Direct Alloy Production from Scandium Oxide

1. Advance Contract Award Notice (ACAN)
An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.

2. Definition of the requirement
The objective of this work is to demonstrate that direct alloy Al-Sc production from Sc oxide produces an alloy that compares well with Al-Sc alloy produced through the traditional process of Sc oxide to Al-Sc master alloy to Al-Sc alloy, but with cost saving. The feedstock, Sc2O3, is expensive and so batches with contained Sc will be costly. This will limit the work to the research-scale. However, the alloys need to be made in sufficient volumes to be able to simulate industrial operations and products. In total, about 10 kg of Al-Sc alloy will be produced in this work.

The Department of Natural Resources Canada (NRCan) has a requirement to Direct Alloy Production from Scandium Oxide. The work will involve the following:

Tasks/Activities

Task 1: Preliminary Sc2O3 to Al-Sc alloy process defined

Task 2: Direct electrolysis of Sc2O3 at the 100A scale to produce metal alloy

Task 3: Techniques used to add other alloying agents; alloy production

Task 4: Techno-economic review of the process compared with traditional Al-Sc alloy production

Task 5: A written report (PDF) describing the methodology, assumptions, results and conclusion.

3. Criteria for assessment of the Statement of Capabilities (Minimum Essential Requirements)

The equipment and expertise required for the electroysis procedure and has applied the process for Scandium (Sc) at the small-scale. The Sc-Oxide to Al-Sc process will require some development and all IP should remain with the contractor. 

Capable of laboratory-scale production of Al-Sc master alloy with the low and varying additions of Sc required in the current work. Produce master alloys with the low, yet unknown Sc content needed for the current work (less than 0.3 wt%).  The electrolysis equipment and expertise to produce low quantities (less than 10 kg) of the master alloy. 

Any interested supplier must demonstrate by way of a statement of capabilities that it meets the following requirements:

Experience:

• The vendor must have at least 10 years experience in electrolysis processes and equipment to convert metal oxide to metal alloys at the laboratory scale. 10 kg of alloy is required.
• The vendor must have previous experience with Al-Sc alloys from Sc oxide with a low and varying, but yet undetermined, Sc concentration (<0.3 wt% Sc).
• The vendor must have in-house characterization equipment for analysis of the Al-Sc master alloy so produced, including ICP-OES and SEM-EDX.
• The vendor shall have knowledge and understanding of alternative and traditional producing methods for Al-Sc alloys and be able to compare options for its production, as well as the impact of the method of production on physical properties, when applied to large-scale production.
• The vendor should have experienced in-house capability to make high-level capital and operating cost estimates for the different processes being compared.

4. Applicability of the trade agreement(s) to the procurement
 This procurement is subject to the following trade agreement(s):

• Canadian Free Trade Agreement (CFTA)
• World Trade Organization - Agreement on Government Procurement (WTO-AGP)
• Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
• Canada-Chile Free Trade Agreement (CCFTA)
• Canada-Colombia Free Trade Agreement
• Canada-Honduras Free Trade Agreement
• Canada-Korea Free Trade Agreement
• Canada-Panama Free Trade Agreement
• Canada-Peru Free Trade Agreement (CPFTA)

5. Justification for the Pre-Identified Supplier
The supplier mentioned in section 11 below is the only known supplier that meets the mandatory criteria set out in section 3 above.

Should Canada receive a statement of capabilities from a supplier that contains sufficient information to indicate that it meets the requirements set forth in this ACAN, a competitive process will be triggered with a technical and financial evaluation methodology of the bids proposed by the potential bidders

6. Government Contracts Regulations Exception(s)
 The following exception(s) to the Government Contracts Regulations is (are) invoked for this procurement under subsection 6(d) - only one person is capable of performing the work.

The identified supplier, Kingston Process Metallurgy Inc. (KPM), is the only one able to meet all of the criteria identified in paragraph 3 above.

7. Exclusions and/or Limited Tendering Reasons
 
The following exclusion(s) and/or limited tendering reasons are invoked under the:

• Canadian Free Trade Agreement (CFTA) – Article: 513.1(b) (iii);
• World Trade Organization - Agreement on Government Procurement (WTO-AGP) – Under the Revised GPA - Article XIII, 1 (b) (iii);
• Canada-European Union Comprehensive Economic and Trade Agreement (CETA) – Article(s) Article 19.12 (b) (iii)
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – Article(s): 15.10 , 2 (b) (iii) (s)
• Canada-Chile Free Trade Agreement (CCFTA) – Article(s) Kbis-09 (b),Article Kbis-09 (c)
• Canada-Colombia Free Trade Agreement – Article(s): 1409 (b) (iii);
• Canada-Honduras Free Trade Agreement – Article(s): 17.11 2 (b) (iii)
• Canada-Korea Free Trade Agreement – Article 14.3, Under the Revised GPA - Article XIII, 1 (b) (iii);
• Canada-Panama Free Trade Agreement – Article(s) 16.10 (b) (iii)
• Canada-Peru Free Trade Agreement (CPFTA) – Article(s1409 (b) (iii)

8. Ownership of Intellectual Property
Ownership of any Foreground Intellectual Property arising out of the proposed contract will vest in the Contractor.

9. Period of the proposed contract or delivery date
The proposed contract is for a period of two years, from contract award to March 31, 2025.

10. Cost estimate of the proposed contract
 
The estimated value of the contract, including option(s), is $305,000.00 x (GST/HST extra).

11. Name and address of the pre-identified supplier

KPM - Kingston Process Metallurgy Inc.

759 Progress Avenue, Kingston, ON CANADA K7M 6N6

12. Suppliers' right to submit a statement of capabilities
Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closing date of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

13. Closing date for a submission of a statement of capabilities
 
The closing date and time for accepting statements of capabilities is March 15, 2023 at 2:30 p.m. EST.

14. Inquiries and submission of statements of capabilities are to be directed to:

Brenda Harlow

Procurement Advisor

Brenda.Harlow@nrcan-rncan.gc.ca