If the agency reasonably determines that the award of a contract on a sole-source basis to Neptune is necessary for large airtanker services, the agency should execute a properly-reasoned J&A for the sole-source award. Tr. The Forest Service considers Neptune to be a vital supplier of airtankers. Competition encourages innovation and lower prices. In fact, there is simply no record--in the J&A or otherwise--of any assessment by the agency of Neptunes long-term viability. 21.0(a)(1), 21.1(a) (2013); Cattlemens Meat Co., B-296616, Aug. 30, 2005, 2005 CPD 167 at 2 n.1. at735-36. [36] Neptune and USDA reason that because Neptune currently has no contract in place for large airtanker services after 2017, this demonstrates that Neptune cannot remain viable after 2017. Our pilots, aircraft maintenance engineers, and logistics professionals are highly experienced individuals in the aviation industry. Boeing 737-3H4. We find this argument to be entirely without merit, and the reliance on FAR 6.304(d) misplaced; an accurate description of the services being obtained on a noncompetitive basis is not limited to the options that must be included when determining the J&As approval authority. 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. Two of the C550 jets have been purchased by the New South Wales (NSW) Rural Fire Service in Australia and will make the long journey once the upgrades by Coulson are complete. 3301(a)(1). Nine offerors, including Neptune, Coulson, 10 Tanker, and Minden, submitted proposals by the February 15, 2012, closing date. 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. Executive Candidate Assessment and Development Program. First, the SPE and her staff familiarized themselves with the NextGen procurement and the Forest Services requirements for large airtankers generally. 001, May 15, 2013, at B-21. Coulson GroupCoulson AviationCoulson Ice BlastCoulson Unical, Designed by Elegant Themes | Powered by WordPress, https://www.youtube.com/watch?v=CgCgo-cpQxk, Coulson Aviation Australia (https://www.youtube.com/watch?v=CgCgo-cpQxk). . On June 6, the Forest Service and Neptune entered into a written settlement agreement, under which the agency agreed to award Neptune a sole-source contract for two NextGen large airtankers in exchange for Neptune withdrawing its protest (and thereby ending the CICA stay of the NextGen contract awards). Address: 9047 6th Street Great Bend, KS 67530-9770 United States of America Telephone: 620-796-2130 623-293-2038 Email: ryan.coulson@fly-kansas.com See also Federal Acquisition Regulation (FAR) 6.302-3. and the results or a statement of the reason market research was not conducted. FAR 6.303-2(b)(3), (5), (8). at 462. Derek Heyes Photo. 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. The J&A also stated that the agency took into account alternative resources, and found there were no certified large airtankers currently available that were not already under contract with the Forest Service capable of meeting NextGen contract requirements. It seems like if were interested in creating a balanced source of supply we would award more air tankers to the other legacy contractor, Minden, or add more air tankers to the current Next Gen contractors versus issuing a noncompetitive award to an unsuccessful offeror. [30] The $496,211,590 figure consists of Neptunes $70,887,370 total cost per aircraft times seven aircraft. E: michael.strain@bowmanslaw.com. The FireLiner conversion is scheduled to be completed in May 2021 in time for the next fire season in North America. Tr. 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. E: cg@coulsongroup.com 18, 2014, at7. at 441, 451; AR, Tab24, SPE Email to AQM Requesting Additional Neptune Information, July12, 2013, at 1-2. AR, Tab 73, GAO Confirmation of Withdrawal (B-406920.8), June 7, 2013. Learn more about our Night Aerial Firefighting here. T: (250) 724-7600 F: (250) 723-7766. After a period of storage and conversion, it began operating as an air tanker in July 2022.[7][8]. File: B-409356.2; B-409356.3; B-409356.4; B-409356.5; B-409356.6. The protesters generally do not dispute that the Forest Service requires additional large airtankers to perform its firefighting mission. They pride themselves on being the most efficient and safety conscious aerial firefighting team in Australia. fleet of Boeing 737 FIRELINERS, C-130 Hercules fire bombers, Today News Australia - Night Firefighting (https://youtu.be/7_2ip6H7rsQ). Vertical and Vertical Valor are part of MHM Publishing Inc. All Rights Reserved 2020 | Terms of Use | Privacy Policy. [34] AR, Feb. 19, 2014, at 3-7. AR, Tab63, Neptune Email to Contracting Officer, June 26, 2013. It offers OTC Link Alternative Trading System, an interdealer quotation and trade messaging system; OTC Dealer, a real-time, front-end application that provides consolidated quotation, trading, and information system to attract and access market liquidity; OTC FIX, which uses the industry standard FIX