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DEFENSE LOGISTICS AGENCY DEFENSE REUTILIZATION AND MARKETING SERVICE

74 WASHINGTON AVENUE NORTH, SUITE 6 BATTLE CREEK, MICHIGAN 49037-3092

IN REPLY REFER TO DRMS-FOIA June 5, 2009

Ms. Jenny Small

Judicial Watch

501 School Street SW

Suite 725

Washington, DC 20024

Dear Ms. Small:

This is in response to your Freedom oflnformation Act (FOIA) request dated April 23, 2009

received by the FOIA office for the Defense Reutilization and Marketing Service (DRMS)

and assigned the FOIA case number DRMS-09-MFOI-OOO 10. You requested records

concerning DOD Surplus implementing new requirements for mutilation of fired shell

casings. The information you requested is enclosed.

There are no fees associated with the processing of this request.

If you have questions about this FOIA request or if we may be of further assistance, please

contact me at telephone (269) 961-4513 or facsimile (269) 961-4534.

�--JimITH R. MANSFIELD

FOIA Officer

Enclosure

Federnl Recycling Program ...,Printed on Recycled Paper

Greg (ORMS) Ortiz,

From: Ortiz, Greg (ORMS) Sent: Friday, March 27, 2009 12:02 PM To: Aldrich, Tina (ORMS) Cc: Watters, Neil (ORMS) Subject: RE: Media Query on Fired Brass Signed By: greg. ortiz@dla.mil

Tina,

DRMS and it's Nationwide Sales Contractor offer for sale to the general public demil coded E useable items or scrap metal composed of demil code E items who condition has been determined to be unserviceable, with mutilation only if exported incorporated into the terms and conditions of sale. The Successful Purchasers must be approved to do so under Trade Security Controls.

Regards, GREGORY ORTIZ Sales Contracting Officer DRMS J-362 ph 269 961-75:?8 (dsn) 661 f:X 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

-----Original Message----­rom: Aldrich, Tina (DRMS)

Sent: Friday, March 27, 2009 11:47 AM To: Ortiz, Greg (DRMS) Cc: Wat ters, Neil (DRMS) Subject: FW: Media Query on Fired Brass

Don't know if you've already received this from Neil - bet you can guess what started this. I think a brief response would be sufficient that explains how we sell it (w/TSC, etc.). Send me a draft please. Thanks!

Tina

-----Original Message----­From: MacNevin, Kenneth (DRMS) Sent: Friday, March 27, 2009 10:46 AM To: Aldrich, Tina (DRMS); Watters, Neil (DRMS) Cc: Hoyle, Timothy (DRMS) Sµbject: FW: Media Query on Fired Brass

See query below pls. Apprciate info to respond today if possible.

v/r Ken

(in training but on line)

-----Original Message ---­From: Gauci, Dennis (HQ DLA) Sent: Friday, March 27, 2009 10:41 AM To: MacNevin, Kenneth (DRMS) Cc: Johnson, Latonya (HQ DLA) Subject: Media Query on Fired Brass

Ken, received a call from Paul Schaffer from American Metal Market. They

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query covers scrap metal. Contact info is pschaffer@amm.com; 646. 274. 6246 His

is "What restrictions are applied to material sold if they're classified DMIL Code E? "

Please work directly with Paul. Dennis

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Greg (ORMS)

Small and in Agency

The

Ortiz,

From: Ortiz, Greg (DRMS) Sent: Wednesday, March 18, 2009 10:33 AM To: 'sniper308@mchsi.com' Cc: Olson-Butler, Nancy (DRMS) Subject: FW: SUSPENSE: 3/20/09-Brass Sales-1723251 Signed By: greg.ortiz@dla.mil

Dear Sir, The Defense Reutilization and Marketing Service (DRMS), a field activity of the Defense Logistics Agency (DLA) , is the Department of Defense (DOD) activity responsible for the disposition of excess and surplus DOD Property.

The primary focus of the DRMS mission is to protect national security by ensuring property is properly identified for reutilization and disposition and not released for public sale when to do so would jeopardize national security.

During the past two years, DRMS revised its processes to further ensure only appropriate items were made available for public sale. To strengthen current controls and to mitigate future security risk, the DOD issued policy that prohibits the sale of military unique items controlled by the Department of State through its Munitions List.

arms cartridge cases are identified as a sensitive Munitions List item were held pending review of the policy relating to the category of items

which cartridge cases were included. Upon review, the Defense Logistics has determined the cartridge cases could be appropriately placed in a

category of government property allowing for their release for sale.

DRMS sales contractor (Government Liquidation) has been notified of this qecision and has begun the process of reoffering the cases that have been held pending completion of the policy review. As was previously required, buyers who purchase cartridge cases from the government must be approved to do so under Trade Security Controls.

Regards, GREGORY ORTIZ Sales Contracting Officer DRMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

(ORMS) Watters, Neil

From: Ortiz, Greg (ORMS) Sent: Wednesday, March 18, 2009 10:15 AM To: Kaplan, Kurt (ORMS); Kloh, Steven (ORMS); Kyle, Tracy L. (ORMS); Lawson, William

(ORMS); Lewis, Terry (ORMS); Little, Paul (ORMS); Lopez, Andrew G (ORMS); Martin, Amelia (ORMS); Martinez, Jennie (ORMS); Mays, Jacquelyn (ORMS); McMillion, Sharon (ORMS); McSwane, Anita (ORMS); Miller, Leonthia (ORMS); Moody, Ella (ORMS); Moore, Veryon (ORMS); Moreno, Michael (ORMS); Norgon, Russell (ORMS); O'Brien, John (ORMS); O' Maley, Sheila (ORMS); Parmley, Victor (ORMS); Pecos, Joe (ORMS); Polite, Aggie (ORMS); Rafanowicz, Patricia (ORMS); Raley, Cody (ORMS); Rasnick, Johnny (ORMS); Rehkopf, Donald (ORMS); Robinson, Lisa (ORMS); Rodrigues, Robert (ORMS); Sanders, Al (ORMS); Severson, Theresa (ORMS); Shaw, Dalton (ORMS); Sherman, Cathy (ORMS); Shippy, Dan (ORMS); Shirrel, Robert (ORMS); Smalley, Herbert L (ORMS); Smith, David (ORMS); Smith, James D (ORMS); Smothers, Linda (ORMS); Snow, Darlynn (OLIS); Snow, James (ORMS); Stodghill, Michael (ORMS); Swensen, Ellen (ORMS); Tarver, Charlie (ORMS); Temple, Lorraine (ORMS); Tisdale, Wayne (DRMS-H); Truett, Anderson (ORMS); Tucker, Joseph (ORMS); Valenzuela, Edward (ORMS); Van Ry, Cory (ORMS); Wagner, Bill (ORMS); Wallace, David (ORMS); Walton, Hugh (ORMS); Waring, Roger (ORMS); Watts, Jeff (ORMS); Webb, Katherine (ORMS); Welge, Roy (ORMS); Welsh, Mike (ORMS); White, Larry (ORMS); Wigginton, Kathy A (ORMS); Wilcox, John (ORMS); Williamson, George (ORMS); Wilson, Christopher (ORMS); Wilson, Theresa (ORMS); Wise, Brad (ORMS); Witthuhn, Richard (ORMS); Woods, Alexis (ORMS) (MEO); Wyatt, Bobby (ORMS); Yanoscak, Michael (ORMS); Young, William D (ORMS); Arteche, Sue (ORMS); Avery, James (ORMS); Aviles, Virginia (ORMS); Bain, Wayne (ORMS); Baken, Debra (ORMS); Bartlett, Sharon (ORMS); Baum, Kenneth (ORMS); Bennett, Bob (ORMS); Benson, Sherrill (ORMS); Berry, Leander (ORMS); Bingham, John (ORMS); Blackwell, Suzanne (ORMS); Boatner, Danny L (ORMS); Bottoms, Steve (ORMS); Brown, Samuel (ORMS); Bull, Barbra (ORMS); Campbell, Vernon (ORMS); Cates, Jett (ORMS); Chavira, Romulo (ORMS); Ching, Godfrey Y.S. (DRMS-H); Christy, Marjean (ORMS); Claramo, Ida A (ORMS-ME); Cobbs, Bertha (ORMS); Dale, Terry (ORMS); David, Nunilon (ORMS); Davies, Marjorie (ORMS); Delacruz, Wilfredo (ORMS) (MEO); Fernandez, Steven (ORMS); Florek, Audrey (ORMS); Foreman, Gary (ORMS); Franks, Sandra (ORMS); Frey, Justin (ORMS); Getchell, William T (ORMS-ME); Gibbs, Daniel (ORMS); Gibson, Pearl (ORMS); Gonsalves, Francine (ORMS); Grage, Suzanne (ORMS); Green, Fabrinzo (ORMS); Greer, Stanley (ORMS); Hanshaw, William (ORMS); Hardman, Ezell (ORMS); Harris, Chris V (ORMS); Harris, Joan (ORMS); Harrison, Marny (ORMS); Harvey, Charles (ORMS); Hawkes, Sandra (ORMS); Heath, Jimmie (ORMS); Helms, Chadyne (ORMS); Hooter, Charles (ORMS); Huether, Mark W (ORMS); Huffaker, Robert (ORMS); Humburg, Scott (ORMS); Ion, Laurie (ORMS); lsernia, Gabriel (ORMS); ltamura, Colleen P (DRMS-H); Jacobs, Jacquelynn (ORMS); Jacques, Pamela (ORMS); James, Ray (ORMS); Jansen, Wendy (ORMS); Jeffrey, Ronald A (ORMS); Johnson, Stephen D (ORMS); Johnson, Toni (ORMS); Jones, Margaret (ORMS)

Cc: Ortiz, Paul (ORMS); Atkins-Nunez, Kathy (ORMS); Bennett, Dale (ORMS); Watters, Neil (ORMS); Aldrich, Tina (ORMS)

Subject: FW: fire brass service ticket response.

