HSAAP 2nd Industry Day 15Sep21-Final.pdf

15Sep21 Final

UNCLASSIFIED / DISTRIBUTION STATEMENT A:

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Holston Army Ammunition Plant (HSAAP) Industry Day #2

September 15, 2021

Mr. Ben Gillen Contracting Officer Army Contracting Command Rock Island Arsenal, IL

Ms. Leslie Ben’Ous Program Management Engineer Project Director Joint Services Picatinny Arsenal, NJ

Mr. Eric Persson Program Management Engineer Project Director Joint Services Picatinny Arsenal, NJ

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HSAAP Industry Day Agenda

• 0845 – 0920: Participants Log Into Meeting

• 0920 – 0930: Final Audio/Visual Check

• 0930 – 1100: Industry Update

– Opening Remarks

– Acquisition Strategy

– Anticipated Contract Terms & Conditions

– Modernization Briefing

– Closing

• 1100 – 1130: BREAK

• 1130 – 1730: One‐on‐One Discussions

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• Industry Day is for information and planning purposes only and does not constitute a formal solicitation or Request For Proposal (RFP)

– The Government does not intend to award a contract on the basis of Industry Day or otherwise pay respondents for participation in this event

– Milestones, timeframes, and quantities are estimates only; Do not rely on information presented today in formulating proposals

– Should a formal RFP be issued, any information contained within the RFP supersedes the information presented here

– No Government personnel, except for the Contracting Officer, can make any commitments on behalf of the Government

• Questions and Comments

– This briefing package, along with all information, questions and answers (Q+A) will be posted to SAM.gov

– Since all Q+A will be posted to SAM.gov, no proprietary information should be included

• No pictures or recording of briefing information is permitted

Disclaimer

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• Provide potential offerors with a general program overview

• Initiate dialogue with industry during one‐on‐one sessions

• Solicit input and comments from industry for use in finalizing a strategy that will ensure a mutually beneficial contract for Government and industry

• Provide attendees the ability to identify potential partners

• Encourage open and continuous exchange of information and ideas throughout this process

Industry Day Objectives

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Acquisition Milestones*

Subject to Change

FY21 FY22 FY23 FY24

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Current Facility Contract Current Supply Contract New Contract**

Industry Day #1 (Oct 20)

Industry Day #2 (Sep 21)

Draft RFP Release (Nov 21)

Industry Day #3 (Jan 22)

Final RFP Release (Apr 22)

Initial Proposals

Due (Jun 22)

Discussions (if needed)

(Sep 22)

Final Proposals

Due (Jan 23)

Contract Award (Apr 23)

*Government Fiscal Year is 1 Oct to 30 Sep.

**New contract will include both Supply and Facility. Overlap with Current Facility Contract represents transition period.

Facility Tour (May 21)

• Current contract expires for ordering purposes 30 SEP 2022

• Current operator will maintain full operational control through 31 DEC 2023

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Holston Overview/Acquisition Strategy

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HSAAP Explosives Production History

• Includes production orders from all U.S. Government customers

• Government ‐> Operator

• Government ‐> 3rd‐party ‐> Operator

• Excludes non‐Government sales

• Commercial Buyer ‐> Operator

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Historical Production Base Support Investments

Production Base Support investments are determined through an annual budgeting process that balances Holston AAP’s facility needs, other AAP needs, Government priorities and available resources.

$0M

$50M

$100M

$150M

$200M

$250M

$300M

$350M

PB

S In ve st m en ts

Government Fiscal Year

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Armament Retooling and Manufacturing Support (ARMS) Tenants

• HSAAP’s incumbent operating contractor executes an active ARMS Program that must be transitioned to the new operating contractor to retain existing ARMS Tenant Use Agreements (TUA)

– ARMS Program was authorized by the ARMS Act of 1992 (10 USC Sections 7551‐7555)

– Scope provides for commercial, third party, and tenant use of facilities with USG approval

– ARMS revenue is approved by PD JS for funding facility infrastructure improvements, renovations for tenants, and compensation to the operating contractor for performance of ARMS related activities