protocol for quote submission, trading, and routing of execution reports; and OTC Link Electronic Communication Networks (ECN) that acts as the executing party on an agency basis in relation to transactions executed on the ECN's platform. Naval Aviation Museum in Pensacola, Fla. Those plans fell through, but the plane may still find its way to a museum. . FAR 6.302-3(a)(2)(i). After taking on a new retardant load, it took off at 1:50 pm for the second mission. [20] As a result, Neptunes total revenue projection for its Legacy contract only scenario was $157,043,792, see AR, Tab 23, RUS Financial Analysis of Neptune, June 26, 2013, at 3, while, as set forth above, the total price of Neptunes Legacy contract (as amended) was $185,212,800--an understatement of $28,169,008. At the end of the first day of the hearing, the GAO hearing official noted that the testimony thus far appeared to support the protesters arguments that the communications between the agency and various offerors were discussions rather than clarifications, as described by FAR 15.306. See Tr. at 691, 696. AR, Tab 70, NextGen Contract Award Abstract, May 6, 2013. [11] AR, Tab 11, Neptune Email to Contracting Officer, May 9, 2013. [15] Neptune also submitted various documents (e.g., business plan, historical balance sheets and cash flow statements) with its financial projections. At the Forest Services request, Neptune provided the agency with the firms financial projections (i.e., expected revenue and expenses) based on various scenarios (e.g., Legacy contract only, Legacy contract plus two 10-year NextGen contracts, etc.). Fort Worth, TX: 69 : PROFESSIONAL AIRLINE SERVICES: Doral, FL: 42 : SOUTHWEST AIRLINES: Dallas, TX: 41 : UNITED . 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. The J&A also failed to consider the additional large airtankers that Coulson had offered to make available to the Forest Service. AR, Tab 31, FI Email to USDA, Aug. 13, 2013, at 4. Nevertheless, USDA argues that it did not act improperly because the sole-source award complied with all applicable procurement statutes and regulations. Coulson Aviation recently purchased four Cessna Citation II C550 jets that it will convert into aerial firefighting intelligence aircraft. nature of the acquisition requires use of the authority cited, and [a] description of the market research conducted . DOCUMENT FOR PUBLIC RELEASE [12] AR, Tab 71, Neptune Protest (B-406920.8), May 16, 2013. 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. AR, Jan. 31, 2014, at34-54. 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. at480. The protesters argue that the agency put the cart before the horse, and agreed to settle Neptunes protest before properly determining that the promised sole-source award complied with CICA. T: (250) 724-7600 F: (250) 723-7766. at5556. 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. [26] The protesters also point to the fact that the only legitimate financial analysis conducted (the analysis by FI) demonstrated that Neptune did not require a sole-source contract to remain viable, as recognized by the agencys SPE, who refused to approve the J&A. The SPE made a series of requests of the Forest Service for additional information, including Neptunes financial statements and balance sheets, Neptunes Legacy contract, and documents related to the NextGen procurement. The Forest Service will oppose any . AR, Tab 144, RUS Email to USDA, June 3, 2013. Boeing 737-3H4 (WL) First Flight. [19] See FAR 6.304(a)(4). Protests of the award of a sole-source contract for firefighting airtanker services under the industrial mobilization exception to the requirement to conduct a competitive procurement are sustained where the sole-source contract resulted from a settlement agreement in exchange for the awardees withdrawal of an earlier protest and the record does not contain an adequate justification reasonably supporting the agencys use of noncompetitive procurement procedures. Id. [2] Large airtankers can carry 1,800-8,000 gallons of fire retardant. at 2; Tab 146, Neptune CEO Email to FAM, Sept. 23, 2013; Tab 147, FAM Email to Forest Service Chief, Oct. 4, 2013. Neptune, however, rejected all offers that differed materially from the terms of the parties settlement agreement. Agency Report (AR), Tab 143, Forest Service Large Airtanker Modernization Strategy, Feb. 10, 2012, at2. AR, Tab31, FI Email to USDA, Aug. 13, 2013, at 1. As the only aerial firefighting company operating both fixed-wing aircraft and Type 1 helicopters, Coulson Aviation (USA) Inc. is fully equipped to carry out aerial firefighting across the globe. 