL

3.2.1. The Contractor shall retrieve asset lots from the Government depots indicated in Section

3.3.2 and, if mutually agreed upon between DLA Strategic Materials and the Contractor, additional Department of Defense facilities located in the Continental United States (CONUS). The Government shall provide the Contractor with an inventory list containing National Stock Numbers (NSN) and the estimated number of crates / pallets and weight (e.g., lbs.) to be retrieved.

3.2.2. The weight of asset lots shall not exceed 30,000 lbs. per month, at a rate of approximately two shipments per month. The Contractor and the COR may modify shipment rates (i.e., number of shipments) and timing post-award to optimize work performance.

3.2.3. The Government shall retain title to all Government Furnished Materials in asset lots for the duration of the contract.

3.2.4. Contractor travel shall be required to the Government depots indicated in Section 3.3.2 and, additional Department of Defense facilities located in the Continental United States (CONUS) as may be added by modification to the contract. The purpose of this travel will be to coordinate shipment of materials for each asset lot and to sort asset lots.

3.3. ACCESS TO GOVERNMENT DEPOTS

3.3.1. The Contractor shall contact the COR for information and instructions to access to Government depots. The access request must be submitted not less than 10 business days prior to a visit.

3.3.2. The location of the Government depots for retrieval of asset lots are as follows:

Defense Logistics Agency Distribution 3301 F Avenue Tinker Air Force Base, OK 73145 United States of America

Defense Logistics Agency Strategic Materials Hammond Depot 3200 Sheffield Avenue Hammond, IN 36327

Telephone: (219) 937-5383

3.3.3. The location of the Government depot for delivery of reclaimed products (see Section 3.5 and Section 3.6) is as follows:

Defense Logistics Agency Strategic Materials Hammond Depot 3200 Sheffield Avenue Hammond, IN 36327 United States of America Telephone: (219) 937-5383 Unloading Hours: 7:30 AM – 3:30 PM (CST), Monday – Friday Accessibility: Truck/Rail scale is available (Capacity: 4,000,000 lbs. / 1,800,100 kg)

3.3.4. The location of the Government depot for delivery of materials other than reclaimed products (see Section 3.7) is as follows:

Defense Logistics Agency Disposition Services Building 473 Texas Avenue East Red River Army Depot Texarkana, TX 75507

3.4. RETRIEVAL, UNPACKING, AND SORTING REQUIREMENTS

3.4.1. In coordination with the COR, the Contractor shall perform all pertinent aspects of asset lot receiving from the Government depot at the Contractor’s facility. Such coordination shall include collecting shipment documentation (e.g., a bill of lading), moving material into a secure area of the Contractor’s facility, and related activities directed by the COR.

At the Government’s discretion, shipments shall be loaded and unloaded under supervision of the Government. 100% of NSNs shall be traceable and accountable while at the Contractor’s facility.

3.4.2. Asset lots shall contain a DD Form 1348-1 and other relevant identifying documentation for all items in an asset lot. The Government shall provide such documentation to the Contractor.

3.4.3. The Contractor shall perform all pertinent aspects of material unpacking and sorting, including weighing and identification by alloy type. The unloaded and sorted material shall be ready for DEMIL and reclamation after completion of this task.

3.4.4. The Contractor shall notify the COR that the Contractor is prepared to unpack and sort asset lots prior to unpacking and sorting.

3.4.5. The COR shall arrange a time for a Government Representative to visit the Contractor’s facility to supervise receiving, weighing, unpacking, counting of items, and preparation of shipments to the Government depots indicated in Section 3.3.3 or Section 3.3.4.

3.4.6. The Contractor shall notify the COR, by telephone, of reportable discrepancies within two

(2) business days. The Contractor shall submit to the COR a written summary of reportable discrepancies within two (2) business days of notifying the COR via telephone. The “reportable discrepancies” include the following:

3.4.6.1. The Government did not provide a DD Form 1348-1/1a;

3.4.6.2. The Government did not properly complete the DD Form 1348-1/1a;

3.4.6.3. Piece counts identified on the DD Form 1348-1/1a are less than or more than the quantity received by the Contractor;

3.4.6.4. No seal on the transporter vehicle;

3.4.6.5. Any other factors that the Contractor believes may indicate that the theft, degradation, or loss of material during shipment from a Government depot to the Contractor’s facility.