Current Tenant Industry TUA Final Expiration Date

Steve Morgan Construction Modernization support December 2021

McCurry Environmental Consultants Environmental support for prime contractor January 2022

Transit Mix Concrete Company Concrete manufacturing – In Area A May 2022

JTH Engineering Maintenance and modernization support October 2022

Interactive GIS GIS support for prime contractor January 2023

Quesenberry's Construction Modernization support December 2023

ShalePro Natural gas supplier, pipeline support December 2023

Appalachian Tank Car/Production Services Rail operations/maintenance December 2023

Holston Business Development Ctr Business Development Incubator August 2048

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• Award a Contract to a Responsive and Innovative Operator in order to:

1. Safely and effectively operate, maintain and modernize the facility while ensuring production continuity.

2. Deliver top quality product.

3. Have assured and resilient production capabilities that can flex to multiple world situations.

4. Have a focus on efficiency and continuous improvement.

5. Ensure affordable, stable pricing for customers.

Holston AAP Acquisition Objective

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• Acquisition Strategy has been formally approved

• Competition will be limited to U.S. companies and use a Best Value Tradeoff Source Selection

• Approach will be structured as One (1) RFP, One (1) Proposal, and One (1) contract:

– Property Management: Costs for base support operations included in production item unit prices

– Production: Firm‐Fixed‐Price (FFP) Requirements Contract Line Item Numbers (CLINs) for Production Items

– Modernization Projects: FFP or Cost‐Plus‐Fixed‐Fee dependent on scope/complexity/risk

• Modernization Projects may be awarded to the operating contractor, through U.S. Army Corps of Engineers or directly to another 3rd‐party

• Duration: 20 years (Apr 2023 – Mar 2043)

– 5‐year base award and evaluated 5‐year option awarded with base

– Two unevaluated 5‐year options

– Followed by 12‐month transition (timing dependent on option award decisions)

Acquisition Strategy

Contract Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

HSAAP

Contract 5‐year Base Award Evaluated 5‐year Option 1st Unevaluated 5‐year Option 2nd Unevaluated 5‐year Option Follow‐on contract

Transition in Transition out

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Anticipated Contract Terms & Conditions

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• Ongoing Modernization Projects:

– Multiple large‐scale projects are expected to extend beyond the incumbent’s period of performance

– Successful awardee will be required to support the incumbent through completion of these efforts

• Future Modernization Projects:

– Modernization Projects may be awarded through the Holston prime contract, the U.S. Army Corps of Engineers (USACE), or other contract vehicles

– Operating contractor and subcontractors will be unable to bid on modernization competed outside of the Holston prime contract due to organizational conflict of interest (OCI)

– Successful awardee to support execution of any modernization awarded to a 3rd‐ party contractor/USACE

General Terms & Conditions

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• Research & Development (R&D) Capabilities:

– Successful awardee will be required to maintain on‐site R&D capability at Holston to support new product development initiatives, scale‐up of newly developed processes and improvements to current production processes

• Capital Investment & Intellectual Property Rights:

– Government to retain/gain ownership of physical property and unlimited rights to intellectual property (includes software and source code) used in operation of Holston:

All Government furnished property Modifications to Government furnished property Property acquired by the contractor under this contract

– Deliverables for transferable property listings and intellectual property will be required on an annual basis

• Facility Operations and Production Reporting:

– Requirement for contractor to provide actual cost data for all plant operations and production data (quantity, price, customer, etc.) for all prime, 3rd party, and commercial sales on a quarterly basis for production, facility management, modernization, etc.