4890 Cherry Creek Road Port Alberni, B.C. Neptune subsequently withdrew its request before any advance payment was made, stating that the company no longer needed the advance payment. They do not include all outstanding orders as reported by aircraft manufacturers. On April 16, the TEB completed its reevaluation of offerors NextGen large airtanker proposals. Coulson Aviation (USA) Inc., of Port Alberni, British Columbia, Canada, 10 Tanker Air Carrier, LLC, of Albuquerque, New Mexico, and Minden Air Corp., of Minden, Nevada, protest the noncompetitive award of contract No. OTC Markets executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, Stocks and cryptocurrency portfolio tracker. Tr. Noncompetitive awards should be limited to only what is needed to achieve the objective, in this case to maintain a vital source of supply . AR, Tab 43, NRE Undersecretary Memo to ASA, Nov. 26, 2013, at 1-2. Protecting Australia from bushfires with our state-of-the-art aerial firefighting fleet, pilots and support staff. However, the sole-source award being contemplated--two large airtankers for up to 10 years--was valued at approximately $160 million. [17] Id. LouisA.Chiarella, Esq., and GuyR.Pietrovito, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. Coulson Aviation is the first company in the world to convert Boeing's 737 commercial airliners into FireLiner tankers. Neptune currently provides eight of nine Legacy airtankers (this includes the two BAe-146 aircraft provided by Neptune for the 2013 fire season). In addition, it offers OTC Disclosure & News Service for publishing and distributing data, news, and financials; Real-Time Level 2 Quotes that gives investors access to real-time bid- ask information and depth of book; Blue Sky Monitoring Service for analysis, review, and guidance about a company's compliance with the United States securities laws; and Virtual Investor Conferences, which allows issuers to communicate and engages with investors, as well as operates the OTCQX Best Market OTCQB Venture Market, and Pink Open Market. Id. Id. at 477-78; AR, Tab 36, AQM Director Email, Oct. 30, 2013. Have a story idea you would like to suggest? Michael Strain is one of East Africa's most active corporate/M&A lawyers; based in Tanzania but also covering the wider region. A global leader in aerial firefighting, emergency personnel transport and other industrial heavy lift operations. With our total integrated approach, we are able to provide our customers with a safe, world-class program, 24 hours a day.. On June 13, the Forest Service made NextGen contract awards as follows: AR, Tab 71, Neptune Protest, May 16, 2013 (B-406920.8), exhib. As the only aerial firefighting company operating both fixed-wing aircraft and Type 1 helicopters, Coulson Aviation (USA) Inc. is fully equipped to carry out aerial firefighting across the globe. . Get the latest business insights from Dun & Bradstreet. As explained below, the record does not support the USDAs decision to award a sole-source contract to Neptune for industrial mobilization purposes. See AR, Jan. 31, 2014, at 55. Only supported aircraft types that are active with this airline are included in the calculations. Test Registration. In this regard, however, the J&A did not address the fact that both 10Tanker and Coulson had previously approached the Forest Service about adding additional airtankers to their NextGen contracts (two additional airtankers in the case of Coulson), and that 10Tanker had delivered a second certified airtanker to the Forest Service for the 2013 fire season. AR, Jan. 31, 2014, at 16 n.14. 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. AR, Jan. 31, 2014, at 32. Tr. Accordingly, while the J&A may demonstrate that the Forest Service needs more large airtanker services than it currently has under contract, the J&A completely fails to demonstrate that Neptune must be the supplier of such services or that Neptune currently requires a 9-year sole-source contract to keep it in business as a vital supplier for the agencys post-2017 needs. After also finding Neptunes expected costs to be lower than the companys projections, FI concluded that Neptune would have the financial capacity to operate and continue performing on its in-place Legacy contract with the Forest Service through, at a minimum, calendar year 2016, without any further contract awards. Tr. Your email address will not be published. at 32. Within Tanzania he has a comprehensive corporate/commercial practice covering all aspects of non-contentious transactional . As the President, Chief Executive Officer, and Director of OTC Markets, the total compensation of R Coulson at OTC Markets is $924,940. 4 C.F.R. Consultants, Inc., B-284943, B-284943.2, June 9, 2000, 2000 CPD 102 at 5. AR, Tab 67, NextGen RFP, at M-4. Stay informed as we add new reports & testimonies. Pursuant to the FAR, the head of a contracting activity only has the authority to approve noncompetitive awards of up to $62.5 million. Turns out they have put the Mars back to work. . We first implemented our night aerial fire suppression protocols in response to the 2009 Black Saturday bushfires in Victoria Australia. 29 Sep 1995. [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. End of Chile Aerial Firefighting Season 2022. . D, 2012 NextGen Contract Award Abstract. at 5; see York Intl Corp., B-244748, Sept.30, 1991, 91-2 CPD 282 at 4-5 (settlement agreements will not be enforceable if they fail to comply with applicable statutes and regulations). 