DLA STRATEGIC MATERIALS

8725 John J. Kingman Road

Suite 3229

Fort Belvoir, Virginia 22060-6223

Telephone (571) 767-6500

https://www.dla.mil/HQ/Acquisition/StrategicMaterials

Issue Date: 

DRAFT

DLA-STOCKPILE MATERIALS-001-

(AUCTION)

AUCTION SOLICITATION

FOR STOCKPILE MATERIALS
DLA-Stockpile Materials-001-(Auction)

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Sales Agreement Form DRAFT
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TABLE OF CONTENTS

SALES AGREEMENT FORM DRAFT..................................................................................................2

SECTION A – AGREEMENT/CONTRACT FORM .............................................................................5

A.1. INTRODUCTION (SEP 19)..............................................................................................................................5

A.2. AUCTION SOLICITATION AND CONTRACT (SEP 19)....................................................................................5

A.3. WEB PAGE (SEP 19) .....................................................................................................................................5

A.4. MATERIAL DESCRIPTION (SEP 19)..............................................................................................................6

A.5. FINANCIAL EXPOSURE LIMIT (JUN 17).......................................................................................................6

A.6. INSPECTION (JUN 17)...................................................................................................................................7

A.7. FOREIGN TRADE REGULATIONS (MAR 11).................................................................................................7

A.8. WOOD PACKAGING MATERIALS REQUIREMENTS (JUN 06).......................................................................7

SECTION B – REGISTRATION TO PARTICIPATE IN THE SALES PROGRAM (SEP 19) ........8

SECTION C – QUOTES..........................................................................................................................11

C.1. SUBMISSION OF QUOTES (SEP 19) .............................................................................................................11

C.2. WEBSITE INFORMATION (JUN 17).............................................................................................................12

C.3. ONLINE QUOTE SUBMISSIONS (SEP 19).....................................................................................................13

C.4. OFFER PRICE (JUN 17)...............................................................................................................................13

C.5. PRICE ADJUSTMENTS FOR SPECIFIC MATERIALS (JUN 17) .....................................................................13

C.6. MINIMUM QUANTITY (JUN 17)..................................................................................................................14

C.7. LATE SUBMISSIONS, MODIFICATIONS, AND WITHDRAWALS OF QUOTES (SEP 19).................................14

C.8. CONSIDERATION OF QUOTES (OCT 13).....................................................................................................14

C.9. RESPONSIVENESS OF QUOTES (JUN 17).....................................................................................................15

C.10. EVALUATION OF QUOTES (JUN 17) .......................................................................................................16

C.11. TIE QUOTE PROCEDURES (JUN 17).......................................................................................................16

C.12. CONTRACT AWARD (OCT 13)................................................................................................................16

C.13. UNSUCCESSFUL QUOTERS (OCT 13)......................................................................................................16

SECTION D – PAYMENT ......................................................................................................................17

D.1. PAYMENT (JUN 17).....................................................................................................................................17

D.2. PAYMENT DUE DATE (NOV 13) .................................................................................................................17

D.3. INTEREST (NOV 13)....................................................................................................................................18

D.4. PENALTY AND ADMINISTRATIVE CHARGES (MAY 04).............................................................................18

SECTION E – MATERIAL REMOVAL...............................................................................................19

E.1. REMOVAL OF MATERIAL (AUG 09)...........................................................................................................19

E.2. STORAGE CHARGES (JUN 17)....................................................................................................................19

SECTION F – SHIPPING........................................................................................................................20

F.1. REQUEST FOR SHIPMENT (JUN 17)............................................................................................................20

F.2. INSURANCE REQUIREMENTS (DEC 07)......................................................................................................21

F.3. WEIGHING (JUN 17)...................................................................................................................................22

F.4. WEIGHT DISCREPANCY (JUN 17) ..............................................................................................................22

F.5. ASSUMPTION OF RISK AND DISCLAIMER OF LIABILITY (JAN 02)............................................................22

F.6. ADJUSTMENT FOR VARIATION IN QUANTITY OR WEIGHT (JUN 17)........................................................22

F.7. ENVIRONMENTAL POLICY (OCT 16) .........................................................................................................22

F.8. ENVIRONMENTAL PROTECTION (JUN 17).................................................................................................23

F.9. ACCIDENT REPORTING (AUG 09)..............................................................................................................24

SECTION G – CONTRACT ADMINISTRATION DATA..................................................................25
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G.1. AMENDMENTS AND MODIFICATIONS (MAR 11)........................................................................................25

G.2. TITLE (JAN 15)...........................................................................................................................................25

G.3. RISK OF LOSS (JAN 15)..............................................................................................................................25

G.4. LIMITATION ON GOVERNMENT’S LIABILITY (JAN 14).............................................................................25

G.5. AGENCY PROTESTS (JUN 17).....................................................................................................................25

G.6. DISPUTES (MAR 11) ...................................................................................................................................27

G.7. DEFAULT (JAN 14) .....................................................................................................................................28

G.8. APPLICABLE LAW FOR BREACH OF CONTRACT CLAIM (JUL 06)............................................................29

G.9. BANKRUPTCY (JAN 07) ..............................................................................................................................29

G.10. TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (DEC 97) ..................................................30

G.11. EXCUSABLE DELAYS (DEC 07) ..............................................................................................................30

G.12. SETOFF OF FUNDS (MAY 04)..................................................................................................................31

G.13. INDEMNIFICATION AGREEMENT (JAN 02) ............................................................................................31

G.14. COVENANT AGAINST CONTINGENT FEES (JAN 95) ..............................................................................31

SECTION H – DEFINITIONS (SEP 19)................................................................................................33

SECTION I – SUBMITTALS..................................................................................................................35

I.1. QUOTE/AWARD FORM (SEP 19) [SAMPLE ONLY] DRAFT.................................................................36

I.2. QUOTE ITEMS..............................................................................................................................................37

I.3. CERTIFICATE OF INDEPENDENT PRICE DETERMINATION (JAN 14) [SAMPLE ONLY] DRAFT .........38

I.4 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (OCT 15) [SAMPLE ONLY] DRAFT........39

I.5. CERTIFICATION REGARDING AUTHORIZED PERSONS (OCT 13) [SAMPLE ONLY] .............................42

I.6. TYPE OF BUSINESS ORGANIZATION (JUN 17) [SAMPLE ONLY] DRAFT............................................43

I.7. CONTRACTOR’S MAILING ADDRESS (OCT 13) [SAMPLE ONLY] DRAFT..........................................44

I.8. CONTRACTOR’S BILLING ADDRESS (OCT 13) [SAMPLE ONLY] DRAFT...........................................45

I.9. DISPUTES – AGREEMENT TO USE ALTERNATIVE DISPUTE RESOLUTION (DEC 16) [SAMPLE ONLY] 46

I.10. SPECIAL CERTIFICATIONS (JUN 17)......................................................................................................47
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PART I – THE SCHEDULE

SECTION A – AGREEMENT/CONTRACT FORM

A.1. Introduction (SEP 19)

a. The Defense Logistics Agency (DLA), DLA Strategic Materials, is soliciting 

Quotes for the sale of various stockpile materials in Fiscal Year 2020. Separate 

amendments will be issued to this Solicitation to set specific materials and 

quantities to be offered under this Solicitation DLA-Stockpile Materials-001-

(Auction) (Auction Solicitation). In future fiscal years, offerings will be dependent 

upon sales authority for the materials in those years and market conditions. 

b. Posting of offerings under this Auction Solicitation DLA-Stockpile Materials-001-

(Auction) may begin on any day on or after __________, 2020, subject to market 

conditions. 

c. This Auction-type solicitation is issued pursuant to the Sales Program Agreement 

executed by the Contracting Officer and the Contractor as part of the Contractor’s 

single-point registration (see SECTION B - REGISTRATION TO 

PARTICIPATE IN THE SALES PROGRAM (SEP 19) of this Auction

Solicitation). 

A.2. Auction Solicitation and Contract (SEP 19)

a. The terms and conditions of this Auction Solicitation, as revised by any 

Amendments thereto, shall be incorporated into any contracts resulting from 

offerings of material under this Auction Solicitation, unless otherwise specified in 

the Acceptance Letter.

b. Contracts awarded under this Auction Solicitation shall be fixed price. Contracts 

may be awarded pursuant to a Request for Quotes.

c. An executed Section I.1. Quote/Award Form, signed by a Contracting Officer, 

together with the Auction Solicitation, the Acceptance Letter, completed submittals, 

and the Amendment for a specific material, shall constitute the contract.