– Requirement for contractor to make all 3rd‐party and commercial contracts available to the Government on a quarterly basis

General Terms & Conditions (continued)

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• The Government has established the following data repositories to post documents in support of proposal development:

– Virtual Library (VL): Online library (SAM.gov) to include, but not be limited to:

1. Baseline Facility Assessment (BFA)

2. Baseline Environmental Conditions Assessment (BECA)

3. Manufacturing Instructions

4. Standard Operating Procedures

5. Electrical Area Classifications

6. Detailed Maintenance Procedures

7. Maintenance Aids

– On‐Site Library (OSL): Potential physical library maintained at HSAAP to include documents and information deemed too sensitive to post online or which do not exist electronically Not utilized currently

– Neither library will include classified documents

Technical Data Libraries

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• Classified Data:

– The contract may require the generation, handling, and/or storage of classified material up to Secret

– If required, contractors would need to obtain a Facility Security Clearance

– Eligibility requirements can be found at: https://www.dcsa.mil/mc/ctp/

• Controlled Unclassified Information (CUI) (e.g. Distribution Statement B ‐ F):

– The contract will require access to CUI

– Firms within the U.S. and Canada must be registered with the Joint Certification Program

(JCP) via form DD2345 to receive drawings Approximately 2‐3 weeks is required for JCP certification For information on becoming certified, please visit:

https://public.logisticsinformationservice.dla.mil/PublicHome/jcp/default.aspx

– For non‐U.S. /non‐Canadian firms, there are additional steps required to obtain CUI

• Contractors must obtain a SAM.gov vendor account to access controlled data including Technical Data Packages (TDPs) and the Virtual Library documents

– TDPs to be provided with draft RFP

– Virtual Library to be continually updated throughout the acquisition

Access to Controlled Information

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• All contractors who provide goods/services to Department of Defense (DoD) must be registered in SAM. If you are not registered in SAM, you cannot be awarded a DoD contract

• Website for registering in the SAM is: http://www.sam.gov

• You may also contact the Federal Service Desk at www.fsd.gov, to request assistance with the SAM registration process

System for Award Management (SAM)

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Modernization Briefing

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Holston AAP Key Modernization Roadmap

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Expected Support to On‐Going Modernization Projects

• Per the previous chart, four modernization projects have Periods of Performance (PoP) that may extend beyond the current facility contract PoP, as well as four additional projects that may also extend beyond the facility PoP.

• Incumbent will be responsible for completion of projects that exceed the PoP, but will require support from the successful awardee.

• The successful awardee will be required to support the commissioning of these projects.

• The successful awardee will be required to maintain these new facilities after the commissioning and project closeout.

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HSAAP Projects in Execution # Title Estimated

Completion Date 1 Acetic Acid and Anhydride (AAA) plus Tank Farm Design Oct 2021 2 Flashing Furnace Design Oct 2021 3 Natural Gas Fired Steam Plant Design‐Build Nov 2021 4 Kettle Drying Preliminary Design Nov 2021 5 Transformational Production Expansion Concept Design Nov 2021 6 River Water Upgrade and Closed Loop Study Nov 2021 7 Open Burning Alternatives, EDC 65% Design (USACE) Jan 2022 8 A2B Improvements Design‐Build Feb 2022 9 Wash/Filter Design Feb 2022 10 Boxway Upgrades Design Mar 2022 11 Clarifiers 1 & 2 Construction Jun 2022 12 Recrystallization Construction Jul 2022 13 New Fluid Energy Mill (FEM) Construct Jul 2022 14 Critical Spare Parts and Facilities Maintenance Jun 2022 15 Dewatering Technology Study and Preliminary Design Evaluation Jul 2022 16 Ammonium Nitrate in Solution (ANSOL) Technology Pre‐Design Sep 2022 17 Landfill Expansion Construction Feb 2023 18 Neutralization Basins Construction May 2023 19 Analytical Lab Construction Jul 2023 20 Weak Acetic Acid Recovery Project (WAARP) plus Tank Farm Construction Sep 2023 21 Flashing Furnace Construction Nov 2023 22 Modernized Melt Cast Construction Dec 2023

21All projects and completion dates are estimates only and subject to change

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1) Acetic Acid and Anhydride (AAA) Plus Tank Farm Design

Project Description:

• This design‐only project will include a new 3 azeo train acetyl refining facility, 3rd train expansion to anhydride, and tank farm to support the production target of 15M lbs. RDX, 1.5M lbs. HMX.

Performance Objectives and Project Benefits:

• Upon future construction, provide the capacity to meet future production targets.

Estimated Completion Date: October 2021

Other Information:

• The construction scope of this project is not equivalent to the design scope.

