Attachment 1 DLA-Energy-Sol-Provisions.pdf

Attachment 1 - SPE600-12-R-0401

SOURCE SELCTION INFORMATION – SEE FAR 2.101 AND 3.104

DLA ENERGY SPECIAL CONTRACT PROVISIONS SECTION C - DESCRIPTION/SPECIFICATIONS

C-0001 C13, SIZE, SIZE CONSIST, AND PREPARATION (DLA ENERGY AUG 1997)

(a) DEFINITIONS.

(1) TOP SIZE. The sieve (screen) designating the upper limit or top size of a series of screens with the smallest openings upon which coal is cumulatively retained. This is cited as a percentage by weight of coal larger than the defined top size. This requirement is found in the Schedule section of the solicitation/contract (e.g., no more than 5% retained on a 1 ¼ inch screen). The defined top size is not to be confused with the size of the largest lot.

(2) BOTTOM SIZE. The sieve (screen) designating the lower limit or bottom size of a series with the largest openings through which the coal passes. This is cited as a percentage by weight of coal smaller than the defined bottom size that passes through a defined bottom size screen. This requirement is found in the Schedule section of the solicitation/contract (e.g., no more than 15 percent passing through a ¼ inch screen). The defined bottom size is not to be confused with the size of the smallest particles in the lot.

(b) TEST METHODS. ASTM D 4749-87, Standard Test Method for Performing the Sieve Analysis of Coal and Designating Coal Size (Reapproved 1994); ASTM D 2013-86, Preparing Coal Samples for Analysis Reapproved 1994).

(c) SIEVE APPARATUS.

(1) In addition to conforming to all other specifications set forth in this contract, all coal delivered shall be substantially of the size or sizes specified, determined as follows:

(i) In all double screened coal (known as prepared sizes), the maximum and/or minimum top size specified shall pass through a round hole perforated screen (or its equivalent), the perforations of which are equal in diameter to the maximum and/or minimum top size specified. The maximum and/or minimum bottom size specified shall be retained on a round hole perforated screen (or its equivalent), the perforations of which are equal in diameter to the maximum and/or minimum bottom size specified.

(ii) In all single screened coal (known as screenings, slack, or mechanically fired steam coal) the maximum and/or minimum top size specified shall pass through a round hole perforated screen (or its equivalent), the perforations of which are equal in diameter to the maximum and/or minimum top size specified. As single screened coal is purely a resultant product, no maximum and/or minimum bottom can be specified and no bottom screening required.

(iii) Where "crushed run of mine" or "crushed prepared sizes" are accepted upon award for screenings and/or slack coal as described in (ii) above, the maximum and/or minimum top sizes may be determined by adjusting the crusher to that position where the crushed product will not exceed the maximum top size or be less than the minimum top size required.

Where such crushed coal is furnished, no screening is required. Run of mine coal shall be full of the mine with no sizes removed.

The maximum size will be limited by the contract terms; and lumps exceeding that maximum size shall not be removed but shall be broken or crushed to come within the maximum size limitations.

(d) SAMPLE SIZE.

(1) When a definite size consist is required, the Schedule for coal will specify the minimum percentage for coal which will be retained or the maximum percentage of coal that will pass through the screen(s).

(2) A size consist sample shall be no less than 1,000 pounds which shall be drawn in equal increments from not to exceed 5 carloads or truckloads of coal in any one shipment.

(3) The size consist sample shall be drawn in equal increments from 9 points in the car(s) or truck(s). Lay out 3 diagonals (example: [\\\] ) across the car(s) or truck(s), beginning at the right front corner, diagonally across the car(s) or truck(s) to the other side. Three equally spaced collection points shall be designated for each diagonal. The first increments should be taken from the inside of the first diagonal {\\.\]. The 9th increment should be taken from the left rear corner of the 3rd diagonal in the car(s) or truck(s) [‘\\\].

(e) SAMPLING. Where single screened and/or crushed coal of a definite size consist is required by the contract, all coal delivered there under shall meet or be better than the size consist specified in the Schedule for coal as determined and reported in accordance with ASTM D 4749, using Round-hole screens. Sampling will not be required if it is obvious upon a visual inspection that the coal fails to meet size consist requirements, and that fact is acknowledged by a Contractor’s representative.

The screening test at the receiving activity shall be conclusive as to whether the size consist requirement has been met.

(f) NOTIFICATION OF REJECTION AND SAMPLE RETENTION.

(1) If the size consist of the car(s) or truck(s) is sampled and screened as described above and fails to meet the sizing required by the Schedule, the coal may be rejected by the Contracting Officer, the Contractor will be required to remove the coal at its expense. As an alternative, coal rejected for noncompliance of size consist requirements may be accepted at an adjusted price recommended by the receiving activity and agreed to by the Contractor and the Contracting Officer.

(2) The screened sample shall be retained in a protected place for seven full days, not counting the day the sample is screened, and shall be available for inspection by the Contractor and/or the Contracting Officer.

Example: Sample Screening Date: Nov 15 Holding Period: Nov 16-22 Destroy Sample: Nov 23

C20 SULFUR CONTENT GUARANTEE (DLA ENERGY APR 2007)

The sulfur content of the coal to be furnished under this solicitation must be that percentage specified in the Schedule under MINIMUM QUALITY, or that percentage prescribed by applicable state law or local ordinance in effect on the date specified for receipt of offers, whichever is lower. In the event an applicable State law or local ordinance prescribes a lower percentage of sulfur content than that specified in this solicitation, the lower percentage shall be inserted in the Guaranteed Analysis and the applicable State law or local ordinance shall be identified in the Schedule.