A.3. Web Page (SEP 19)

a. DLA Strategic Materials will post all Requests for Quotes under this Auction 

Solicitation on its online sales site at https://www.strategicmaterialssales.dla.mil. 

Auctions may be held on any DLA Strategic Materials business day of any 

month. Notice will be provided when an auction will be held in accordance with 

Section C.1.a. of this Auction Solicitation. This notice will be provided by email 

issued approximately two (2) DLA Strategic Materials business days prior to the 
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auction. At the time the notice is provided, Quoters will be able to view on the 

online sales site a listing of the items which will be offered during the auction. 

b. Quoters will be able to modify a Quote to increase the quote price(s) up until the 

time set for receipt of Quotes. However, Quoters will not be able to reduce the 

quote price(s) or withdraw a Quote within a specific number of minutes 

immediately prior to the time set for receipt of Quotes. The number of minutes 

applicable for each auction will be stated in the email provided to registered firms 

prior to the auction. 

c. DLA Strategic Materials will send email notifications when new solicitations or 

amendments are issued. Quoters that are not already receiving such notices must

sign up to receive email notifications from the DLA Strategic Materials online sales 

site, https://www.strategicmaterialssales.dla.mil.

A.4. Material Description (SEP 19)

a. A description of the materials offered for sale, including available analytical 

information, will be listed on the DLA Strategic Materials online sales site

(https://www.strategicmaterialssales.dla.mil) and the DLA Strategic Materials 

Website (https://www.dla.mil/HQ/Acquisition/StrategicMaterials). The materials

are located at the storage location(s) specified on the sites. 

b. Government records indicate that the materials conform to the data in this Section 

A.4., and as posted on the DLA Strategic Materials online sales site and the DLA 

Strategic Materials Website; however, no warranty or guarantee is made that the 

materials so conform or that they will be suitable for any particular purpose. 

A.5. Financial Exposure Limit (JUN 17)

a. DLA Strategic Materials will establish a financial exposure limit (maximum 

level of business DLA Strategic Materials intends to allow) for each Quoter. 

The financial exposure limit shall be determined based upon the following:

(1) Financial Position of the Quoter

(2) Past Performance

(3) References (Suppliers, Financial Institutions)

(4) Credit Reports

b. If the Contractor reaches its financial exposure limit, DLA Strategic 

Materials, solely at its discretion, may determine to make no subsequent 

awards to the firm until such time as the Contractor satisfactorily performs 

existing contracts or DLA Strategic Materials increases the exposure limit. 

c. All contracts awarded to a Contractor by DLA Strategic Materials will be 

applied against the Contractor’s financial exposure limit.
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d. DLA Strategic Materials may decide to make an award to a Quoter: 

(1) without the prior establishment of a financial exposure limit; or (2) at a 

dollar amount which exceeds the Quoter’s previously established financial 

exposure limit. These actions will be taken only if the Contracting Officer 

determines that the award is in the best interest of the Government.

e. A Contractor may request that the Contracting Officer conduct another 

review of its financial exposure limit at any time. 

A.6. Inspection (JUN 17)

Specific conditions for the inspection of material will be provided in separate 

amendments to this Auction Solicitation. 

A.7. Foreign Trade Regulations (MAR 11)

a. The Contractor shall determine any export license requirements, obtain any export 

license or other official authorization required for export, and carry out any U.S. 

Customs formalities for the export of any material awarded under this Solicitation.

b. The Contractor shall comply with United States Bureau of the Census, Department 

of Commerce, Foreign Trade Regulations and Export Administration Regulations 

as set forth in 15 CFR Parts 30 and 732 (latest editions).

c. The Contractor shall comply with the requirements set forth in 15 CFR 30 regarding 

filing of electronic export information (EEI).

d. DLA Strategic Materials shall not be named as the United States Principal Party in 

Interest (USPPI). DLA Strategic Materials will not execute any Shipper’s Export 

Declaration (SED) or file any EEI through the Automated Export System (AES) or 

AESDirect required by the Foreign Trade Regulations.

A.8. Wood Packaging Materials Requirements (JUN 06)

Wood packaging materials utilized in the storage and shipment of National Defense 

Stockpile materials, including, but not limited to, pallets, boxes, kegs, and dunnage 

lumber, do not meet the requirements of U.S. Department of Agriculture Regulations at 7 

CFR 319.40 or International Standards for Phytosanitary Measures (ISPM) 15, 

“Guidelines for Regulating Wood Packaging Materials in International Trade.” Stockpile 

wood packaging materials have not been heat treated or fumigated with methyl bromide 

and are not marked to indicate that they meet the requirements of these regulations and 

standards. As a result, it may not be possible to export or import these wood packaging 

materials. 

END OF SECTION A
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SECTION B – REGISTRATION TO PARTICIPATE IN THE SALES PROGRAM (SEP 19)

1. Quoters shall register to participate in the DLA Strategic Materials sales program 

by completing a single-point registration on the DLA Strategic Materials online 

sales site at: https://www.strategicmaterialssales.dla.mil. As part of the 

registration, Quoters must have previously established a Financial Exposure Limit 

with DLA Strategic Materials or must establish a Financial Exposure Limit at the 

time of registration (see Section A.5. Financial Exposure Limit (JUN 17) for 

exceptions). The single-point registration includes the completion and submittal of 

the following: Sales Agreement Form and Sections I.4., I.6., I.7., I.8., and I.9. of 

the Auction Solicitation. 

2. In order to qualify under the Auction Solicitation, a Quoter must first register for a 

DLA Strategic Materials sales account, by following the directions posted on the 

DLA Strategic Materials online sales site at: 

https://www.strategicmaterialssales.dla.mil. Complete instructions for registering for 

a sales account; establishing contact and company profiles; registering for the 

Auction solicitation type; and accepting amendments for one or more specific 

materials may be found on the DLA Strategic Materials Website at 

https://www.dla.mil/HQ/Acquisition/StrategicMaterials by clicking on the “Sales” tab 

and then the tab titled “Customer Information Guides.” The guides are available to 

assist first time users when attempting to register and develop a business relationship 

with DLA Strategic Materials. 

3. Quoters must complete the single-point registration before registering for the 

Auction solicitation type. Quoters shall register for the Auction solicitation type by 

submitting the completed Section I.5. of the Auction Solicitation.

4. Single-point registration and Solicitation type selection may only be completed 

online through the DLA Strategic Materials online sales site. Sample copies of 

submittals are provided herein; however, all registrations must be completed online. 

Acceptance of amendments for the specific materials must also be submitted online. 

Any Special Certifications required under Section I.10. of the Auction Solicitation 

shall be submitted with the amendment for the material which requires the 

certification. 

5. New sales program registrants must submit copies of the most recent income 

statement, balance sheet, list of company credit references and any other 

documentation that will verify the financial level of business transactions. Copies 

of this documentation should be emailed to the attention of the DLA Strategic 

Materials Directorate of Contracting, Business Analyst, at 

DLAStrategicMaterialsSales@dla.mil. Current participants in the sales program 

that already have an established financial exposure limit will be required to submit 

updated financial information in accordance with Item 10, below. 
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6. The Government will evaluate the single-point registration and financial 

documentation to determine whether or not the Quoter is considered responsible 

and eligible for award. A Quoter’s single-point registration will not be approved 

and Quoters will not be eligible to participate in Auction offerings unless the 

Contracting Officer makes an affirmative determination of responsibility. The 

Contracting Officer may also consider other factors in determining a Quoter’s 

responsibility, including, but not limited to, a review of exclusion records available 

in the System for Award Management (SAM) and items listed in paragraph 7, 

below. 

7. To be determined responsible and eligible for an award, all Quoters shall have 

adequate financial resources, a satisfactory performance record with DLA Strategic 

Materials, and a satisfactory record of integrity and ethics. For example, a Quoter 

may be determined to be non-responsible and therefore ineligible to participate in 

DLA Strategic Materials sales offerings or the Contracting Officer may rescind an 

approval of a single-point registration, if there is a record of poor payment (e.g., 

payments made with insufficient funds) or poor performance (e.g., failure to pay for 

or remove material on time) on any of a Quoter’s contracts. In addition to looking at 

past performance, DLA Strategic Materials will also review the financial statements 

and references submitted by the Quoter, as well as the current Dun & Bradstreet 

report and any other credit reports.