• The construction scope is to build one azeotropic column, but infrastructure to support two additional columns. No anhydride capability is included in the construction scope.

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2) Flashing Furnace Design 18

Project Description:

• To design two identical Flashing Furnaces, each with an Air Pollution Control System along with a Material Handling & Control Building.

• Thermal treatment of explosive contaminated wastes and some explosives wastes.

• Perform explosive decontamination of equipment for maintenance/repair.

Performance Objectives and Project Benefits:

• Supports the reduction of open burning at HSAAP.

• Reduction of air emissions caused by the thermal treatment of explosive contaminated wastes and some explosives wastes.

Estimated Completion Date: October 2021

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3) Natural Gas Fired Steam Plant Design‐Build 18

Project Description:

• Additional natural gas‐fired steam is needed to support the RDX/IMX Expansion efforts. Furthermore, emissions/air permitting requirements and the coal‐fired steam plant’s age (1942) drove the need for replacement. This new facility’s steam capacity will have adequate margin to cover maintenance actions and contingency conditions of other steam sources across the facility.

Performance Objectives and Project Benefits:

• Required to meet expected facility production steam demand requirements based on 500,000 lbs/hour as well as air permitting emissions requirements.

Estimated Completion Date: November 2021

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4) Kettle Drying Preliminary Design

Project Description:

• Design a kettle drying facility that supports RDX Capacity Expansion goals. Complete a preliminary design of a modernized kettle drying facility. Utilize existing processes and facilities as the basis of design for a new facility to the maximum extent practical.

Performance Objectives and Project Benefits:

• Increase overall kettle drying capacity.

• Complete 30% design to support Phase II Design‐Build Project.

• Complete demolition of existing building to allow for smooth transition to construction.

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5) Transformational Production Concept Design

Project Description:

• Conduct Analysis of Alternatives (AoA) to select a path for the execution of the Conceptual (15%) Design.

• Prepare a conceptual design of an integrated nitration, filter and wash, recrystallization, and dewatering facility(ies)

• Capability to produce other explosive products with minimized re‐design/upgrade.

• 85% operational availability.

• Ensure minimum safety risk to personnel and facilities.

• 4M lbs/year of RDX Class 1 minimum requirement.

• Target Objectives: Dual production lines supporting 6M lbs/year RDX Class 1 and 1.25M lbs/year HMX Class 1, or 12M lbs/year RDX

Class 1 with both lines.

Performance Objectives and Project Benefits:

• Incorporate options to support future integration of the production for other explosive candidates, i.e., FOX‐7, LLM‐105, CL‐20, and NQ.

• Target Objectives: Produce a design capable of producing 6.0M lbs/year of RDX Class 1 and 1.25M lbs/year of HMX Class 1, or 12.0M lbs/year RDX Class 1 with both lines on RDX.

RDX HMX

FOX‐7 LLM‐105

CL‐20

NQ

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6) River Water (RW) Reduction & Closed Loop Study

Project Description:

• Perform a structured study focused on the Recrystallization/Formulation Buildings, Acids

Area, and other high usage areas, to develop a phased action plan for RW (cooling water) usage reduction and implementation of new process cooling technologies.

Performance Objectives and Project Benefits:

• Determine methods to reduce RW usage.

• Develop a phased action plan for RW usage reduction and implementation of new process cooling technologies.

• Influence future Clean Water Act compliance and water system resiliency projects.

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7) Open Burning Alternatives, Explosive Decomposition Chamber (EDC) 65% Design

Project Description

• Design a new Explosives Decomposition Chamber facility with Air Pollution Control for thermal treatment of appropriate waste streams produced at HSAAP.

Performance Objectives and Project Benefits:

• Supports the reduction of open burning at HSAAP.

• Reduction of air emissions caused by the thermal treatment of explosive wastes.

• Completing the design to the 65% level, submitting permits, submit site plan for Department of Defense

Explosives Safety Board (DDESB) approval, and preparing the Final Design‐Build RFP package for later release for competitive bids.

