DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY STRATEGIC MATERIALS INDUSTRY DAY Acquisition Opportunities DATE: February 12, 2018 Brian Gabriel WARFIGHTER FIRST
Acquisition Opportunities WARFIGHTER FIRST 29
Mission Overview Defense Logistics Agency (DLA) Strategic Materials is the operational arm of The Strategic and Critical Materials Stockpiling Act (50 U.S.C. 98 et seq.). It is the purpose of this Act to Provide for the acquisition & retention of stocks of certain strategic & critical materials. Encourage conservation and development of such materials within the United States. Decrease and preclude when possible a dangerous and costly dependence by the United States upon foreign or single sources for supplies of such materials in times of National Emergencies. *Consider our mission as a kind of material supply chain insurance policy. WARFIGHTER FIRST 30
Strategic and Critical Materials The term strategic and critical (S&C) materials, in the context of the National Defense Stockpile,* is defined in the Stockpile Act (50 USC 98 et seq): means materials that (A) would be needed to supply the military, industrial, and essential civilian needs of the United States during a national emergency, and (B) are not found or produced in the United States in sufficient quantities to meet such need. The Biennial Report on Stockpile Requirements (Requirements Report or RR) process is the methodology in which we test materials against this definition. * The term critical, in reference to materials, exists in other laws as well but these references are separate from this definition. WARFIGHTER FIRST 31
Planning Assumptions Requirements Report 50 U.S.C. 98 Sec. 14 Stockpile requirements are based on strategic and critical materials necessary for the U.S. to replenish or replace, within three years of the end of the military conflict scenario required under subsection (b), all munitions, combat support items, and weapons systems that would be required after such a military conflict. The military conflict scenarios is consistent with the scenario used by the Secretary in budgeting and defense planning purposes. WARFIGHTER FIRST 32
Stockpile Requirement Shortfall Available production Take out unreliable supply Add in stockpile inventories Defense demand Essential civilian demand Estimated combat losses Surplus WARFIGHTER FIRST 33
Current Acquisition Opportunities Authority for Materials Must Be Granted by Legislation. Typically, this would occur through the National Defense Authorization Act (NDAA) process. Table of Upcoming Acquisition Opportunities Acquisitions NDAA Form Rough Quantity Estimate Planned Timing Ferroniobium 2014 Commercial Specs ~200 Metric Tons CY18Q3 Dysprosium Metal (FeDy and Dy) 2014 Semi-refined Forms 200 to 500 Kg CY18Q3 Tantalum 2017 Semi-refined Forms Tens of Thousands of Pounds CY18Q3 Boron Carbide Powder 2017 Semi-refined Forms X0-X00 Metric Tons CY18Q3 Europium and Rare Earth Concentrate 2017 Concentrate Approximately 50 Metric Tons CY18Q2 Antimony 2018 Semi-refined Forms TBD CY18Q3 Electrolytic Manganese Metal (EMM) 2018 Commercial Specs 3,000 MT CY18Q3 Note- Commercial Specs refers to composition and materials properties. DLA may require additional testing, packaging or other requirements WARFIGHTER FIRST 34
Qualification Programs New Authority Granted in Fiscal Year 2017 QUALIFICATION OF DOMESTIC SOURCES. (50 U.S.C. 98h 6(a)) (3) by qualifying existing domestic facilities and domestically produced strategic and critical materials to meet the requirements of defense and essential civilian industries in times of national emergency when existing domestic sources of supply are either sufficient or vulnerable to single points of failure; Traditional Stockpiling vs. Qualification of Substitute. Stockpiling Quantity of material required by DoD? Specifications required? Long term cost of stockpiling? Shelf life. Obsolescence. Environmental impact. Industrial base health and supply chain? Qualification Cost and depth of requalification? Support of program office? How many platforms or projects are required to mitigate risk? How long will the material be required? Industrial base health and supply chain for the substitute? Long term cost to the program? https://www.fbo.gov/spg/dla/j3/dnsc/baa-dlasm-2018-01/listing.ht WARFIGHTER FIRST 35
Recovery of Strategic Materials Planned Growth Area for DLA-SM Two Planned Operational Programs for CY18 1. Turbine Engine Recycling 2. Germanium Recycling Other Programs in Planning or Exploratory Phases Li-Ion Recycling Magnesium Recycling E-Waste Recycling WARFIGHTER FIRST 36
Other Programs Beryllium Recertification- FY18 Broad Agency Announcement (BAA) for Research and Development Ongoing- FY18 and beyond (DLA-SM discretion) DLA-SM accepts white papers relating to R&D for critical and strategic materials. White papers should correspond to topic discussions in FedbizOpps posting. Technical Panel reviews and decides whether the white paper would have a positive impact to DLA-SM mission. If yes, then full proposal is requested Simplified acquisition- $150K WARFIGHTER FIRST 37
Contact Information Defense Logistics Agency Strategic Materials http://www.dla.mil/hq/acquisition/strategicmaterials.aspx 703.767.5500 Presenter: Brian Gabriel WARFIGHTER FIRST 38