[33] Id. Earth Prop. Id. Tr. D, 2012 NextGen Contract Award Abstract. 7. Read More. (i) To maintain a facility, producer, manufacturer, or other supplier available for furnishing supplies or services in case of a national emergency or to achieve industrial mobilization. If the agency determines the award of a contract on a sole-source basis to Neptune for large airtanker services is not necessary or that the contract awarded to Neptune does not reflect the agencys reasonably justified needs, the agency should terminate that contract or modify it as appropriate. AR, Tab 43, NRE Undersecretary Memo to ASA, Nov. 26, 2013, at 1-2. 21.8(d)(1). Rather, the record demonstrates that the sole-source contract--promised by the Forest Service in exchange for Neptunes withdrawal of an earlier bid protest--was without a reasonable basis. at 4. [14] Neptune had also previously made an advance payment request of $424,750 under its Legacy contract for cash-flow reasons (i.e., the lack of revenue in advance of the fire season). Protecting Australia from bushfires with our state-of-the-art aerial firefighting fleet, pilots and support staff. AR, Tab31, FI Email to USDA, Aug. 13, 2013, at 1. at 138, 235. Tr. Neptune would undoubtedly prefer the financial security that would accompany a long-term NextGen contract, but this is simply not the standard by which an agency is permitted to make a noncompetitive award for industrial mobilization purposes. 4890 Cherry Creek Road Port Alberni, B.C. 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. See Sabreliner Corp., supra. 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. 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. 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. Winglets installed 2008. [11] AR, Tab 11, Neptune Email to Contracting Officer, May 9, 2013. 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. With our proprietary technology, multiple aircraft types, and highly experienced attack crews we can fight fires on multiple continents simultaneously. OTC Markets Group Inc. was founded in 1904 and is headquartered in New York, New York. AR, Jan. 31, 2014, at34-54. at 53. 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. First, RUSs conclusion, that Neptune needed a NextGen contract to remain viable, was based entirely on unverified financial projections as provided by Neptune. Coulson Aviation (USA) Inc.; 10 Tanker Air Carrier, LLC., B-406920 et al., Sept. 7, 2012. 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. AR, Tab 44, SPE Memorandum to ASA Regarding Sole-Source Award to Neptune, Dec.2, 2013, at 1-112. 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. As relevant here, the settlement agreement stated that: the Forest Service will award the Contract using noncompetitive procedures, pursuant to 41 U.S.C. These assertions, however, ignore the possibility or likelihood of Neptune acquiring additional work over the course of the next 4years. This will be the third converted 737 for Coulson; the first two are identified as T-137 and T-138. at 471-73. The SPE did several things before taking any action on the Forest Services request. The two crew members aboardboth pilotssurvived with minor injuries and were taken to hospital. These specific C550s were originally modified and equipped with military fire-control radar, sophisticated infrared cameras, custom instrument panels and law enforcement communication packages. AR, Tab63, Neptune Email to Contracting Officer, June 26, 2013. Foster Coulson of Coulson Aviation said, A brand new technology package will be installed before [the aircraft] go to work. The aircraft will receive upgrades to their cameras and mission systems, as well as new liveries. See York Intl Corp., supra; Department of the Army--Recon., B-237742.2, June 11, 1990, 90-1 CPD 546. 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. Id. 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. 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. [29] Id. at 52. . Coulson Aviation Australia Global Leaders in Aerial Firefighting AERIAL FIREFIGHTING IN AUSTRALIA 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. FAR 6.302-2(c)(2). Executive Candidate Assessment and Development Program. [6] We conducted a hearing there to receive testimony concerning the agencys conduct of the procurement. Pursuant to the FAR, the head of a contracting activity only has the authority to approve noncompetitive awards of up to $62.5 million. His ex-wife, 53-year-old Anne Resnik is the daughter of the late Philip Morris. [10] The total estimated cost was based on the 5-year base period for a single aircraft. . The record also reflects that, after August 26, there generally was no longer any disagreement among the parties about Neptunes present financial viability. [28] See AR, Tab 49, Neptune J&A, Dec. 9, 2013, at 1-6. at 464. Nothing in the record refutes FIs conclusions, nor is there any evidence to suggest that Neptune intends to go out of business now merely because its future prospects appear uncertain. They hire quality people to ensure they stay a quality Company. 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. [35] To the extent Neptune now represents a vital source, it is because of its Legacy contract. [13] The FAM is the Forest Service program office that determines what aviation resources are needed to fulfill the agencys firefighting mission. at735-36. Tr. In this regard, the agency maintains that it cannot tolerate any further delay in acquiring additional NextGen airtankers for the 2014 fire season. Boeing 737-3H4 (WL) First Flight. Derek Heyes Photo. Specifically, the protesters argue that: (1) Neptune is not a vital supplier such that the large airtanker industrial base can be maintained without resorting to noncompetitive procurements; and (2)Neptune does not require a sole-source contract to remain a source of large airtankers. Only supported aircraft types that are active with this airline are included in the calculations. They take very good care of their people. 