FOR ALASKA: The sulfur content of the coal to be furnished under this solicitation shall not exceed the percentage specified in the Schedule of Supplies under MINIMUM QUANTITY. In the event applicable State law or regulation is changed during the contract term to prescribe a sulfur content other than that specified in the Schedule of Supplies of this solicitation, the percentage shall be inserted in the Guaranteed Analysis and the applicable State law or local ordinance shall be identified in the Schedule.

DLA ENERGY SPECIAL CONTRACT PROVISIONS SECTION E – INSPECTION AND ACCEPTANCE

E-0001 E1.03, CONTRACTOR INSPECTION RESPONSIBILITIES (COAL) (DLA ENERGY JUN 1999)

(a) The Contractor shall provide and maintain, and assure that subcontractors provide and maintain, an inspection system acceptable to the Government. The Contractor shall prepare, and assure that subcontractors prepare, a written description covering their procedures and operations directly relating to the supplies to be furnished under this contract: (1) receiving, (2) sampling, (3) testing, (4) calibration of testing and measuring equipment, (5) loading and shipping, and (6) records and reports. The description shall also include the designation of key operational positions. The inspection system, including operations related thereto and performed pursuant to this clause, shall be subject to surveillance by the Quality Representative.

(b) The Contractor shall either perform, or provide an independent laboratory acceptable to the Government (see the QUALITY PROVISIONS clause) to perform, all sampling and acceptance tests set forth in this contract in order to substantiate conformance of such supplies to the quality required by this contract; when such tests are performed at origin on supplies to be accepted at destination, the Contractor shall further provide, or cause to be provided, at the point and time of acceptance, such evidence of quality that will enable the Government to verify original test results. Such evidence of quality shall consist of an analytical test report, which shall also include barge, railcar and/or truck numbers, mine and seam (or blends) from which the coal originated. The analytical test report will include the air dry loss, as well as the weights of the samples and the number of increments taken. The method of sampling will also be annotated somewhere in the analysis.

(c) At the time of each shipment under this contract, the Contractor shall prepare and furnish to the Government a Material Inspection and Receiving Report (DD Form 250 series) in the manner and to the extent required by DoD FAR Supplement Appendix F, Material Inspection and Receiving Report, or as stated elsewhere in the contract. The mine and seam (or blends) from which the coal originated will also be annotated on the DD Form 250.

(d) The Contractor shall inspect, prior to loading, all shipping conveyances to determine that such conveyances are suitable for loading.

(e) The Contractor shall keep all quality and quantity records, including DD Form 250 series documents, complete and available to the Government during the performance of this contract and for 3 years after final payment under this contract.

E-0002 E1.04, QUALITY PROVISIONS (COAL) (DLA ENERGY NOV 2007)

RESPONSIBILITY FOR INSPECTION. Unless otherwise specified in the contract, the Contractor is responsible for the performance of all inspection requirements as specified herein. Except as otherwise specified in the contract, the Contractor may use its own or any other facilities suitable for performance of the inspection requirements specified herein, unless disapproved by the Government. The Government reserves the right to perform any inspection deemed necessary to assure supplies and services conform to the contract specifications.

(a) QUALITY CONFORMANCE INSPECTION. Individual lots shall be examined as specified herein and subjected to tests for all requirements cited in the Schedule.

(b) INSPECTION LOT. A lot shall consist of a heterogeneous mixture of coal to be represented by a gross sample.

(c) SAMPLING.

(1) SAMPLING FOR VERIFICATION OF PRODUCT QUALITY. Each lot of coal shall be sampled for verification of product quality in accordance with ASTM D 2234, except as otherwise approved by the Contracting Officer's Quality Representative.

(2) GROSS SAMPLE. A gross sample is a sample representing one lot of coal and composed of a number of increments on which neither reduction nor division has been performed. One gross sample shall represent one lot of a quantity not to exceed 1,000 tons. FOR ALASKA: One gross sample shall represent one lot of no greater than 10,000 tons. Collect samples in accordance with ASTM D 2234 except that the number of increments collected shall be based on the lot size and shipment loading particulars according to the following schedule: One sample increment shall be taken systematically by the “full-stream cut” condition.

(3) INCREMENT. An increment is a small portion of the lot collected by one operation of a sampling device and normally combined with other increments from the lot to make a gross sample.

(4) INCREMENT COLLECTION CLASSIFICATION.

(i) The type of increment to be collected from the bulk lot shall be Type I as defined in ASTM D 2234.

(ii) The condition of increment collection shall be either Condition A or Condition B as defined in

ASTM D 2234.

(iii) The spacing of increments shall be Systematic 1 as defined in ASTM D 2234 and be distributed throughout the entire lot.

(iv) The number and weight of the increments shall be as specified in Table 2 of ASTM D 2234. For example, raw coal with a top size of 2" will require a minimum of 35 increments taken systematically by either "stop-belt" or "moving stream" "condition" from the lot of 1,000 tons or less. Each increment shall weigh a minimum of six pounds.

FOR ALASKA. For purposes of determining size consist, the sampling procedure for stop-belt samples shall be as follows: A size consist sample shall be one stop-belt, two increment samples of a minimum of 25 pounds each. Two increments shall be collected each time the belt is stopped and the belt shall be stopped at least once for every 1,000 tons of coal. The total number of stop-belts shall not exceed three per lot. If the daily total quantity shipped is between 1,000 and 1,500 tons, a second stop-belt will be taken. For example, if the total tonnage shipped to the U.S. Government installations totals 1,140 tons for the day, then two stop-belts with two incremental samples/stop-belt shall be required. For each day’s lot of coal, the first pair of stop-belts shall be taken at approximately 500 tons with successive pairs taken at approximately 1,000-ton intervals thereafter for a maximum of six incremental samples per lot. Each pair of samples shall be taken as far apart as practical between the tripper and the end of the A-Frame building.

