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I got a couple of refurbished Xeon E5-2670 and they came with a blue plastic ring glued onto them, that looks like this:

enter image description here

I have done a couple of builds before and never seen anything like this. It is glued very securely all around the chip. What is this? What is its purpose? The vendor says to rip it off, but I'm hesitant to apply so much force to the chip. Any information would be greatly appreciated.

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    why don't you ask the vendor? – yass May 9 '17 at 17:57
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This kind of processor usually fits in last generation servers systems, like HP Proliant for example. The blue plastic guides the processor into the motherboard socket, like shown on picture I just took from one of my servers (HP Proliant DL380 Gen9):

Intel Xeon on HP Proliant DL380 Gen9

However you can use the processor without this piece of plastic, just be careful when you remove it as it's pretty strongly pasted.

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