[vital] supplier . On June 3, RUS provided USDA with its financial viability review of Neptune. [39] The agency argues that it did not have to include the additional aircraft in the J&As description, inasmuch as these bilateral options would not be included in determining the required justification approval level as set forth in FAR 6.304(d). [1] On November30, 2011, the Forest Service issued request for proposals (RFP) No. He received his BBA from Southern Methodist University in 1989 and holds an OPM from Harvard Business School. Tr. As detailed below, the record indicates that the verbal representations of Neptunes CEO concerning the firms financial viability were relied upon by the Forest Service when determining the agencys actions. Similarly, if the protesters were to prevail in their challenge and the agency decided to meet its requirements by exercising options available to it under the NextGen contract, the protesters would be interested and eligible to receive such orders. [19] See FAR 6.304(a)(4). Protecting Australia from bushfires with our state-of-the-art aerial firefighting fleet, pilots and support staff. [11] AR, Tab 11, Neptune Email to Contracting Officer, May 9, 2013. Neptune Comments, Feb.24, 2014, at 3-5, citing AR, Tab 150, Neptune Financial Assumptions, May 29, 2013 ([b]ased on denial of contracts under the Next Generation Airtanker Services Solicitation, Neptune is now faced with extinction after the expiration of the Legacy Contracts). AR, Jan. 31, 2014, at34-54. . 2. [9] AR, Tab61, Neptune Legacy Contract Mod. AR, Tab 148, Neptune Settlement Contract Offer, Oct. 31, 2013. Coulson and Minden respond that they are interested parties to protest here because they have a direct economic interest that would be affected by the award of a sole-source contract to Neptune. Neptunes CEO was quite familiar with the FAM Director and other agency officials, as the CEO had been the Forest Services AQM Director until his retirement in December 2010. AR, Tab 49, J&A, Dec.9, 2013, at 1. [37] Moreover, while FIs conclusions were limited to the period through 2017, at no time did the agency conduct any other analysis to determine Neptunes financial viability after 2017. On May 6, the Forest Service announced its intent to make the following awards: AR, Tab 70, NextGen Contract Award Abstract, May 6, 2013. These protests followed publication of the sole-source award to Neptune in FedBizOpps. [23] The ASA is USDAs Chief Acquisition Officer, and the SPE reports to the ASA. We will sustain a protest, however, where an agencys J&A fails to demonstrate that it is in fact necessary to award a contract to a particular source for industrial mobilization purposes. 10 Tanker Protest, Feb. 10, 2014, at120-35. A, Neptune Rate Sheet. AR, Tab29, FI Financial Analysis, Aug. 2, 2013, at 1-3. The NRE Undersecretary also stated that, insofar as USDA counsel had determined that awarding a sole-source contract here was permitted and Neptune had airtankers available, he strongly recommended the award of two NextGen aircraft to Neptune for up to 10 years. [38] Any sole-source contract based on urgency presumably would have been 1 year in length (i.e., the 2014 fire season), not 9 years. The agency does not dispute that 10Tanker had an additional airtanker available (in fact, already performing) that met Forest Service requirements at the time the J&A was signed. Tr. AR, Tab63, Neptune Email to Contracting Officer, June 26, 2013. If the protesters were to prevail in their challenge, and the agency decided to meet its requirements by means of another competitive procurement for large airtankers, the protesters here would all be eligible to compete. We find it both premature and unreasonable for USDA to determine that Neptune requires a sole-source contract now in order to maintain Neptune as a source of large airtanker services after 2017. [15] Neptune also submitted various documents (e.g., business plan, historical balance sheets and cash flow statements) with its financial projections. 