3.5. CLEANED ALLOY SCRAP RECOVERY

3.5.1. Titanium, cobalt, and nickel materials, to include alloys thereof, shall undergo DEMIL in accordance with (IAW) Department of Defense, Manual (DODM) 4160.21, Volumes 1 – Volume 4 (22 October 2015) and the DEMIL Code for a given NSN, unless that material undergoes DEMIL IAW Section 3.6 or Section 3.7. The Contractor shall arrange for the Government Representative to be present during DEMIL. Notification shall occur at least 10 business days prior to the date that the Contractor begins DEMIL.

3.5.2. Contractor personnel shall perform DEMIL certifier tasks, and Government personnel shall perform DEMIL verification IAW DODM 4160.21 Vols. 1-4, to include training requirements for Contractor personnel. The Government shall provide signed Demilitarization Certificates, and the Contractor shall maintain a copy of signed Demilitarization Certificates for the duration of the Contract.

3.5.3. The Contractor shall optimize this DEMIL activity to produce titanium, cobalt, and nickel scrap, which shall be—

3.5.3.1. Segregated by type,

3.5.3.2. Segregated by VIM-ready and non-VIM ready materials,

3.5.3.3. Packaged and shipped IAW Section 3.8,

3.5.3.4. In a form that meets the supplier certification requirements of aerospace smelters, as defined in Section 4.1.2.2.

3.6. ELEMENTAL RECOVERY (NON-PRECIOUS METAL)

3.6.1. Titanium, cobalt, and nickel materials, to include base alloys thereof, shall undergo DEMIL in accordance with (IAW) Department of Defense, Manual (DODM) 4160.21, Volume 1

– Volume 4 (22 October 2015) and the DEMIL Code for a given NSN, unless that titanium-or nickel-base material undergoes DEMIL IAW Section 3.5 or Section 3.7. The Contractor shall arrange for the Government Representative to be present during DEMIL. Notification shall occur at least 10 business days prior to the date that the Contractor begins DEMIL.

3.7. Contractor personnel shall perform DEMIL certifier tasks, and Government personnel shall perform DEMIL verification IAW DODM 4160.21 Vols. 1-4, to include training requirements for Contractor personnel. The Government shall provide signed Demilitarization Certificates, and the Contractor shall maintain a copy of signed Demilitarization Certificates for the duration of the Contract.

3.7.1. The Contractor shall optimize this DEMIL activity to reclaim individual element products from asset lots, and individual element products shall be—

3.7.1.1. Segregated by material type,

3.7.1.2. Packaged and shipped IAW Section 3.8,

3.7.1.3. In a form that meets the supplier certification requirements of aerospace smelters, as defined in Section 4.1.2.2, or is saleable as a commercial product.

3.8. MATERIALS OTHER THAN TITANIUM, NICKEL, COBALT, AND PRECIOUS

METALS

3.8.1. In the course of performance under this PWS, the Contractor(s) may identify components within assets lots that are primarily composed of aluminum, stainless steel, and materials other than titanium, nickel, cobalt, and precious metals.

3.8.2. The Contractor shall ship all materials that meet the criterion of Section 3.7.1 to the Government disposal site indicated in Section 3.3.4.

3.9. PACKAGING AND LABELLING REQUIREMENTS, TRANSFER TO DLA

STRATEGIC MATERIALS

3.9.1. The Contractor shall ship material reclaimed pursuant to Section 3.5 and Section 3.6 to the Government depot indicated in Section 3.3.3 on a dedicated transport vehicle.