8. If the Contracting Officer determines that the Quoter is responsible, the Contracting 

Officer will approve the registration online. The Contracting Officer’s approval 

will include the completed Sales Agreement Form and an Acceptance Letter that 

will set forth the financial exposure limit and identify whether or not any specially 

requested terms have been granted. If the Contractor changes any of the submittals 

in Sections I.4., I.6., I.7., I.8., or I.9., after the registration has been approved, the 

Contractor’s registration will be returned to a “pending” status and will require reapproval by a Contracting Officer. 

9. The Quoter will not be eligible to submit Quotes until the Contracting Officer has 

approved the registration and returned the signed Sales Agreement Form and the 

Acceptance Letter. The Contracting Officer’s approval of the registration will 

enable the Quoter to access the solicitation types and the amendments for specific 

materials. However, the approval of the single-point registration does not establish 

a contractual relationship between the parties. The amendment(s) must be accepted 

before a Quoter may submit Quotes online for the material(s). Online submission is 

the only submission method permitted under the Auction Solicitation. By executing 

the Amendments, Quoters shall acknowledge and certify their acceptance of the 

terms and conditions of both the Solicitation and the Amendments, as may have 

been modified by the Acceptance Letter. 
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10. DLA Strategic Materials may require the Contractor to submit updated information, 

including financial information, at any time during the Contractor’s registration 

term. A Contractor may request that the Contracting Officer conduct another 

review of its financial exposure limit at any time. 

11. The term of the registration shall be for two years unless the Contracting Officer 

rescinds the approval of a company registration or the Auction Solicitation is 

superseded by another Auction Solicitation before that time. The Contracting 

Officer shall specify the registration period on the Sales Agreement Form and in the 

Acceptance Letter. Quoters shall be required to re-register online prior to the end of

the registration period.

END OF SECTION B
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SECTION C – QUOTES

C.1. Submission of Quotes (SEP 19)

a. DLA Strategic Materials will post all requests for Quotes under this Auction 

Solicitation on its online sales site at https://www.strategicmaterialssales.dla.mil. 

Auctions may be held on any DLA Strategic Materials business day of any 

month. Notice will be provided if an auction will be held. This notice will be 

provided to registered firms by email issued approximately two (2) DLA Strategic 

Materials business days prior to the auction. The offering notice will provide the 

following information: (1) The day of the week and date of the auction; (2) The 

starting and ending times for the auction, according to local time, Fort Belvoir, VA; 

(3) The total running time for the auction (e.g., one hour; 30 minutes; etc.); and 

(4) The number of minutes before the time set for receipt of quotes after which 

Quoters may no longer reduce the Quote price(s) or withdraw their Quote. At the 

time the notice is provided, Quoters will be able to view on the online sales site a 

listing of the items which will be offered during the auction. 

b. All Quoters registered under Section B are invited to quote.

c. A Quoter shall submit all Quotes under this Auction Solicitation electronically 

through the DLA Strategic Materials online sales site. Quotes submitted by other 

electronic means, such as by facsimile (fax) or electronic mail (email) will not be 

considered for award. Quotes submitted by U.S. Mail, commercial delivery service, 

or by hand delivery will also not be considered for award. Quotes may be revised 

on the DLA Strategic Materials online sales site to increase quote price(s) up until 

the time set for receipt of Quotes. If a Quoter wishes to reduce the Quote price(s) 

or withdraw its Quote, it must do so no later than the number of minutes specified 

in the offering notice (e.g., two minutes prior to the time set for receipt of Quotes, 

or 10:58 a.m.).

d. In order to submit a Quote, the Quoter shall complete Section I.1. Quote/Award 

Form online, along with Section I.2. Quote Items, Section I.3. Certificate of 

Independent Price Determination (JAN 14), and Section I.4. Certification 

Regarding Responsibility Matters (OCT 15).

e. Quoters seeking to alter the provisions of the Auction Solicitation and amendments 

thereto or other terms previously agreed upon shall be considered nonresponsive 

and ineligible for award.

f. Each auction will run for a set amount of time, which will be stated in the 

offering notice. All times stated in the offering notice shall be in accordance 

with local time, Fort Belvoir, VA. Quotes shall remain valid for two (2) business 

days after the end of the auction stated in the notice. This is the time set for receipt 

of Quotes. The time set for reducing Quote price(s) or withdrawal of Quotes will 

be a set number of minutes prior to this time. The offering notice will state the time 
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set for receipt of Quotes and the number of minutes prior to this time that Quote 

price(s) may be reduced or a Quote may be withdrawn. 

g. If a Quote is accepted by the Government by the time set in paragraph f., above,

after receipt of Quotes, the Quoter agrees to purchase all material quoted on at the 

price quoted and to take delivery within the contract period specified in the 

executed Section I.1. Quote/Award Form. Section I.1. will be completed by the 

Contracting Officer online.

C.2. Website Information (JUN 17) 

a. Quoters requiring additional information on sales or experiencing problems 

accessing the website between 8:00 a.m. and 4:00 p.m., local time Fort Belvoir, 

VA, Monday through Friday, Federal holidays excepted, should contact the 

following:

DLA Strategic Materials Contracting (571) 767-6500

b. At all other times, questions regarding the online sales site should be sent to DLA 

Strategic Materials at this email address: DLAStrategicMaterials@dla.mil.

c. For questions regarding online sales accounts, log in problems, or password resets, 

Quoters are advised to forward a request to the email address in paragraph b., 

above. Log in to the website requires registration for an online sales account (see 

SECTION B – REGISTRATION TO PARTICIPATE IN THE SALES 

PROGRAM (SEP 19), Paragraph 2) with a 15-character strong password. 

Note: Password resets are computer system generated and may take up to four 

hours or more to complete. As a result, the Government will not be responsible if a 

password cannot be reset prior to the time Quotes are due if a Quoter requests a 

reset within a period of time shorter than the time the computer system requires to 

process the reset. Quoters are therefore encouraged to view the Requests for 

Quotes as soon as possible after posting and to begin the process of Quote 

submission in sufficient time to complete the submission prior to the time Quotes 

are due. Posting of a Request for Quotes will be in accordance with Sections A.3.

and C.1., above, or Section C.2.d., below.

d. Any type of technical issue (e.g., an outage) with the online sales site, which is 

within the four hours immediately prior to the time set for receipt of Quotes, may 

result in an extension of the time set for receipt of Quotes in accordance with 

Section C.7.e. of the Auction Solicitation. DLA Strategic Materials will make a 

decision regarding the extension based on the prevailing circumstances. 

e. The inability of an individual user to access the online sales site and submit a Quote 

caused by failure of the user’s hardware, software, Internet Service Provider, or the 
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World Wide Web itself, is not cause for extending an offering or canceling a 

Request for Quotes.

f. Widespread access difficulties or other compromises of the Quote process may 

warrant canceling a Request for Quotes at the discretion of DLA Strategic 

Materials.

C.3. Online Quote Submissions (SEP 19)

a. All Quotes submitted under this Auction Solicitation shall be submitted online. In 

order to submit Quotes online, Quoters must register for an online sales account

(SECTION B – REGISTRATION TO PARTICIPATE IN THE SALES 

PROGRAM (SEP 19), Paragraph 2); establish a contact profile; company profile

(or individual profile); complete the single-point registration; register for the 

Auction solicitation type by designating authorized persons and completing Section 

I.5.; and accept the amendments for one or more specific materials. All actions 

must be completed online. 

b. During the Auction, Quoters will be able to see their own Quote; other Quotes 

submitted by authorized representatives of their company; and the high quote for 

each item in the offering.

c. Quotes submitted through the DLA Strategic Materials online sales site constitute 

an electronic signature certifying that the official submitting the Quote has the 

authority to bind the company. Company officials are cautioned that individuals 

given the role of “Quoter” for the company will be able to submit a Quote for any 

material under this Auction Solicitation once the registration process is completed 

and the amendment(s) for that material are accepted. The Government will not bear 

any responsibility if unauthorized company personnel are provided the role of 

“Quoter” by the company.

d. Submission of an online Quote will result in the generation of a Section I.1.

Quote/Award Form.