3. Specifically, in making her recommendation the SPE stated as follows: General Public policy, the Competition in Contracting Act, and the FAR promote competition to ensure a fair playing field for firms interested in doing business with the Federal government. Where a federal agency makes a sole-source award for purposes of maintaining a particular source for an item or service, concern for maximizing competition is secondary to the agencys industrial mobilization needs. We also recommend that the agency reimburse Coulson, 10 Tanker, and Minden the costs of filing and pursuing their protests, including reasonable attorneys fees. Consequently, the agency argues, the J&A was not grounded on the agencys belief that Neptune would immediately go out of business without a NextGen contract, but was based on its concern with Neptunes continued availability as a large airtanker supplier after 2017 when its Legacy contract expired. For the next three months the Forest Service tried to reach an alternative settlement agreement with Neptune. [28] In fact, at the hearing conducted by our Office, the ASA testified that the financial analysis conducted by FI led [USDA] to an understanding that Neptune would not go out of business. Tr. After receiving the offerors responses, the TEB prepared an evaluation report that included the evaluators final consensus evaluation and analysis of the offerors evaluated prices. Tr. Neptune currently has available and ready to operate two airtankers that meet the specifications of the NextGen contract. Various internal meetings also took place among senior Forest Service and USDA officials, including USDAs Undersecretary for Natural Resources and Environment (NRE Undersecretary) and the Assistant Secretary for Administration (ASA),[23] in an attempt to resolve the Neptune matter. at 4-5. 41 U.S.C. The independent financial analysis subsequently performed by FI on behalf of USDA concluded that Neptune did not require the award of a sole-source contract to remain financially viable. As the President, Chief Executive Officer, and Director of OTC Markets, the total compensation of R Coulson at OTC Markets is $924,940. Our pilots employ night vision technology (NVG), allowing our attack crews to hover fill from open water sources, and carry out pinpoint fire suppression using laser guided drop technology. [32] While there is both documentation and testimony suggesting some USDA and Forest Service officials believed the sole-source award here was based on urgency (i.e., having enough large airtankers available for the 2014 fire season, see Tr. at 1. 7. The NextGen RFP, issued as a small business set-aside, contemplated the award of multiple fixed-price contracts under seven contract line items (CLIN) for airtanker firefighting services on an exclusive-use basis. OTC Markets Group Inc. engages in the financial market business in the United States and internationally. A settlement agreement promising award of a contract on a sole-source basis in exchange for abandoning ongoing litigation, such as a bid protest, is not a permissible basis for restricting competition and excluding potential offerors. Coulson points to the fact that in October 2013 it offered to provide the Forest Service with two additional large airtankers under the NextGen contract, and argues it would be available and ready to perform by an April28, 2014, start date (as established by the contract awarded to Neptune). Servs., Inc., B-237742, Mar. Agency Report (AR), Tab 143, Forest Service Large Airtanker Modernization Strategy, Feb. 10, 2012, at2. The agency admits, however, that ultimately it concluded there was no concern with Neptunes present viability, but only with its viability after 2017. Specifically, the agency contends that Coulson and Minden did not have additional large airtankers available at the time the J&A was signed that would be capable of performing the requirements of the Neptune sole-source contract (which has an April 28, 2014, start date). Only supported aircraft types that are active with this airline are included in the calculations. Boeing 737-3H4. Agencies are provided, however, with authority to conduct noncompetitive procurements in specific limited circumstances. 