ORMS SV POCs,

Last week, ORMS suspended the removal of fired brass shell casings pending a review of policy change within DOD relating to the release of controlled and or sensitive items to the general public. This action did not specifically target cartridge cases rather, cartridge cases were affected incidentally. ORMS was preparing a notification to provide to the field that mutilation will be a requirement under the Scrap Venture contract and ORMS sales within the Control Group and that this could have a direct impact on storage capabilities at some locations.

Yesterday, March 17, 2008 the Department of Defense informed ORMS that fired military small arms cartridge cases are once again eligible for sale. The cartridge cases will be sold as before, intact and reloadable with mutilation only required if exported. However, shells casings larger than SO-caliber (12.7mm) requires mutilation. Purchaser's must still be approved for purchase of cartridge cases under Trade Security Controls. Companies

currently credentialed by DoD to purchase fired cases will need no further vetting at this time, and will be eligible to resume purchasing the cases under the policy adopted this week.

If you have any further questions please contact me. Regards, GREGORY ORTIZ Sales Contracting Officer ORMS J-362

ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

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Greg (ORMS) Ortiz,

From: Ortiz, Greg (ORMS) Sent: Tuesday, March 17, 2009 1 :37 PM To: Gusching, Greg (ORMS) Cc: Watters, Neil (ORMS); Aldrich, Tina (ORMS); Elkins, Gaytha (ORMS); Cullingford, Jodi

(ORMS); Bellinger, Becky (ORMS) Subject: chronological events on brass shell casings

Greg:

2/2 initial email from Control Property verifying spent brass as demil code B.

3/4 control property confirming that the waiver to sell brass under demi code E, no longer applies with the recent demil B and Q policy. Brass has always been demil code B. Control Property in discussions with demil policy office (Barchuck) in obtaining a waiver from mutilation.

3/5 SCO notified GL to cease delivery of expended small arms, unless mutilated prior to sale or mutilation was a condition of sale.

3/5 SCO notified DRMO within the control group to cease delivery of expended small arms. SCO would restructure the contracts to include mutilation.

3/9 - 3-13 GL sends notification to all their buyers of shell casings with notice of the DRMS policy change regarding mutilation of small arms cartridge casese. GL restructuring contracts, withdrawing/suspending future sales. No new contracts with mutilation as a condition of sale were awarded during this timeframe.

3/11 SCO Completed the final contract modification to mutilate brass within the control group.

3/11 Authorized the release of small arms brass within the control Group due to executed supplemental agreements.

Tina, I'm hand carrying this to Greg at his request. GREGORY ORTIZ Sales Contracting Officer DRMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

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Greg (ORMS) Ortiz,

From: Ortiz, Greg (ORMS) Sent: Tuesday, March 17, 2009 1 :37 PM To: Gusching, Greg (ORMS) Cc: Watters, Neil (ORMS); Aldrich, Tina (ORMS); Elkins, Gaytha (ORMS); Cullingford, Jodi

(ORMS); Bellinger, Becky (ORMS) Subject: chronological events on brass shell casings

Greg:

2/2 initial email from Control Property verifying spent brass as demil code B.

3/4 control property confirming that the waiver to sell brass under demi code E, no longer applies with the recent demil B and Q policy. Brass has always been demil code B. Control Property in discussions with demil policy office (Barchuck) in obtaining a waiver from mutilation.

3/5 SCO notified GL to cease delivery of expended small arms, unless mutilated prior to sale or mutilation was a condition of sale.

3/5 SCO notified DRMO within the control group to cease delivery of expended small arms. SCO would restructure the contracts to include mutilation.

3/9 - 3-13 GL sends notification to all their buyers of shell casings with notice of the DRMS policy change regarding mutilation of small arms cartridge casese. GL restructuring contracts, withdrawing/suspending future sales. No new contracts with mutilation as a condition of sale were awarded during this timeframe.

3/11 SCO Completed the final contract modification to mutilate brass within the control group.

3/11 Authorized the release of small arms brass within the control Group due to executed supplemental agreements.

Tina, I'm hand carrying this to Greg at his request. GREGORY ORTIZ Sales Contracting Officer DRMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

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(ORMS) Watters, Neil

From: Watters, Neil (ORMS) Sent: Monday, March 16, 2009 1:41 PM To: Ortiz, Greg (ORMS) Cc: Aldrich, Tina (ORMS) Subject: RE: fired brass Signed By: neil.watters@dla.mil

Greg, Could you let SV POCs know the current issue for impact issues and cc the OSOs so they are all aware of whats going on ... Also note the waiver in process so we can get things moving again ... Just want to manage the expectations out in the field

Neil Watters ORMS Sales Chief Phone 269-961-5705 OSN 661-5705 Fax 269-961-5283

-----Original Message----­From: Ortiz, Greg (ORMS) Sent: Monday, March 16, 2009 12:48 PM To: Aldrich, Tina (ORMS)

Cc: Watters, Neil (ORMS)

Subject: fired brass

Ma'am, Just thought I'd let you know.

Friday I had 5 calls regarding this issue and as you are aware one of which was from a representative of the NRA.

Today: I have responded to 2 support magic requests and 6 phone calls.

GREGORY ORTIZ Sales Contracting Officer ORMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

Tracking: Recipient Read Ortiz, Greg (ORMS)

Aldrich, Tina (ORMS) Read: 3/16/2009 1 :57 PM

1

(ORMS) Watters, Neil

From: Watters, Neil (ORMS) Sent: Monday, March 16, 2009 1 :39 PM To: Wickemeyer, James (ORMS); Aldrich, Tina (ORMS) Subject: RE: Fired munitions/SV Contract Signed By: neil.watters@dla. mil

No reason ... I'll have Greg send something to the SV POCs with cc to the DSDs ...

Neil Watters ORMS Sales Chief

Phone 269-961-5705 DSN 661-5705 Fax 269-961-5283

-----Original Message----­From: Wickemeyer, James (ORMS) Sent: Monday, March 16, 2009 12:53 PM To: Aldrich, Tina (ORMS) ; Watters, Neil (ORMS) Subject: RE: Fired munitions/SV Contract

Just curious, is there a reason why Sales can't notify Operations?

James Wickemeyer Chief Demilitarization Office (269) 961-5922, DSN 661-5922, FAX X5114

email: James.Wickemeyer@dla.mil Visit our Home Page at http://www.drms.dla.mil

-----Original Message----­From: Ortiz, Greg (ORMS) Sent: Wednesday, March 11, 2009 3:15 PM To: Davis, Roscoe (ORMS) ; Aldrich, Tina (ORMS) ; Watters, Neil (ORMS) Cc: Wickemeyer, James (ORMS)

Subject: RE: Fired munitions/SV Contract

Roscoe, additionally, this requirement to cease delivery may cause storage impacts at some DRMO/Generator locations. May want to put Operations on notice.

GREGORY ORTIZ Sales Contracting Officer ORMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg. ortiz@dla.mil

-----Original Message----­From: Ortiz, Greg (ORMS) Sent: Wednesday, March 11, 2009 3:11 PM To: Davis, Roscoe (ORMS) ; Aldrich, Tina (ORMS) ; Watters, Neil (ORMS) Cc: Wickemeyer, James (ORMS) Subject: RE: Fired munitions/SV Contract

Roscoe, GL has been notified to suspend all sales and removals of brass, unless their ongoing term contracts and or sale offerings include brass that is

To: Ortiz, Greg (ORMS)

Cc: Pausch, Matthew (ORMS) ; Bill Angrick; tburton@govliquidation.com; Timothy Daniel

Subject: Fired munitions/SV Contract

Mr. Ortiz,

Please see the attached letter responding to your e-mail to Tim Daniel of March 5, 2009, regarding fired munitions.

Best regards,

James

James Williams

Vice President, General Counsel & Corporate Secretary

Liquidity Services, Inc.

1920 L Street, NW 6th Floor

Washington, DC 20036

james.williams@liquidityservicesinc.com <mailto:James.williams@liquidityservicesinc.com>

202-467-6868, x2279

202-558-6279 (direct)

202-558-6246 (fax)

Tracking: Recipient Read Wickemeyer, James (ORMS)

Aldrich, Tina (ORMS) Read: 3/16/2009 3:20 PM

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already mutilated, or the contracts are restructured to require mutilation as a condition of sale. Regards,

GREGORY ORTIZ

Sales Contracting Officer ORMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

-----Original Message----­From: Davis, Roscoe (ORMS) Sent: Wednesday, March 11, 2009 12:11 PM To: Aldrich, Tina (ORMS) ; Watters, Neil (ORMS) ; Ortiz, Greg (ORMS) Cc: Legeret, Tom (ORMS) ; Wickemeyer, James (ORMS) Subject: FW: Fired munitions/SV Contract

To all;

Request you pull sales until we get word from Barchuk. Please advise.

-----Original Message----­From: Wickemeyer, James (ORMS) Sent: Wednesday, March 11, 2009 11:36 AM To: Davis, Roscoe (ORMS)

Cc: Wickemeyer, James (ORMS) ; Arnold, Daniel (ORMS) Subject: FW: Fired munitions/SV Contract

Roscoe:

See below, this is fyi.

Fired brass is DEMIL B. All DEMIL B is prohibited from sale based on the Nov. DUSO policy letter.

We are working a waiver with the George Barchuk and have reported to sales that all un-mutilated fired brass must be removed from sale. There are

currently several fired brass sales on the web.

James Wickemeyer

Chief Demilitarization Office (2 69) 961-5922, DSN 661-5922, FAX X5114

email: James.Wickemeyer@dla.mil Visit our Home Page at http://www.drms.dla.mil

-----Original Message----­From: Ortiz, Greg (ORMS) Sent: Wednesday, March 11, 2009 7:48 AM To: Aldrich, Tina (ORMS) ; Gusching, Greg (ORMS) ; Watters, Neil (ORMS)

Subject: FW: Fired munitions/SV Contract

And so it begins ..... .

GREGORY ORTIZ Sales Contracting Officer ORMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

-----Original Message----­

From: James Williams [mailto:james.williams@liquidation.com] Sent: Tuesday, March 10, 2009 6:46 PM

2

(ORMS)

-P' '1 Ld

Watters, Neil

From: Watters, Neil (ORMS) Sent: Wednesday, March 11, 2009 7:59 AM To: Chenman, Franklin (ORMS) Subject: FW: Fired munitions/SV Contract

Attachments: ORMS fired munitions letter (3-10-09).pdf

DRMS fired munitions letter (3 ...