C.4. Offer Price (JUN 17)

Quotes shall be expressed as a fixed U.S. dollar and cent value per commodity unit of 

measure. The unit of measure and the maximum number of decimal places to which 

Quotes shall be expressed will be specified in future Amendments. 

C.5. Price Adjustments for Specific Materials (JUN 17)

Any price adjustments for specific materials will be stated in future Amendments.
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C.6. Minimum Quantity (JUN 17)

The minimum quote quantity for each stockpile material offered under this Auction

Solicitation shall be as stated on the DLA Strategic Materials online sales site. A quote 

for less than the minimum quantity will be considered nonresponsive and ineligible for 

award. 

C.7. Late Submissions, Modifications, and Withdrawals of Quotes (SEP 19)

a. Any Quote received at the office designated in the Auction Solicitation after the 

exact time specified for receipt of Quotes will not be considered unless it is 

received before award is made and –

(1) There is acceptable evidence to establish that it was received at the activity 

designated for receipt of Quotes and was under the Government’s control prior 

to the time set for receipt of Quotes, and the Contracting Officer determines 

that accepting the late Quote would not unduly delay the sale; or

(2) It is the only Quote received.

b. Any modification to a Quote, including a modification resulting from the 

Contracting Officer’s request for confirmation, is subject to the same conditions 

stated in paragraph C.7.a. of this provision. Quotes may be modified to increase 

the Quote price(s) up until the time set for receipt of Quotes. Quotes may only be 

withdrawn or Quote price(s) reduced up until the time set for reduction or 

withdrawal, which will be specified in the offering notice. 

c. The only acceptable evidence to establish the time of receipt at the Government 

installation is the time/date stamp on the online submission.

d. Notwithstanding paragraph C.7.a., a late modification of an otherwise successful 

Quote that includes terms more favorable to the Government will be considered if it 

is received at any time prior to award and may be accepted.

e. If an emergency or unanticipated event interrupts normal Government processes so 

that Quotes cannot be received at the office designated for receipt of Quotes by the 

exact time specified in the offering and the Government is unable to provide timely 

notice of an extension of the time set for receipt of Quotes, the time set for receipt 

of Quotes for that day will be deemed to be extended to the same time on the next 

DLA Strategic Materials business day.

f. Quotes may be submitted, modified and withdrawn only online. 

C.8. Consideration of Quotes (OCT 13)

a. The Government reserves the right to –
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(1) Reject any or all Quotes;

(2) Waive any informalities and minor irregularities in a Quote;

(3) Award a quantity less than the quantity quoted at the unit price quoted; and

(4) Accept any one item or group of items in a Quote, as may be in the best 

interest of the Government.

b. Quoters may submit multiple Quotes for multiple quantities at various unit prices

and may specify a minimum and/or a maximum quantity by selecting to edit the 

Quote submitted. The minimum quantity specified cannot be less than the 

minimum quantity set forth in Section C.6. and on the online sales site.

C.9. Responsiveness of Quotes (JUN 17)

a. To be considered for award, Quotes must be responsive. A responsive Quote is one 

that fully complies with the terms of the Auction Solicitation, as revised by any 

amendments thereto or the Acceptance Letter and in which the intent of the Quoter

is clear on its face.

b. A Quote must clearly state the unit price (fixed price only) for each line item.

c. Any Quote that requires the Government to exercise judgment with respect to 

quantity or price will render the Quote nonresponsive and ineligible for award. 

d. The online submission process will not permit a Quoter to submit a quote for less 

than the minimum quantity set forth in Section C.6. and on the online sales site. 

e. The online Quote submission process will result in creation of the Section I.1.

Quote/Award Form. By submitting a Quote through the DLA Strategic Materials 

online sales site: 

(1) The Quoter accepts all terms and conditions of the Auction Solicitation, as 

revised by any amendments thereto or the Acceptance Letter; and

(2) Award on the Quote results in a binding contract with terms and conditions that 

do not vary from the terms and conditions of the Auction Solicitation, as 

revised by any amendments thereto or the Acceptance Letter.

f. Quotes submitted through the online sales site cannot reject, modify, or alter terms, 

conditions, or provisions of the Auction Solicitation, as revised by any amendments 

thereto or the Acceptance Letter. Quotes submitted outside the online sales site 

shall not be accepted and shall render the Quote nonresponsive and ineligible for 

award.
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C.10. Evaluation of Quotes (JUN 17)

a. Quotes will be evaluated on the basis of prices offered as may be adjusted by any 

special terms previously negotiated as stated in the Acceptance Letter.

b. To participate in sales and be considered for award, Quoters must be registered in 

accordance with Section B.

C.11. Tie Quote Procedures (JUN 17)

The applicable Tie Quote Procedure for each material will be specified in future 

Amendments. 

C.12. Contract Award (OCT 13)

A written award signed by the Contracting Officer and sent to the successful Quoter(s) 

within two business days of the time set for receipt of Quotes, as specified in Section 

C.1., paragraphs f. and g., shall result in a binding contract incorporating all the terms 

and conditions of the Auction Solicitation, as revised by any amendments thereto or the 

Acceptance Letter as stated in the executed Section I.1. Quote/Award Form.

C.13. Unsuccessful Quoters (OCT 13)

The DLA Strategic Materials Directorate of Contracting will notify unsuccessful Quoters 

telephonically or by email at the earliest practicable time.

END OF SECTION C
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SECTION D – PAYMENT

D.1. Payment (JUN 17)

a. Payment shall be made in U.S. dollars. 

b. All payments shall be made only by wire transfer (Fedwire for domestic, within 

U.S. wire payment; or International wire transfer for wire payments from outside 

the U.S.). This includes payments for material, adjustments for variations in 

quantity or weight of material shipped, storage charges, interest, penalty charges, 

administrative charges, or any other charges. If attempted payments are made by 

check, the payment will be returned to the sender. The Contractor will incur 

charges if payments are delinquent.

c. Payment by wire transfer (Fedwire or International). 

(1) Wire transfer payment shall be made in accordance with the Fedwire and 

International Payment Procedures (latest version) instructions posted on 

the DLA Strategic Materials Website at 

https://www.dla.mil/HQ/Acquisition/StrategicMaterials. Fees for wire 

transfers are the responsibility of the Contractor. Payment shall be 

accompanied by identifying information including the contract number;

modification number (if applicable); invoice number (if applicable); and 

the name of the material purchased.

(2) If wire transfer payment is not made in accordance with the Fedwire and 

International Payment Procedures (latest version) instructions or if 

identifying information is not provided, shipment of material may be delayed, 

the wire transfer may be returned to the sender, or a Contractor may incur 

charges if payments are delinquent. 

d. Invoices issued for adjustments for variations in quantity or weight, storage charges, 

interest, penalty charges, or administrative charges shall be paid promptly.

e. If payment is not made in full within 30 calendar days of issuance of an invoice as 

specified in D.1.d., the Contractor will be considered delinquent and any 

outstanding charges will be reduced by any subsequent payments. No material will 

be released until all delinquent charges are paid. (See Sections F.1.b. and G.12.)

D.2. Payment Due Date (NOV 13)

a. Payment will be made before shipment of material and before the end of the 

contract period specified in the executed Section I.1. Quote/Award Form. If 

payment is not received by 2:00 p.m., local time Fort Belvoir, VA, on the payment 

due date, payment will not be credited until the next Government business day. 

Interest and penalty charges will accrue accordingly.
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b. Amounts shall be due at the earliest of the following dates:

(1) The final day of the contract period specified in Section I.1. Quote/Award 

Form (with or without the issuance of an invoice by the Government); or

(2) The date of the first written demand for payment under the contract, including 

any demand resulting from a default termination, unless paid within 30 days 

of becoming due.

c. In the event the payment due date falls on a Saturday, Sunday, or Federal holiday, 

then the payment due date will be extended to the next Government business day.

D.3. Interest (NOV 13)

All amounts that become payable by the Contractor to the Government under this 

contract shall bear simple interest from the date due until paid at the Prompt Payment 

interest rate. The Prompt Payment interest rate shall be the interest rate established by 

the Secretary of the Treasury as provided by 41 U.S.C. § 611 and Public Law 92-41. The 

rate can found in the Federal Register and is applicable to the period in which the amount 

becomes due, as provided in Section D.2.b., above.