2020 Coulson Aviation is awarded a 5 year aerial firefighting contract for their Boeing 737 FIRELINER aircraft by the United States Forest Service (USFS). [18] AR, Tab 18, Neptune Settlement Agreement, June 6, 2013. at 2; Tab 146, Neptune CEO Email to FAM, Sept. 23, 2013; Tab 147, FAM Email to Forest Service Chief, Oct. 4, 2013. The Forest Service has determined that based on all the above reasons, it has become necessary to invoke this authority with respect to Neptune Aviation, whose resources and equipment must be available to provide key services if the Forest Service is to successfully fulfill its mission. Fort Worth, TX: 69 : PROFESSIONAL AIRLINE SERVICES: Doral, FL: 42 : SOUTHWEST AIRLINES: Dallas, TX: 41 : UNITED . However, the sole-source award being contemplated--two large airtankers for up to 10 years--was valued at approximately $160 million. Winglets installed 2008. The industrial mobilization exception to competition requirements may be used where an agency determines that it is necessary to award the contract to a particular source . See Ridgeline Indus., Inc., supra; Minowitz Mfg. fleet of Boeing 737 FIRELINERS, C-130 Hercules fire bombers, Today News Australia - Night Firefighting (https://youtu.be/7_2ip6H7rsQ). In a post to Facebook, Coulson Aviation (USA) named captain Ian McBeth, first officer Paul Hudson and flight engineer Rick DeMorgan Jr as the aerial firefighting crew who died in the crash of the . The determination of whether a party is interested to challenge a sole-source award involves considering, among other things, the basis of the sole-source award. at 700. [24] The SPE testified that, in the meetings she attended, she heard no rationale advanced for a sole-source award to Neptune that she had not previously considered, and no rationale that she believed properly justified such an award. Based upon on our review of the record, including the J&A, its supporting documentation, the agencys submissions in response to these protests, and the testimony of the agencys representatives at the hearing held at our Office, the agency has failed to demonstrate that Neptune requires a sole-source contract to remain a source of large airtanker services for the Forest Service. Our fleet currently features custom designed Hercules C-130s, Sikorsky S-61 helicopters, Boeing Chinook CH-47 helitankers, Sikorsky Black Hawk UH-60 helitankers, and our custom-converted Boeing 737 FireLiner fleet equipped with our proprietary RADS-XXL technology. [3] Most of the Legacy large airtankers relied on by the Forest Service are P2V aircraft, which have an average age of more than 50 years. Tr. Built as. Even assuming all seven NextGen airtankers are available to fight fires in 2014, the Forest Service still will have only 16 [large airtankers], which is two [large airtankers] fewer than the minimum needed to fulfill its firefighting mission. [28] See AR, Tab 49, Neptune J&A, Dec. 9, 2013, at 1-6. 001, May 15, 2013, at B-21. The aircraft climbed out of the area and returned to its base at 3:08 pm, after descending once over the fire zone. Coulson Aviation Usa doesn't have any recent trademark applications, indicating Coulson Aviation Usa is focusing on its existing business rather than expanding into new products and markets. Id. [2] AR, Tab67, NextGen RFP. The protesters argue that the sole-source contract awarded to Neptune, which was promised in exchange for Neptune's withdrawal of an earlier bid protest, is not justified. Naval Aviation Museum in Pensacola, Fla. Those plans fell through, but the plane may still find its way to a museum. The direct supervisors/managers are open door and good listeners. There are no executives at OTC Markets getting paid more. The fourth jet is awaiting delivery. See Agency Post-Hearing Comments, Mar. AR, Feb. 19, 2014, at 17. Id. During a visit by Skies to the water bomber base at Sproat Lake, B.C., two of the four Hawaii Mars engines were receiving maintenance. On June 13, the Forest Service made NextGen contract awards as follows: AR, Tab 71, Neptune Protest, May 16, 2013 (B-406920.8), exhib. & Engg Co., B-403561, Nov. 18, 2010, 2010 CPD 276 at 3; SSI Tech., Inc., B-298212, B-298212.2, July 14, 2006, 2006 CPD 183 at 4. Rather, the record demonstrates, as acknowledged by the agency, that Neptune is presently financially viable and is expected to remain financially viable through the term of its Legacy airtanker contract (2017). [37] In fact, Neptune states that its going out of business concerns applied to the period after the end of the Legacy contract in 2017. See Tr. at 469-70; AR, Tab 145, FAM Email to USDA, Sept. 3, 2013. The FireLiner conversion is scheduled to be completed in May 2021 in time for the next fire season in North America. The agency anticipates issuing a similar contract modification for the 2014 fire season. Moreover, given the contract options available to the Forest Service under the competitively-awarded NextGen contracts, Neptune may no longer represent a vital source that must be maintained by the Forest Service after 2017. With contracts for aerial firefighting across the world, the work of the Coulson Aviation team has been featured in the aviation industry and media recently. As stated above, our review of an agencys decision to conduct a noncompetitive procurement focuses on the adequacy of the rationale and conclusions set forth in the J&A. The record also reflects that the NextGen contracts represent the primary, but not only, means by which the Forest Service plans to meet its modernization strategy goal of 18-28 modern large airtankers. at 597, 615-16. Tr. Id. See, e.g., AR, Tab 34, Forest Service Email, Sept. 10, 2013, at 1. 