(5) MECHANICAL COAL SAMPLING. (i) In response to this solicitation, Contractors proposing to use mechanical sampling equipment to satisfy the collection method for condition B, full stream cut as defined in ASTM D 2234, must include with the offer a detailed description of the sampling procedures, including drawings and operating instructions.

(ii) Contractor's written procedures, will also describe whether this sample method is ASTM approved (or equivalent) and complies with the collection criteria in D 2234 for obtaining a gross sample of coal.

(iii) Mechanical coal sampling systems, procedures and operations related thereto are subject to surveillance by the Quality Representative (QR) and must be acceptable to the Government. The Government's acceptance will be based on an evaluation of the above data and the recommendation/checklist submitted by the QR in accordance with ASTM D 4702.

(d) PREPARING COAL SAMPLES FOR ANALYSIS. The gross sample shall be prepared for analysis in accordance with ASTM D 2013.

(e) TEST METHODS. The standard test methods used for coal to determine conformance to chemical and physical requirements of the contract shall be conducted in accordance with ASTM standards listed in Table I:

E-0002, E1.04 Cont’d

TABLE I

TEST ASTM TEST METHOD NUMBER

Moisture, Total (as received) D 3173, D 3302 (D 2013), or D 2961 (to be used for bituminous coal only, total moisture content not to exceed 10% Volatile Matter, Dry D 3175 Ash, Dry D 3174 Sulfur, Dry (1) D 4239 (Method B or C) BTU, Dry D 2015, D 3286, D 1989, or D 5865 Ash Softening Temperature oF (2) D 1857 Mercury, ppm D 3684, D 6722 Chlorine, Percent D 2361, D 6721, D 4208 Fluorine D 3761, D 5987

TEST ASTM TEST METHOD NUMBER

Free Swelling Index D 720 Hardgrove Grindability D 409 Sieve Analysis/Coal Size (3) D 4749 Sodium (Na2O) (4) D 3682 Major and Minor Trace Elements (Mineral Ash) D 6357; D 6349 or D 4326 Slagging and Fouling Characteristics (5) Multi-process calculation

FOOTNOTES

(1) Authorized Alternative Method A or B, ASTM D 3177.

(2) Report ash fusion temperature as tested in a reducing atmosphere.

When H=1/2W is indicated in the Schedule of Supplies, the analysis will report the Hemispherical Temperature (HT).

(3) Disregard Table 3 (D 4749) for gross sample quantity and utilize the Raw (Uncleaned Coal) section of Table 2, ASTM D 2234. Collect the gross sample for sieve analysis by doubling the number of increments listed for Raw (Uncleaned Coal), according to top size, for General Purpose Sampling Procedure (Table 2). The actual weight of the gross sample tested will be shown on the analytical test report. This gross sample is intended for sieve analysis determination only.

(4) When specified in the contract.

(5) Determination process requires initial testing of Major and Minor Trace Elements (Mineral Ash).

(a) Step 1 – Determine the base/acid ratio: (Fe2O3 + CaO + MgO + K2O + Na2O) / (SiO2 + TiO2 + A12O3)

(b) Step 2 – Determine the fouling factor: base/acid ratio is multiplied by NaO value.

(c) Step 3 – Determine the Slagging Factor: base/acid ratio is multiplied by the as received sulfur percent.

(f) LABORATORY ACCEPTANCE.

(1) For evaluation by the Government, the Contractor's laboratory will have available and submit to the QR, at a minimum, the information required by the Sample Worksheet (FIG.X1.1), ASTM D 4182, unless evidence of laboratory accreditation from an independent laboratory association can be supplied by the Contractor.

(2) When applicable, the following requirements will be added as a continuation to the sample worksheet evaluation:

VII GRINDABILITY (Hardgrove - Machine).

A Date of last calibration. Was calibration chart prepared?

B Is revolution counter operating and does it stop automatically after setting at 60 revolutions?

C Are sieving and weighing operations carried out without delay?

VIII FREE-SWELLING INDEX.

A Are proper temperature and rate of temperature rise for either electric or gas heating maintained?

B Do test buttons compare well to the standard profiles?

IX SIEVE ANALYSIS/COAL SIZE.

A Are round hole sieves with a staggered pattern used when sizing for 1/4" or larger coal?

B Do sieve plates show any visible damage?

C Are sieve plates painted, plated, or coated?

D Is a continuous mechanical sieve shaker used?

E Before and after sieving, is the test sample/sieved coal weighed to within .5% or better?

F. Does the scale have a calibration certificate?

E-0003 E22, LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS (DLA ENERGY JAN 2009) The following lists shall be used to identify the Government inspection office assigned inspection responsibility for DLA ENERGY contracts in a particular geographic area. These contracts include, but are not limited to, those for bulk petroleum products and additives, into-plane refueling, petroleum storage and laboratory services, coal, aerospace energy (including compressed gases), and posts, camps, and stations. The area of inspection responsibility and corresponding office code are assigned in paragraphs (a) and (b). The address and phone number of each inspection office by office code is provided in paragraph (c). Unless a particular inspection office is identified in another part of the contract, the assignments in this clause shall apply.