Estimated Completion Date: January 2022

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8) A2B Improvements Design‐Build

Project Description:

• To produce ~50.5M lbs/year per azeo (213 lbs/min.) of 99.5% glacial acetic acid.

• Replace top 2/3 of each azeotropic column and upgrade equipment and facility to improve performance and reliability.

Performance Objectives and Project Benefits:

• Provide the capacity to meet future acetyl refining targets.

• Longer equipment service life.

Estimated Completion Date: February 2022

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9) Wash/Filter Design

Project Description:

• Design a washing facility at HSAAP that is capable of processing 9M lbs/year of washed crude RDX (achieved by dedicating both lines to RDX) or 2.3M lbs/year of crude HMX (achieved by dedicating both lines to HMX). Project also includes relocation of Boxways and demolition of existing building.

Performance Objectives and Project Benefits:

• Increase filtration and washing capacity in support of RDX Capacity Expansion goals of 15M lbs/year RDX and 1.5M lbs/year HMX.

Estimated Completion Date: February 2022

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10) Boxway Upgrades Design

Project Description:

• Design a new boxway system in one problem area of the facility to reduce the probability and severity of an environmental incident by improving spill containment and detection in the boxway systems.

• Survey the remainder of the boxway system.

Performance Objectives and Project Benefits:

• Design new boxways to upgrade and fix current deteriorating boxways.

• Improved capability to contain small spills/leaks, as well as improved detection when they occur.

• Advance long term goals of environmental protection.

Estimated Completion Date: March 2022

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11) Clarifiers 1 & 2 Construction

Project Description:

• Construct upgrades and modernize Clarifiers 1&2 to maintain permitted environmental discharge limits for TSS (Total Suspended Solids) and BOD (Biochemical Oxygen Demand) as contained in the facility's NPDES (National Pollutant Discharge Elimination System) permit.

Performance Objectives and Project Benefits:

• Allows increase in production of explosives while maintaining compliance with environmental permits and avoiding production shutdowns due to waste water exceedances about NPDES permit limitations.

Estimated Completion Date: June 2022

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12) Critical Spare Parts & Facility Maintenance

Project Description:

• Procure critical equipment spares and parts to prevent long‐term interruptions in the production of explosives and execute facility maintenance to repair or replace failed or failing infrastructure.

Performance Objectives and Project Benefits:

• Critical spares procurement will reduce manufacturing downtime and support operational capability of explosives production in the event of a critical equipment failure.

Estimated Completion Date: June 2022

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13) Recrystallization Construction 18

Project Description:

• Provide additional RDX/NQ recrystallization and formulation (slurry coating) capacity to support the RDX/IMX Expansion efforts.

• Construct, commission, and fully transition to production a fully modernized facility.

Performance Objectives and Project Benefits:

• Recrystallization & Dewatering capacity of 3M lbs/year of NQ or 7.5M lbs/year of RDX

• Formulation capacity of 3.5M lbs/year of RDX products.

• Safety, environmental and ergonomic improvements.

Estimated Completion Date: July 2022

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14) New Fluid Energy Mill (FEM) Construct 18

Project Description:

• Additional RDX FEM capacity is needed for the RDX Expansion.

• Construct a new facility that produces RDX FEM material. FEM or finely ground RDX is a key component of explosives formulations to support Air Force bomb and other products.

Performance Objectives and Project Benefits:

• Increase in capacity to meet production requirements.

Estimated Completion Date: July 2022

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15) Dewatering Technology Study and Preliminary Design Evaluation

Project Description:

• Perform a detailed engineering study to evaluate dewatering technologies that are compatible with the explosive manufacturing processes at Holston Army Ammunition Plant.

Performance Objectives and Project Benefits:

• Incorporating up‐to‐date dewatering technology to potentially:

• Increase throughput rates by shortening dewatering times

• Prevent contamination by utilizing a closed system design

• Improve product consistency for a more uniform moisture profile

Estimated Completion Date: July 2022

Examples of dewatering technologies under study

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16) ANSOL Technology Pre‐Design

Project Description & Benefits:

• Design a new permanent on‐site facility for a safe, effective, and economically viable treatment for the ANSol byproduct stream produced at HSAAP. Includes requirements for an ANSol Tank Farm. This effort supports the modernization initiative to expand annual production capacity of RDX at HSAAP.

