SOW_Base_Metals-_Draft.docx

SECTION C SPECIFICATIONS

C.1 GENERAL SCOPE

The United States Mint (USM) has a requirement for specific alloy strip material to be used for stamping blanks for circulating, un-circulating and proof coins, in 5¢, 10¢, 25¢, 50¢ and $1 denominations. Blanking will be performed in the Philadelphia (PHL), PA and Denver (DEN), CO Mints. Circulating and un-circulating coins will be stamped in the PHL and DEN Mints. Proof coins will be stamped in the San Francisco Mint. There are three alloy configurations: cupro-nickel (5¢), cupro-nickel clad (10/25/50¢) and nickel- manganese-brass clad ($1). All strip material shall be delivered in accordance with the requirements, terms, conditions, and specifications set forth herein. All delivered coinage strip material must allow the USM to produce coins that meet an overriding coinability standard such that any coil defect will not be allowed to detract from the design or the integrity of the struck coin.

C.2 CUPRO-NICKEL STRIP (5-Cent)

C.2.A.1 Material Specifications for Cupro-Nickel Strip:

All numerical expressions are weight percents.

C.2.A.3 Surface:

The coinage strip shall be free of delaminations, tarnish, rolled-in or baked-on oxides, dirt, oils (a very light film of residual sulfur-free rolling oil is permissible), heavy scratches, gouges, blisters, manufactured slivers, rolled-in material and other surface defects that may produce unacceptable coins, (in the opinion of the Mint). Strip edges shall be fully trimmed and smooth. All strip ends shall be trimmed. The surface roughness for (circulating) 5-cent strip is 15Ra micro-inches Maximum.

Coils shall weigh a minimum of 1,814 kg to the maximum extent possible. Not more than 5% of the total delivered coils shall weigh less than 1,814 kg with an absolute minimum of 1,000 kg. Prior approval from the receiving Mint is required for coils less than 1,814 kg.

C.2.B.1 Coil Specifications for Cupro-Nickel Strip:

HARDNESS (As–Received)

Rockwell 15-T scale

TBD

C.1.B.2 Units and Winding

Each coil shall be in one piece and shall be tightly blocker wound; wound counter clockwise around the vertical coil axis when flat on a pallet.

C.2.B.3 Welds

Welds are not allowed.

C.3 CUPRO-NICKEL-CLAD STRIP (10, 25, and 50-Cent)

C.3.A.1 Material Specifications for Cupro-Nickel-Clad Strip

Strip shall be a composite three-layer material, copper core with two exterior layers of cupronickel metallurgically bonded to the core without the introduction of foreign materials. Overall material composition shall be as follows:

Element

Oxygen

TBD

All numerical expressions are weight percents.

PRF50COIL ONLY

Overall Composition

Oxygen

TBD

C.3.A.2 Surface

The coinage strip shall be of uniform high quality and free of such defects as slivers, seams, cracks, dents, blisters, and bent or damaged edges. Surface shall be clean and smooth, free of roll marks, delaminations, tarnish, rolled-in or baked-on oxides, dirt, oils (a very light film or residual sulfur-free rolling oil is permissible), or other surface defects that may produce unacceptable coins, (in the opinion of the Mint). Strip edges shall be fully trimmed and smooth. All strip ends shall be trimmed. The surface roughness for circulating clad strip is 15Ra micro-inches Maximum.

C.3.A.3 Clad Bond Strength

The bond between the exterior clad layers and the core shall be strong enough to withstand a 900 bend test as described in section E.5.

C.3.B.1 Cladding Strip Specifications for Cupro-Nickel-Clad Strip The strip will be of the following gauge for each coil delivered under this contract and, suitable for the manufacturing of clad coins.

C.3.B.1 (a): For Cupro-Nickel-Clad, typical clad layer thickness on any side measured shall be of uniform thickness; the clad layer thickness shall not vary by more than 0.015mm (0.0006").

C.3.C.1 Coil Specifications for Cupro-Nickel-Clad Strip

Coils shall weigh a minimum of 1361 kg to the maximum extent possible. Not more than 10% of the total contract coils shall weigh less than 1360 kg with a minimum of 500 kg.

C.3.C.2 Units and Winding

Each coil shall be in one piece and shall be tightly blocker wound; wound counter clockwise around the vertical coil axis when flat on a pallet.

C.3.C.3 Welds

Welds are not allowed.

C.4 NICKEL-MANGANESE-BRASS-CLAD STRIP ($1 DOLLAR)

C.4.A.1 Material Specifications for Nickel-Manganese-Brass-Clad Strip

Strip shall be a composite three-layer material, copper core with two exterior layers of nickel manganese brass, metallurgically bonded to the core without the introduction of foreign materials. Overall material composition shall be as follows:

(TBD%)

TBD

TBD

TBD

TBD

TBD

TBD

Oxygen

TBD

All numerical expressions are weight percents.