3.9.2. The Contractor shall affix a permanent tag to the packages containing reclaimed materials with the following information:

3.9.2.1. Container number;

3.9.2.2. Material type;

3.9.2.3. VIM-ready or Not VIM-Ready status;

3.9.2.4. Gross and net weight;

3.9.2.5. Contract Number;

3.9.2.6. Any other information directed by the COR post-award

3.9.3. The Contractor shall notify the COR at least five (5) business days prior to shipment.

Shipments shall arrive during the business hours listed in Section 3.3.3. For each shipment, the Contractor shall submit the following documentation:

3.9.3.1. Bills of Lading, including the number of containers or packages;

3.9.3.2. Safety Datasheets (SDS) for each material;

3.9.3.3. Gross and Net Weight (lbs.);

3.9.3.4. Alloy or material type;

3.9.3.5. VIM-ready or not VIM-ready status; and

3.9.3.6. Any other factors directed by the COR post-award.

3.9.4. The Contractor shall package material reclaimed pursuant to Section 3.5 and Section 3.6 in drums or crates approved by the COR. Drums and crates shall be clean and free of debris (e.g., interior liners) and secured (e.g., locking rings).

3.10. PRECIOUS METAL RECOVERY and SHIPMENT

3.10.1. The Contractor shall perform all pertinent aspects of reclaiming precious metals from asset lots. Precious metal-bearing offtake does not need to be refined. The Government will accept precious metal bearing slag, concentrate, slurry, abrasive blast media, and similar crude forms of material. Contractor shall identify the form in which material will be provided to the Government.

3.10.2. The COR will inform the Contractor whether the Precious Metals Program will accept the precious metal-bearing offtake produced by the Contractor or whether the offtake shall be disposed by the Contractor IAW applicable Federal, state, and local regulations for the type of waste generated.

3.10.3. If the precious metal-bearing offtake produced by the Contractor is acceptable to the DLA

Precious Metals Program, the Contractor shall ship such offtake to the Precious Metals Program. Such offtake shall be packaged and shipped IAW applicable Federal, state, and local regulations for hazardous waste as applicable. The location of the Precious Metals Program is CONUS and will be indicated by the COR post-award.

3.10.4. If the “Precious Metals Assaying Report” required by Section 5.3 indicates toxic heavy metals greater than allowed by Federal, state, or local regulations, then the Contractor shall include a Land Disposal Restriction (LDR) in addition to a manifest of wastes in a shipment to the Precious Metals Program.

3.10.5. If the “Precious Metals Assaying Report” required by Section 5.3 indicates toxic heavy metals less than allowed by Federal, state, or local regulations, then the Contractor shall include a manifest of wastes in a shipment to the Precious Metals Program.

3.11. SECURITY

3.11.1. The Contractor shall be liable for the security and integrity of asset lots at any time the asset lot is not at the DLA Strategic Materials depot. The Contractor shall take all reasonable precautions to keep material safe from damage. The Contractor’s facility or facilities shall be secured to safeguard asset lots retrieved from the Government depots.

The Contractor shall ensure that its DEMIL process precludes condemned aerospace components from entering aftermarket sales.

3.11.2. The Contractor’s facility or facilities used for performance under this PWS shall be CONUS-located.

3.11.3. The Contractor shall provide secured storage areas to hold asset lots and documents generated in the course of performance on a contract. The Contractor also shall provide designated areas for segregating asset lots and secured areas for use by Government asset lots only. Secure areas shall—

3.11.3.1. Be within a building and enclosed to prevent unauthorized entrance,

3.11.3.2. Be capable of being locked and secured to receive and store asset lots, and

3.11.3.3. Have a 24-hour surveillance system (e.g., TV monitoring or guards) or security system.

3.11.4. The Contractor shall ensure that only authorized personnel are able to access secure areas and issue project identity badges to authorized employees only. Project identity badges shall be displayed at all times that an authorized employee is performing work under this PWS at a Contractor’s facility or facilities.

3.11.5. All authorized employees directly supporting this project shall agree to random drug testing, national security background investigations, and random personal property searches if requested by the COR.

3.11.6. The Contractor and all authorized employees directly supporting this project shall not release information related to performance under this PWS (e.g., pictures, press releases) without written permission from the COR.

3.12. Government depots shall provide all necessary containers, locks, and seals to secure material to be retrieved by the Contractor.

3.13. The Contractor shall provide all necessary containers, locks, and seals to secure material to be shipped to Government depots.