(a) AREAS OF RESPONSIBILITY AND OFFICE CODES WITHIN THE CONTINENTAL UNITED STATES

(CONUS):

Alabama 110 Maine 110 Oklahoma 110 Arizona 120 Maryland 110 Oregon 120 Arkansas 110 Massachusetts 110 Pennsylvania 110 California 120 Michigan 110 Rhode Island 110 Colorado 120 Minnesota 110 South Carolina 110 Connecticut 110 Mississippi 110 South Dakota 110 Delaware 110 Missouri 110 Tennessee 110 District of Columbia 110 Montana 120 Texas 110 Florida 110 Nebraska 110 Utah 120 Georgia 110 Nevada 120 Vermont 110 Idaho 120 New Hampshire 110 Virginia 110 Illinois 110 New Jersey 110 Washington 120 Indiana 110 New Mexico 120 West Virginia 110 Iowa 110 New York 110 Wisconsin 110 Kansas 110 North Carolina 110 Wyoming 120 Kentucky 110 North Dakota 110 Louisiana 110 Ohio 110

EXCEPTIONS:

(1) The El Paso, Texas, area is assigned to Code 120 (DLA ENERGY Americas – West).

(2) The Newcastle, Wyoming, area is assigned to Code 110 (DLA ENERGY Americas – East).

(b) AREAS OF RESPONSIBILITY AND OFFICE CODES OUTSIDE THE CONTINENTAL UNITED STATES

(OCONUS) (INCLUDING ALASKA AND HAWAII):

Afghanistan 400 Cyprus 200 Malaysia 300 Singapore 300 Africa 2001 Egypt 4001 Maldives 300 South America 110 Alaska 300 Europe (Continental) 200 Malta 200 South Korea 300 Antarctica 300 Georgia 200 Mauritius 200 Sri Lanka 300 Armenia 200 Greenland 200 Mexico 110 Syria 400 Ascension Island 110 Hawaiian Islands 300 Midway Island 300 Taiwan 300 Australia 300 Hong Kong 300 Mongolia 300 Tajikistan 400 Azerbaijan 200 Iceland 200 Myanmar 300 Thailand 300 Azores 200 India 300 Nepal 300 Turkey 200 Bahrain 400 Indonesia 300 New Zealand 300 Turkmenistan 400 Bangladesh 300 Ireland 200 North Korea 300 United Arab Bermuda 110 Iran 400 Oman 400 Emirates 400 Bhutan 300 Iraq 400 Pacific Islands United Kingdom 200 Brunei 300 Israel 200 (Central & South) 300 Uzbekistan 400 Cambodia 300 Japan 300 Pakistan 400 Vietnam 300 Canada 110/1202 Jordan 400 Papua New Guinea 300 Wake Island 300 Canary Island 200 Kazakhstan 400 Philippines 300 Yemen 400 Caribbean Islands 110 Kuwait 400 Qatar 400 Central America 110 Kyrgyzstan 400 Russia 200 Chagos Archipelago 300 Laos 300 Ryukus Islands, Japan 300 China 300 Lebanon 400 Saudi Arabia 400 Comoros 200 Madagascar 200 Seychelles Is. 420

E-0003, E22 Cont’d [1] Except for Egypt, which is assigned to DLA ENERGY Middle East (Code 400), all other countries in Africa fall under DLA ENERGY Europe (Code 200). [2] The provinces of Manitoba, Ontario, Quebec, Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island are assigned to DLA ENERGY Americas East (Code 110). The rest of Canada falls under DLA ENERGY Americas West (Code 120).

(c) INSPECTION OFFICES AND CODES.

110. DLA ENERGY Americas East 3

ATTN: Quality Manager

Federal Building, Room 1005

2320 LaBranch Street

Houston, TX 77004-1091

Phone: (713) 718-3883, ext. 162/161/160

FAX: (713) 718-3891

120. DLA ENERGY Americas West 3

ATTN: Quality Manager

3171 N Gaffey Street

San Pedro, CA 90731-1099

Phone: (310) 241-2806/2807

FAX: (310) 241-2836

200. DLA ENERGY Europe 3

Mailing Address:

DLA ENERGY Petroleum Lab

ATTN: Quality Manager

CMR 422

APO AE 09067-0422

[Location: Kaiserslautern, Germany]

Phone: 49-631-3406-2285/2286 4

FAX: 49-631-3406-2289 4

Shipping Address:

DLA ENERGY Petroleum Lab

ATTN: Quality Manager

Rhine Ordinance Barracks , Bldg 320

Am Opelkreisel

67663 Kaiserslautern, Germany

300. DLA ENERGY Pacific 3

1025 Quincy Avenue, Building 479, Suite 2000

Pearl Harbor, HI 96860-4512

Phone: (808) 473-4307/4287

FAX: (808) 473-4232

400. DLA ENERGY Middle East 3

PSC 451, Box DLA ENERGY-ME

FPO AP 09834-2800

[Location: Juffair, Bahrain]

Phone: 973-17-85-4658/4665 4

FAX: 973-17-85-4670 4

[3] Designated location of the DLA ENERGY Regional Quality Manager/Pre-Award Survey Monitor.[4] Dial 011 before these numbers when calling from the U.S. When calling these numbers from outside the U.S., use the appropriate international long distance prefix for the country where the call originates.

E-0004 E24, DESTINATION INSPECTION AND ACCEPTANCE (COAL) (DLA ENERGY JAN 1999)

(a) All coal delivered hereunder shall be inspected at destination to determine (1) that it is reasonably free from slate, bone, sulfur balls, dirt, and other characteristic impurities, and from extraneous foreign matter, including excessive water or moisture in truck delivering coal, (2) that it is not oxidized or weathered, (3) that it is properly prepared and reasonably free from fines, and undersize and oversize coal, and (4) that it is of analytical quality equal to or better than the quality required as set forth in the Minimum Specification Quality Required section of the Schedule of Supplies as evidenced by the Contractor's analytical test report identified with said shipment.