C.4.A.2 Surface:

The coinage strip shall be of uniform high quality and free of such defects as slivers, seams, cracks, dents, blisters, and bent or damaged edges. Surface shall be clean and smooth, free of roll marks, delaminations, tarnish, rolled-in or baked-on oxides, dirt, oils (a very light film or residual sulfur-free rolling oil is permissible), or other surface defects that may produce unacceptable coins, (in the opinion of the Mint). Strip edges shall be fully trimmed and smooth. All strip ends shall be trimmed. The surface roughness for clad strip is 15Ra micro-inches Maximum.

C.4.A.3 Clad Bond Strength:

The bond between the exterior layers and the core shall be strong enough to withstand a 900 bend test on as-received strip without any evidence of delaminating. This test is cited in E.4.

C.4.B.1 Cladding Strip Specifications for Nickel-Manganese-Brass-Clad Strip The strip will be of the following gauge, suitable for the manufacturing of clad coins.

C.4.B.1 (a): For $1Dollar, typical clad layer thickness on any side measured shall be of uniform thickness; the clad layer thickness shall not vary by more than 0.038mm (0.0015").

C.4.C.1 Coil Specifications for Nickel-Manganese-Brass-Clad Strip

Coils shall weigh a minimum of 1361 kg to the maximum extent possible. At least 75% of the total contract coils shall weigh a minimum of 1360 kg and the remaining coils shall weigh a minimum of 500 kg.

C.4.C.2 Units and Winding Each coil shall be in one piece and shall be tightly blocker wound; wound counter clockwise around the vertical coil axis when flat on a pallet.

C.4.C.3 Welds

Welds are not allowed

C.5 QUALITY STANDARDS FOR PROOF STRIP

C.5.A Proof coin strip shall be of uniform high quality with a clean and smooth surface free from laminations or slivers, tarnish, rolled-in or baked-on oxides, dirt, excessive oil, alloy segregation, roll marks, discoloration, blisters, rolled-in foreign material and scratches or pits exceeding 0.013 mm in depth, or any other surface conditions detrimental to subsequent blanking, annealing, burnishing or proof coining operations. Polished work rolls shall be used during final rolling to gauge. Final rolling shall be done on strip whose surface is clean and smooth and free from all scale. All significant metal removal during processing shall be done by machining; no abrasives shall remain in the surface of the strip. A very light film of residual sulfur-free rolling oil is permissible. Strip edges shall be fully trimmed and smooth. All strip ends shall be trimmed to preclude angling or bending at either end.

C.5.B The following surface roughness values shall apply to the proof coin strip.

C.5.C Hard Particles on Surface It is the San Francisco Mint’s goal to receive cut blanks for proof coinage that require no processing beyond material treatment and no polishing of the die required prior to reaching 2,000 good coins. To that end, in the event that the strip material does not perform satisfactorily (as determined by the United States Mint), in terms of good coins before die polish/retirement, the United States Mint reserves the right to reject the material as proof strip, (use it as Circulating stock where possible), and require the supplier’s cooperation in developing an acceptable product.

C.6 SCRAP MATERIAL

The strip material purchased under this contract shall be totally recyclable. The scrap cupro-nickel and cupro- nickel-clad material can be re-melted, re-alloyed and reused as cupro-nickel strip or as the outer layers for the cupro-nickel-clad strip. The nickel manganese brass scrap can be recycled as the outer layers for $1 Golden Dollar strip. (The core of the clad strip is always pure copper, see Sections C.3.A.1. The contractor will normally receive all of the scrap returned from a designated United States Mint facility. Special melts for mutilated and un-current, C,C & B or de-trash condemned coins will be shared between the contractors.

For purposes of this contract there are two distinct types of scrap material. Web scrap generated by the blanking process and Condemned Coins and Blanks and Mutilated or Un-Current (C, C & B, M or U), scrapped as coins or blanks. When the C, C & B, M or U is de-faced or de-formed it can be comingled with and will be classified as web scrap; although, all Condemned Coins and Blanks and Mutilated or Un-Current received by the contractor should be melted at the contractor’s facility. All scrap material will be returned for a credit under sections B.(3-7).F, G, or H. The Contractor shall be required to receive and accept all scrap material returns from the United States Mint.

C.6.A WEB SCRAP

Web scrap or webbing or blanking scrap is the strip pieces and slivers of material between the blanks. The blanking process yields 73-78% quantity of blanks from a given quantity of strip. In addition to the blanking scrap, the beginning and tail sections of the coil are unusable to produce blanks. The overall net yield of blanks and web scrap depend on the blanking die yield. For purposes of this contract, the following table lists the nominal blank yield and web scrap percentages.