4. SUBMITTALS

4.1. This section is only for the Request for Information (RFI). Vendors responding to the RFI shall submit the following as part of their response::

4.1.1. A completed “Cost and Value Worksheet Submittal”;

4.1.2. Written Certifications from aerospace smelters that the offeror is a qualified supplier of VIM-quality scrap and / or elemental products derived from VIM-quality scrap and that the offeror has provided VIM-quality scrap and / or elemental products derived from VIM-quality scrap within the past three (3) years.

4.1.2.1. DLA Strategic Materials has no preferred format for written certifications from aerospace smelters. To satisfy this requirement, DLA Strategic Materials shall accept a written letter from a representative of an aerospace smelter, on official company letterhead, in which that representative certifies that the Contractor has provided VIM-quality scrap and / or elemental products derived from VIM-quality scrap at an acceptable quality. Such letter shall specify contact information for the representative of an aerospace smelter, including a phone number and email address at a minimum.

4.1.2.2. For the purpose of this section, “aerospace smelters” include but are not limited to the following companies:

• Pratt & Whitney

• General Electric

• Rolls Royce

• Safran

• Volvo Aero

• Arconic (RTI, Howmet Castings)

• Allegheny Technologies (ATI)

• Precision Castparts (Titanium Metals

Corp, Special Metals Corp)

• Carpenter Technology (Latrobe, Dynamet)

• Haynes International

5. DELIVERABLES

5.1. The Contractor shall deliver an “Initial Batch Report” to the COR within ten (10) business days of completing all DEMIL processes (i.e., unpacking, sorting, weighing, and DEMIL) for an asset lot. The Initial Batch Report shall specify which NSNs were assigned into a given alloy category and the weight (gross, net, and tare) of a given alloy category, as well as any other factors deemed appropriate by the COR post-award. 100% of the total weight must be accountable during any audit.

5.2. The Contractor shall deliver signed “Demilitarization Certificates” for the relevant DD Forms 1348-1 to the COR at each Work Progress Meeting. The Contractor shall maintain a copy of signed Demilitarization Certificates for the duration of the Contract.

5.3. The Contractor shall deliver a “Precious Metals Assaying Report” to the COR for each asset lot to determine precious metals content and whether the offtake is considered Hazardous Waste IAW Federal, state, and local regulations. This assaying report shall include a Toxic Characteristic Leachate Procedure (TCLP) analysis IAW the following sub-paragraphs:

5.3.1. If the Contractor uses an abrasive blast media method during the recovery process, then the Contractor shall arrange and pay for a TCLP analysis on a representative sample of blast media to test levels of toxic heavy metals, such as cadmium, silver, chromium, and selenium, above regulatory levels.

5.3.2. If the Contractor uses a chemical stripping method, then the Contractor shall arrange and pay for a TCLP analysis on a representative sample of the stripping agent before and after stripping to test levels of toxic heavy metals, such as cadmium, silver, chromium, selenium, and the Contractor shall provide a Safety Data Sheet to the COR on the chemical(s) used during the chemical stripping process.

5.4. The Contractor shall deliver a “Batch Report” to the COR at the Work Progress Meeting immediately after complete processing of all items in an asset lot; if the time between the complete processing of all items in an asset lot and the following Work Progress Meeting is less than ten (10) business days, then the Contract shall submit the Batch Report at the following Work Progress Meeting. This Batch Report shall document the following factors:

5.4.1. The received weight of NSNs sorted by alloy type,

5.4.2. Demilitarization certificates of processed NSNs,

5.4.3. The final weight of materials reclaimed Contractor,

5.4.4. Recovery rates (i.e., percent) for materials reclaimed by the Contractor, and

6. DELIVERY SCHEDULE

6.1. The period of performance shall commence on the date of contract award and continue for

365 days.

COST and VALUE WORKSHEET SUBMITTAL

A sample of the alloys delivered by DLA Strategic Materials for DEMIL is summarized below:

Alloy Quantity (lbs.)

