Attachment 0001 - Sources Sought IMX-104 Production Capability_26SEP.pdf

W519TC-25-R-0041

Sources Sought for IMX-104 Production Capability

26 September 2025

DESCRIPTION

The Army Contracting Command-Rock Island (ACC-RI) on behalf of the Project Lead Joint Services (PL JS) is seeking information from foreign and domestic sources interested in the design, construction, and commissioning, of an efficient and modern facility capable of manufacturing Insensitive Munition Explosive - 104 (IMX-104) as a Government Owned, Contractor Operated (GOCO) facility at the Holston Army Ammunition Plant (HSAAP) in Kingsport, TN or at another facility location within the Continental United States (CONUS). The targeted production capacity is approximately six million pounds to eight million pounds of IMX-104 per year, which does not include Holston’s current capacity for IMX-104, that shall meet the requirements of the military specification MIL-DTL-32425 (2022) and North Atlantic Treaty Organization Allied Ordnance Publication No. 7, Manual of Data Requirements and Tests for the Qualification of Explosive Materials for Military Use.

The U.S. Government is seeking an expeditious solution for the design, construction, and commissioning of an IMX-104 facility and the required supporting infrastructure. It is the Government’s preference that the IMX-104 precursors and raw materials required for production shall be manufactured within CONUS. However, outside the continental United States (OCONUS) source(s) for precursors and raw materials will also be considered. The Government considers capacity to be of primary importance with a preference that design, construction and commissioning be complete within 36 months of contract award; however, in no case shall construction and commissioning be complete later than 48 months after contract award.

GOVERNMENT INTENT

1. Interested sources are hereby notified that due to the urgency of this requirement, the Government will utilize the information submitted in response to this sources sought notice to award a non-competitive, sole source undefinitized contract action (UCA) under the temporary acquisition authorizations provided in Class Deviation 2024-O0005, paragraph B (1), for covered contracts related to Ukraine, Taiwan, and Israel. The Government intends for this sole source action to include a contract(s) for the design, construction, and commissioning of the IMX-104 facility, and potentially follow-on production operations if the facility is not located at HSAAP.

2. ACC-RI intends to issue any UCA resulting from this notice with a Firm Fixed Price

(FFP) ceiling, not-to-exceed (NTE) value, based upon vendor’s responses to this notice and/or other appropriate rationale. Interested vendors are advised that the definitized value of the action shall not exceed the stated FFP ceiling/NTE per Defense Federal Acquisition Regulation Supplement (DFARS) 252.217-7027(e).

Therefore, interested vendors are advised the values provided in response to this notice shall represent the total estimated amount for performance of the requirement in its entirety.

3. The Government's intent is to award the proposed contract(s) based on the capabilities demonstrated in response to this sources sought notice; therefore, any interested source is responsible for fully identifying capabilities believed necessary to perform the requirements included in this, and any subsequent notices. The Government reserves the right to conduct a facility capability review which includes a study of financial, organization, and operational status made prior to contract award to determine a prospective contractor’s responsibility and eligibility for Government procurement. Interested sources are hereby notified that any resultant contract will require that the Government be granted unlimited data rights to any and all data and/or Intellectual Property generated in meeting the requirements of said contract, to include but not limited to: design drawings, final construction drawings, equipment specifications, equipment manuals, technical data, work instructions, production parameters, all testing parameters, all testing results, etc.

4. The September 22, 2025 update to this sources sought allows interested sources the opportunity to submit a new or updated response to its previous submission for this requirement. The updated page limitation for submissions will total no more than 125 pages. Integrated Master Schedules, cover pages, table of contents, list of acronyms, and teaming/ partnership agreements are excluded from the 125 page limit. All pages that are excluded from the 125 page limit should be easily identifiable or numbered separately. This 125 page limitation is inclusive of any original submission page count plus the page count of any submission updates. Excessive responses/pages will not be considered.

5. The Government intends to award a sole source contract as a result of this sources sought notice, subject to availability of funds. The Government reserves its right to amend this notice and/or its acquisition strategy at any time, as determined in the Government's best interest.

6. The Government intends to facilitate the supply of RDX in support of commissioning. All related costs will be the responsibility of the bidder.

The Government encourages capacity solutions that maximize operating efficiency for both low and high-rate production.

The Government has identified tentative site locations at HSAAP available for the construction of the facilities and infrastructure. Respondents can assume water, sewer, steam, compressed air, and electrical service is available at HSAAP, but respondents shall ensure appropriate connection of the utilities to the physical building locations. Other suitable CONUS locations will also be considered; however, respondents shall submit their proposed location and confirm/verify that all required utility connections are available and of sufficient supply. The awardee will be responsible for the cost of making any utility improvements to correct for insufficiencies.

Upon project completion, the Government will take ownership of the facility whether located at the HSAAP GOCO or at an alternative site.