More fun ...

Neil Watters ORMS Sales Chief Phone 269-961-5705 DSN 661-5705 Fax 269-961-5283

-----Original Message----­From: Ortiz, Greg (DRMS) Sent: Wednesday, March 11, 2009 7:48 AM To: Aldrich, Tina (ORMS) ; Gusching, Greg (ORMS) ; Watters, Neil (ORMS) Subject: FW: Fired munitions/SV Contract

And so it begins ..... .

GREGORY ORTIZ

Sales Contracting Officer ORMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

-----Original Message----­From: James Williams [mailto:james.williams@liquidation.com] Sent: Tuesday, March 10, 2009 6:46 PM

To: Ortiz, Greg (ORMS) Cc: Pausch, Matthew (ORMS) ; Bill Angrick; tburton@govliquidation.com; Timothy Daniel Subject: Fired munitions/SV Contract

Mr. Ortiz,

Please see the attached letter responding to your e-mail to Tim Daniel of March 5, 2009, regarding fired munitions.

Best regards,

James

1

LifjfiidityServices Inc.

March 10, 2009

BY ELECTRONIC DELIVERY

Mr. Gregory Ortiz Sales Contracting Officer DRMS J-362 Hati Dole Inouye Federal Center 74 Washington Avenue, North Battle Creek, MI 49037-3092

Re: DLA Policy Revision for Fired Munitions

Dear Mr. Ortiz:

We received your email notice to Timothy Daniel, dated March 5, 2009, directing a change in the handling of fired munitions casings. From that communication, we understand that DRMS has directed us to require the mutilation of all fired munitions sold through the Scrap Venture Contract, including on sales that have taken place but on which delivery has not occurred. We are concerned with the form and substance of the direction.

As to form, Supplemental Agreement No. 2, executed on May 2, 2006, specifically excludes from the mutilation requirement, "non-demi! required fired (spent) shell casings in their [the contractor's] re-sale process." The specifically states in Article Twenty-Two, Section 10:

Section 10. Entire Agreement; Modification. This con tract, and the materials incorporated herein by reference, constitute the entire

agreement between the p arties regarding t he matters contained in this contract. If there is any inconsistency between the terms of t his contract and those of any Appendix, Schedule or Exhibit hereto, the terms of this contract shall govern. There are no promises or other agreements, oral or writ1en, express or implied, between the parties other than as set forth in this contract. No change or modification of, or waiver or compromise under, this contract shall be valid unless it is in writing and signed by a duly authorized representative of the party against which it is to be enforced. Contractor understands and agrees to submit a written request for contract modification to the SCO prior to effecting any change from that stated in its technical proposal (including any subcontractors identified therein), and/or Sale of Government Property-Item Bid Page, whether occurring before or after the release of the Property. Contractor further agrees not to effect such changes without first receiving the written approval of the SCO.

We view the direction as a material change to the Scrap Venture Contract and therefore respectfully believe that DRMS should handle the change in accord with the Scrap Venture Contract modification process and not via an electronic mail message.

1920 L. Street NW, 6th Floor, Washington DC 20036 ph: 202.467.6868 f: 202.467.5475 www.liquidityservicesinc.com www.liquidation.com

Mr. Gregory Ortiz Sales Contracting Officer March l 0, 2009 Page 2

As to the substance of the change, we are concerned that DRMS' request will result in financial harm to all parties involved. First, DRMS has not properly classified the fired munitions as DEMIL B surplus requiring mutilation. We have sold un-mutilated shell casings, with DRMS' permission without incident since 2006. Such material is also readily available in the commercial marketplace without mutilation. It is a long stated DoD policy to maximize the value obtained from DoD surplus personal property (including scrap), to the extent consistent with national security interests. See Defense Material Disposition Manual, DoD 4160.21-M at 1-2 (Feb. 1997). Here, requiring the mutilation of the shell casings likely will result in an estimated 40 to 60 percent drop in property value - running counter to both the Scrap Venture Contract, stated DOD policy, and the interests of the taxpayer. Second, the decision will create unnecessary legal issues as we have acted in reliance on the Scrap Venture Contract. The change to the Scrap Venture Contract as related to shell casings will harm us financially and require that we seek compensation.

Given your e-mail, we will presume that DRMS intends to modify the Scrap Venture Contract. To that end, we will provide a proposal to DRMS no later than March 20, 2009. Should it be necessary, we are prepared to meet with D Rl\1.S the week of March 23, 2009, to clarify or expand upon any of the points in our proposal, so that DRMS can expeditiously issue a modification to effect DRMS policy goals. In the interim (and unless your e-mail is rescinded), we will act as directed and seek compensation for the harm suffered as a result of the extra­contractual directive in the near future. Please also note that we can discuss alternatives to the mutilation requirement, such as further increasing the security and scrutiny associated with the sales of shell casings.

If you have any questions or require any additional information, please contact me.

James E. Williams Vice President & General Counsel Liquidity Services, Inc.

cc: William P. Angrick, III, Chairman and Chief Executive Officer Thomas B. Burton, President I C.0.0., DOD Surplus, LLC Matthew Pausch, DRMS Counsel

James Williams

Vice President, General Counsel & Corporate Secretary

Liquidity Services, Inc.

1920 L Street, NW 6th Floor

Washington, DC 20036

james.williams@liquidityservicesinc.com <mailto:James.williams@liquidityservicesinc.com>

202-467-6868, x2279

202-558-6279 (direct)

202-558-6246 (fax)

Tracking: Recipient Read Chenman, Franklin (ORMS) Read: 3/11/2009 8:57 AM

2

prtiz, Greg (ORMS)

From: Ortiz, Greg (ORMS) Sent: Thursday, March 05, 2009 8:29 AM To: 'Timothy Daniel' Subject: Fired munitions

Tim, As you are aware DLA's recent policy restricts from public sale DOD surplus items coded Demil B and Q sensitive. If demil code B and Q sensitive material is downgraded to scrap and provided to the Scrap Venture contract property stream, the sale of such items will require mutilation by the SV Purchaser or the resale-buyer and an executed certificate of destruction must be placed on file.

Recently it has been determined that fired munitions of all calibers, shapes and sizes have been determined to be demil code B. As a result and in conjunction with DLA's current demil code B policy, this notice will serve as official notification which requires SV to implement mutilation as a condition of sale for all sales of fired munitions effective immediately. This notice also requires SV to immediately cease delivery of any fired munitions that have been recently sold or on active term contracts, unless the material has been mutilated prior to sale or SV personnel can attest to the mutilation after delivery. A certificate of destruction is required in either case.

If you have any questions, feel free to contact me. Regards GREGORY ORTIZ Sales Contracting Officer DRMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

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Greg (ORMS} Ortiz,

Subject: FW: Clarification on Demi! B guidance

-----Original Message----­From: Wickemeyer, James (DRMS) Sent: Tuesday, January 20, 2009 3:48 PM To: Ortiz, Greg (DRMS) Cc: Lamphear, Linda (DRMS); Watters, Neil (DRMS); Aldrich, Tina (DRMS); Arnold, Daniel (DRMS)

Subject: RE: Clarification on Demil B guidance

DEMIL manual says DEMIL B.

James Wickemeyer Demilitarization Branch Chief :(269) 961-5922, DSN 661-5922, FAX X5114 email: James.Wickemeyer@dla.mil Visit our Home Page at http://www.drms. dla. mil

-----Original Message----­From: Ortiz, Greg (DRMS) Sent: Tuesday, January 20, 2009 1:23 PM To: Wickemeyer, James (DRMS} Cc: Lamphear, Linda (DRMS); Watters, Neil (DRMS); Aldrich, Tina (DRMS} Subject: RE: Clarification on Demil B guidance

James, thanks for the input. However the main question is:

what is the confirmed demil code for fired munitions.

GREGORY ORTIZ Sales Contracting Officer DRMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla. mil

-----Original Message----­From: Wickemeyer, James (DRMS) Sent: Tuesday, January 201 2009 11:40 AM To: Ortiz, Greg (DRMS) Cc: Lamphear, Linda (DRMS) Subject: RE: Clarification on Demil B guidance

All DEMIL B property is prohibited from sales, MLI/SLI scrap must be mutilated. Release to special programs must be approved through DLA on a case by case basis. See attached policy guidance documents.

,James Wickemeyer pemilitarization Branch Chief (269) 961-5922, DSN 661-5922, FAX X5114 email: James. Wickemeyer@dla.mil Visit our Home Page at http://www.drms. dla.mil

1

GREGORY ORTIZ Sales Contracting Officer DRMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661

mailto:greg. ortiz@dla. mil

-----Original Message----­

-----Original Message----­From: Aldrich, Tina (DRMS) [mailto:Tina.Aldrich@dla.mil] Sent: Monday, November 17, 2008 5:20 AM To: DRMS RTD-Specialist; DRMS ALL DSR Cc: Bennett, Dale (DRMS); Ortiz, Paul (DRMS); Atkins-Nunez, Kathy (DRMS); Collins, Bobbi L CIV DLA DRMS; Welsh, Arthur M (DRMS-E) Subject:

All,

Last Friday the long awaited DRMS B & Q policy was signed by Mr. Jack Bell (see attached). Generally, this letter restricts the issuance of Demil B and Sensitive Q property to DOD (including reserves), FMS and Federal agencies. A demil bulletin and CONOPs will be

issued shortly (hopefully this week) that will outline the implementation procedures. Prior to that going out, I was concerned that many of you may have seen the letter and wondered what to do when other Special Program and Donation customers come to pickup property. The decision was made to allow these customers to pickup property that was requisitioned prior to 14 Nov 08 (julian date prior to 8319) . We are working to stop future requisitions by unauthorized customers. Stay tuned for much more info on this

opic.

V/R,

Tina Aldrich << . . . >>

Reutilization & Sales Division Chief Defense Reutilization and Marketing Service DSN 661-7427 COMM 269-961-7427

2

OFFICE OF THE UNDER SECRETARY OF DEFENSE 3000 DEFENSE PENTAGON

WASHINGTON, DC 2030t 3ooo

ACTION MEMO

ACQUISITIONTECHNOLOGY November 7, 2008 7:19 A.M.