(b) If, upon inspection, the Government determines (1) that any coal delivered hereunder is not reasonably free from slate, bone, sulfur balls, dirt, and other characteristic impurities, or extraneous foreign matter, or in the case of truck delivered coal, from excessive moisture or water, (2) that it is oxidized and/or weathered, or (3) that it is not of analytical quality equal to or better than the quality required as set forth in the Minimum Specification Quality Required section of the Schedule of Supplies as evidenced by the Contractor's analytical test report identified with said shipment, the Contracting Officer may reject the coal by prompt telephonic or telegraphic notice, confirmed in writing, to the Contractor. All notices of rejection shall state the car numbers, or in the case of truck or barge delivery, the proper identifying data, containing the rejected coal and the specific reason or reasons for the rejection. Rejections made by other than the Contracting Officer, or those specifically designated in the contract to make rejections, shall be null and void.

(c) If such notice specifies that the coal rejected is (1) not reasonably free from slate, bone, dirt, and other characteristic impurities or (2) oxidized or weathered, the Contractor may, by telegraphic notice not later than 48 hours after its receipt of the rejection notice, request the Government to sample and analyze the rejected coal. If the coal has been rejected because it is not reasonably free from slate, bone, dirt, and other characteristic impurities, the sample will be analyzed for the dry ash content. If the coal has been rejected because it is oxidized or weathered, the sample will be analyzed for its free swelling index. The collection and preparation of such samples shall be in accordance with the "Quality Assurance Procedures for Receipt of Coal Procured through DLA Energy (DLA Energy M 4185.1)," except that the rejected coal shall not be unloaded and the samples shall be taken from the tops of the cars, trucks, or barges. The Contractor may be present at the taking of such sample, but the absence of the Contractor shall not be grounds for setting aside the results of the analysis of the samples. The United States Department of Energy (DOE) or U.S. Army Petroleum Center (USAPC) shall make the analysis of each such sample, and such analysis shall be final and conclusive on the parties hereto. In the event that (1) the Contractor has not guaranteed the analysis, or has not represented that the coal will meet the free swelling index requirements of the Schedule, and the rejected coal is found to be equal to or better than the contract requirements, with respect to dry ash and/or the free swelling index, or (2) the Contractor has guaranteed the analysis and has represented the coal would meet the free swelling index required in the Schedule, and the rejected coal is found by such analysis to be equal to or better than the requirement of the guaranteed dry ash analysis, or equal to or better than the represented free swelling index, the Contracting Officer shall withdraw such notice of rejection and accept the previously rejected coal. If previously rejected coal is accepted pursuant to this paragraph (c), the Government shall pay any demurrage that has accrued with respect thereto, but the Government shall have no further liability to the Contractor whatsoever on account of such previous rejection. Previously rejected coal not acceptable under this paragraph (c), however, shall be deemed to be coal rejected under (b) above, and such rejection shall be effective as of the date of the original notification thereof; and in the event of such rejection, the Contractor shall promptly pay to the Government the sum of $75 for each such analysis applicable thereto to cover the cost of making each such analysis.

(d) If the notice of rejection under (b) above specifies that the coal is rejected because of excess extraneous foreign matter, or because of large sulfur balls, large slabs of rock or slate, or other material that cannot be reasonably crushed into a sample, or in the case of truck delivered coal, for excessive water or moisture, the Contractor shall promptly remove the coal so rejected from the premises at its own expense. The Contractor has the right to inspect all coal visually inspected and rejected because of excess foreign matter or water as described above.

(e) In the event the coal is rejected pursuant to (b) above, the Contractor shall reimburse the Government for freight, if any, paid by the Government for the transportation of such rejected coal from the mine or mines to destination; and the Government, at its option, may exercise one or more of the following rights:

(1) Require the Contractor at the Contractor's expense to remove the rejected coal;

(2) Require the Contractor at the Contractor's expense to replace the rejected coal with an equal quantity of coal which meets the requirements of this contract;

E-0004, E24 Cont’d

(3) Accept the previously rejected substandard coal in which event the contract price shall be reduced in an amount to be agreed upon by the Contractor and the Contracting Officer. Reductions in price for acceptance of previously rejected substandard coal shall be recommended by and acceptable to the using service initiating the rejection. Price reductions purporting to be made or agreed to on behalf of the Government by anyone other than the Contracting Officer shall be null and void. When, because of low or no coal supply at an activity, it is necessary to accept previously rejected, substandard coal, failure to agree to the amount of the reduction shall be deemed a question of fact within the meaning of paragraph (d), Disputes, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause;

(4) Notwithstanding any price reduction pursuant to (3) above, compensate the Government for acceptance of coal not of the kind or size specified, or not reasonably free from slate, bone, sulfur, dirt, or other impurities, or coal that is oxidized or weathered, the Government may sample and analyze the coal pursuant to the SAMPLING AND EVALUATION clause, and if the DOE or USAPC analysis established that the coal is not of the quality required by the analysis specified in the contract, the contract price reduced pursuant to (3) above shall be further reduced in the event the analysis is not guaranteed, in an amount to be determined pursuant to subparagraph (b)(3), of the SAMPLING AND EVALUATION clause;

(5) Decline to accept additional coal from the mine or mines from which the unsatisfactory coal was shipped and authorize the Contractor in writing to supply coal from other mines producing coal of the quality required under the contract without any increase in the contract price or in the transportation charges to the Government; and/or

(6) As provided in paragraphs (f), Excusable Delays, and (m), Termination for Cause, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause, terminate the Contractor's right to proceed with performance of the contract and purchase coal elsewhere, in which event any excess costs occasioned thereby shall be charged to the account of the Contractor.