The priorities to the Government include, but are not limited to, production capacity, schedule, technical risk in the design, build, and commissioning of a manufacturing facility, total costs of commissioned facility, unit production cost, and planned operational efficiency.

RESPONSE REQUIREMENTS

Individual companies, teaming arrangement(s), or partnerships of companies are invited to respond to this notice. Interested respondents shall address the following:

1. Describe team members and roles including any teaming arrangements (letters of commitment, Joint Ventures, etc.). If a respondent does not have adequate resources (technical, manufacturing, personnel, etc.) available, the respondent must be able to demonstrate its ability to obtain those resources, to include, but not limited to, safety and modern automation practices in an explosive environment.

2. Describe the respondent's background and experience in each of the following essential areas, to include dates and locations:

a. Explosive Safety Site Plan preparation IAW DoD 6055.09-M (Defense Explosive Safety Regulation)

b. Process design related to explosives manufacturing and other related processes

c. Environmental permitting and compliance (local, state, federal)

d. Large scale facility construction

e. Chemical or Energetic facility operations and commissioning

3. Describe the proposed technology process, and waste treatment solutions including:

a. Technical description of relevant technology(ies) to be utilized

b. Representative layout of an explosives manufacturing facility capable of producing six million pounds to eight million pounds per year of IMX-104, including Net Explosive Weight (NEW) in each building, for at least the following operations/facilities:

▪ Spent acid reconcentration (if the proposed location is not HSAAP)

▪ Raw materials receipt and storage

▪ Nitration, recrystallization, formulation, and packaging

▪ Analytical testing

▪ Waste treatment, waste-water treatment and air emission controls

c. Overall annual throughput including operational availability basis of the calculation. Note, the Government typically considers 85% operational availability against design capacity as reasonable for explosives manufacturing lines. Describe the turn-down capacity of the processes and the minimum throughput to maintain efficient operations as well as provide the Minimum Sustaining Rate.

d. Utilities requirements, specifications, and consumption (e.g. electricity, process water, cooling water, steam, natural gas, and compressed air).

e. Evidence provided that the proposed solution can be operated at sufficient scale to verify operating feasibility and reliability.

f. Ability to meet U.S. standards, if using a foreign design.

4. Demonstrate current CONUS manufacturers for key raw materials or include a plan to establish a CONUS source. CONUS sources for raw materials are preferred; however, OCONUS source(s) will be considered. If OCONUS source(s) are to be used, identify current OCONUS manufacturers for key raw materials or include a plan to establish an OCONUS source.

5. Provide the cost for the design, construction, and commissioning of a complete manufacturing facility, broken down by each proposed building/facility. Provided cost should include all assumptions.

6. Provide a notional list of buildings/facilities with approximate size and net explosive weight by hazard class (e.g. 1.1, 1.3) in each and include ESQD (Explosive Safety Quantity Distance) Arc requirements.

7. Provide a breakdown of manufacturing and engineering personnel required

(numbers, experience, specialized skill sets).

8. Provide an estimate for the scrap rates of explosive scrap material and plans to handle and/or dispose explosive scrap.

9. Discuss commissioning and transition plans for the facility.

10. Provide an Integrated Master Schedule outlining activities and milestones to design, construct, commission, and transition the facility.

11. Describe any potential solutions that would allow the Government to configure/re-configure the facility to support surge requirements.

12. Discuss assumptions and major cost drivers of the proposed technology solutions and building design and construction.

Respondents should provide sufficient details to allow the Government to make a reasonable assessment of the respondent's capabilities to build an explosive manufacturing facility and the required infrastructure, including all relevant assumptions.

All interested sources are hereby informed that the Government intends to assess the information submitted in response to the sources sought and thereon make a determination as to which response, including all aspects logically encompassed therein, would be in the public’s best interest for the award and execution of a sole source contract for the design, build, and commissioning of such a facility.

As part of its assessment and comparison of the technologies, teaming arrangements, and potential site locations for the facility, the Government will specifically take into consideration the following:

1. The proposed technology for the synthesis, purification, formulation, flaking, and packaging of IMX-104, as well as the proposed technology(ies) for the management and treatment of the production-related waste streams; the extent to which those technologies have been proven viable (e.g. has been proven at full-rate production, is environmentally sound, and can be adapted to U.S. standards); and, the benefits and drawbacks or risks of the proposed technologies. The Government will consider the completeness of the IMX- 104 process information, including the associated risks and benefits.

2. The proposed technology provider’s demonstrated capability of, and recent experience with, providing or operating the proposed technologies. The proposed team’s collectively demonstrated capability of, and recent experience with, designing, constructing, fabricating equipment for, and commissioning an IMX-104 or similar facility.