Titanium 6-4 4,053 Inconel 719 3,769 In 100 2,858 Inconel 901 2,788 Waspalloy 1,550

PWA 1484 1,323

Hastalloy 1,291 Hastalloy X 837 Rene 41 505 Rene 80 390 Rene 95 318 Rene 125 312

Offerors shall complete the table below to summarize the fully burdened cost and estimated value for VIM-alloy and / or elemental recovery of materials, as presented in an offeror’s Cost Proposal. For the purpose of this submittal, Offerors may assume that the quantity of material identified in this document will remain constant in a new contract. Offerors shall include a separate addendum to this submittal to certify the “Recovery Values” cited by a Respondent. Certification of value may be satisfied by a combination of (1) benchmarking to a price index (e.g., Argus Metals), (2) commercial contracts, or (3) defense contracts.

Commercial and defense contracts shall be marked appropriately to protect Company proprietary or business confidential information.

A B C D E F

Alloy Initial Quantity (lbs.)

Reclaimed Quantity (lbs.)

Reclamation Cost ($/lb.)

Reclamation Value ($/lb.)

Efficiency

= 𝑪𝑪 ÷ 𝑩𝑩

Titanium 6-4 4,053 Inconel 719 3,769

In 100 2,858 Inconel 901 2,788 Waspalloy 1,550

PWA 1484 1,323

Hastalloy 1,291

Hastalloy X 837 Rene 41 505 Rene 80 390 Rene 95 318

Rene 125 312

For the table below, respondents may insert additional rows to reflect multiple elements (G) recovered from the same alloy type (A).

A G H I J K

Alloy Element(s) Reclaimed

Reclamation Quantity (lbs.)

Reclamation Cost ($/lb.)

Reclamation Value ($/lb.)

Efficiency

= (𝑯𝑯𝟏𝟏 + 𝑯𝑯𝟐𝟐 + ⋯𝑯𝑯𝒏𝒏)/𝑩𝑩

Titanium 6-4 Inconel 719

In 100

Inconel 901 Waspalloy

PWA 1484

Hastalloy

Hastalloy X Rene 41 Rene 80 Rene 95

Rene 125

Respondents also shall complete the following table, using data inputs from the table above. For the table below, respondents may insert additional rows to reflect multiple precious metals (L) recovered from the same alloy type (A).

A L M N O

Alloy Precious Metal(s)

Reclaimed

Reclamation Quantity (lbs.)

Reclamation Cost ($/lb.)

Reclamation Value ($/lb.)

Titanium 6-4 Inconel 719

In 100 Inconel 901 Waspalloy

PWA 1484

Hastalloy

Hastalloy X Rene 41 Rene 80 Rene 95

Rene 125

Respondents also shall complete the following table, using data inputs from the table above.

Alloy Alloy Recovery Marginal Value

𝑨𝑨𝟏𝟏,𝑨𝑨𝟐𝟐 …𝑨𝑨𝒏𝒏 = (𝑪𝑪 × 𝑬𝑬) − 𝑫𝑫

Elemental Recovery Marginal Value

𝑮𝑮𝟏𝟏,𝑮𝑮𝟐𝟐 …𝑮𝑮𝒏𝒏 = (𝑯𝑯 × 𝑱𝑱) − 𝑰𝑰

Titanium 6-4 Inconel 719

In 100 Inconel 901 Waspalloy

PWA 1484

Hastalloy

Hastalloy X Rene 41 Rene 80 Rene 95

Rene 125

Alloy Elemental Recovery Marginal Value

𝑮𝑮𝟏𝟏,𝑮𝑮𝟐𝟐 …𝑮𝑮𝒏𝒏 = (𝑯𝑯 × 𝑱𝑱) − 𝑰𝑰

Precious Metal Recovery Marginal Value

𝑳𝑳𝟏𝟏,𝑳𝑳𝟐𝟐 …𝑳𝑳𝒏𝒏 = (𝑴𝑴 × 𝑶𝑶) − 𝑵𝑵

Titanium 6-4 Inconel 719

In 100 Inconel 901

Waspalloy

PWA 1484

Hastalloy

Hastalloy X Rene 41 Rene 80 Rene 95

Rene 125