• Final Design‐Build RFP is near completion to be released for competitive bids.

• Capability not expected to be complete until 2027.

Estimated Completion Date: September 2022

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17) Landfill Expansion Construction

Project Description:

• This project is to increase onsite Class II landfill capacity by approximately 500,000 cubic yards, to close approximately 2 acres of the existing landfill and to construct a leachate management system for continuous wastewater removal of the entire landfill. The new leachate management system will serve both the existing landfill and the northeast expansion.

Performance Objectives and Project Benefits:

• The landfill expansion (new landfill) will meet the environmental landfill permit requirements as well as meet HSAAP’s future solid waste needs.

Estimated Completion Date: February 2023

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18) Neutralization Basins Construction

Project Description:

• Construct upgrades and modernize Basins to monitor and control the pH by neutralizing the expected increased levels of Sodium Hydroxide due to RDX production capacity expansion and maintain environment regulations as contained in the facility's National Pollutant Discharge Elimination System (NPDES) permit.

Performance Objectives and Project Benefits:

• Increase in production of explosives while maintaining compliance with environmental permits and avoiding production shutdowns due to waste water exceedances of the NPDES permit limitations.

Estimated Completion Date: May 2023

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19) Analytical Lab Construction

Project Description:

• Construct a new modernized Analytical Laboratory at HSAAP to support RDX Capacity

Expansion goals.

Performance Objectives and Project Benefits:

• Provide a fully modernized Analytical Laboratory that is closer to production operations.

• Allows an increase in testing capacity to support RDX Capacity Expansion goals.

Estimated Completion Date: July 2023

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20) WAARP plus Tank Farm Construction 18

Project Description:

• To construct a two train WAARP Facility and associated Tank Farm to support RDX / HMX capacity goals.

• To construct a WAARP Facility that has the capacity to recover 334M lbs/min per train of Weak

Acetic Acid coming from the nitration process at 85% operational availability.

Performance Objectives and Project Benefits:

• Provide a fully modernized WAARP facility with Tank Farm to support the increased RDX /

HMX capacity goals.

Estimated Completion Date: September 2023

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21) Flashing Furnace Construction 18

Project Description:

• To construct one Flashing Furnace with an Air Pollution Control System along with a Material

Handling & Control Building.

• Thermal treatment of explosive contaminated wastes and some explosives wastes.

• Perform explosive decontamination of equipment for maintenance/repair.

Performance Objectives and Project Benefits:

• Supports the reduction of open burning at HSAAP.

• Reduction of air emissions caused by the thermal treatment of explosive contaminated wastes and some explosives wastes.

Estimated Completion Date: November 2023

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22) Modernized Melt Cast Construction

Project Description:

• Build a modernized melt cast facility capable of blending RDX and IMX castable explosives in steam jacketed kettles. The molten product is then cast onto a water cooled flaker belt before being chipped into solid explosive flakes for final packaging and shipping.

Performance Objectives and Project Benefits:

• Construct, commission, and transition to production a facility capable of manufacturing both Dinitroanisole (DNAN) based and TNT based formulations with an annual casting capacity of 4M lbs. of IMX in support of the IMX Capacity Expansion.

Estimated Completion Date: December 2023

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• Based on today’s presentation, industry is invited to provide comments/questions on the upcoming acquisition

• Comments/questions should be submitted by 30 September 2021 to Contracting Officer and Contract Specialist:

– Contracting Officer benjamin.j.gillen.civ@mail.mil

– Contract Specialist jacob.t.harrison15.civ@mail.mil

Questions

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• All information provided today is TENTATIVE and subject to change.

• All information regarding HSAAP acquisition, to include future industry day announcements, draft solicitation, Q&A will be posted on beta.sam.gov website

• Search SAM.gov for Solicitation Number “W52P1J‐19‐R‐0142”

• It is the responsibility of the contractors to check this website frequently for the latest information regarding this acquisition.

• Industry feedback is requested and valued

Conclusion