(f) The Contractor shall bear any demurrage that may accrue on and after the date of notification of rejection pursuant to (b) above; provided, however, that the Government shall pay demurrage accruing subsequent to acceptance, pursuant to (e)(3) above, of previously rejected coal.

(g) If upon visual inspection double-screened coal obviously exceeds the top size or obviously fails to meet the minimum bottom size, or if upon visual inspection single-screened coal obviously exceeds the top size specified, the Contracting Officer may reject the coal by prompt telegraphic or telephonic notice confirmed in writing to the Contractor. All notices of rejection shall state the car numbers containing the oversize and/or the undersize coal, the approximate size of the coal declared to be oversize, and/or undersize, and the approximate percentage of the oversize and/or undersize coal. Coal so rejected may be later accepted at an adjustment in price in accordance with (e)(3), (e)(5), and (f) of this clause.

E-0005 E25, SAMPLING AND EVALUATION (COAL) (DLA ENERGY APR 1997)

(a) All coal may be regularly and continuously sampled, or only part or parts thereof may be sampled, as the Government may elect; and in the latter event, the analysis of a sample or samples shall be used as representing only the actual tonnage sampled. The collecting and preparing of samples shall be in accordance with "Quality Assurance Procedures for Receipt of Coal Procured through DLA Energy (DLA Energy M 4185.1)" or any revision thereof. The Contractor may be present at the taking of samples, but the Government shall be under no obligation to notify the Contractor to be present. The U.S. Army TARDEC Petroleum Center Laboratory shall make the analysis of each sample, and such U.S. Army TARDEC Petroleum Center analysis shall be final and conclusive on the parties hereto with respect to the actual tonnage sampled.

(b) If the Contractor has not met its guaranteed analysis on two or more deliveries, or deliveries aggregating 10 percent or more of the item quantity are found by sample analysis to be in any way inferior to contract requirements, the Government may, at its option, exercise one or more of the following rights:

(1) Decline to accept additional coal from the mine or mines from which the coal was shipped and authorize the Contractor in writing to supply coal from other mines producing coal of the quality required under the contract without any increase in the contract price or transportation charges to the Government;

(2) As provided in paragraphs (f), Excusable Delays, and (m), Termination for Cause, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause, terminate the Contractor's right to proceed with performance of the contract and purchase coal elsewhere, in which event the Contractor shall be liable to the Government for any excess cost occasioned thereby; or

(3) Require the Contractor, with respect to all deliveries of such substandard coal, to credit or repay to the Government such portion of the contract price as the Contracting Officer determines to be equitable in the circumstances;

subject, however, to the Contractor's right to appeal from such determination pursuant to the Disputes clause.

E-0005, E25 Cont’d

(c) If the Contractor has guaranteed the analysis and the U.S. Army TARDEC Petroleum Center analysis determines that any coal delivered under the contract does not meet the requirements of the guaranteed analysis, the Government may exercise its rights under subparagraph (b)(1) or (b)(2) of this clause, regardless of the amount of coal determined to be substandard. Whether or not such action is taken, if the "computed total value" of the coal delivered over the life of the contract, as determined by evaluating individual U.S. Army TARDEC Petroleum Center analysis reports as provided below, is less than the "computed total value" of the coal as determined by evaluating the guaranteed analysis, the Contractor shall promptly pay to the Government, by way of liquidated damages, an amount to be determined as follows:

(1) The Contractor's guaranteed analysis shown in the contract, and the individual U.S. Army TARDEC Petroleum Center analysis reports covering shipments made on the contract shall be evaluated to determine the "As Received BTU per one cent at destination" in accordance with the following formula: The percentage arrived at by subtracting the percent of moisture from 100% shall be multiplied by the product of the dry BTU per pound times 2,000, the product of this multiplication shall be used as a numerator to be divided by the sum of the delivered cost per ton to the Government expressed in cents. The delivered cost shall be the cost in effect on the date the contract was awarded and shall be used throughout the life of the contract. To determine the "computed total value" of the coal delivered over the life of the contract, each applicable U.S. Army TARDEC Petroleum Center analysis report will be evaluated in accordance with the above formula using the moisture, the dry BTU per pound, in the U.S. Army TARDEC Petroleum Center analysis of the samples of such coal. To determine the "computed total value" of the coal guaranteed by the Contractor's analysis, the moisture, dry BTU per pound guaranteed by the Contractor, will be used in applying the above formula.

(2) The cost per net ton delivered at destination (price f.o.b. mine, plus transportation charges or price delivered to destination with all transportation charges paid by the Contractor) shall be multiplied by the ratio of the "As Received BTU per one cent at destination" of the coal actually delivered (determined by evaluation of U.S. Army TARDEC Petroleum Center analysis reports) to the "As Received BTU per one cent at destination" of coal required by the guaranteed analysis (determined by evaluation of Contractor's guarantee).

(3) If this product is less than the cost per ton delivered at destination, it shall be subtracted from the cost per ton delivered at destination.

(4) If this product is more than the cost per ton delivered at destination the cost per ton delivered at destination shall be subtracted from the product.

(5) If the product is less, as in (3) above, the difference shall be multiplied by the number of tons represented by the analysis report and this product carried as a debit against the contract until the contract has been completed and a final adjustment made, except as provided in subparagraphs (d)(1) and (d)(2) of this clause.

(6) If the product is more, as in (4) above, the difference shall be multiplied by the number of tons represented by the analysis report and this product carried as a credit to the contract until the contract has been completed and final adjustment made, except as provided in subparagraph (d)(1) of this clause.

