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The Defense Logistics Agency (DLA) Strategic Materials intends to acquire fluid catalytic cracking (FCC) catalyst Lanthanum Oxide Powder or Lanthanum Carbonate Powder materials.

AMENDMENT 001 TO SOLICITATION # SP8000-23-R-0002.

Solicitation SP8000-23-R-0002 is hereby amended as follows:

Questions and answers submitted in response to the solicitation are provided in the attachment titled, "QUESTIONS AND ANSWERS IN RESPONSE TO LANTHANUM POWDER SOLICITATION" and are also posted in the description:

QUESTION #1: “My supplier is requesting advice; if China is an acceptable Country of Origin for the 4,000 Metric Tons of Lanthanum Powder?”

Answer: The awardee is responsible for complying with all applicable laws and contractual terms and conditions. You can find the terms and conditions within the solicitation and full-text clauses, with their associated policies, at https://www.acquisition.gov/content/regulations. Note that the United States may, acting in its sovereign capacity, amend without notice laws and rules relating to international sourcing of materials or international trade in general. Such an amendment might not relieve the contractor of its responsibility to perform an executed contract. As such, sourcing from countries not involved in international armed conflict or otherwise presenting risky sourcing profiles may be advisable.

QUESTION #2: “My supplier is also requesting advice: Are there any Countries of Origin for the 4,000 Metric Tons of Lanthanum Powder that ARE NOT acceptable, or discouraged? “I do know that on another product we were working on that Russian Origin was OK, but discouraged, due to Russia being ‘Belligerent’.”

Answer: The awardee is responsible for complying with all applicable laws and contractual terms and conditions. You can find the terms and conditions within the solicitation and full-text clauses, with their associated policies, at https://www.acquisition.gov/content/regulations. Note that the United States may, acting in its sovereign capacity, amend without notice laws and rules relating to international sourcing of materials or international trade in general. Such an amendment might not relieve the contractor of its responsibility to perform an executed contract. As such, sourcing from countries not involved in international armed conflict or otherwise presenting risky sourcing profiles may be advisable.

Question #3: Is there an opportunity to extend the bid deadline beyond March 13th?

Answer: Currently, the Government does not expect to extend the close date of the solicitation effective March 13, 2023, at 3:00 PM ET. Submit your proposal to dcso-f2contracting@dla.mil with solicitation number SP8000-23-R-0002: Offerors are strongly encouraged to confirm receipt of their proposals after submission. Proposals submitted via US mail will not be accepted.

Question #4: For the Option periods (2024, 2025, 2026) – when and how will those options be exercised?

Answer: The Government will not award the Base Period and exercise all four (4) Option Periods at the same time. As referenced in the solicitation under FAR 52.217-7 Option for Increased Quantity-Separately Priced Line Item, “The Government may require the delivery of the numbered line item, identified in the Schedule as an option item, in the quantity and at the price stated in the Schedule. The Contracting Officer may exercise the option by written notice to the Contractor within 30 days. Delivery of added items shall continue at the same rate that like items are called for under the contract unless the parties otherwise agree.”

Question #5: If the additional volume commitments impact the pricing and price risk, is the DLA able to award the solicitation with formal exercise of option periods up front for the higher volumes?

Answer: The Government intends to award a contract resulting from the solicitation to the responsible offer whose proposal represents the lowest evaluated price per FAR 15.101-2. Under each Contract Line Items (CLIN) that requires the purchase of Lanthanum Powder within the required Metric Tons, the price for the purchase of the specified volume of Lanthanum Powder will be for a firm fixed price, and this includes the purchase of the Lanthanum Powder under the Base Quantity CLIN and four (4) 12-month Option Quantity CLINs.

AMENDMENT 002 TO SOLICITATION # SP8000-23-R-0002.

Solicitation SP8000-23-R-0002 is hereby amended as follows:

Questions and answers submitted in response to the solicitation are provided in the attachment titled, "MORE QUESTIONS AND ANSWERS IN RESPONSE TO LANTHANUM POWDER SOLIC.-3.7.23" and are also posted in the description:

QUESTION #6: What’s meant by rotation and will we have to take back material after every 18 months. This because the shelf life is unlimited.

ANSWER: In accordance with Section 3 of the Statement of Work, rotation means the age of the material in the DLA stockpile shall not exceed 12 months. For context, rotation is defined by processing the material through internal plant operations consumption, and then replenishing the inventory back to 100% with new material of the same type. DLA has determined that this material has a shelf life of 18 months.

QUESTION #7: In case we have to take back material and replace that inventory, will we be compensated for that material.

ANSWER: In accordance with Section 3 of the Statement of Work, the material shall be rotated by the contractor so the age of the material in the DLA stockpile will not exceed 12 months. The material rotated out on a first in first out bases will be processed through the contractor’s internal plant operations consumption. No compensation for material rotated out will be provided.

QUESTION #8: Do we have to give a firm price for each year upfront? How would a significant change in market price be addressed or figured into the equation?

ANSWER: As referenced under each Contract Line Item (CLIN) within the SF1449 Solicitation, all pricing terms will be awarded as Firm Fixed Price. It will be the responsibility of the contactor to determine the escalation of option pricing due to forecasted (by the offeror) changes in the market for each period of performance.

QUESTION #9: Can the DLA rescind on the multi-year options? Especially if a firm price for each year is required upfront.

ANSWER: The DLA can choose not to exercise an option year.

QUESTION #10: Is there any way to understand the margin that exists to work with over the cost of the actual material?

ANSWER: The margins in excess of actual material cost are business decisions made solely by each individual offeror and cannot be provided by the Government.

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