3. The proposed operator’s ability to successfully operate an IMX-104 facility in the U.S. The Government will consider whether the proposed operator has recent experience with operating an IMX-104 facility or an explosives manufacturing plant, with consideration given to the location, size, and complexity of said explosives plant.

4. The viability and efficiency of the process solution during post-construction operations. The team’s demonstrated capability of constructing buildings for the production of IMX-104 or similar explosives with an expected 50+ year lifecycle and constructing, maintaining, and operating process equipment for IMX-104 or similar explosives with an expected 20-year lifecycle; if applicable, the viability of the proposed team’s IMX-104 operating plan and its demonstrated capability to execute said plan over the plant’s expected life cycle (process efficiency, operational availability, energy consumption, etc.);

and, the proposed operator’s demonstrated commitment to sustaining the equipment, facility capabilities, workforce, and production levels to ensure the Government’s IMX-104 requirements (DoD end use and foreign military sales (FMS)) are consistently and satisfactorily prioritized and met throughout that lifecycle, as well as its intentions in relation to supplementing Government orders with commercial orders or international direct sales.

5. The proposed schedule for the design, construction, and commissioning of the facility, and the extent to which the team has demonstrated the achievability of that schedule. The Government will consider the benefits and risks associated with the schedule, including the extent to which the vendor/team’s commitment to achieving the schedule and benefits to the Government will be secured by, and risks to the Government will be mitigated by, and any proposed terms and conditions submitted by the interested party for inclusion within the prime contract and reinforced in relevant subcontracts.

6. The total cost/price to the Government for the proposed technologies, the design and construction of the facilities, and capital investment; the extent to which the team has committed to self-investment in the technologies and/or facilities or other proposed cost-sharing or profit-sharing arrangements;

potential areas for cost savings to the Government; the extent to which the team has demonstrated the proposed process and plant operating model will result in competitively-priced IMX-104; and all cost-related assumptions for construction (for example: make or buy decisions, on-site versus off-site hazardous waste treatment) and identified or anticipated factors that could impact construction cost/price. If applicable, the proposed cost per pound for follow-on production of IMX-104 assuming two, five, or ten years of fixed prices, and assuming no Government direct funding during post-construction operations; include all cost-related assumptions, and identified or anticipated factors that could impact product cost/price; the party’s demonstrated commitment to performing the contract within a not-to-exceed price ceiling;

and the extent to which that commitment and benefits to the Government will be secured by, and risks mitigated by, any proposed terms and conditions submitted by the interested party for inclusion within the prime contract and reinforced in relevant subcontracts.

7. The teaming arrangement being proposed and intended contractual relationships (e.g. Joint Venture, prime/subcontractor, lessor/lessee) between the interested party submitting the response (i.e. the intended prime contractor), the technology provider (if not the submitting party/prime contractor), the entity(ies) who will design and build the facility, the entity who will commission the facility (if not the submitting party/Prime Contractor), and, transition to the operator of HSAAP, if located at HSAAP. The Government will consider the benefits and drawbacks or risks associated with the proposed teaming arrangements and expected contractual relationships, including the extent to which benefits to the Government will be secured by, or risks to the Government will be mitigated by, any proposed terms and conditions submitted by the interested party for inclusion within the prime contract and by the terms and conditions of legally-binding commitment letters, Joint Venture agreements, subcontracts, leases, or third-party contracts.

8. The viability of, and benefits, drawbacks, and risks associated with the potential site. The Government’s consideration will include, but not be limited to: accessibility of supporting infrastructure; size and type of available space;

the planned footprint of the facility and potential for expansion; identified options for additional capacities and capabilities for other explosives; projected cost differentials; projected cost savings (savings on this project and subsequent IMX-104 production, and on other relevant DoD contracts);

impacts on current production-related activities at the site; impacts on production activities across the DoD footprint; impediments to implementing hazardous waste disposal or treatment; necessary environmental permits;

necessary National Environmental Policy Act (NEPA) assessments;

availability of a capable workforce; competing programs; the Government’s continued access to, and control over, the facilities and equipment; and, national security concerns. The Government will consider the extent to which benefits to the Government will be secured by, and risks to the Government will be mitigated by, commitments from all proposed teammates, proposed terms and conditions submitted by the interested party for inclusion within the prime contract, and inclusion of those terms and conditions in any subcontract, lease, or other legally binding agreement.

SUBMISSION INSTRUCTIONS

1. Interested contractors must be registered in the System of Award Management

(SAM).

2. Submissions for this notice must be provided no later than 5:00 PM CT June 30, 2025 October 10, 2025 at no cost to the Government by electronic mail (email) to Mr. Warren Stropes at warren.l.stropes.civ@army.mil and Ms. Josie Hennings at josephine.l.hennings.civ@army.mil.

