This item is not BoP; it can be sold on the Auction House and traded.
Notes
As of Patch 4.3, these items will still drop from mobs, but are no longer a rep turn-in, so almost junk.
Prior to Patch 4.3, they could be turned in to Ysiel Windsinger in Cenarion Refuge to increase your reputation with the Cenarion Expedition. The first turn-in gave you 250 reputation, and subsequent turn-ins gave 75 reputation each. If you were going for exalted reputation with Cenarion Expedition, it was recommended that you wait to turn these in until after reaching revered.
Before you were able to turn these in, you had to finish the now removed quest [70] Orders from Lady Vashjωτϖ.
Patch changes
Patch 4.3.0 (29-Nov-2011): No longer able to turn in for rep.
Patch 2.1.0 (22-May-2007): Coilfang Armaments will now drop from Heroic difficulty Slave Pens.