(7) After deliveries under the contract have been completed, and except as provided in subparagraphs (d)(1) and (d)(2) of this clause, the final adjustment shall be made as follows: The total credits shall be subtracted from the total debits, and the Contractor shall promptly remit the difference to the Government as a price reduction by way of liquidated damages.

However, if the total credits exceed the total debits, the contract price will not be increased on account of such credits.

Example: (Contract Guarantee) Evaluation of analysis guaranteed by Contractor Contract price per net ton delivered f.o.b. cars at mine $ 38.00 Freight per ton to destination 13.50 Delivered cost $ 51.50 Moisture guaranteed by Contractor 5% Dry BTU per pound guaranteed by Contractor 14,100 "As Received BTU per one cent at destination" of coal required by the guaranteed analysis =(100%-5%)X14,100X2000 26,790,000 = 5150 =5202

a. (Where contract is debited) Evaluation of U.S. Army TARDEC Petroleum Center analysis of coal actually delivered.

Moisture reported in U.S. Army TARDEC Petroleum Center analysis 6.0% Dry BTU per pound reported in U.S. Army TARDEC Petroleum Center analysis 13,900 "As Received BTU per one cent at destination" of coal actually delivered

=(100%-6.0%)X13,900 (ROUNDED*) X2000

= 26,132,000

=5074 (ROUNDED*)

Ratio of "As Received BTU per one cent at destination" of coal actually delivered to "As Received BTU per one cent at destination" of coal required by evaluation of Contractor's guarantee analysis (calculated to the fourth decimal place only) =5074 =0.9754 (Ratio) (See para. (d)(ii)) Cost per net ton delivered at destination multiplied by the ratio stated above =$51.50X0.9754 =$50.23 per net ton Price (debit) per net ton =$51.50-$50.23 =$1.27 per net ton Debits or credits to contract pending final adjustment upon completion =Number of tons represented by analysis report 900 Adjusted amount per net ton $ 1.27 =900X$1.27 =$1,143.00 =Amount debited to contract

b. (Where contract is credited) Evaluation of U.S. Army TARDEC Petroleum Center analysis of coal actually delivered Moisture reported in U.S. Army TARDEC Petroleum Center analysis 2.0% Dry BTU per pound reported in U.S. Army TARDEC Petroleum Center analysis 14,590 "As Received BTU per one cent at destination" of coal actually delivered

=(100%-2.0%)X14,590 (ROUNDED*)X2000

=28,596,000

=5553 (ROUNDED*)

Ratio of "As Received BTU per one cent at destination" of coal actually delivered to "As Received BTU per one cent at destination" of coal required by evaluation of Contractor's guaranteed analysis (calculated to the fourth decimal place only).

= 5553 =1.0675 (Ratio) Cost per net ton delivered at destination multiplied by the ratio stated above =$51.50X1.0675 =$54.98 per net ton Price (credit) per net ton =$54.98-51.50 =$3.48 per net ton Debits or credits to contract pending final adjustment upon completion =Number of tons represented by analysis report 453.95

Adjusted amount per net ton $ 3.48 =453.95X$3.48 =$1,579.75 =Amount credited to contract *.49 and below, figure stays the same .50 and above, Round to the next higher figure

(d) (1) In the event that the evaluation of any individual U.S. Army TARDEC Petroleum Center report reflects that the ratio (calculated to the fourth decimal place) of "As Received BTU per one cent at destination" of coal actually delivered to the "As Received BTU per one cent at destination" required by the Contractor's guarantee is within the range 0.9850 to 1.0150 inclusive, debits or credits covering the individual reports will not be considered in the final adjustment upon completion of the contract, and the coal covered by such analysis reports shall be paid for at the contract price.

(2) In the event that the evaluation of any individual U.S. Army TARDEC Petroleum Center report reflects that the ratio (calculated to the fourth decimal place) of "As Received BTU per one cent at destination" required by the Contractor's guarantee is 0.9500 or less, debits covering the individual reports will not be considered in the final adjustment upon completion of the contract, and the price per net ton of coal covered by such analysis report shall be immediately reduced by way of liquidated damages in an amount determined in accordance with the formula cited in paragraphs (c), (c)(1), (c)(2), and (c)(3) of this clause.

E-0006 E26.01, SOURCE INSPECTION OF BULK DELIVERIES (COAL) (DLA ENERGY JUN 1999)

(a) The activity assigned coal procurement inspection responsibility for the geographical area wherein the point of bulk shipment (loading) is located is responsible for assuring compliance with the CONTRACTOR INSPECTION RESPONSIBILITIES clause.

(b) The following information will be dispatched by the Contractor so as to be available to the Government inspection activity for the shipping point 7 days prior to the date of shipment, unless other arrangements are made between the inspection activity and the Contractor, and that agreement is in writing:

(1) Contract number and item number;

(2) Date shipment is to be made;

(3) Name and location of preparation plant or tipple from which shipment is to be made;

(4) Identity of the consignee; and

(5) Quantity to be shipped.

(c) The office responsible for inspection, on behalf of the Government, shall be as follows:

SOURCE OF PRODUCT

ITEM(S) AND/OR SHIPPING POINT INSPECTION OFFICE

NOTE: The Government will designate the applicable inspection office on resultant award documents. If coal is shipped via multiple conveyances, the primary inspection office shall be where the tipple is located and the coal initially loaded. The primary inspection office shall request support for surveillance from the cognizant inspection office where any transloading is done.

Copies of the request and the name/address/phone number/fax numbers of the inspection representative(s) assigned shall be provided to the Contract Administrator.