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. On December 9, the ASA executed a J&A for the sole-source award to Neptune for two NextGen aircraft (for a 4-year base period with five 1-year options) at a total estimated price of $141,774,740. 18, 2014, at 7. Critical to this justification are the following facts: 1. [25] AR, Tab 49, Neptune J&A, Dec. 9, 2013, at 1. Coulson Aviation (USA) Inc.; 10Tanker Air Carrier, LLC., B-406920 et al., Sept. 7, 2012. Determining whether a party is interested involves consideration of a variety of factors, including the nature of the issues raised, the benefit or relief sought by the protester, and the partys status in relation to the procurement. 1 The average fleet age is based on our own calculations and may differ from other figures. Only supported aircraft types that are active with this airline are included in the calculations. The SPE had several conversations with the ASA in which she recommended that he not approve the J&A as there was not a valid justification for doing so. 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. 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. 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. 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. Turns out the Mars is back in action, due to the emergency conditions with the Mount Wilson Observatory in the forests north of Los Angeles. AG-024B-C-14-9000, atB-1. Based on her review of all information, including the FI financial analysis, the SPE concluded that the planned sole-source contract award to Neptune for industrial mobilization reasons was not presently justified (Neptune didnt need a contract). AR, Tab 148, Neptune Settlement Contract Offer, Oct. 31, 2013. Accordingly, we recommend that the agency reassess whether a sole-source contract with Neptune--for industrial mobilization reasons or any other reason--is necessary to meet its needs with regard to large airtanker services. The fourth jet is awaiting delivery. 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. 31, 1992, 92-2 CPD 29 at 3-4. [vital] supplier . Id. AR, Tab 69, TEB Report, Apr. Although the Forest Services long term modernization strategy calls for 18-28 modern large airtankers, the Forest Service is currently dependent upon Legacy large airtankers to meet its needs. A, Calculation of Total Estimated Cost. According to data from FlightRadar24.com, the aircraft climbed to 29,000 feet en route to assist firefighting efforts in the Fitzgerald River National Park. [35] To the extent Neptune now represents a vital source, it is because of its Legacy contract. at 2, 4. Subsequently, the Forest Service amended the NextGen solicitation and received revised proposals from offerors. [25] The ASA did not find anything wrong with the SPEs rationale, and acknowledged her procurement expertise. OTC Markets Group Inc. was founded in 1904 and is headquartered in New York, New York. Our highly experienced team of aerial firefighters are an invaluable firefighting asset for Australian emergency services authorities as they fight to protect human lives, infrastructure, wildlife and vegetation. Coulson Aviation operates the only aerial firefighting fleet in the world consisting of both fixed-wing and Type 1 rotary-wing aircraft. [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). Earth Prop. For example, our Office upheld a protest of a solesource award where an agency justified its failure to conduct a full and open competition on the basis that it had entered a settlement agreement promising the award of a contract in exchange for abandoning a threatened contract claim. Tr. 4. AR, Tab 49, J&A, Dec.9, 2013, at 1. Its also the only large airtanker capable of carrying 63 firefighters to a fire without the need to reconfigure the cabin providing support, speed and flexibility to fires. Subsequently, the Forest Service realized that the sole-source contract promised to Neptune would require the approval of USDAs senior procurement executive (SPE). This justification are the following facts: 1 new York next fire season in North America per times! Support the USDAs decision to award a sole-source Contract to Neptune for the 2013 fire season in North.! Advance payment was made, stating that the company no longer needed the payment... 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Complied with all applicable procurement statutes and regulations Cessna Citation II C550 jets it... ), ( 5 ), June 3, 2013, at 1 Inc. was founded in and. [ 12 ] ar, Feb. 19, 2014, at 3-7 at 1 story idea you would like suggest!, however, rejected all offers that differed materially from the Terms the!, and logistics professionals are highly experienced individuals in the calculations to USDA, Aug. 13, 2013 Park!
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