3. If the file size of the response to this Sources Sought exceeds 5 MB, then respondents may email Mr. Stropes and Ms. Hennings to request a drop off via DoD Safe. All inquiries shall be made via e-mail ONLY. TELEPHONE INQUIRIES

WILL NOT BE ACCEPTED.

4. All information provided will not be returned and will be held in confidential status.

5. Provide company name, address, telephone number, email address, technical point of contact, web URL (if applicable), and company size (please specify as either a Large Business, Foreign-Owned Business, Small Business, Small Disadvantaged Business, Woman-Owned Small Business, Historically Underutilized Business Zone concern, Veteran- Owned Small Business, or Service-Disabled Small Business).

6. Response shall include Unique Entity Identifier (UEI), Commercial and

Government Entity Code (CAGE), and business type/size based on NAICS. If small, please indicate any applicable socio-economic status such as: Small Disadvantaged Business (SDB), Service-Disabled Veteran-Owned Small Business (SDVOSB), 8(a), HUB Zone, etc.

7. Response shall include documentation of technical expertise and capability in sufficient detail for the Government to adequately assess the capabilities of your company. It is imperative that business concerns responding to this sources sought articulate their capabilities clearly and adequately.

8. Classified material and material samples will not be accepted.

INDUSTRY DAY INFORMATION

The ACC-RI, PL JS, and Joint Munitions Command (JMC) hereby offers interested parties with capabilities to meet the requirements of this Sources Sought notice an opportunity to participate in an Industry Day at HSAAP. The purpose of the event is to ensure interested vendors have an understanding and uniform interpretation of the requirement. The Government intends to hold Industry Day tentatively the week of 29- 30 Apr, 2025, at HSAAP, which will include a tour of the potential site at HSAAP as well as one-on-one meetings and open forum Question and Answer (Q&A) session. The Government will limit each one-on-one meeting to no more than 30 minutes. Offerors are encouraged to submit all questions in writing at least five days prior to the industry day. Respondents shall send all questions, prior to and after the event, to the PCO and contract specialist listed below. After the event, the Government will amend this notice to attach an abstract of the Q&As as well as a list of attendees.

Vendors are cautioned that, while attendance is not mandatory, information presented during the event may be valuable and the Government cannot guarantee equal dissemination of all commentary to interested vendors. An interested vendor that does not participate does so at its own risk. The Government staff at HSAAP will vet all attendees accessing the facility using the National Crime Information Center.

**Update**

The Government intends to hold a second Industry Day the first week of June. This second Industry Day will be held virtually utilizing MS TEAMs. The Government will not be giving a presentation, but intends to make itself available for Questions & Answers from industry. Vendors wishing to participate in this virtual event to must email a request to Mr. Warren Stropes at warren.l.stropes.civ@army.mil and Ms. Josie Hennings at josephine.l.hennings.civ@army.mil no later than 4:00 PM (Central) on May mailto:warren.l.stropes.civ@army.mil mailto:josephine.l.hennings.civ@army.mil

23, 2025 so that the Government can schedule each requestor a (maximum) 45 minute time slot. The Government additionally requests that any vendor taking part in the virtual Industry Day also provide a list of questions along with its request so that the Government can provide informative responses.

***Update June 5th 2025***

The Government stated in the Question and Answer document posted June 4, 2025 that copies of Holston facility related documents could be viewed on site at Holston, but would not be posted to SAM.gov due to their sensitive nature. The USG will allow viewing of information related to Geographic Information System (GIS) utility maps and explosive arcs only. If vendors would like to view these documents the USG will allow viewing on Tuesday June 10, 2025 and Friday June 13, 2025. Each company can send no more than 4 people to view the documents. No pictures or copies of the drawings or information is allowed. Vendors in attendance will have viewing limited to 2 hours. Any interested vendor must submit a request to Mr. Warren Stropes at warren.l.stropes.civ@army.mil and Ms. Josie Hennings at josephine.l.hennings.civ@army.mil no later than 4:00 PM (Central) on June 06, 2025 for vendors wishing to attend on June 10th and no later than 4:00PM (Central) on June 10th for vendors wishing to attend June 13th. Request must include name, date of birth, and Social Security Number of individuals planning to attend to allow the Government staff at HSAAP to vet all attendees accessing the information using the National Crime Information Center. Attendees must bring along a photo ID or they will not be allowed to view.

All interested vendors may submit additional questions to the USG by 4:00PM (Central) on June 20, 2025. The Government may not be able to respond to questions submitted after that date.

DISCLAIMER

The Government does not intend to reimburse any contractors for any information or administrative costs associated with responding to this notification. Participation in this effort is strictly voluntary and any of the information stated above is subject to change.

Respondents are responsible for appropriately marking any proprietary information.

mailto:warren.l.stropes.civ@army.mil mailto:josephine.l.hennings.civ@army.mil