D.4. Penalty and Administrative Charges (MAY 04)

In addition to interest charges specified in Section D.3., above, a penalty charge of 6 

percent per annum shall be assessed on any debt principal that is delinquent more than 90 

calendar days. Penalty charges shall accrue from the date the principal amount due 

becomes delinquent until paid. Additional administrative charges may be assessed, if 

needed. Administrative charges relating only to delinquent debts will be assessed to 

cover expenses incurred by the Government in the recovery of such debts.

END OF SECTION D
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SECTION E – MATERIAL REMOVAL

E.1. Removal of Material (AUG 09)

a. The contract period for any quantity of material awarded is 30 calendar days from 

the date of contract award. 

b. If the Contractor fails to pay for and remove the material on or before the last day of 

the contract period, the Contractor will be considered delinquent and no material 

will be shipped until payment for all remaining material has been received. 

c. The contract period includes Saturdays, Sundays, and Federal holidays. If the last 

day of the contract period is a Saturday, Sunday, or Federal holiday, or the storage 

location is otherwise closed that day, the period of contract performance will be

extended to the next Government workday.

E.2. Storage Charges (JUN 17)

a. Storage charges shall be assessed on all material remaining after the last day of the 

contract period. The Government reserves the right to remove any remaining 

material to a commercial storage facility and be reimbursed by the Contractor for 

any expenses incurred. Storage charges continue to accrue until all the material has 

been removed or the contract is terminated for default, in which case the Contractor 

will be liable for damages, as set forth in Section G.7. Default of the Solicitation.

b. The storage charge is the greater of the following: (1) the charge per commodity 

unit of measure, which will be specified in future Amendments; or (2) commercial 

storage charges, if applicable.

c. Storage charges will be invoiced upon shipment. Payment shall be due 

immediately. 

d. Payment of storage charges shall not relieve the Contractor of its obligation to 

remove the material in a timely manner. Acceptance of storage payments by the 

Government is not a waiver of the Government’s right to find the Contractor to be 

in default for failure to remove the material (See Section G.7. Default).

END OF SECTION E
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SECTION F – SHIPPING

F.1. Request for Shipment (JUN 17)

a. Shipment of Stockpile Materials requires either handing and outloading by and at 

the expense of the Contractor or delivery is F.O.B. carrier’s conveyance, 

depending on the material. Specific requirements for each material will be 

provided in future Amendments. 

b. At least five (5) working days prior to the date shipment is required to commence, 

the Contractor shall furnish commercial bills of lading to the designated depot. 

Simultaneously, the Contractor shall submit shipping instructions to the 

Contracting Officer by submitting a Shipping Request online through the DLA 

Strategic Materials online sales site. The Government will only accept Shipping 

Requests from those individuals designated as a “Shipment Requestor” in Section

I.5. Certification Regarding Authorized Persons (OCT 13). No material will 

be shipped under the provisions of this contract or any other contract the 

Contractor has with DLA Strategic Materials until all outstanding 

delinquent charges and payments have been satisfied. 

b. “Shipping Instructions” shall include the following:

(1) Quantity of material to be released, unit price and total dollar value.

(2) Designation of type and kind of conveyance.

(3) Name of the carrier (including a telephone number where a

 contact can be reached).

(4) “Ship to” location.

(5) Minimum load per conveyance (optional)

(6) Desired shipping schedule.

(7) Name and telephone number of an agent who can furnish additional

 shipping information if needed.

(8) Any additional pertinent information, including outloader and sampler 

 information.

c. The shipping schedule shall allow sufficient time for the Government to reasonably

meet such schedule prior to the last day of the contract period commensurate with 

existing loading facilities and other commitments at the Government’s storage 

locations. Information regarding Government commitments may be obtained from 

the DLA Strategic Materials Website at 

https://www.dla.mil/HQ/Acquisition/StrategicMaterials. The Government shall 

determine the order in which the material is scheduled, coordinated, and outloaded. 

d. Outloading will be accomplished by truck. The Government will provide lumber 

and nails, if available from depot stock upon request from the Contractor’s 

designee/driver. The Contractor’s designee shall perform any necessary 

procedure(s) to ensure the cargo is safely secured prior to leaving the depot. The 
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Government will not block, chock, brace, lash, band, or in any manner secure the 

cargo on the Contractor’s conveyance(s). The designee shall witness the loading. 

Any expenses over and above those normally incurred by the Government to meet 

the public carrier’s requirements for loading like materials will be at the expense of 

the Contractor.

e. The Contractor, its agents and employees shall comply with all applicable rules at 

the storage depot; Federal, state and local load limitations; and all safety, health, 

and environmental requirements, including the Environmental Safety and 

Occupational Health Policy of DLA Strategic Materials. See also Section F.7. 

Environmental Policy (OCT 16)

f. Requests for shipment shall be for a minimum quantity of material. The quantity 

will be specified in subsequent Amendments to this Auction Solicitation. Shipping 

instructions and information requested in Section F.1.b., above, must be submitted 

as a Shipping Request through the DLA Strategic Materials online sales site. 

g. The Contractor shall pay $100 per day if the Contractor’s conveyance fails to report 

to an unstaffed storage location as scheduled. The DLA Strategic Materials storage 

location in Point Pleasant, WV is unstaffed.

F.2. Insurance Requirements (DEC 07)

The Contractor shall procure and maintain, and require any subcontractor to 

procure and maintain, during the entire period of performance under this contract, 

such insurance as stipulated herein.

a. Workers’ compensation and employer’s liability. The Contractor is required 

to comply with applicable Federal and State workers’ compensation and 

occupational disease statutes. Employer’s liability coverage of at least 

$100,000 is required, except in States with exclusive or monopolistic funds 

that do not permit workers’ compensation to be written by private carriers.

b. General liability. Bodily injury liability insurance coverage written on the 

comprehensive form of policy of at least $500,000 per occurrence.

c. Automobile liability insurance written on the comprehensive form of policy 

is required. The policy shall provide for bodily injury and property damage 

liability covering the operation of all motor vehicles used in connection with 

performing the contract. Policies covering motor vehicles operated in the 

United States shall provide coverage of at least $200,000 per person and 

$500,000 per occurrence for bodily injury and $20,000 per occurrence for 

property damage. The amount of liability coverage on other policies shall 

be commensurate with any legal requirements of the locality and sufficient 

to meet normal and customary claims.
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F.3. Weighing (JUN 17)

Weighing of Stockpile Materials is material-specific. The requirements for each material 

will be provided in subsequent Amendments.

F.4. Weight Discrepancy (JUN 17)

The requirement for a Weight Discrepancy provision is material-dependent. If required, 

this clause will be included in a subsequent Amendment.

F.5. Assumption of Risk and Disclaimer of Liability (JAN 02)

The Contractor, its assigns or agents, assumes full responsibility for all injury or 

damage to persons or property occasioned by or occurring in connection with or 

incident to any use or possession of this material by the Contractor, Contractor’s 

employees, or any person subject to the Contractor’s control. The Government 

assumes no liability for any damages to the property of the Contractor, any other 

person or property, or any personal injury, illness, disability or death to the 

Contractor, Contractor's employees or any other person subject to Contractor's 

control, or for any other consequential damages arising from or incident to the 

purchase, use, loading, processing, disposition, or any subsequent operation 

performed upon, exposure to or contact with any component, part, constituent or 

ingredient of this item, material or substance. 

F.6. Adjustment for Variation in Quantity or Weight (JUN 17)

The Government reserves the right to vary the quantity or weight delivered by a specific 

percentage from the quantity or weight listed in the awarded contract and the Contractor 

agrees to accept delivery of any quantity or weight within these limits. The contract price 

will be adjusted upward or downward in accordance with the unit price and on the basis 

of the quantity or weight actually delivered. The percentage is material-dependent and 

will be specified in subsequent Amendments. 

F.7. Environmental Policy (OCT 16)

The Contractor, its agents and employees shall comply with the current Environmental 

Safety and Occupational Health Management System Policy of DLA Strategic Materials 

while on storage facilities where stockpile material is stored. The Contractor shall review 

the policy statement for the DLA Strategic Materials Environmental, Safety and 

Occupational Health Management System (ESOHMS) and each depot’s ESOHMS 

Orientation Guide for Contractors and Visitors. The Contractor’s representatives who 

come onto storage facilities where stockpile material is stored shall sign the depot’s

ESOHMS Orientation Guide to acknowledge review. All documentation is available on 

the DLA Strategic Materials Website at: 

https://www.dla.mil/HQ/Acquisition/StrategicMaterials/Resource
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F.8. Environmental Protection (JUN 17)

a. Transportation Requirements

(1) The transportation of hazardous material is governed by Department of 

Transportation (DOT) Hazardous Materials Regulations (Title 49 Code of 

Federal Regulations, Parts 170-189). If the material being transported is 

covered by DOT Regulations, the Contractor or its agent is responsible for 

certifying to DOT that hazardous materials are properly classified, described, 

packaged, marked, and labeled and are in a condition safe to transport based on 

the Contractor’s or its agent’s own examination of the material. (See 

especially 49 CFR 173.7(a) (1).)