41 U.S.C. 21.8(d)(1). With our total integrated approach, we are able to provide our customers with a safe, world-class program, 24 hours a day.. at 441, 451; AR, Tab24, SPE Email to AQM Requesting Additional Neptune Information, July12, 2013, at 1-2. at 691. Learn more about our Night Aerial Firefighting here. NI Indus., Inc., Vernon Div., B-223941, Dec. 15, 1986, 86-2 CPD 674 at 3. Its the GODs way of saying with 2020 & the Fires that the Martin Mars are meant to be made Fight Worthy and show the Flames how the Big Girls do it RIGHT!!!!! Coulson Aviation (USA) Inc.; 10 Tanker Air Carrier, LLC., B-406920 et al., Sept. 7, 2012. In sum, the J&A and its supporting documents, as well as the agencys submissions in response to these protests and the testimony of the agency representatives at the hearing held by our Office, demonstrate that the sole-source award to Neptune was promised in exchange for Neptunes withdrawal of an earlier protest, and that there was not a reasonable basis for the agencys action. [Forest Service] also has two firms on the legacy contract that can supply planes. Nine offerors, including Neptune, Coulson, 10 Tanker, and Minden, submitted proposals by the February 15, 2012, closing date. The Forest Service is not confident that five of the seven contracted NextGen airtankers will be available to fight fires in 2014. [a] description of the supplies or services required to meet the agencys needs (including the estimated value), [a] demonstration that the . These specific C550s were originally modified and equipped with military fire-control radar, sophisticated infrared cameras, custom instrument panels and law enforcement communication packages. [t]o maintain a . Have a story idea you would like to suggest? Although not stated in the award abstract, based on all aircraft and performance period options, the total amount per CLIN was approximately $350-$400 million. Coulson made its airtanker available shortly thereafter, AR, Jan. 31, 2013, at 21, and the Forest Service accepted the cures proposed by the other contractors. The decision issued on the date below was subject to a GAO Protective Order. at 2, 4. Here, the Forest Services description in its J&A of its noncompetitive requirements, as well as its consideration of alternative sources of supply, is inaccurate. Get the latest business insights from Dun & Bradstreet. By contrast, the second analysis conducted by FI--which did not simply accept Neptunes projections--found that Neptunes revenue projections were inconsistent with the terms of the Legacy contract, that Neptunes expected costs were lower than the company had itself projected, and that Neptune did not require a NextGen contract to remain viable through the term of the Legacy contract. We have six 737 FireLiner tankers, each receiving 43,000+ technician hours to become fully compliant and operational. 3304(e); FAR 6.302-3(c), 6.303, 6.304; Sabreliner Corp., B-288030, B-288030.2, Sept. 13, 2001, 2001 CPD 170 at5. The NextGen RFP required aircraft to have a minimum payload of 2,400gallons, and a target of 3,000-5,000 gallons. The B737 FireLiner is capable of dropping 4,000 gallons (15,141 litres) of water or retardant while flying at maximum altitude and with no speed restrictions. Coulson Protest, Dec. 20, 2013, at 7-8; Coulson Protest, Feb. 10, 2014, at 4. Tr. at127-29, the agency decided not to override the stay. 3304(a)(3)(A) (2006), which provides for a noncompetitive award to a particular source to maintain that supplier for a national emergency or to achieve industrial mobilization. The J&A stated the following justification for the sole-source award to Neptune: Pursuant to FAR 6.302-3(b) [sic] (i),(ii),(iii) and (vi) [sic], the use of the industrial mobilization exception to the requirement to use full and open competition is appropriate when it is necessary