Indium Metal

This document is a Justification and Approval (J&A) for other than full and open competition, issued by the Defense Logistics Agency (DLA) Strategic Materials. The purpose of this acquisition is to procure refined indium metal for the National Defense Stockpile (NDS) to ensure domestic production capabilities and strengthen the Defense Industrial Base in accordance with Executive Orders 14241, 14154, and 14156. Pursuant to FAR 6.302-3 and the Strategic and Critical Materials Stock Piling Act, competition is restricted to domestic manufacturers to maintain critical industrial mobilization capabilities for national emergencies. Market research, including a Request for Information (RFI) issued in August 2025, identified two qualified domestic sources capable of meeting the NDS requirements: Indium Corporation of America and AIM Products LLC. The procurement will be conducted as a Request for Proposals (RFP) on SAM.gov using commercial acquisition procedures under FAR Parts 12 and 15. The Contracting Officer will determine price reasonableness by comparing proposals to an Independent Government Cost Estimate (IGCE) or through other price analysis techniques. To overcome future barriers to competition, DLA continues to offer funding opportunities through a Broad Agency Announcement for alternative or newly qualified domestic manufacturers, though no other viable sources or material substitutes have been identified to date.

The document addresses frequently asked questions regarding an Indium procurement, clarifying various requirements for offerors. Key points include specific labeling and palletization requirements detailed in the Statement of Work (SOW) Sections II.G and II.F.5-6. While pictures of storage are preferred, detailed descriptions are mandatory. Past performance will be evaluated per FAR Clause 52.212-2, and commercial contracts for refined metals are acceptable. Samples are not required with the proposal. All testing and inspections will occur at DLA Strategic Materials Scotia, with the government witnessing contractor sampling and requiring an independent third-party lab. Required documents such as SDS and COAs must be submitted with the technical approach, but the delivery schedule is not part of the technical approach section. Material cannot be imported from China; production facilities must be CONUS-based. Partnered supply models using foreign sources are not acceptable if the foreign source is importing the Indium into the domestic supply chain. Packaging standards are referenced in SOW Sections II.A.1.b-c and II.F, emphasizing crush-resistant containers.

The Defense Logistics Agency Strategic Materials (DLA-SM) issued an Indefinite Delivery/Indefinite Quantity (IDIQ) solicitation (SP8000-25-R-0011) to procure up to 402,825 kilograms of 4N Indium Metal Ingots (99.99% purity) over a three-year period for the National Defense Stockpile (NDS). The contract includes a 36-month base ordering period with estimated annual quantities. CLIN 0001 covers the sourcing, packaging, and delivery of Indium Metal Ingots to the DLA Strategic Materials Scotia Depot in New York, with pricing terms as Firm Fixed Price (FFP) or Fixed Price Economic Price Adjustment (EPA). Deliveries are required within twelve months of order issuance. CLIN 0002 addresses third-party testing of the ingots, also under Firm Fixed Price terms, with a 12-month performance period after order issuance. Offerors must propose quantities for testing and per-lot pricing. The quantities are estimates, and the government intends to issue FFP delivery orders with negotiated prices based on EPA.

The Defense Logistics Agency (DLA) is seeking an indefinite delivery/indefinite quantity (IDIQ) contract for 4N purity indium metal, used in DoD applications for solders and wafers. The objective is to establish an ordering vehicle for DLA to purchase indium as needed. The contractor will provide management, services, personnel, and documentation. Over a three-year period, DLA intends to purchase a maximum of 402,825 kg of indium. The contractor must comply with various trade and customs regulations. Material requirements include 4N (99.99%) pure indium in ingot form, non-radioactive, with specific impurity limits, packaged in 1000 kg lots in wooden crates. Sampling and testing must occur within the CONUS by an ISO 17025 certified third-party laboratory, with government oversight. Certificates of Analysis (COAs) are required for each lot and must meet detailed specifications. The contractor is responsible for ensuring compliance with environmental, safety, and occupational health regulations, including DOT, OSHA, and EPA. Packaging must be damage and moisture-resistant, with ingots vacuum-sealed and placed on new, high-density hardwood pallets meeting specific design and construction standards. All containers and pallets require detailed English labeling. The contractor is responsible for transportation and delivery to the DLA Strategic Materials Scotia Depot. DLA will inspect and accept materials, reserving the right to reject non-conforming lots, which must be replaced at no cost.

This government file from the Defense Logistics Agency details contract clauses and procurement notes for federal acquisitions, primarily focusing on Firm-Fixed-Price (FFP) or FFP Economic Price Adjustment (EPA) Indefinite-Delivery/Indefinite-Quantity (IDIQ) contracts. It incorporates clauses by reference from the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS), covering areas such as gratuities, limitations on payments, System for Award Management, safeguarding information systems, whistleblower rights, and restrictions on foreign procurements. Key full-text clauses include 'Variation in Quantity,' 'Contract Terms and Conditions—Commercial Products and Commercial Services,' 'Ordering,' 'Order Limitations,' 'Indefinite Quantity,' 'Hazard Warning Labels,' 'Hazardous Material Identification and Material Safety Data,' and 'Sustainable Products and Services.' These clauses address aspects like inspection, payment terms, termination, intellectual property, risk of loss, taxes, and compliance with various federal laws and executive orders, including those related to small business utilization, equal opportunity, combating trafficking in persons, and environmentally sustainable practices.

This document is a Justification for Other Than Full and Open Competition issued by the Defense Logistics Agency (DLA) Strategic Materials. The purpose of this acquisition is to procure refined indium metal for the National Defense Stockpile (NDS) under the authority of FAR 6.302-3. This action is driven by Executive Orders 14241, 14154, and 14156, which mandate immediate domestic mineral production and strategic stockpiling to ensure national security and reduce foreign dependence. To maintain a resilient domestic industrial base and provide a steady demand signal during national emergencies, competition is restricted to U.S.-based manufacturers. Market research—including a Request for Information (RFI) posted on SAM.gov in August 2025—identified only two capable domestic sources: Indium Corporation of America and AIM Products LLC. Both sources have expressed written interest in the acquisition. The contracting officer anticipates that the acquisition costs will be determined fair and reasonable through comparisons with an Independent Government Cost Estimate (IGCE) or other FAR-compliant evaluation methods. To remove future barriers to competition, DLA Strategic Materials offers funding opportunities through a Broad Agency Announcement for companies to qualify as strategic material manufacturers. However, no viable alternatives or additional sources have been identified. The justification has been certified and approved by the DLA Contracting Officer and Senior Procurement Executive.

This government file details the justification for using other than full and open competition for procuring indium metal for the National Defense Stockpile (NDS). Citing several Executive Orders, the document emphasizes the urgency of increasing domestic mineral production and reducing reliance on foreign sources for strategic materials. The justification highlights that at least two domestic companies, Indium Corporation of America and AIM Products LLC, are capable of supplying refined indium and have expressed interest. The procurement strategy, in accordance with FAR 6.302-3 (a)(2)(i) and (b)(1)(iv)(A), aims to maintain a strong domestic industrial base for strategic materials during national emergencies. Market research, including an RFI on SAM.gov, confirmed the availability of these domestic sources. The contracting officer anticipates a fair and reasonable price, and efforts will continue to identify additional sources and overcome barriers to competition.