2 GAL BOLTED CLOSURE REACTOR ASSY.

Trade Agreement: NAFTA/AIT/Canada-Peru FTA/Canada-Colombia FTA Tendering Procedures: Generally only one firm has been invited to bid Attachment: None Non-Competitive Procurement Strategy: Interchangeable Parts Comprehensive Land Claim Agreement: No Vendor Name and Address: Parker Autoclave Engineers 8325 Hessinger Drive Erie Pennsylvania United States 16509 Nature of Requirements: 2 GAL BOLTED CLOSURE REACTOR ASSY.

23240-130320/A Martins, Christina Telephone No. - (819) 956-6911 Fax No. - (819) 956-3814

1) 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) Natural Resources Canada, has a requirement for the supply and manuals for one (1) instrumented reaction pressure vessel to perform ignition and combustion experiments on a variety of products including explosives. It is intended to negotiate with Parker Autoclave Engineers for the supply and manuals for the instrumented reaction pressure vessel identified below:

a. 2 Gal Bolted Clos. Reactor Assy, Qty 1 b. CRN, Qty 1 c. ASME Code, Qty 1

3) Minimum Essential Requirements

Any interested supplier must demonstrate by way of a statement of capabilities that its instrumented reaction pressure vessel meets the following requirements:

i. Must be able to attain a maximum operating pressure of 3600psi at ambient temperature and at least 3400 psi at an elevated temperature (maximum 204°C).

ii. Must utilize a bolted closure system to safely contain the pressurized contents of the vessel under test conditions.

iii. Must undergo a hydrostatic test at maximum operating pressure and be registered as a pressure vessel with the Technical Standards and Safety Authority (TSSA) and have a Canadian Registration Number (CRN).

iv. Must be constructed of 316 Stainless Steel. Peripheral component materials of construction must be 316SS or equivalent to maintain maximum operating pressures and corrosion resistance.

v. Peripheral components such as valves and fittings as instrumented must have Canadian Registration Number (CRN).

vi. Must have a minimum internal volume of 7.5L.

vii. Must be full opening and have an internal diameter of a minimum of 165mm; the inside diameter of the reaction pressure vessel must be fully accessible for the positioning of the sample and testing accessories.

viii. Must be mounted so that the pressure vessel cover permits permanent process connection piping and electrical.

ix. Must have the following ports machined in the cover; ports, fittings and peripheral components must be positioned to not impede the bolting of the cover to the vessel: i. ¼" minimum inlet with manual valve for introduction of gas; the port must include additional connection on inside of the vessel cover for dip tub positioned at 75% of internal length (IL) of vessel.

ii. ½" minimum outlet for removal of gas; outlet must be coupled with air operated solenoid valve assembly (120VAC; air to close) for removal of gas

iii. ¼" minimum outlet for monitoring pressure; outlet must be coupled with 316SS pressure gauge and transducer (voltage) suitable for operating range of the vessel and include safety head assembly and rupture disk for over-pressure protection

iv. ¾" electrical feed through ports (2) including CONAX? Teflon sealing glands

v. ¼" multi-thermocouple feed through port (1) including CONAX? sealing

vi. ¼" inlet port (2) capped.

x. Must be equipped with an appropriate closure sealing ring. A reasonable replacement supply must be included with delivery.

xi. Must be equipped with a floor stand.

xii. Must have a manual mechanical lifting system (hydraulic jack) integrated into the floor stand whereby the vessel body can be safely raised/lowered to/from the vessel cover. The lift system must be modifiable to an automated hydraulic lift system if required.

xiii. Must be equipped with a wheeled cart accessory to allow safe removal of the vessel body when lowered away form the vessel cover. This cart must be accessorized to securely latch to the housing of the vessel to permit the safe transition of the body from the vessel to the cart. The cart must be equipped with a means to secure the body to the cart for transport.

xiv. Must be installed on robust castors to permit safe movement of the instrument as required.

4. Applicability of the trade agreement(s) to the procurement

This procurement is subject to the following trade agreements

Agreement on Internal Trade (AIT) North American Free Trade Agreement (NAFTA)

5. Justification for the Pre-Identified Supplier

Presently, NRCan has an operative instrumented reaction pressure vessel which was designed in consultation with and manufactured by Autoclave Engineers Division of Snap-Tite Inc. The current pressure vessel's certification will expire and the vessel will have to be decommissioned because of its age. A new vessel is operationally required to replace the aging instrument and must be compatible with existing laboratory framework. Pressure vessel construction in Canada and the US must comply with the ASME VIII-1 pressure vessel code.

6. Government Contracts Regulations Exception(s)

10.2 Exceptions 10.2.1 Section 6 of the Government Contracts Regulations contains four exceptions that permit the contracting authority to set aside the requirement to solicit bids.

These are

a.the need is one of pressing emergency in which delay would be injurious to the public interest;

b.the estimated expenditure does not exceed $25,000, $100,000, where the contract is for the acquisition of architectural, engineering and other services required in respect of the planning, design, preparation or supervision of the construction, repair, renovation or restoration of a work, or $100,000 where the contract is to be entered into by the member of the Queen's Privy Council for Canada responsible for the Canadian International Development Agency and is for the acquisition of architectural, engineering or other services required in respect of the planning, design, preparation or supervision of an international development assistance program or project;

c.the nature of the work is such that it would not be in the public interest to solicit bids; or

d.only one person or firm is capable of performing the contract.

The following exception to the Government Contracts Regulations is invoked for this procurement under subsection 10.2 Section 6(d) - "only one person is capable of performing the work".

7. Exclusions and/or Limited Tendering Reasons

The following exclusion(s) and/or limited tendering reasons are invoked under the section of the trade agreement(s) specified:

Agreement on Internal Trade AIT Article 506.12 (a) To ensure compatibility with existing products, to recognize exclusiverights, such as exclusive licesnses, copyright and patent rights, or to maintain specialized products that must be maintained by the manufacturer or its representative.

North American Free Trade Agreement NAFTA 1016.2 (d) for additional deliveries by the original supplier that are intended either as replacement parts or continuing services for existing supplies, services or installations, or as the extension of existing supplies, services or installations, where a change of supplier would compel the entity to procure equipment or services not meeting requirements of interchangeability with already existing equipment or services, including software to the extent that the initial procurement of the software was covered by this Chapter;

8. Ownership of Intellectual Property.

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

9. The period of the proposed contract or the delivery date.

Delivery must be received by 31 March, 2013.

10. A cost estimate of the proposed contract.

The estimated value of the contract is $28, 860.30CDN (GST/HST included).

11. Name and address of the pre-identified supplier

Name: Parker Autoclave Engineers Address: Erie, PA

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. The closing date for a submission of a statement of capabilities.

The closing date and time for accepting statements of capabilities is 3 January, 2013 at 2:00 p.m. EST. Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, 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.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.