to--(i)[k]eep vital facilities or suppliers in business or make them available in the event of a national emergency; (ii) prevent the loss of a suppliers ability and employees skills; (iii) maintain an acceptable balance of sources; and (vi) [sic] provide for an adequate industrial base by dividing the supply among two or more contractors. The Forest Services procurement of NextGen airtanker services has a long and contentious history. However, changing its focus during the course of the protests, the agency has also argued that its actual concern is whether it could obtain sufficient NextGen airtankers for the 2014 fire season. . Our review of an agencys decision to conduct a noncompetitive procurement focuses on the adequacy of the rationale and conclusions set forth in the J&A. AR, Jan. 31, 2014, at 2526; Tab 1, FAM Director Declaration, Jan. 28, 2014, at 7; Tr. [4] In resolving this protest, GAO conducted a 2-day hearing to receive testimony from various agency officials involved in this procurement. at 657-693. Id. Tr. Tr. The two crew members aboardboth pilotssurvived with minor injuries and were taken to hospital. Tr. at 464. AG-024B-S-11-9009 for NextGen large airtanker services. On April 16, the TEB completed its reevaluation of offerors NextGen large airtanker proposals. On August 26, the Forest Service informed Neptune that the SPE would not approve the sole-source contract contemplated by the parties settlement agreement, insofar as the financial analysis of the additional documents provided by Neptune indicated that the company was financially viable without such a contract. The company was formerly known as Pink OTC Markets Inc. and changed its name to OTC Markets Group Inc. in January 2011. Additionally, the agencys apparent belief that an immediate need for NextGen airtankers in 2014 justified the award of a sole-source, 9-year contract on the basis of industrial mobilization is not supported and has no rational basis. Id. [13] The FAM is the Forest Service program office that determines what aviation resources are needed to fulfill the agencys firefighting mission. Neptunes Financial Stability - . 936 talking about this. Elin M. Dugan, Esq., Inga Bumbary-Langston, Esq., Shawn S. McGruder, Esq., Mark G. Garrett, Esq., and Melissa D. McClellan, Esq., Department of Agriculture, for the agency. AR, Tab67, NextGen RFP, atB-11. Required fields are marked *. In fact, the ASA testified that the agency plans to conduct additional competitions in the coming years under which Neptune is eligible to compete and could receive awards. Co., B-228502, Jan. 4, 1988, 88-1 CPD 1 at 3. As detailed below, the Forest Service entered into a settlement agreement with Neptune on the basis that the award of a sole-source, NextGen-type contract was necessary to maintain Neptune as a vital source of large airtankers. at 462. AR, Jan. 31, 2014, at 9. Id. As relevant here, the settlement agreement stated that: the Forest Service will award the Contract using noncompetitive procedures, pursuant to 41 U.S.C. The company will do the same . [11] Neptune also ordered a one-day stand down of its flight operations after learning that it had not been selected for NextGen contract award. Subsequently, the Forest Service realized that the sole-source contract promised to Neptune would require the approval of USDAs senior procurement executive (SPE). . Moreover, had the agency used this separate authority as the basis for its noncompetitive contract award, the agency would have been required to request offers from as many potential sources as is practicable under the circumstances. Just as an agency is not permitted to make a noncompetitive award that exceeds the size or duration of an identified urgency, see FAR 6.302-2(d), an agency is also not permitted to make a noncompetitive award for industrial mobilization reasons where, as here, there has been no showing that the award is presently necessary to maintain a supplier even if deemed vital. LouisA.Chiarella, Esq., and GuyR.Pietrovito, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. He received his BBA from Southern Methodist University in 1989 and holds an OPM from Harvard Business School. Shortly thereafter the Forest Service modified Neptunes Legacy contract and added an additional BAe-146 aircraft for the 2013 fire season at a total estimated price of $4,960,200. CICAs overriding mandate is for full and open competition in government procurements, obtained through the use of competitive procedures. This will be the third converted 737 for Coulson; the first two are identified as T-137 and T-138. A Forest Service technical evaluation board (TEB) evaluated offerors proposals. Specifically, the J&A describes the services to be provided by Neptune as two NextGen large airtankers for up to 9 years, at a total estimated value of $141million. T: (250) 724-7600 F: (250) 723-7766. Moreover, apart from Neptunes own unsupported statements and the anecdotal views of various agency officials, the record contains no analysis or evidence of Neptunes financial condition after 2017.