E-0007 E33.03, CONSIDERATION FOR EXCESS SULFUR AND ASH (COAL) (DLA ENERGY APR 2007) In addition to those rights provided under the SAMPLING AND EVALUATION clause, the Government will take the following actions if coal delivered under this contract has not met the Minimum Specification Quality Required for sulfur and ash, based on U.S. Army Petroleum Center Analysis Reports:

(a) Assess damages against the Contractor based upon the unit price of the coal as follows:

For each 0.10 percent (one-tenth of one percent) that the sulfur content exceeds the Minimum Specification Quality Required, (DLA Energy Form 6.37-S), the unit price of the coal, for the quantity represented by the analysis report, shall be decreased $0.50 (fifty cents) per ton. The amount of these damages will be deducted from any payments due the Contractor.

If payments are no longer due the Contractor, the Contractor shall promptly pay to the Government the amount of damages so determined.

(b) Assess damages against the Contractor based upon the unit price of the coal as follows:

For each 1.0 percent (one percent) that the ash content exceeds the Minimum Specification Quality Required (DLA Energy Form 6.37-S), the unit price of the coal, for the quantity represented by the analysis report, shall be decreased $0.25 (twenty-five cents) per ton. The amount of these damages will be deducted from any payments due the Contractor. If payments are no longer due the Contractor, the Contractor shall promptly pay to the Government the amount of damages so determined.

The ash penalty shall be assessed only when the delivered ash content of the coal exceeds the minimum specification quality required for ash by a full percent. Thereafter, penalties will be assessed for each fraction of a percent.

EXAMPLES:

ASH SPECIFICATION DELIVERED ASH PENALTY

6.0 6.5 NONE

6.0 7.0 $.25

6.0 7.5 $.38

(c) Require the Contractor to pay to the Government any penalties or fines imposed upon any using activity by any Federal, State, or local authority, arising out of the delivery of coal containing sulfur in excess of the Minimum Specification Quality Required, or arising out of the delivery of coal with an ash content in excess of the Minimum Specification Quality Required. The amount of these penalties or fines will be deducted from any payments due the Contractor. If payments are no longer due the Contractor, the Contractor shall promptly pay to the Government the amount of such penalties or fines.

(d) (1) FOR ALASKA. The Minimum Specification Quality Required for as received sulfur and ash shall be used to calculate damages on a weighted monthly average basis, consolidated every six months, with debit and credit calculation for heat value applied in accordance with the SAMPLING AND EVALUATION (COAL) (ALASKA) clause.

(2) ALL OTHERS. The Minimum Specification Quality Required for dry sulfur and ash shall be used to calculate damages on a per shipment basis.

E-0008 E33.06, MINES (DLA ENERGY APR 1997)

(a) Coal shall not be furnished from mines or tipples other than those stated on DLA Energy Form 6.37A (Award Continuation Sheet) for each installation or any modification thereto. Coal shipped from any other source may be rejected by the Government and the contract may be terminated pursuant to paragraphs (f), Excusable Delays, and (m), Termination for Cause, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause of the contract.

(b) Notwithstanding the above, the Government reserves the right to accept or deny the Contractor's written request to furnish coal from mines or tipples in addition to those shown in the contract award Schedule. When additional mines or tipples are added to the Schedule by the Government at the written request of the Contractor, the Government reserves the right to require consideration in the form of a price reduction.

E-0009 E35, NONCONFORMING SUPPLIES AND SERVICES (DLA ENERGY FEB 2011)

(a) DEFINITION: As used in this clause:

Deviation is defined as a written authorization granted after contract award and prior to manufacture of an item, to depart from a particular performance or design requirement of a contract, specification, or referenced document, for a specific number of units or specific period of time, normally the duration of the contract.

Extraordinary situation means the matter cannot await resolution until the next DLA Energy business day (0800 to 1630 hours EST, Monday through Friday, Federal Holidays excluded).

Waiver is defined as a written authorization granted after contract award to accept a configuration item or other designated item which, during production or after having been submitted for inspection, is found to depart from specified requirements, but nevertheless is considered suitable for use “as is” or after repair by an approved method. Approval is on a case-by-case basis and is normally for a set period of time.

(b) The Government may, at its discretion, accept nonconforming supplies or services. In such cases, the Contractor must obtain a deviation or waiver from the Contracting Officer prior to acceptance.

(c) The following procedures shall be used to request a deviation or waiver.

(1) Requests for deviations and waivers shall be submitted by the Contractor to the Contracting Officer with a copy to the appropriate Inspection Office referenced in the LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS or QUALITY

REPRESENTATIVE clause of this contract. Each request shall provide the following information: Contractor name; name and contact information of the contractor’s authorized negotiator; contract number; contract line item number and product nomenclature, clause number, paragraph and subparagraph, as appropriate; the nature of the request; the reason for the request; the corrective action being taken by the

Contractor to correct and prevent recurrence of the condition(s) causing the nonconformance; and an agreement to pay an equitable price reduction, estimated and proposed by DLA Energy, over and above the administrative fee, contingent on the impact of the specific circumstances on DLA Energy relative to approval of the deviation or waiver.

(2) In extraordinary situations, the Contractor may initially submit a verbal request for a waiver, but not a deviation, to the

Contracting Officer. Written requests shall be submitted to the Contracting Officer by the next DLA Energy business day (0800 to 1630 hours

EST, Monday through Friday, Federal Holidays excluded). If the Contracting Officer cannot be reached, the Duty Officer shall be contacted to provide the necessary information to the proper individuals as soon as possible. The Duty Officer's telephone number is (800) 286-7633 or (703)

767-8420.

(3) If a deviation or waiver is granted, the contract will be modified to accept the nonconforming supplies or services and to require the Contractor to provide an equitable price reduction or other adequate consideration commensurate with the deviation or…