AND LOGISTICS

FOR: DEPUTY UNDER SECRETARY OF DEFENSE (L&MR)

Mr. James D. Hall, Assistant Deputy Under Secretary of Defense {L&Ps?J'FROM:

sUBJECT: Materiel Disposition Policy Change Concerning F-14 Parts, Demilitarization (Demi!) Code B Munitions List Items (MLI), and Demilitarization Code Q Commerce Control List Items (CCLI)

• The memorandum (TAB A) provides specific policy for control of excess F-14 items and non F-14 property, which is placed on the Munitions List (ML) or the Commerce Controlled List (CCL).

• Defense Logistics Agency (DLA) will complete destruction of all F-14 unique items and conduct one-time reutilization offers for F-14 common items in the Defense Reutilization and Marketing System (DRMS). Thereafter, all F-14 common items will be destroyed.

• Non F-14 ML items and sensitive CCL items will be available for reutilization within Department of Defense (DoD), with approved exceptions. Remaining items will be placed in Long Term Storage (LTS) thereafter. Disposal of non-sensitive CCL items will follow existing disposition procedures.

• Challenges to decisions regarding the sensitivity of items will be formally evaluated. A LTS plan for sensitive items will be finalized by November 13, 2008.

• DLA Executives socialized this policy position with the National Association of Aircraft and Communications Suppliers on October 15, 2008.

RECOMMENDATION: Sign the memorandum at TAB A

COORDINATION: DLA, OGC (TAB C)

Attachment: As stated

Prepared By : Paul Blackwell, OADUSD(SCI),703-604-0098 X202

0

DEPUTY UNDER SECRETARY OF DEFENSE FOR LOGISTICS AND MATERIEL READINESS

3500 DEFENSE PENTAGON WASHINGTON, DC 20301 ·3500

MEMORANDUM FOR SECRETARY OF THE ARMY SECRETARY OF THE NAVY SECRETARY OF THE AIR FORCE DIRECTOR, DEFENSE LOGISTICS AGENCY

SUBJECT: Materiel Disposition Policy Change Concerning F-14 Parts, Demilitarization (Demil) Code B Munitions List Items (MU), and Demilitarization Code Q Commerce Control List Items (CCLI)

My office has reviewed current disposition processes for items considered sensitive for reasons of National Security. To strengthen current controls and to mitigate

future security risk with disposition of these items, I direct Defense Logistics Agency (DLA), in coordination with the Military Departments, to implement the following processes and procedures:

• DLA will complete destruction of all excess F-14 unique items in the custody of the Defense Reutilization and Marketing Service (DRMS).

• The Military Departments will identify to DLA those F-14 common items that are to be included in future one-time reutilization offers, based on their readiness criticality to applications on other major weapon system platforms.

• DLA will conduct one-time reutilization offers of excess F-14 common items, within Department of Defense (DoD) only; excess F-14 common items that are not reutilized will be destroyed.

Demil Bl MU that are not applicable to the F-14 will be available for reutilization within DoD (including Reserve Components), Foreign Military Sales (FMS) programs, Federal Agencies, and designated Special Programs pursuant to approved procedures.

DLA will designate Demil Q/ CCLI as non-sensitive or sensitive, based on control criteria established by the Department of Commerce. A designation of non-sensitive will allow disposal of items in accordance with existing excess disposition procedures. Items designated as sensitive will be reutilized according to the Demil B disposition procedure stated above.

I

By November 13, 2008, DLA will finalize procedures for Long-Term Storage (L TS) of applicable Demil B and Q excess. Procedures will ensure proper storage and disposal of the Demil B and sensitive Demil Q items covered by this memorandum. Challenges to B and Q property, which are identified for LTS, may be addressed to the DoD Demilitarization Coding Management Office (DMCO). Challenges will also be considered for other property, which is identified as not requiring LTS. The attached procedures will be reiterated in the L TS Plan.

The above procedures will be incorporated into the Defense Demilitarization Manual (DOD 4160.21-M-1) and the Defense Materiel Disposition Manual (DOD 4160.21-M). For additional information contact, Paul Blackwell, on my staff, at 703-604-0098 x 202 or Paul.Blackwell@osd.mil

Attachments: As Stated

2

(ORMS) Watters, Neil

From: Watters, Neil (ORMS) Sent: Wednesday, March 04, 2009 10:42 AM To: Ortiz, Greg (ORMS) Subject: FW: Fired Brass Signed By: neil.watters@dla.mil

Importance: High

Greg, can you check on this ...

Neil Watters ORMS Sales Chief Phone 269-961-5705

DSN 661-5705 Fax 269-961-5283

-----Original Message----­From: Wickemeyer, James (ORMS) Sent: Wednesday, March 04, 2009 10:41 AM To: Watters, Neil (ORMS) Cc: Arnold, Daniel (ORMS) ; Barchuk, George (HQ DLA) ; Wickemeyer, James (ORMS)

Subject: RE: Fired Brass Importance: High

Neil:

I spoke with George, he would like to see a copy of the waiver. Also could you let him know what controls you have in place when selling brass.

Is TSC done? Are buyers required to be permitted or authorized to buy fired brass?

Do we check what GL does?

Please respond as soon as possible.

James Wickemeyer Chief Demilitarization Office (269) 961-5922, DSN 661-5922, FAX X5114

email: James.Wickemeyer@dla.mil Visit our Home Page at http://www.drms. dla.mil

-----Original Message----­From: Watters, Neil (ORMS) Sent: Wednesday, March 04, 2009 10:04 AM To: Wickemeyer, James (ORMS) ; Barchuk, George (HQ DLA) ; Garrett, Jeff (HQ DLA)

Cc: Arnold, Daniel (ORMS) ; Senn, Paul (ORMS) Subject: RE: Fired Brass

And would a waiver be entertained?

Neil Watters ORMS Sales Chief Phone 269-961-5705 DSN 661-5705 Fax 269-961-5283

(ORMS) Watters, Neil

From: Watters, Neil (ORMS) Sent: Wednesday, March 04, 2009 10:04 AM To: Wickemeyer, James (ORMS); Barchuk, George (HQ DLA); Garrett, Jeff (HQ DLA) Cc: Arnold, Daniel (ORMS); Senn, Paul (ORMS) Subject: RE: Fired Brass

And would a waiver be entertained?

Neil Watters ORMS Sales Chief Phone 269-961-5705 DSN 661 -5705 Fax 269-961 -5283

-----Original Message----­From: Wickemeyer, James (ORMS) Sent: Wednesday, March 04, 2009 9: 46 AM To: Barchuk, George (HQ DLA) ; Garrett, Jeff (HQ DLA) Cc: Arnold, Daniel (ORMS) ; Senn, Paul (ORMS) ; Wickemeyer, James (ORMS) ; Watters, Neil (ORMS)

Subject: Fired Brass

Importance: High

George:

Fired brass is DEMIL B. ORMS has a waiver to sell fired brass without mutilation through our SV contract. The CPVO's position is that the waiver no longer applies based on the OSD B and Q policy letter of 14 November restricting the sale of B and Q 3, and that fired brass must be sold as mutilation required.

Do you concur or is the current waiver still valid?

James Wickemeyer Chief Demilitarization Office (269) 961-5922, DSN 661 -5922, FAX X5114

email: James. Wickemeyer@dla.mil Visit our Home Page at http://www.drms.dla.mil <http://www.drms.dla.mil/>

Tracking: Recipient Read Wickemeyer, James (ORMS)

Barchuk, George (HQ DLA)

Garrett, Jeff (HQ DLA)

Read: 3/4/2009 10:07 AM

Arnold, Daniel (ORMS)

Senn, Paul (ORMS)

1

-----Original Message----­From: Wickemeyer, James (ORMS) Sent: Wednesday, March 04, 2009 9:46 AM To: Barchuk, George (HQ DLA) ; Garrett, Jeff (HQ DLA) Cc: Arnold, Daniel (ORMS) ; Senn, Paul (ORMS) ; Wickemeyer, James (ORMS) ; Watters, Neil (ORMS) Subject: Fired Brass

Importance: High

George:

Fired brass is DEMIL B. ORMS has a waiver to sell fired brass without mutilation through our SV contract. The CPVO's position is that the waiver no longer applies based on the OSD B and Q policy letter of 14 November restricting the sale of B and Q 3, and that fired brass must be sold as mutilation required.

Do you concur or is the current waiver still valid?

James Wickemeyer Chief Demilitarization Office (269) 961-5922, DSN 661-5922, FAX X5114

email: James.Wickemeyer@dla.mil Visit our Home Page at http://www.drms.dla.mil <http://www.drms.dla.mil/>

2

(ORMS) Watters, Neil

From: Watters, Neil (ORMS) Sent: Friday, May 01, 2009 9:58 AM To: 'Timothy Daniel' Cc: Ortiz, Greg (ORMS); Aldrich, Tina (ORMS) Subject: RE: Fired Brass

Thanks Tim,

I'll let Ben know ... Do you know who (customer) your meeting with and is there a ORMS person invited to this meeting? This should be coordinated with the DRMO so all can be engaged with the solution ... I appreciate your help in this matter ...

Neil Watters ORMS Sales Chief Phone 269-961-5705 DSN 661-5705 Fax 269-961-5283

-----Original Message----­From: Timothy Daniel [mailto:tdaniel@govliquidation.com] Sent: Thursday, April 30, 2009 7:21 PM

To: Watters, Neil (ORMS)

Cc: Ortiz, Greg (ORMS) Subject: Fired Brass

Neil

GL sold 5.13M lbs of brass shell cartridges in FY 08.