(2) The Government reserves the right to conduct reasonable inspection of the 

Contractor’s or its agent’s transportation conveyances or other equipment 

utilized to effect removal of the material purchased under this Auction

Solicitation and Amendments thereto. Inspection may occur prior to, during, 

or subsequent to removal of the material from Government storage locations. 

The Contractor or its agent shall provide Government representatives with 

access and any reasonable assistance required to conduct this inspection.

b. Safety Data Sheets

(1) Quoters are warned that unprotected exposure to hazardous substances, 

hazardous materials and hazardous chemicals may significantly increase the 

risk of health problems. The Contractor shall comply with all applicable 

Occupational Safety and Health Administration (OSHA) and any other 

Federal, state or local laws, codes, ordinances, and regulations (including 

obtaining any required licenses or permits) governing exposure to, and storage, 

handling, transportation, and disposition of, this material.

(2) Safety Data Sheets as required by OSHA Hazard Communication Standard -

29 CFR 1910.1200 are incorporated herein. (See copies of the Safety Data 

Sheets for the materials offered for sale posted on the DLA Strategic Materials 

Website at: https://www.dla.mil/HQ/Acquisition/StrategicMaterials.) This 

data provides specific toxicity and health related data for the protection of 

human health and the environment. Quoters should review this information 

carefully. It is the responsibility of the Contractor to further communicate this

information to the distributor, manufacturer, user and/or transporter of this 

material as may be required by Federal regulations.

(3) Quoters shall also refer to 29 CFR 1910 Occupational Safety and Health 

Standards, specifically sections 1910.1000 through 1050. These occupational 

standards set standards for permissible exposures, methods of compliance, 

personal protective equipment, and other measures that must be taken when 
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working with, or in proximity to, hazardous materials, chemicals and 

substances in the United States and its territories and possessions.

c. Use and Disposition

(1) The Contractor certifies that it shall use and ultimately dispose of any 

hazardous material purchased under this Auction Solicitation and Amendments 

thereto in accordance with all applicable Federal, state, local and international 

laws and regulations and in a manner safe for the public and the environment.

(2) The material offered under this Auction Solicitation and Amendments thereto 

is not, in its present form, subject to EPA Hazardous Waste Regulations (40 

CFR Part 260, et seq.) issued under the Resource Conservation and Recovery 

Act. However, it is possible that use of this material will lead to the creation of 

a hazardous waste. 40 CFR Part 260, et seq., details the responsibilities of 

generators, transporters, treaters, storers, and disposers of hazardous waste. 

Failure to comply with these regulations can lead to civil and criminal 

penalties.

(3) The wood pallets or materials used to package the commodity sold under this 

Auction Solicitation and Amendments thereto may have been treated with a 

wood preservative to protect it from insect attack and decay. These 

preservatives penetrate and remain in the wood for a long time and may pose 

certain hazards if precautions are not taken during the handling, use, and 

disposal of these treated wood products. Treated wood products should not be 

burned in open fires. Contractors are encouraged to seek advice on proper 

disposal from the local environmental protection agency.

F.9. Accident Reporting (AUG 09)

In the event of an accident involving the Contractor, its employees, subcontractors or any 

person subject to the Contractor’s control, as a result of activities occurring in 

performance of this contract, that results in the preparation of an accident report by the 

Contractor, its subcontractors or any person or entity subject to the Contractor’s control, a 

copy of the accident report shall be forwarded to the Contracting Officer no later than 10 

calendar days after the accident occurred.

END OF SECTION F
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SECTION G – CONTRACT ADMINISTRATION DATA

G.1. Amendments and Modifications (MAR 11)

a. Changes in terms and conditions of this Auction Solicitation shall be accomplished 

by written amendment only.

b. Changes in terms and conditions of any resulting contract shall be accomplished

only by written modification signed by the Contracting Officer.

G.2. Title (JAN 15)

Title to the material shall pass to the Contractor when the material is shipped. Nothing in 

this contract shall constitute a bailment under law for materials that have been paid for 

but not shipped from or removed from Government installations or facilities. 

G.3. Risk of Loss (JAN 15)

a. After the award of the contract and prior to shipment of material, risk of loss for 

materials that have been paid for but not shipped to the Contractor will be the 

responsibility of the Government. The Contractor hereby acknowledges and agrees 

that its only recourse for loss of materials is re-payment of monies paid to the 

Government in the transaction. The Contractor hereby waives any and all potential 

or actual claims against the Government that are associated with this transaction, 

arising from loss of property after payment and before shipment of the property to 

the Contractor. 

b. After material has been shipped, all risk of loss shall shift from the Government to 

the Contractor. 

G.4. Limitation on Government’s Liability (JAN 14)

a. In any case where liability of the Government to the contractor has been 

established, the measure of the Government’s liability shall not exceed refund of 

whatever portion of the purchase price the Contractor has paid, except as provided 

in Section G.4.b.

b. Where specifically authorized in writing by the Contracting Officer, the Contractor 

may recover reasonable costs of packing, loading, and transportation incurred in 

connection with return of material to the Government.

G.5. Agency Protests (JUN 17)

a. General. Companies may file a protest over sales under this Solicitation with the –

(1) Contracting Officer;
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(2) Director, Directorate of Contracting, DLA Strategic Materials, for a decision at 

a level above the Contracting Officer.

Unless otherwise specified, protests will be presumed to be protests to the Contracting 

Officer.

b. Pre-Award Protests. A protest by a company concerning the terms of this Auction

Solicitation and Amendments thereto shall be filed before the company submits a 

completed registration and accepts one or more Amendments under the Solicitation 

as specified in Section B. Protests concerning the terms of any Request for Quotes 

hereunder shall be filed prior to the time set for receipt of Quotes.

c. Post-Award Protests. Protests after award shall be filed not later than 10 calendar 

days after the basis of the protest is known or should have been known, whichever 

is earlier, except for protests challenging a negotiated sale under which a debriefing 

is requested and provided. In that situation, and where the basis was not known 

prior to the debriefing, the initial protest shall be filed not later than 10 calendar 

days after the date of the debriefing.

d. Service of Protest.

(1) Protests seeking a decision by the Contracting Officer shall be served in 

writing at the following address and may be filed by mail, hand delivery, 

commercial delivery service, or facsimile:

ATTN: Directorate of Contracting

 (Insert Name of the Contracting Officer)

DLA Strategic Materials

8725 John J. Kingman Road, Suite 3229

Fort Belvoir, VA 22060-6223

Facsimile No.: (571) 767-5484 or (571) 767-4074

(2) As an alternative to filing a protest with the Contracting Officer, Quoters may

seek an independent review by filing an agency-level protest with the DLA 

Strategic Materials Director, Directorate of Contracting. This process allows 

for a higher level decision on the initial protest. It is not a review of a 

Contracting Officer’s decision on a protest filed with the Contracting Officer. 

A protest seeking an agency-level decision should clearly state that it is an 

“Agency Level Protest Under Executive Order 12979.” The protest shall be 

served in writing at the following address and may be filed by mail, hand 

delivery, commercial delivery service, or facsimile:

ATTN: Director, Directorate of Contracting

DLA Strategic Materials

8725 John J. Kingman Road, Suite 3229

Ft. Belvoir, VA 22060-6223

Facsimile No.: (571) 767-4074
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G.6. Disputes (MAR 11)

a. This contract is subject to the Contract Disputes Act of 1978, as amended (41 

U.S.C. 601-613).

b. Except as provided in the Act, all disputes arising under or relating to a contract 

entered into pursuant to this Auction Solicitation shall be resolved under this clause.

c. "Claim," as used in this clause, means a written demand or written assertion by one 

of the contracting parties seeking, as a matter of right, the payment of money in a 

sum certain, the adjustment or interpretation of contract terms, or other relief arising 

under or relating to this contract. However, a written demand or written assertion 

by the Contractor seeking the payment of money exceeding $100,000 is not a claim 

under the Act until certified. A voucher, invoice, or other routine request for 

payment that is not in dispute when submitted is not a claim under the Act. The 

submission may be converted to a claim under the Act, by complying with the 

submission and certification requirements of this clause, if it is disputed either as to 

liability or amount or is not acted upon in a reasonable time.

d. (1) A claim by the Contractor shall be made in writing and, unless otherwise stated 

in this contract, submitted within 6 years after accrual of the claim to the 

Contracting Officer for a written decision. A claim by the Government against 

the Contractor shall be subject to a written decision by the Contracting Officer.