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. . As explained below, the record does not support the USDAs decision to award a sole-source contract to Neptune for industrial mobilization purposes. What is the salary of R Coulson? AR, Tab67, NextGen RFP, atB-11. at735-36 (the agency plans to conduct additional competitions in the coming years under which Neptune would be eligible to compete and could receive awards). We have six 737 FireLiner tankers, each receiving 43,000+ technician hours to become fully compliant and operational. Id. They pride themselves on being the most efficient and safety conscious aerial firefighting team in Australia. Tr. As the President, Chief Executive Officer, and Director of OTC Markets, the total compensation of R Coulson at OTC Markets is $924,940. [Forest Service] also has two firms on the legacy contract that can supply planes. at 466-67. E: cg@coulsongroup.com 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. at480. [21] AR, Tab 29, FI Financial Analysis, Aug. 2, 2013, at1. 18, 2014, at 9-10, 21; see also Tr. 2 Future records only include new-built aircraft close to delivery and expected second-hand deliveries. AR, Tab 56, Neptune Legacy Contract, at B-2. On June 13, the Forest Service made NextGen contract awards as follows: AR, Tab 71, Neptune Protest, May 16, 2013 (B-406920.8), exhib. Both Coulson and Minden also point to the fact that the sole-source award to Neptune makes it less likely that the Forest Service would execute airtanker options under the competitively-awarded NextGen contract. 2 Future records only include new-built aircraft close to delivery and expected second-hand deliveries. 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). 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. No definite plans have been reached to date. AR, Jan. 31, 2014, at 32. Tr. Agencies are provided, however, with authority to conduct noncompetitive procurements in specific limited circumstances. As a preliminary matter, USDA argues that the Coulson and Minden protests should be dismissed because these protesters are not interested parties. See, e.g., AR, Tab 34, Forest Service Email, Sept. 10, 2013, at 1. Only two of the five NextGen contractors are now in compliance with the contract and providing operational airtankers. [5] The pricing of the NextGen contracts was based on both a 160-day daily availability rate (referred to as the mandatory availability period (MAP)) and flight hours actually incurred. Stay informed as we add new reports & testimonies. [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. Coulson Aviation plans to modify the fuselage on the CH-47, cut the floor of the aircraft and install a 3,000-gallon tank, called the RADS-L (large). 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. Accepting the projected revenues and expenses as provided by Neptune on their face, RUS ultimately concluded that the only scenario in which the company could obtain a positive net income over the next 5years was where Neptune received two NextGen contract awards in addition to its current Legacy contract. 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). Tr. [9] The addition of a second BAe-146 large airtanker to Neptunes Legacy contract was not envisioned by the Forest Service to be a one-time occurrence. [34] For this reason, the agency argues, the FI financial analysis, which did not look beyond a 5-year period, was not relevant or relied upon in the J&A. See Ridgeline Indus., Inc., supra; Minowitz Mfg. . Coulson Aviation operates the only aerial firefighting fleet in the world consisting of both fixed-wing and Type 1 rotary-wing aircraft. [5][2][4], Following the accident, the Australian Transport Safety Bureau announced that a team was being assembled from Perth and Canberra to investigate the crash. One exception to this requirement is where an agency determines that it is necessary to maintain a vital source of supply for industrial mobilization. 3304(a), it is required to execute a written J&A with sufficient facts and rationale to support the use of the cited authority. Interested Party Status of Coulson and Minden. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); 500 Trillium Dr., Unit 23, Kitchener, ON N2R 1E5 | Phone: 519-748-1591 | Toll-Free: 1-866-834-1114 | Fax: 519-748-2537 Shortly after learning that it would not receive a NextGen contract award, Neptune informed the contracting officer of its intent to protest to our Office unless an acceptable solution could be worked out. 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. Have a story idea you would like to suggest? . Theres no evidence to support the assertion that Neptune would not be able to meet an emergency need for aircraft. 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). at 657-693. 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. First, the SPE and her staff familiarized themselves with the NextGen procurement and the Forest Services requirements for large airtankers generally. [39] This is significant because where, as here, an agency proposes to award a sole-source contract under the industrial mobilization exception to the general competition requirements, the amount being ordered must meet--not exceed--the objectives of this authority. Aircraft capable of meeting these standards and requirements are not readily available and would take a considerable amount of time to be developed and operationally ready for service. AR, Tab 49, J&A, Dec.9, 2013, at 4. Consultants, Inc., B-284943, B-284943.2, June 9, 2000, 2000 CPD 102 at 5. . Coulson's and 10 Tanker's protests were dismissed as academic. Id. The Forest Services procurement of NextGen airtanker services has a long and contentious history. In order for a protest to be considered by our Office, a protester must be an interested party, that is, an actual or prospective offeror whose direct economic interest would be affected by the award or failure to award a contract. We also recommend that the agency reimburse Coulson, 10 Tanker, and Minden the costs of filing and pursuing their protests, including reasonable attorneys fees. 4890 Cherry Creek Road Port Alberni, B.C. [1] On November30, 2011, the Forest Service issued request for proposals (RFP) No. Matter of: Coulson Aviation (USA) Inc.; 10 Tanker Air Carrier, LLC; Minden Air Corp. Tr. At no time before the J&A was approved were FIs conclusions disputed or shown to be in error. Coulsons and 10Tankers protests were dismissed as academic. [8] AR, Tab56, Neptune Legacy Contract, at B-3 to B-21. See Tr. 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