The United States Mint may return any United States Mint alloy strip material. The Contractor agrees to accept all quantities returned by the United States Mint. The transportation and handling costs for all web scrap shall be the responsibility and expense of the Contractor and shall be factored into the Contractor’s scrap credit price.

The estimated web scrap from each coil will be returned to the Contractor at various intervals during the term of the contract. The scrap will be of the same nominal alloy as the strip received. All scrap will be returned to the Contractor for a credit under sections B. (2-6).F, G or H. This scrap may be in any form as specified in B.7. It is estimated, that all web scrap will be returned within 90 days after completion of this contract.

C.6.A.1 RETURN OF WEB SCRAP

Arrangements for the return of web scrap and the cost of transportation shall be the responsibility of the Contractor.

The Contractor shall ensure that each United States Mint facility has an adequate number of containers to handle the amount of scrap generated. The number of containers shall be based on overall level of strip orders, rate of return of empty containers, and individual capacity of the container. If the Contractor fails to furnish sufficient containers, the United States Mint will place the web scrap in United States Mint owned containers and move it to an off-site storage area. The Contractor shall transfer the scrap from the United States Mint owned containers to the Contractor’s containers. The Contractor shall be responsible for all transportation charges for moving the containers to the off-site area, cost of storing the web scrap and transfer of web scrap from United States Mint owned containers, and transportation charges for the return of the United States Mint owned containers.

With mutual agreement, alternative scrap containers may be substituted for use as scrap containers.

See section D.3 for details related to the scrap containers.

C.6.B Two types of rejected blanks or coins:

C.6.B.1 Condemned Coins and Blanks (C, C & B) are coins or blanks rejected by the United States Mint during the coining process for various quality reasons. Condemned coins and blanks generally match the physical dimensions of US coinage and are therefore redeemable in vending machines. All waffled or deformed coins or blanks returned to the Contractor shall be melted at the Contractor’s facility. Miss-strikes and mixed denomination coins or blanks have novelty value as “error coins” within the numismatic community and potential embarrassment to the United States Mint and therefore the Contractor must take all necessary precautions to ensure that all coins and/or blanks returned are melted at the Contractor’s facility.

C 6.B.2 Mutilated or non-current Coins Mutilated or non-current U.S. coinage is coin previously in general circulation that have been returned for redemption to the United States Mint through the Federal banking system due to unsuitability for continued use as U.S. coinage. Generally, the coins are badly worn or fused due to fire or application of extreme pressure.

C.7 SECURITY MELTS

The United States Mint requires the ability to schedule special “security melts” at the Contractor’s facility. The United States Mint shall return condemned coins and/or blanks and mutilated or noncurrent coinage to the Contractor to be melted and cast into bars for re-use. This material is determined by the United States Mint to be of a sensitive nature and so to ensure proper control these melts will be accompanied and supervised by United States Mint Police.

The material will be treated as scrap under Sections B.(3-7).F through H Scrap Credit.

The Denver and Philadelphia United States Mints will arrange for the trucks and transportation costs for this material and will be paid by the United States Mint.

The mutilated/condemned coins/blanks will be delivered to the Contractor in sealed containers (closed lid, metal banded boxes or alternate acceptable containers). All containers of denominations 10-cent and higher will be shipped in the locked trailer of an Armored Carrier, (accompanied by two armed drivers). Each container shall be labeled with the following: the net weight in lbs and kg, the coin denomination, and box or bag number. A United States Mint Police Officer will supervise the un-sealing of the containers and the melting process at the Contractor’s facility. The melting process will not commence without United States Mint Police authorization. Transportation costs for this material will be paid by the United States Mint.

Each container will be segregated by USM alloy: Cupro-Nickel (5cent); Cupro-Nickel Clad (10, 25 and 50-cent) and Nickel-Manganese-Brass-Clad ($1 Dollar). Mixed containers of Cupro-Nickel and Cupro-Nickel Clad (5-cent and 10, 25, and 50-cent) coins/blanks must be clearly marked and will be assumed to be clad for Accountability Composition - Melt purposes. $1 Manganese Brass Clad coins/blanks must always be maintained separately.

Scrap credit will be received on the basis of the following, see Table 1. The Contractor will furnish Virgin Metal Nickel based on the Additional Nickel Required percentages to create Cupro-nickel alloy.

Accountability Composition – Melts Table

Alloy

Copper %

Nickel %

Zinc %

Mn % Additional Nickel Required

TBD

TBD

TBD

Mixed $.05/.10/.25/.50

TBD

* $ .01 - The order will include an assay report for each melt. For purposes of accountability, the composition of the material will be credited to the United States Mint account on the basis of overall average copper content with the balance zinc.