(2) (i) The Contractor shall provide the certification specified in paragraph 

(d)(2)(iii) of this clause when submitting any claim exceeding $100,000. 

(ii) The certification requirement does not apply to issues in controversy that 

have not been submitted as all or part of a claim.

(iii) The certification shall state as follows: "I certify that the claim is made in 

good faith; that the supporting data are accurate and complete to the best 

of my knowledge and belief; that the amount requested accurately reflects 

the contract adjustment for which the Contractor believes the 

Government is liable; and that I am duly authorized to certify the claim 

on behalf of the Contractor.”

(3) The certification may be executed by any person duly authorized to bind the 

Contractor with respect to the claim. 

e. For Contractor claims of $100,000 or less, the Contracting Officer must, if 

requested in writing by the Contractor, render a decision within 60 days of the 

request. For Contractor-certified claims over $100,000, the Contracting Officer 

must, within 60 days, decide the claim or notify the Contractor of the date by which 

the decision will be made.
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f. The Contracting Officer's decision shall be final unless the Contractor appeals or 

files a suit as provided in the Act.

g. If the claim by the Contractor is submitted to the Contracting Officer or a claim by 

the Government is presented to the Contractor, the parties, by mutual consent, may 

agree to use alternative dispute resolution (ADR). If the Contractor refuses an offer 

for ADR, the Contractor shall inform the Contracting Officer, in writing, of the 

Contractor's specific reasons for rejecting the offer

h. The Government shall pay interest on the amount found due and unpaid from (1) 

the date the Contracting Officer receives the claim (certified, if required); or (2) the 

date payment otherwise would be due, if that date is later, until the date of payment. 

Simple interest on claims shall be paid at the rate, fixed by the Secretary of the 

Treasury as provided in the Act, which is applicable to the period during which the 

Contracting Officer receives the claim and then at the rate applicable for each 6-

month period as fixed by the Treasury Secretary during the pendency of the claim.

i. The Contractor shall proceed diligently with performance of this contract, pending 

final resolution of any request for relief, claim, appeal, or action arising under the 

contract, and comply with any decision of the Contracting Officer.

G.7. Default (JAN 14)

a. (1) The Government may, by written notice of default to the Contractor, terminate 

this contract in whole or in part if the Contractor fails to –

(i) Make payment and remove the material within the time specified in this 

contract or any extension;

(ii) Remove the material within the time specified in this contract whether or not 

payment has been made;

(iii) Make progress, so as to endanger performance of this contract; or

(iv) Perform any of the other provisions of this contract.

(2) The Government’s right to terminate this contract under Section G.7.a.(1)(iii) 

and Section G.7.a.(1)(iv) above, may be exercised if the Contractor does not cure 

such failure within 10 days (or more if authorized in writing by the Contracting 

Officer) after receipt of the notice from the Contracting Officer specifying the 

failure. Upon the Contractor’s failure to cure such default within that period (or 

such further period as the Contracting Officer may allow), the Contractor shall lose 

all right, title and interest which it might otherwise have acquired in and to the 

material as to which a default has occurred.
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(3) If at any time prior to the expiration of this contract, the Contractor makes it 

clear either by words, actions, or circumstances, that the Contractor is unwilling or 

unable to perform under this contract, the Government shall not be required to 

furnish the Contractor notice specifying the failure under this contract prior to 

exercising its right to terminate this contract for default and seek damages.

b. If the contract is terminated, the Contractor could be held liable for damages 

resulting from the resale of the material, as described below. The Contractor may 

also be liable for additional charges including, not limited to: interest, storage 

charges, penalty charges, consideration fees, and administrative charges relating to 

the termination.

c. If the Government terminates the contract for default, it may subsequently resell the 

material for the Contractor’s account, under the terms and in the manner the 

Contracting Officer considers appropriate, and assess the Contractor the difference 

between the contract price and the price obtained on resale. In no event will the 

Contractor be refunded any money if the Government obtains a greater price on 

resale, nor will an accounting of money be made until resale is complete. In the 

event that the Government does not resell the material within 12 months, the 

Contractor may be held liable for the full contract price for the quantity of material 

on which the default has occurred. In order to calculate the Government’s damages 

on contracts where the contract price is determined on a formula-price basis, the 

Government will establish the contract price for the quantity of material on which 

the default has occurred as follows: Using the pricing mechanism set forth in the 

contract, the Government will set the price as though the material had been priced 

on the last day of the contract period or the date of the termination notice, 

whichever is earlier.

d. If, after termination, it is determined that the Contractor was not in default, or that 

the default was excusable, the rights and obligations of the parties shall be the same 

as if the termination had been issued for the convenience of the Government.

e. The rights and remedies of the Government in this clause are in addition to any 

other rights and remedies provided by law or under this contract.

G.8. Applicable Law for Breach of Contract Claim (JUL 06)

United States law will apply to resolve any claim of breach of this contract. 

G.9. Bankruptcy (JAN 07)

In the event the contractor enters into proceedings relating to bankruptcy, whether 

voluntary or involuntary, the contractor agrees to furnish, by certified mail or electronic 

commerce method authorized by the contract, written notification of the bankruptcy to 

the contracting officer responsible for administering the contract. This notification shall 

be furnished within five days of the initiation of the proceedings relating to bankruptcy 
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filing. This notification shall include the date on which the bankruptcy petition was filed 

and the identity of the court in which the bankruptcy petition was filed. 

G.10. Termination for Convenience of the Government (DEC 97)

a. The Contracting Officer, by written notice, may terminate this contract, in whole or 

in part, when it is in the Government’s interest. If this contract is terminated, the 

Government shall only be liable for actual costs incurred by the Contractor before 

the effective date of termination.

b. If a bona fide requirement for the material develops or exists prior to removal of the 

material from Government control, the Government may withdraw that material 

from the sale. In the event of a withdrawal under this condition, the Government 

shall be liable only for the refund of the contract price of the withdrawn material or 

such portion of the contract price as it may have received plus simple interest at the 

rate established by the Secretary of the Treasury.

G.11. Excusable Delays (DEC 07)

a. In the event either party should be prevented from performing under this contract by 

reason of any unforeseeable cause beyond its control and without its fault or 

negligence, including, but not restricted to, acts of God or of the public enemy, 

sovereign acts of the United States, acts of a foreign Government, fires, floods, 

epidemics, quarantine restrictions, strikes, freight embargoes and unusually severe 

weather, performance under the contract shall be suspended in whole or in part until 

the cause ceases to exist and thereafter the time for fulfillment of the contract shall 

be extended by the length of time during which the cause prevented performance 

under the contract.

b. The Contracting Officer shall make a written determination that an excusable delay 

condition exists.

c. This section shall also apply to an excusable delay condition that prevents delivery 

at a consignee’s plant if –

(1) the delay meets the criteria in paragraph a. above; and

(2) the identity of the consignee is known to the Government prior to 

commencement of the excusable delay condition.

d. The Contractor shall notify the Contracting Officer, in writing, of the nature and 

extent of the excusable delay condition promptly after the commencement thereof, 

but in any event prior to outloading of the material from the storage location from 

which it is to be shipped. The Contractor shall notify the Contracting Officer, in 

writing, within ten (10) calendar days when the excusable delay condition ceases to 

exist.
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G.12. Setoff of Funds (MAY 04)

The Contractor agrees that the Government may use all or a portion of any monies 

received by Government to satisfy, in whole or in part, any debt (e.g. delinquent 

payments, interest, penalty charges, administrative charges, or storage charges), arising 

out of this or any other transaction.