BTW the Treasure Islands vehicles have not yet shown up on a Pick up List or transferred to SV via the 1348

Tim Daniel

Director SV Operations

602 549 5384

Government Liquidation LLC

A Division of Liquidity Services Inc

visit us at www.govliquidation.com <http://www.govliquidation.com>

Tracking: Recipient Read Timothy Daniel'

Ortiz, Greg (ORMS)

Aldrich, Tina (ORMS) Read: 5/1/2009 10:00 AM

(ORMS) Watters, Neil

From: Watters, Neil (ORMS) Sent: Wednesday, April 29 , 2009 7: 42 AM To: 'John Mccombs' Cc: 'Timothy Daniel' Subject: Fired brass sales

John, Tim,

I missed part of the Congressional question I'm trying to answer ... I got the approximate price per lb from Tim .. $1.50 for brass with Mut ... and 1.5 to 4x more for reloaders depending on lot and case size ... Do you have the volume for FY08?

Neil Watters DRMS Sales Chief Phone 269-961-5705 DSN 661-5705 Fax 269-961-5283

Greg (ORMS)

From: Sent: To: cc:

Ortiz,

From: Wickemeyer, James (DRMS) Sent: Tuesday, January 20, 2009 3:48 PM To: Ortiz, Greg (DRMS) Cc: Lamphear, Linda (DRMS); Watters, Neil (DRMS); Aldrich, Tina (DRMS); Arnold, Daniel

(DRMS) Subject: RE: Clarification on Demi! B guidance Signed By: There are problems with the signature. Click the signature button for details.

DEMIL manual says DEMIL B.

James Wickemeyer Demilitarization Branch Chief (269) 961-5922, DSN 661-5922, FAX X5114

email: James.Wickemeyer@dla.mil Visit our Home Page at http://www.drms.dla.mil

From: Sent: To:

,:.,----Original Message----­Ortiz, Greg (DRMS) Tuesday, January 20, 2009 1:23 PM

Wickemeyer, James (DRMS) Cc: Lamphear, Linda (DRMS); Watters, Neil (DRMS); Aldrich, Tina (DRMS) Subj ect: RE: Clarification on Demil B guidance

James, thanks for the input. However the main question is:

what is the confirmed demil code for fired munitions.

GREGORY ORTIZ Sales Contracting Officer DRMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

----Original Message----­From: Wickemeyer, James (DRMS) Sent: Tuesday, January 20, 2009 11:40 AM To: Ortiz, Greg (DRMS) Cc: Lamphear, Linda (DRMS) Subj ect: RE: Clarification on Demil B guidance

All DEMIL B property is prohibited from sales, MLI/SLI scrap must be mutilated. Release to special programs must be approved through DLA on a case by case basis. See attached policy guidance documents.

James Wickemeyer Demilitarization Branch Chief (269) 961-5922, DSN 661-5922, FAX X5114

email: James.Wickemeyer@dla.mil Visit our Home Page at http://www.drms.dla.mil

-----Original Message--- - ­Ortiz, Greg (DRMS) Friday, January 16, 2009 12:55 PM

Wickemeyer, James (DRMS) Watters, Neil (DRMS)

Subj ect: FW: Clarification on Demil B guidance

1

James, Please confirm

GREGORY ORTIZ Sales Contracting Officer DRMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

-----Original Message----­From: Burrell, Robert (DRMS) Sent: Friday, January 16, 2009 12:49 PM To: Ortiz, Greg (DRMS) Cc: Jacqmin, Vivian (DRMS) Subject: RE: Clarification on Demil B guidance

Greg My understanding is that it was exempt from the Demil E mutilation requirements because it was a DRMS sales contract; however, are you sure it is exempt from the new DRMS B&Q policies? Even if it is one of the 12 categories of material exempt from SV mutilation - that only applies to Demil A material. Right?

Robert

-----Original Message----­From: Ortiz, Greg (DRMS) Sent: Friday, January 16, 2009 9:44 AM To: Jacqmin, Vivian (DRMS); Aldrich, Tina (DRMS); Logan, K-marie (DRMS) Cc: Gonsalves, Francine (DRMS); Harris, Chris V (DRMS); Young, William D (DRMS); Newland, Paula (DRMS); Burrell, Robert (DRMS)

Subject: RE: Clarification on Demil B guidance

Vivian, Unless I missed something brass shells casings are exempt from mutilation through SV or our own DRMS traditional sales.

GREGORY ORTIZ Sales Contracting Officer DRMS J-362 ph 269 961-7558 (dsn) 661 fx 269 961-4020 (dsn) 661 mailto:greg.ortiz@dla.mil

-----Original Message----­From: Jacqmin, Vivian (DRMS) Sent: Friday, January 16, 2009 12:35 PM To: Aldrich, Tina (DRMS); Logan, K-marie (DRMS) Cc: Gonsalves, Francine (DRMS); Harris, Chris V (DRMS); Young, William D (DRMS); Newland, Paula (DRMS); Burrell, Robert (DRMS); Ortiz, Greg (DRMS)

Subject: RE: Clarification on Demil B guidance

Just following up on the phone call with K-Marie this morning, we are still not authorized to issue spent brass cartridges to LESO as we were formerly able. Right now we have 21,000 lbs of 5.56 cartridges, and SV is eagerly waiting to receive this so they can sell the material. We know they are anxious because they previously were selling this scrap to a certified reloader, but now they would be required to mutilate, and we are not confident that this would be done. If SV sells the expended brass cartridges, is there oversight through Greg's office that this goes to a smelter? Perhaps our concerns are unfounded ....

2

Vivian Jacqmin Disposal Service Supervisor DRMO Lewis (253) 966-3177 DSN 347

FAX: (253) 967-3742 DSN 357 Cell: (253) 576-7475 Visit Our Website at: www.drms.dla.mil

----Original Message----­From: Aldrich, Tina (DRMS) Sent: Friday, December 19, 2008 1:05 AM To: Jacqmin, Vivian (DRMS) Cc: Gonsalves, Francine (DRMS); Harris, Chris V (DRMS); Young, William D (DRMS); Newland, Paula (DRMS); Burrell, Robert (DRMS); Logan, K-marie (DRMS)

Subject: RE: Clarification on Demil B guidance

Vivian,

Sorry for the delayed response. None of these are easy questions I'm afraid. The Controlled Property Division is still working on the DRMS policy guidance to implement the new B&Q policy. As it is not yet final, I can't tell you what it will say. We will be updating the system just as soon as it is clear what the guidance is and we can get it implemented with the systems folks. You are correct in that donees cannot receive demil B property. The other issues are not as clear. Sorry I can't provide more info at this time. I can tell you that are working on this now and something should be out in the near future.

Tina

-- ---Original Message----­From: Jacqmin, Vivian (DRMS) Sent: Thursday, December 11, 2008 9:24 PM To: Aldrich, Tina (DRMS) Cc: Gonsalves, Francine (DRMS); Harris, Chris V (DRMS); Young, William D (DRMS); Newland, Paula (DRMS); Burrell, Robert (DRMS)

Subject: Clarification on Demil B guidance

Hello Tina, A question came up regarding the issuing of spent brass cartridges (demil B) to LESO; this has been on-going here for several years at DRMO Lewis and has proved to be quite a cost savings to the local police departments, but LESO is a Special Program. Am I to understand that we will no longer be able to issue spent brass to LESO? This has an impact on our SV partner as whatever we issue they can't resell, and so they are quite eager to validate this.

Also, I want to confirm that we are interpreting correctly that Transfers to Federal Agencies for Demil B is authorized? I believe we were getting this guidance, along with that of F14 and BDUs confused and denying Transfers. We are still getting numerous requisitions to Donees for demil B property at this DRMO and the Alaska sites; my guess is that any items already received prior to 11/14/08 would still end up visible in the GSA site for screening? I haven't been able to determine if any items received after that date would have restricted visibility after DOD/Fed screening; is this a correct assumption? Presently, we and the Alaska sites are denying requisitions but we are wondering if we will have to continue to be checking for this, or if the system eventually will cease allowing requisitions from donees to hit?

Thanks in advance!

Vivian Jacqmin Disposal Service Supervisor DRMO Lewis (253) 966-3177 DSN 347

FAX: (253) 967-3742 DSN 357 Cell: (253) 576-7475

3

Visit Our Website at: www.drms.dla.mil

--- - -Original Message ----­From: Aldrich, Tina ( DRMS) [mailto:Tina.Aldrich@dla.mil] Sent: Monday, November 17, 2008 5:20 AM To: DRMS RTD-Specialist; DRMS ALL DSR Cc: Bennett, Dale ( DRMS); Ortiz, Paul ( DRMS); Atkins-Nunez, Kathy ( DRMS); Collins, Bobbi L CIV DLA DRMS; Welsh, Arthur M ( DRMS-E) Subj ect:

All,

Last Friday the long awaited DRMS B & Q policy was signed by Mr. Jack Bell ( see attached) . Generally, this letter restricts the issuance of Demil B

and Sensitive Q property to DOD ( including reserves), FMS and Federal agencies. A demil bulletin and CONOPs will be issued shortly ( hopefully this week) that will outline the implementation procedures. Prior to that going out, I was concerned that many of you may have seen the letter and wondered what to do when other Special Program and Donation customers come to pickup property. The decision was made to allow these customers to pickup property that was requisitioned prior to 14 Nov 08 ( julian date prior to 8 319) . We are working to stop future requisitions by unauthorized customers. Stay tuned for much more info on this topic.