C.8 PROCESSING LOSSES/WASTE

All metal required for processing losses or waste incurred by the Contractor shall be provided by the Contractor at no cost to the United States Mint.

C.9 VIRGIN METAL SPECIFICATIONS

For raw metal provided under sections B.(3- 7).E, Metal Acquisition Charges, the Contractor shall acquire virgin copper, nickel and zinc to supplement the United States Mint alloy scrap material returned by the United States Mint for a credit. The specifications for the acquired virgin material are:

C.9.1 COPPER

C.9.1.a ELECTROLYTIC COPPER

Electrolytic tough-pitch Copper cathode in conformance with ASTM B115-00 (Reapproved 2004) Grade #1, is classified as "CATH" in ASTM B224-04. Minimum copper content shall be TBD% and free of all foreign matter such as dirt, grease, oil, compounds of copper, and not excessively nodulated.

C.9.2 NICKEL

C.9.2.a. NICKEL

Refined NICKEL cathodes, briquettes, or pellets in conformance with ASTM B39-79 (Reapproved 2008), with carbon maximum of TBD%.

C.9.3 ZINC

C.9.3.a SPECIAL HIGH GRADE ZINC

Special High Grade (SHG) ZINC in conformance with ASTM B6-09, standard slab or ingot; eighteen (18) to twenty-seven (27) kilograms each and free from surface corrosion and adhering foreign matter and containing a minimum of TBD % zinc.

C.9.4 ASTM SPECIFICATIONS

Copies of ASTM specifications may be obtained by contacting: ASTM International 100 Barr Harbor Drive PO Box C700 West Conshohocken, PA 19428-2959 www.astm.org Telephone No.: (877) 909-ASTM

C.9.5 CERTIFICATE OF ANALYSIS

"CERTIFICATE OF ANALYSIS” for each incoming shipment should be available for Government review upon request.

C.9.6 ALLOWABLE SOURCES FOR RAW METALS

Raw metals procured under this contract shall be purchased by the Contractor in accordance with the Buy America Act (FAR 25.1- Supplies), the Trade Agreements Act (FAR 25.4), and any applicable Executive Orders as defined in the Federal Acquisition Regulation (‘FAR”) provisions entitled “Foreign Acquisition” found in Section 25 of the FAR. In addition, the Contactor shall ensure that no raw metals are procured from any source that is listed as a prohibited source under FAR 25.7, including any amendments to FAR 25.7 during the entire term of the contract.

Under FAR 25.104(a), entitled “Non-available articles,” “[t]he following articles have been determined to be non-available in accordance with 25.103(b)(1)(i)”: “Manganese” and “Nickel, primary, in ingots, pigs, shots, cathodes, or similar forms;” and are therefore excepted from the restrictions of the Buy American Act.

In addition, under these regulations, a “Designated country” currently means any of the following countries:

(1) A World Trade Organization Government Procurement Agreement country (Armenia, Aruba, Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as “the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei))”, or United Kingdom);

(2) A Free Trade Agreement country (Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Peru, or Singapore);

(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, East Timor, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, Tanzania, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or

(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).

“Designated country end product” means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product.

C.10 GENERAL STRIP SPECIFICATIONS

All strip products supplied under this contract shall be in compliance with ASTM-B248-06 Standard Specification for General Requirements for Wrought Copper and Copper-Alloy Plate, Sheet, Strip, and Rolled Bar.

C.11 ALTERNATE METAL SAMPLE MATERIAL:

C.11.1 Performance Objectives

Provide samples of heat treated blanks in the appropriate sizes for testing related to the study of alternate metals to develop lower costs coinage alloys. This would include casting small test chemistries and rolling both monolithic and bonded alternatives to desired gauges for testing. Objective is to provide a unique and cost effective alternative metallic coinage material for the production of circulating coins.

C.11.2 Scope

Provide annealed blanks (quantities up to 100 lbs.) of identified chemistries for test stamping as alternative circulating material.

Conduct appropriate testing of strip materials to ascertain as rolled properties.

Provide the blank and coin specifications for the procurement of pre- production testing.

Provide sufficient quantities of selected composition to support pre-production testing (1 million plus pieces)

The following alloys may be requested under task orders under this contract:

Leaner (less of the higher cost nickel) versions of the current cupro-nickel (TBD%Cu-TBD%Ni) and cupro-nickel clad (TBD %Cu- TBD%Ni) – matching the EMS and color of the current alloys for 5, 10, 25 and 50¢.

Alloys identified under the initial Alternative Metals Study: G6 Mod, K474, Y42 and C69250

Task Orders will be issued after determination of alloys, quantities and pricing for samples.

[END OF SECTION C]

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