G.13. Indemnification Agreement (JAN 02)

The Contractor shall save and hold harmless and indemnify the Government against any 

and all liabilities, claims, and costs of any kind and nature for injury to or death of any 

person or persons and for loss or damage to any property (Government or otherwise) 

occurring in conjunction with or in any way incident to or arising out of the occupancy, 

use, service, operations, or performance of work resulting from the acts or omissions of 

the Contractor, Contractor’s employees, or any person subject to the Contractor’s control 

in connection with the contract. Whether due to negligence or not of the Contractor, the 

Contractor agrees to reimburse the United States for any legal expenses (including 

salaries of attorneys) incurred by the United States in defending any and all claims or 

suits against the United States, whether well-founded or not, in any way whatsoever 

alleged to have arisen from the acts or omissions of the Contractor, Contractor’s 

employees, or any person subject to the Contractor’s control.

G.14. Covenant Against Contingent Fees (JAN 95)

a. The Contractor warrants that no person or agency has been employed or retained to 

solicit or obtain this contract upon an agreement or understanding for a contingent 

fee, except a bona fide employee or agency. For breach or violation of this 

warranty, the Government shall have the right to annul this contract without liability 

or, in its discretion, to add to the contract price or consideration, or otherwise 

recover, the full amount of the contingent fee.

b. “Bona fide agency,” as used in this paragraph, means an established commercial or 

selling agency, maintained by a Contractor for the purpose of securing business, 

that neither exerts nor proposes to exert improper influence to solicit or obtain 

Government contracts nor holds itself out as being able to obtain any Government 

contract or contracts through improper influence.

c. “Bona fide employee,” as used in the paragraph, means a person, employed by a 

Contractor and subject to the Contractor’s supervision and control as to time, place, 

and manner of performance, who neither exerts nor proposes to exert improper 

influence to solicit or obtain Government contracts nor holds out as being able to 

obtain any Government contract or contracts through improper influence.
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d. “Contingent fee,” as used in this paragraph, means any commission, percentage, 

brokerage, or other fee that is contingent upon the success that a person or concern 

has in securing a Government contract.

e. “Improper influence,” as used in this paragraph, means any influence that induces 

or tends to induce a Government employee or office to give consideration or to act 

regarding a Government contract on any basis other than the merits of the matter.

END OF SECTION G
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SECTION H – DEFINITIONS (SEP 19)

As used throughout this Auction Solicitation, the following terms shall have the meaning 

set forth below:

a. The term “Registration” means the single-point registration on the DLA Strategic 

Materials online sales site at: https://www.strategicmaterialssales.dla.mil. Quoters 

must register in accordance with Section B of this Auction Solicitation in order to 

participate in the sales program.

b. The term “Contracting Officer” means a person with the authority to enter into, 

administer, and/or terminate contracts and make related determinations and 

findings.

c. The terms “Quoter”, “Purchaser”, “Offeror” or “Contractor” may be used 

interchangeably. The terms “Quote” or “Offer” may be used interchangeably.

d. The term “Acceptance Letter” means the letter, signed by the Contracting Officer, 

indicating that the Government has approved the Contractor’s single-point

registration.

e. The term “Quote/Award Form” means the form used by a Contractor to submit a 

Quote to the Government in response to a Request for Quotes under the Auction

Solicitation and Amendments thereto. A sample of Section I.1. Quote/Award 

Form is shown on page 36 of the Auction Solicitation. The Section I.1.

Quote/Award Form will be generated when a Quoter submits a Quote online 

through the DLA Strategic Materials online sales site,

https://www.strategicmaterialssales.dla.mil. 

f. The term “offering notice” refers to the email message issued to registered firms 

approximately two (2) DLA Strategic Materials business days prior to an auction. 

g. The term “time set for receipt of Quotes” is the time stated in Section C.1.f. of this 

Auction Solicitation. The term “time set for reduction of Quote price(s) and 

withdrawal of Quotes” is a specific number of minutes prior to the time set for 

receipt of Quotes. The number of minutes and the “time set for reduction of Quote 

price(s) and withdrawal of Quotes” will be stated in the offering notice. 

h. The terms “shall” and “must” may be used interchangeably.
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i. The term “electronic commerce” means electronic techniques for accomplishing 

business transactions including electronic mail or messaging and World Wide Web 

technology. The only acceptable form of electronic commerce which may be used 

under the Auction Solicitation is online submission through the DLA Strategic 

Materials online sales site. 

j. The terms “DLA Strategic Materials” and “Government” may be used 

interchangeably.

END OF SECTION H
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SECTION I – SUBMITTALS

THE FOLLOWING SUBMITTALS SHALL BE COMPLETED AND SUBMITTED 

THROUGH THE DLA STRATEGIC MATERIALS ONLINE SALES SITE. THE 

COPIES PROVIDED IN THIS SOLICITATION ARE SAMPLES ONLY:

1. INITIAL SUBMISSION FOR SINGLE-POINT REGISTRATION:

Sales Agreement Form

I.4. Certification Regarding Responsibility Matters (OCT 15)

I.6. Type of Business Organization (JUN 17)

I.7. Contractor’s Mailing Address (OCT 13)

I.8. Contractor’s Billing Address (OCT 13)

I.9. Disputes: Agreement to Use Alternative Dispute Resolution (DEC 16)

I.10. Special Certifications (JUN 17)

Special certifications are material-dependent. Any Special Certifications required under Section 

I.10. of the Auction Solicitation shall be submitted with the amendment for the material which 

requires the certification.

Financial Information as appropriate in response to Section B, Item 5.

2. REGISTRATION FOR THE AUCTION SOLICITATION TYPE:

I.5. Certification Regarding Authorized Persons (OCT 13)

3. ACCEPTANCE OF MATERIAL-SPECIFIC SOLICITATION AMENDMENTS

4. SUBMISSION WITH QUOTE:

I.1. Quote Award Form: Submission of an online Quote will result in the generation of a Section 

I.1. Quote/Award Form.

I.2 Quote Items

I.3 Certificate of Independent Price Determination (JAN 14)

I.4 Certification Regarding Responsibility Matters (OCT 15)

Sections I.3. and I.4. are certified by the Quoter on the DLA Strategic Materials online sales site at the 

time of Quote submission.
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I.1. Quote/Award Form (SEP 19) [SAMPLE ONLY] DRAFT
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I.2. Quote Items

The listing of items of stockpile materials available for an offering will be provided 

on the DLA Strategic Materials online sales site: 

https://www.strategicmaterialssales.dla.mil
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I.3. Certificate of Independent Price Determination (JAN 14) [SAMPLE ONLY] 

DRAFT

User

 Certified: (By checking this box, you are certifying that you accept the

contents of the certification and that all input is correct.)
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I.4 Certification Regarding Responsibility Matters (OCT 15) [SAMPLE ONLY] 

DRAFT
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User

 Certified: (By checking this box, you are certifying that you accept the

contents of the certification and that all input is correct.)
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I.5. Certification Regarding Authorized Persons (OCT 13) [SAMPLE ONLY]

The Contractor represents that the following individuals are current employees of [Company 

Name] and are authorized to perform the indicated roles.

Administrator: Can submit and update the Registration for Solicitation [Solicitation].

Quoter: Can submit and update Quotes for Solicitation [Solicitation].

Shipment Requestor: Upon award, can submit Requests for Shipment for contracts awarded 

under Solicitation [Solicitation].

Account Name Company Title Administrator Quoter Shipment Requestor

User

 Certified: (By checking this box, you are certifying that you accept the

contents of the certification and that all input is correct.)
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I.6. Type of Business Organization (JUN 17) [SAMPLE ONLY] DRAFT

User

 Certified: (By checking this box, you are certifying that you accept the

contents of the certification and that all input is correct.)
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I.7. Contractor’s Mailing Address (OCT 13) [SAMPLE ONLY] DRAFT

User

 Certified: (By checking this box, you are certifying that you accept the

contents of the certification and that all input is correct.)
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I.8. Contractor’s Billing Address (OCT 13) [SAMPLE ONLY] DRAFT

User

 Certified: (By checking this box, you are certifying that you accept the

contents of the certification and that all input is correct.)
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I.9. Disputes – Agreement to Use Alternative Dispute Resolution (DEC 16) [SAMPLE ONLY]

User

 Certified: (By checking this box, you are certifying that you accept the

contents of the certification and that all input is correct.)
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I.10. Special Certifications (JUN 17)

Any special certifications will be added to the Solicitation beginning with Section I.10.

END OF SECTION I