V/R,

Tina Aldrich < < ... > >

Reutilization & Sales Division Chief Defense Reutilization and Marketing Service DSN 661-7427 COMM 269-961-7427

4

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ' _v o

SALE OF GOVERNMENT PROPERTY AMENDMENT OF I NV I TATION FOR B I DS /MOD I F I CATI ON OF CONTRACT

AMENDMENT

x TO I NVITATI ON FOR B I DS NO . : 33-9603- 5

SUPPLEMENTAL AGREEMENT NO . : 2 EFFECTIVE DATE : 03/2 4/09

I S SUED BY NAME/ADDRESS WHERE B I DS ARE RECE I VED DEFENSE REUT I L I ZAT I ON & MKTG SERVICE DEFENSE REUT I L I ZAT I ON & MKTG SERVICE NATI ONAL SALES OFF I CE NATI ONAL SALES OFFICE ATTENT ION : CAS H I ER ATTENTION : CAS H I ER 74 N . WASH INGTON 74 N . WASH INGTON BATTLE CREEK MI 49017-3092 BATTLE CREEK MI 49017-3092

AMENDMENT OF I NV ITAT I ON FOR B I DS NO . I DATED 33 - 9603-5 12/05/08 I

ACCOUNT I NG AND APPROPRIAT I ON DATA ( I F REQU I RED )

THI S APPL I ES ONLY TO MOD I F I CATION OF CONTRACTS Thi s Suppl ement a l Agreement i s ent ered into pursuant to autho r i t y o f Uni l a t e r a l Agre ement

DESCRI PT I ON OF AMENDMENT/ MOD I F I CATION ( Except as p rovided be l ow a l l t e rms and cond i t i ons of the document r e f e renced remai n in ful l force and e f f e c t )

Whereas Cont ract No . 33-9603-5 entered into on 12/05/08 by and between t he Uni t ed S t a t e s of Ame ri c a , hereina f t e r r e f e rred t o as the Gove rnment , and SCHARCH MFG I NC , here inaf t e r re f e rred t o a s t he purcha s e r , and whereas the cont ract involved the f o l l owing i t ems and the d e s c ript ions thereof i n I nv i t a t i on No . 33-9603 :

B I DDER/ PURCHASER NAME AND ADDRESS [ \1/ B I DDER I S NOT REQUI RED TO S I GN SCHARCH MFG I NC THI S DOCUMENT DAN I EL JOHN SCHARCH [ ] PURCHASER I S REQUI RED TO S IGN 10325 CO RD 120 TH I S DOCUMENT AND RETURN SALI DA , CO . 81201 ORIGINAL AND COP I ES TO

S I GNATURE FOR B I DDER/ PURCHASER

BY BY

OF AMERI CA

NAME & T I TLE OF DATE S IGNED DATE S I GNED S I GNER OFF I CER

- _ _ GREGORY

_ E _

ORT I Z

PAGE 2 CONTRACT NO . 3 3 - 9 6 0 3 - 5 SUPPLEMENTAL AGREEMENT NO : 2

I t em No . 7 : BRAS S , SMALL ARMS CARTRI GED CASES , F I RED , SCRAP : I n c l uding spent she l l c a s ings of various s i ze s to inc l ude 2 2 c a l , 3 8 c a l , 5 . 5 6MM , . 4 5 Cal iber , 7 . 6 2 MM , 9MM , 5 0 c a l , b l anks and paintba l l rounds , with fore i gn mat er i a l t o inc l ude di rt , p l as t i c not to exceed 1 0 % o f tot a l we ight .

Demi l Code E app l i e s : Tot a l de s t ruc t i on prior to export .

When bidding on t h i s i t em you mus t a l so comp l e t e i t ems 2 a and 2 b o n t he S a l e of Government Property i t em Bid and Award Page , S t andard Form 1 1 4 .

Ins ide I n s i de bui l di ng 3 4 0 1 , Sc rap Yard s t orage . Mat e r i a l may b e s t ored l o o s e in wooden ammo crates ( approx . we i ght 1 5 pounds ) , metal ammo cans ( approx .

we i ght 1 5 pounds ) , or drums ( approx . we i ght 2 5 pounds ) whi c h are i n c luded i n we i ght o f s a l e ( NOTE : I f mat e r i a l i s on pal l e t s the DRMO wi l l deduct 1 0 0 l b s p e r pal l e t f rom shipp i ng we ight ) - Mat e r i a l may a l so be stored in hoppe r s whi ch are not i nc l uded i n weight o r s a l e . S c rap -

1 0 0 0 0 0 POUND

Whe reas Supp l ement a l Agreement # 1 , executed on 0 3 / 1 1 / 0 9 requi re s the Purchas e r t o mut i l at e mat e r i a l de l ivered under cont ract i t em 7 and provi de c e rt i f i c a t e s o f de s t ruct i on t o t he act thereof , and

Whe reas DRMS has rev i s e d i t s pol i cy with regards t o the mut i l at i on of sma l l a rms bras s . 5 0 c a l / 1 2 . 7mm and sma l l er and wi l l only requ i re mut i l a t i on o f t he mat e r i al i f export ed .

The f o l lowing a c t i ons wi l l s e rve in the best interest of both Part i e s :

1 . Purcha s e r i s only requ i r e d t o mut i l at e mat e r i a l i f exported .

2 . Purcha s e r wi l l not be requ i red t o p rovide c e rt i f i cat e s o f de s t ruc t i on to at t e s t to the mut i l at i on o f mat e r i a l t o t he hos t DRMO .

3 . Al l exi s t i ng t e rms and condi t i ons s e t forth in the I nvi t a t i on for B i d s ha l l rema i n in e f fect .

I t em No . 1 2 : BRAS S , SMALL ARMS CARTRI DGE CASES , F I RED , S CRAP : To inc lude b l anks and c a r t r i dge c a s e s . I n c l uding commingl ed expended she l l c a s ings o f various s i z e s , 2 2 cal , 3 8 c a l , 5 . 5 6 MM , . 4 5 C a l iber , 7 . 6 2MM , 9MM , and 5 0 cal i b e r c a s i ngs a l s o paint - ba l l rounds . NOTE : Paintba l l rounds wi l l not be commingl ed with f i red

bras s . Contaminat i on to i n c l ude l inks , p l as t i c , d i rt and other f o r e i gn mat e r i a l s , not t o exceed 1 0 % o f total we ight .

When bidding on thi s i t em you mus t a l so comp l e t e i t ems 2 a and 2b o n t h e S a l e of Government Property i t em Bid and Award Page , St andard Form 1 1 4 .

-

Mat e r i a l may be s t ored l o o s e in wooden ammo c rat e s ( approx . we ight 1 5 pounds ) , metal ammo cans ( approx .

we i ght 1 5 pounds ) , or drums ( approx . we i ght 2 5 pounds ) whi ch are i n cl uded i n we ight o f s a l e ( NOTE : I f mat er i a l i s on p a l l e t s the DRMO wi l l deduct 1 0 0 l b s p e r p a l l et f rom shipp ing weight ) - Mat e r i a l may a l so be s t ored in hoppers whi c h are not inc l uded in we i ght or s a l e . S c rap

I n s i de Bui l ding 9 0 6 , A0 1 0 7 0 1Al area

-

5 0 0 0 0 0 POUND

Whe r e a s S upp l ement a l Agreement # 1 , executed on 0 3 / 1 1 / 0 9 requ i r e s the Purcha s e r t o mut i l ate mate r i a l d e l ivered unde r cont ract i t em 1 2 and p rovide c e rt i f i ca t e s of de s t ruc t i on t o t he a c t thereof , and

Whe r e a s DRMS has revi sed i t s pol i cy w i t h regards t o t he mut i l at i on of sma l l a rms bra s s . 5 0 c a l / 1 2 . 7mm and sma l l e r and wi l l only requ i re mut i l at i on of the mat e r i a l i f export ed .

The fol l owing a c t i on s wi l l s e rve in the b e s t i nt e re s t of bot h Part i e s :

1 . Purcha s e r i s only requ i red t o mut i l a t e mat e r i a l i f e xport e d .

2 . Purcha s e r wi l l not be requi red t o p rovide c e rt i f i cat e s of de s t ruct i on t o a t t e s t to the mut i l at ion of mat e r i a l t o t he hos t DRMO .

3 . Al l exi s t ing t e rms and condi t i ons s e t forth i n t he I nvi t a t i on f o r B i d s ha l l rema i n in e f f ec t .

Comput e r Generat ed Form 1 1 4 0 / / / / / / / / / / / / / / / / / / / /NOTHI NG FOLLOWS / / / / / / / / / / / / / / / / / / / /

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EA'!"tLE CREEK

3 / 1 0 / 2 0 0 9 1 3 : 2 0 # 0 0 0 1 P . 0 0 5 / 0 0 8 DRMS NOP !"' Qt:. i;,J.Jf uoes105/20es 14 : 09

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SALE OF GOVERNMSNI' ROPERTY AMENDMIDn.' OF lNVITATION FOR 9!0$/MODl FICATION OP CONTRACT

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AMSNOMENTx TO INVITAT ION FOR S!U$ NO . : 3 3 - 96 03 - 5 - - - - - - - - - - - - - - - - - - - - - - · - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - · - · · · - " - - - - - - -

EFFECTIVE DAT! 0 3 / 0 5 /0 9 SO'PPLEMENTAL AGREEMENT NO . : 1 -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - M - - - - - - - • • N - - - - - - - - - - - - - - - - -

lSSUED BYI NAME/ADDRESS WH R aJns ARE ru::CEIVED DEFENSE REUTILI ZA ION ' MKTO SERVICE ! DEFENSE REOTILt ZATION & MKTG SER.VIC! NATIONAL S RS OFF!Ce j NATIONl\L SALES OFFICE A.'r'l'lmT?ON : CASHIER A.TI'ENTION I CASHIF.:R

·74 N. WASHINGTON 14 N . WASHINGTON BATTLE CREEK MI 49017 - 092 Ml 4 9 0 1 7 - 3092 I

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AMENDMENT OF INVITATION FOR BIDS NO . eATED 3 3 - 9603 - 5 I 12/ 0S/OS

ACCOlJNT NG AND AI'PROP IAT!ON DATA ( IF REQUIRED ) -- · - - - - - - - M - - - - - - - - - - - - - - - - - - - - - - - - - - - M - - - M - - - · - - - - - - - - - - - - - - - - - - -

THIS APPLIES ONLY TO MODI FICATION OF CONTRA.CTS Thia supplemental Agreement ie entered into ursuane to authority of

· 'Mutual Ag,,.eement DE!SCl'i.l TlON OF AM!:NDM /MOO VICJl..TIO i cept as providQO below ll terms and <:iondit ions of the document. re.te:i:enoed :r,emain in ful l force and effect )

Whereas Contract No . 3 3 - 96 0 3 - 5 entered into on 12 /05/0S by and between th United States of America , h reinafter referred to as the QQvernment , and SCHARCH MFG INC, hereinafter referred to as the purchaaer , and whereas the contract involved the following items and the eso ript i ona thereof in lnvit tion No . 3 3 - 51603 ;

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BIDDER/PURCHASER NAME AND ADDRESS ( /!:CDOER IS NOT. REQVXHO TO SIGN SCHARCH MFG INC THI S DOCUMENT DANI EL JOHN SCHARCY ( PURCHASER IS REQUIRED TO SIGN