[36]. Following a May 21 meeting between Neptunes CEO, Forest Service FAM and AQM Directors and staffs, and USDA counsel, the parties engaged in a series of settlement discussions concerning the Forest Services noncompetitive award of a NextGen contract to Neptune pursuant to FAR 6.302-3 (industrial mobilization) in exchange for Neptune withdrawing its May 16 protest. Gen. LEXIS 735 at *12. AR, Jan. 31, 2014, at 57. Servs., Inc., supra. at 735; Agency Post-Hearing Comments, Mar. at 691, 696. Net Profit : Trademark Applications . Port Alberni, British Columbia coulsonaviationusa.com Joined June 2020 88 Following 2,469 Followers Tweets Tweets & replies Media AR, Tab 67, NextGen RFP, at M-4. Canada V9Y 8E9. See York Intl Corp., supra; Department of the Army--Recon., B-237742.2, June 11, 1990, 90-1 CPD 546. 18, 2014, at 9-10, 21; see also Tr. . [18] The settlement agreement specified that the contract to be awarded to Neptune would be the same duration as the NextGen contract awards (i.e., a 5-year base period with five 1-year options). First, RUSs conclusion, that Neptune needed a NextGen contract to remain viable, was based entirely on unverified financial projections as provided by Neptune. at 53. [30] The $496,211,590 figure consists of Neptunes $70,887,370 total cost per aircraft times seven aircraft. Options offered by the Forest Service to Neptune included: (1) adding two additional BAe-146 aircraft to Neptunes Legacy contract (beyond the eight large airtankers then being provided), AR, Tab 32, Forest Service Letter to Neptune, Aug. 26, 2013, at 2; and (2) offering Neptune a sole-source contract of such size that it could be approved below the level of the SPE (i.e., less than $62.5 million). Coulson Aviation recently purchased four Cessna Citation II C550 jets that it will convert into aerial firefighting intelligence aircraft. See AR, Jan. 31, 2014, at 55. En route to the fires, the aircraft climbed to 29,000 feet (8,800m), before descending to around 700 feet (210m) over the fire zone once. Specifically, the record contains many letters and emails between Neptune and the Forest Service during this period, and reflects a number of conversations between Neptunes Chief Executive Officer (CEO) and the Forest Services Director of Fire and Aviation Management (FAM)[13] and Director of Acquisition Management (AQM). To the extent the agency believed an urgent need for large airtanker services would justify a noncompetitive 9-year contract, there is no analysis or explanation in the record demonstrating that this is so.[38]. The protesters argue that the sole-source contract awarded to Neptune, which was promised in exchange for Neptunes withdrawal of an earlier bid protest, is not justified. Consultants, Inc., B-284943, B-284943.2, June 9, 2000, 2000 CPD 102 at 5. The SPE did several things before taking any action on the Forest Services request. Chief Acquisition Officer, June 11, 1990, 90-1 CPD 546 (:. 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Bushfires with our state-of-the-art aerial firefighting intelligence aircraft, Neptune Email to Contracting Officer, May 9, 2013 the! At 469-70 ; AR, Jan. 31, 2014, at 17 has two firms the... Request for proposals ( RFP ) No the date below was subject to GAO... Base at 3:08 pm, after descending once over the fire zone, C-130 Hercules bombers. Dec. 9, 2013 what Aviation resources are needed to fulfill the agencys firefighting mission hours to fully! Get the latest Business insights from Dun & amp ; Bradstreet Strategy, Feb. 19 2014. The Legacy contract that can supply planes 1988, 88-1 CPD 1 at 3, 26... The seven contracted NextGen airtankers will be available to fight fires in 2014 ( )! Nextgen RFP required aircraft to have a minimum payload of 2,400gallons, a.
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