.. 1 0 3 2 5 CO RD 120 'l'HIS DOCUMENT AND RETURN SALIDA, CO . 81201 ORIGINAL .!\ND COPIES TO

THE I UING - - - - - - - - - - - - - - - - - - - • • H • • - - - - - - - - - - - - - - - - - - - - r - - - - - - - - - - - - - - - - - - - - - -

$ !GNA'I'URE :f'OR s OF AMERICA

. SYI NAME & TITLE OP DATE . SIGNED NAME OF CTlNG ! DATE SIGNED SIGNER I O FICER IVfltvr :J $ Ck #i

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PAGE: 2

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SUPPLEMENTAL AGREEM5N'! 1

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0 3 / 1 0 / 2 0 0 9 1 3 : 2 0 # 0 0 0 1 P . 0 0 6 / 0 0 8 I ,-,'-'"-- """" • • ...., ...., G3/05/ 2009 1 4 : 08 26996 20 DRMS NO!-'

CONTAACT NO , 3 3 . :;G 0 3 - 5

I tem No . 7 : BRASS , SMAJ...L ARIVIS CA!i.TRIGED CA.SES , FIRED , SCRAP : rncl ding spent she l l casings of vario s si7-eS to include 2 2 cal , 3 8 c l . 5 . 56MM • . 4. 5 Ca iber , 7 . 62MM , 9MM , 50 c9l , bl k• and p incball rounds , with foreign material to include dirt , plastic not to exoeed 10' of total weight . Demi'l Code E applies ; Tot a l destruction pt"io:i; to e;)Cport .

When bidding on this item you must also complete items 2a and 2b o n the Sale of Government Propertyitem aid and Awara Page , s snda.rd Form 114 . Inside - Inside building 3 4 0 l , Scrap Y rd storage . Mate ial may be eto ea loose in wooden ammo c aees ( pprox . weight is pounds ) , metal mmo cans ( app ox .

w$ight lS p01,l,Ilds ) , 0)'."' d:nl.!l'IS ( app:t'OX - weight 2 5 pounds) which are included in weight of saJ.e {NO'l'S : 1 f material is on pallet e che DRMO wi l l deduct i o o

j · lbs pe pallet from shipping we ight ) - Material may also be stored in hoppere which are not included in weight o:r sale . Scrap -

1 0 0 0 0 0 POUND

Whereas 1 the Invitation for Bid tem descript ion indenti f ied the materi al a demil code E , requiring muti lat ion only i f expo ted, and Whereas , tbe current Defanse i.og eeics Agency 1 9 poliey requiring demi l coded a and Q $ensit ive sc ap Pe mutilated prior to or after r ovals , and

Wh reas , the Oefense Revt i liation and Market ing service has det X'mined that f ired munitions of all calibers i!md mate ial cont ent i s demil code B , requiring mutilat ion even if material is not

.

expeirted , it has haen dece:i:mined that the following act ions wi l l S*X'l!e in the best interest of the GQvernment and Purcbase n comp lying with cui:rent Ot.;.. pol icies ;

A - M tilation of material wi l l be require prior to or within JO days from removal .

B . chaser wil l provid a certificate of destruct ion o the DRMO from which property was ;:emoV"ed. . Now, therefore , it $ mutual ly agreed between the parties hereto ; i . Pi.:iJ:chaaer agrees o mutilate all material deliv r d \.tndar contract i t em 7 prior to or within

30 ays from date ot removal .

Purc;: ser is requi:l."'ed to :mbmit a b;def wl'.'itt= swnmary that deseribes their mut ilation process , to

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0 3 / 1 0 / 2 0 0 9 1 3 : 2 0 # 0 0 0 1 P . 0 0 7 / 0 0 8 l H'"'"- .._. ._.. , ._.. .._. ORMS NOP 03/05/2009 14: 06 2G99E

tb.e Sales Contra.c t ing Of ficer tor review aJl.Q approval .

3 . Purchaser agrees t provioe a cert i f icate of dest:ruot ion f¢r all terns conta ined in every load removed, to the DRMO from which the property w e removed, for the duration of the eontra¢t ·

4 . Puroha.se agrees to pay for all property removect at the original bid priee of 5 l . 2 % {percent) of ERASS MILL SCRAP NO . 1 , American

Met.ale Ma:rk t .

s . All exi st ing terms and conditions outlined in the Invitation f¢ Eid $hall remain in effect .

Item N¢ . 12 : ER.ASS , SMAI.iL ARMS CARTRIDGE CASES , , R D , SCRAP ; To include blanks and cartridge cases . Ineluding

orruningl ed expended shel l casings of various s i es , 2;;a cal , 3S cal , 5 . 56MM, , 4 5 Calibe r , 7 . 62Mtt , 9M'M , and so cal iber casin9s also paint -ball rounde . NOTE ! Paintball rounds will not be commingled with fi ed braes - contami.netion eo incl e l ink , plastic ,dirt and other foheign material s , not to txo ed 10% of total weight . When bidding on this item you . must also complete items 2a and 2b on the Sale of Government Property item Bid and Award Pase , Standard Form ll4 .

In5ide - Building 906 , A010701A1 area M terial may be etored loose in wooden ammo crate s ( approx . weight l S pounds ) , metal mmo cans ( approx .

we ight 1S pounde) , or o.zuma (spp ox - weignt 2 S pounds) which are included in weight o f sale (NOTE t If material is on pallets the DRMO will deduct 1 0 0 11;> $ pe pallet from shipping weight ) - Mat erial maya1so be stored in hoppers which are not included in weight or sale . Sc:rap -

5 0 0 0 0 0 POUND

Whereas , the Invitation to Sid item descript ion indent ified the terial a demi code E . requiring mut ilat ion only if exported , and

Whe eas , the current O fenae Logistic Agency ' s policy requiring derni l codeQ E and Q sensitive ecf'ap b mutilated prior to or after eroov l s , and Wbereaa , the Defense Reut i l iat ion emd Marketing Se:i;viee has determined that tired munitions of al l calibe s and material aont€nC i s demil code B ,requiring mlJ.tilat i on ev n i f ma erial i $ not experted, it has een determined that the following actions wi l l ae:zve in the best inte est

, cf the Government and ?urcnaser in complying with Cl..l.t'rent DLA policies :

A . Mutil tion of ma.terial wi l l be required priorto o within 30 days from removal , B. :?Urehaser will p ovide a oe tif i cate of destruction to the oru-ro from which property wa :removea .

the approval . 3 . destruction for all removed,removed1 4 -

(percent ) Metals Market .

5 . Computer Generated Form l l4 0

# 0 0 0 1 P . 0 0 8 / 0 0 8 f'" !;,,IUI tJV

0 3 / 1 0 / 2 0 0 9 1 3 : 2 0 03/ 05/2009 14: 08 2699( DRMS NOP

Now, therefore , i t is mutually agreed between the parties hereto : l - Purchaser agrees to mut lat all material delivered Ul?. er contract item 12 prior to or within 3o days from date of emoval . 2 . PUrchaser is equired to eubmit a brief written summary that ae$oribee their mutilatioti. p ocess , t o

sales Contracting O f f icer f o r r view and

PUrchaser agrees to provide a certi ficate of items contained in ev ry load

to the OR'MO from which the p operty was .for th durat i on of the contract .

i>urchaser agrees to pay fo all property x-emoved at the original bid price of 5 . 2.!!:

of BRASS MILL S CRAP NO . 1 , American

All existing cerme and conditions outlined in the Invita. ion :for Sid shall remain in effect .

/ ///////////////////NOT'rlING FOLLOWS//// / / / / ////////////

SALE OF GOVERNMENT PROPERTY AMENDMENT OF I NV I TATI ON FOR B I DS /MOD I F I CATI ON OF CONTRACT

AMENDMENT TO I NVITATI ON FOR B I DS NO . : 3 3 - 9 6 0 3 - 1 0

SUPPLEMENTAL AGREEMENT NO . : 2 EFFECT IVE DATE : 0 3 / 2 4 / 0 9

I S SUED BY DEFENSE REUT I L I ZAT I ON & MKTG SERVI CE NAT I ONAL SALES OFF I CE ATTENT I ON : CAS H I ER 7 4 N . WASH I NGTON BATTLE CREEK MI 4 9 0 1 7 - 3 0 9 2

AMENDMENT OF I NVITAT I ON FOR B I DS NO . 3 3 - 9 6 0 3 - 1 0

ACCOUNTI NG AND APPROPRIAT I ON DATA ( I F

NAME/ADDRESS WHERE BIDS ARE RECE IVED DEFENSE REUT I L I ZATI ON NATI ONAL SALES OFF I CE ATTENTI ON : CAS H I ER 7 4 N . WASH I NGTON BATTLE CREEK

& MKTG

MI 4 9 0

S ERVI CE

0 9 21 7 - 3

DATED 1 2 / 0 8 / 0 8

REQU I RED )

THI S APPL I ES ONLY TO MOD I F I CATI ON OF CONTRACTS Thi s Supp l ement a l Agreement i s entered into pursuant t o author i t y of Un i l at eral Agreement

DESCRI PTI ON OF AMENDMENT/ MOD I F I CAT ION ( Except as provided below a l l t e rms and condi t i ons of the document r e f e renced remain in ful l force and e f f e c t )

Whe r e a s Cont ract No . 3 3 - 9 6 0 3 - 1 0 ent ered int o on 1 2 / 0 8 / 0 8 by and betwe en t he Uni t e d S t a t e s of Ame ri c a , he reina f t e r r e f e rred t o as the Gove rnment , and M & M METALS I NTERNAT I ONAL , here inaft e r r e f e rred t o a s the purcha s e r , and whe reas t he contract i nvolved the f o l l owing i t ems and t he de s c r ip t i ons t he reof i n I nvi tat i on No . 3 3 - 9 6 0 3 :

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M & M METALS I NTERNATI ONAL THI S DOCUMENT BERYL MERRITT 8 4 0 DELLWAY AVE C I NC I NNAT I , OH . 4 5 2 2 9

S I GNATURE FOR B I DDER/ PURCHASER

BY

NAME & T I TLE OF S I GNER

DATE S I GNED

[ ] PURCHASER I S REQUI RED TO S I GN THI S DOCUMENT AND RETURN

COP I E S TO

S OF AMERI CA

BY

NAME OF CONTRACT I NG O F F I CER

GREGORY E . ORT I Z

DATE S IGNED

PAGE 2 CONTRACT NO . 3 3 - 9 6 0 3 - 1 0

- -

2 SUPPLEMENTAL AGREEMENT NO :

I t em No . 6 : BRAS S , SMALL ARMS , CARTRIDGE CASES , F I RED , S CRAP : Cons i s t ing o f : 9mm , 7 . 6 2mm , 5 . 5 6mm , 2 0mm expended cart ridge c a s e s . May cont a i n dirt , wat e r and s t ones not to exceed 3 % o f total we i ght .

Demi l Code E app l i e s , t o t a l de s t ruc t i on prior t o export .

Property i s l oc a t ed at the ASP on Fort Bragg and on occa s s ion S e ymour Johnson AFB .

When bidding on t h i s i t em you mus t a l so comp l e t e i t ems 2 a and 2 b o n t h e S a l e of Government Property i t em Bid and Award Page , S t andard Form 1 1 4 .

Out s i de B # P 0 4 1 5 0 1Al Re s i due Yard Loo s e in purcha s e r provided cont ainers . S crap -

7 0 0 0 0 0 POUND

Whereas Supp l ement a l Agreement # 1 , executed on 0 3 / 0 9 / 0 9 requ i r e s the Purchaser t o mut i l at e mat e r i a l de l ivered under cont ract i t em 6 and provide cert i f i c a t e s o f de s truc t i on t o the act thereof , and

Whe reas DRMS has revi sed i t s pol i cy w i t h regards to the mut i l at i on o f sma l l a rms bra s s . 5 0 c a l / 1 2 . 7mm and sma l l e r and wi l l only requ i re mut i l at i on o f t he mat e r i a l i f export ed .

The f o l l owing a c t i ons wi l l s e rve in the best interest o f both Part i e s :

1 . Purchas e r i s only requi red to mut i l a t e mat e r i a l i f export ed .

2 . Purcha s e r wi l l not be requi red t o p rovi de cert i f i c at e s of de s t ruct i o n t o a t t e s t to the mut i l at ion o f mat e r i a l t o the hos t DRMO .

3 . Al l exi s t i ng t e rms and condi t i ons s e t forth i n the I nvi t at i on f o r B i d s ha l l rema i n in e f fect .

Comput e r Generat e d Form 1 1 4 0 / / / / / / / / / / / / / / / / / / / / NOTHI NG FOLLOWS / / / / / / / / / / / / / / / / / / / /

Jhllman

0 3 / 0 5 / 2009 1 2 : 4 0 5 1 3 2 2 1 2 0 3 4 M&M METALS INT ' L PAGE 02 / 0 5

M & M Metals International, Inc 840 Dellway Ave Cincinnati, OH 45229 March 6, 2009

Mr. Gregory Ortiz Sales Contracting Officer DRMS 74 Washington Avenue North Battle Creek, Michigan 49037w3092

Subject: Term Contract 33-9603-00 1 0, item 6 (located at Ft. Bragg, NC)

Dear Mr. Ortiz:

In response to your letter dated 3/5/09, every shell casing purchased by us on term contract# 33-9603-00 1 , item 6 has and wi ll always be processed through o u r she l l popper unit. The popper unit heats the brass scrap casing between F850 to F 1 000. This process anneals the brass making it unusable for its orig inally intended purpose. The DOD considers this an acceptable means ofmutilation. After popping , all brass scrap is sold to domestic brass mills/foundries/smelters.

Ifyou have any questions about this, please contact Tim Holschuh at (51 3) 221 -44 1 1 .

Sincerely,

President

_J____

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Bh'l'TL El C;l.EBK

AMENDMENT O F INVITATION FOa ains No . A!ED3 3 -9503 - 1 0 A2 / 0 B / O B

0 3 / 0 5 / 2 0 0 9 1 2 : 4 0 5 1 3 221 2 0 3 4 M&M METALS INT ' L PAGE 0 3 / 0 5

03/ 05/ 2009 1 4 : 03 269% _/20 DRMS NOP PAGE 03/05

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Bl\LE O GOVERNM N'l' PROPE tt'Y AJl'reNtlMENT OF INVIT !ON FOR Bl S/MODIFIC T!ON OF CONTRACT

AMENJ:)MEN'rx'I'O INVIT TION FOR BIDS NO , ; 33 98 0 3 - 10

I SSUED BY NJU.!E/ADDRESS WHERE lDS ARE :EIVED DE JW"S REUTILI ZAT ON " DEFENS!li '.R.EUTILI Zi.l\TION & MT<TCI S!RVI CI!: Ml(TG SEF.VIC!!: I NA !CN?lL SALES OPFICE I NATIONAL SALES O ICE ATTENTION : CASHIER '!'TENTION ! CASHIER 74 N . WASHINGTON 74 N . WASHINGTON

Ml: EATTLE CREEX MI 4 9 0 1 - 0 9 2 4:.l0l7-3 092 1 I I

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THIS APii ll!!S ONLY TO MODIFIC.l\T.;J;ON O F CONTRACTS Thi s S'IJ.);lplt!mental Agreement is ente:r d into pursuant to av.t;.hcrity of

- · MUtual AiX"eement • • - • - - - - - - - - - - - - - - " - - - - - - - - - - - - w - - - - - - - - - - - - - - • - - - - - - - a - - - - - - - - - -

DESCRIPTION OF AMENPME:NT/MODIF!CATION ( x9ept n p O ided low all t Qrm 8.Ild conditions of the go um nt referenced remain in full fo ce and effect )

Wherea s cont t No . 3 3 96 0 3 - 1 0 ente d int o on 1 2 / 0 8/0$ byand between the United Stat e ¢f Ame ioa , hereinafter e!erred to as the Government , and· M & M W):;TA $ INTERNATIONAI.i , here inafter refe:i;reCl. t.o as !;he purchaser, and whe:i:eee th,e contract involved t s roi iowins items and the description$ thereof in In i tation ·wo . 3 3 960J •

[ ] 5WOER. IS NO'r REQ.UJ;Rlt!l TO S IGNBIDDER/ PURCHA.Si NAME AND DRESS M & M M!TALS ! Eru-tAT! ONAL THlS OOCUMENT

[ It"' PUR. ER IS REQUIRED 'l'O SIGN $ 4 0 :Oli:LLWAY AVE BERn. UTT

THIS DOCUMENT Rli:TURN CINCINNATI , OH . 4 5 2 2 9 ORIGINAL AND COPIES TO

HE ISSUING O ICE

PAGE 2

*Y oQnt&irt dirt , w t•r 4nd $tones

1 '

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0 /05/2009 14 : 03 DRMS NOP PAGE 04/05

CONTR.tl.CT No . 3 3 - 9503 - 10 SUPl?liiM!NTAL P..GRE N•' :

ttem No . 6 ; BRASS , SMAL s , CARTRIDGE CASES , FIRgD , SCPAP 1 eonsist in of : Smm, 7 . 6 rmn, 5 . S 5mm, 2 omm exp ndeq

ot total we ght . •rtridgG oa e .

not to exce d 3%

Demil Code E appl ies , tot al aestruc icn prioh t o e:Jtport . Prop$rty i a l o Qt Q at th ASP on Fort ragg and on

occ ssion Seymour Johnson AFB .

When bidding on thi s item you must also complete items 2a and 2 on the Sale of Govern ne rop r y item id and Awara Pa e . Standard Form 114 .

OUtside - Sff 04lSO l - aaidue Yard LOose in urchaser · provided containers . Scrap -

7 0 0 0 0 0 POUND

Whereas the Xnvitation for aid item description indentifiect the rnateri 1 ae d mil ode . r qu, ing mUtilation only i f exported, and

Wh,er ae th r;r.;u:rcnt Degena Lcsi t ia$ bg ncy ' policy requiring demil coded B and Q sensit ive ecr p be mutilate prior to Qr after removals , an

nereas the Defense eutil i tion n Marketing service has oe ermined that f ired munition= of 11 calibers and material content is demil oode B . requiring muti l ation even i r material i a not

xported , it be n determined that the following actions wi ll serve in the best interest of the Govern nt and Pur hace in 9omplyins with current DLA policies :

. Mutilat ion o ial wil l be required pri rto or within 30 days from removal .

s . Purch &cr wi ll provide a certificate of de t:r:uct ion to the DRMO erom whi ch property was removed .

Now, th=rcfo;n: , it is mutually agreed betw n th parties hereto ;

1 . Puroh ar rGes to mut ilat0 all m terial del ivered un,de oontr-ct item 6 prior to or within :3 0 do.y-1:1 frQm date of rernovoi.1 .

z . P.u cha e ia equi Q co 1Jl:)mit a brief written summary that describes the ir mutilat ion. pro e e . tc the Salee cont:i: cting O.f.'.U ce.r. .{qr !l':ev.tew and aipprcval .

3 . Qh ;c:i: a9 eo t p o i o QCl;i; f tc ot deatru.ct1on tor an items con t::a1.ned in Eiveey 1oatl removed to the DRMO rrom wh1oh ttie property was removed for th duration of the contract .

0 3 / 0 5 / 2 0 0 9 1 2 : 4 0 5 1 3 2 2 1 2 0 3 4 M&M METALS INT ' L PAGE 0 5 / 05

03/05/ 2009 1 4 : 03 259%. J20 DRMS NOP PAGE 05/ 05

4 . Purchaser agrees to pay £or all p op rty remove at the 0 1gin&l bid price of 6 - 57% of BRASS Mlt.L SCRAP NO . l, American Me tals Market .

5 . All exi st ing term and condition · outlin d in the Invitation for Bid ahall remain in effect ,

Computer GenerateCI. 1i"O+!ll 1 14 0 / ( / // / / //// / / / / / / / / /NOTKING FOLLOWS/ / / / / // / / / / / / ///////

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