Id. File: B-409356.2; B-409356.3; B-409356.4; B-409356.5; B-409356.6. 3304(a). When an agency uses noncompetitive procedures under 41 U.S.C. 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. . at 473. FAR 6.302-2(c)(2). [25] AR, Tab 49, Neptune J&A, Dec. 9, 2013, at 1. Minden Protest, Feb.10, 2014, at 2-3. 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). GAO Notice of Partial Dismissal (B-406920.8), June 5, 2013. [1] Our decision in Coulson Aviation (USA) Inc.; 10 Tanker Air Carrier, LLC--Costs, B406920.6, B-406920.7, Aug. 22, 2013, 2013 CPD 197, provides additional details concerning the history of this procurement. 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. Ever innovative and creative, Coulson Aviation has established night firefighting operations in Australia and California. Required fields are marked *. First, RUSs conclusion, that Neptune needed a NextGen contract to remain viable, was based entirely on unverified financial projections as provided by Neptune. 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. Nevertheless, USDA argues that it did not act improperly because the sole-source award complied with all applicable procurement statutes and regulations. Coulson Aviation Australia | 3,766 followers on LinkedIn. [16] The Forest Service believed RUS possessed financial expertise that could be of assistance. Have a story idea you would like to suggest? AR, Jan. 31, 2014, at 32. Matter of: Coulson Aviation (USA) Inc.; 10 Tanker Air Carrier, LLC; Minden Air Corp. AR, Tab 144, RUS Email to USDA, June 3, 2013. Maintain Capacity and Employee Skills - The [Forest Service] currently has a supplier base of five firms on the Next Gen contract. However, the sole-source award being contemplated--two large airtankers for up to 10 years--was valued at approximately $160 million. A global leader in aerial firefighting, emergency personnel transport and other industrial heavy lift operations. The NextGen large airtankers are intended to replace the Forest Services use of Legacy large airtankers, which are generally much older, slower, and less reliable aircraft. 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). The protesters should submit their certified claims for costs, detailing the time expended and costs incurred, directly to the contracting agency within 60days after receipt of this decision. As noted above, no reasoned analysis has been presented to support a determination that a 9-year, sole-source contract was required to maintain Neptune as a source. 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. at735-36. In responding to the protests, the agency has acknowledged that it was initially concerned that Neptune would immediately go out of business in during [sic] the 2013 fire season, leaving the Forest Service without any of the Legacy air tankers Neptune supplied under the contract awarded March 27, 2013. Agency Post- Hearing Comments, Mar. Servs., Inc., supra. [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. Moreover, Neptune repeatedly informed the Forest Service that Neptune would file a lawsuit against the agency if the agency did not satisfy the terms of the parties settlement agreement. 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. Tr. [7] Although awarded under the Legacy contract, the BAe-146 is a modern large airtanker (Neptune proposed the same type of aircraft in response to the NextGen RFP, albeit with a more advanced version of the fire retardant tank system). [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). In sum, while the agency may not have entered into a settlement agreement promising to disregard applicable procurement statutes and regulations, the agencys subsequent decision to award a sole-source contract to Neptune so as to comply with the terms of the settlement agreement and avoid a Neptune-threatened lawsuit was without a reasonable basis. at 657-693. Estimated reading time 5 minutes, 20 seconds. 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. 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 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. In a subsequent meeting conducted by the SPE, RUS employees generally agreed with the FI findings and conclusions. at 691. T-137 was purchased in May 2019 by . Consequently, the SPE refused to approve the sole-source award to Neptune. AG-024B-C-14-9000 to Neptune Aviation Services, Inc., of Missoula, Montana, by the Department of Agriculture (USDA), U.S. Forest Service, for next generation (NextGen) large airtanker services for wildland firefighting support. at 2, 4. Previously operated by U.S. Customs and Border Protection, the fast, light corporate jets flew for the past 40 years tracking, detecting and intercepting illegal air smugglers attempting to cross the U.S. border. FAR 6.303-2 identifies information required for an agencys justification of a noncompetitive procurement, stating, among other things, that the J&A shall include . Tr. [18] AR, Tab 18, Neptune Settlement Agreement, June 6, 2013. Coulson and 10 Tanker protested to our Office, challenging the agencys price and technical evaluations, communications with offerors, and source selection decision. [23] The ASA is USDAs Chief Acquisition Officer, and the SPE reports to the ASA. 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. Download VCard. The agency admits, however, that ultimately it concluded there was no concern with Neptunes present viability, but only with its viability after 2017. Within Tanzania he has a comprehensive corporate/commercial practice covering all aspects of non-contentious transactional . at 45. The record also reflects that, after August 26, there generally was no longer any disagreement among the parties about Neptunes present financial viability. 29 Sep 1995. 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.). We first implemented our night aerial fire suppression protocols in response to the 2009 Black Saturday bushfires in Victoria Australia. Although the aircrafts days as an operational water bomber have passed, Coulsons Hawaii Mars aircraft might take to the air again to provide aerial sightseeing tours and could also hit the airshow circuit one day in the future. The USDA does not dispute that its consideration of a noncompetitive award to Neptune was motivated by its promise of a sole-source contract in exchange for Neptune withdrawing its bid protest and thereby ending the CICA stay that then precluded the Forest Service from fielding NextGen large airtankers for the 2013 fire season. 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 company also provides OTC Markets Real-Time Data products that provides quote, trade, and reference data for OTC Link ATS; OTC Markets Pricing and Reference Data products for detailed view into the securities and issuers within the OTC market; and compliance data products. LouisA.Chiarella, Esq., and GuyR.Pietrovito, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. SYDNEY, AUSTRALIA - JANUARY 27: Wayne Coulson, CEO of Coulson Aviation looks on during a press conference at the NSW Rural Fire Service Headquarters, Sydney Olympic Park on January 27, 2020 in Sydney, Australia. The FireLiner conversion is scheduled to be completed in May 2021 in time for the next fire season in North America. 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. 936 talking about this. [1][2][3] The crash resulted in the first hull loss of a Boeing 737 in Australia.[4]. "It's going to be a newer generation Skycrane tank," Britt Coulson said, adding that the tank in the Chinook can be removed in a two-hour time period. at5556. [2] AR, Tab67, NextGen RFP. 27.4 Years. A, Neptune Rate Sheet. They pride themselves on being the most efficient and safety conscious aerial firefighting team in Australia. Tr. 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. [25] The ASA did not find anything wrong with the SPEs rationale, and acknowledged her procurement expertise. AR, Tab67, NextGen RFP, atB-11. They do not include all outstanding orders as reported by aircraft manufacturers. With our proprietary technology, multiple aircraft types, and highly experienced attack crews we can fight fires on multiple continents simultaneously. They take very good care of their people. The adequacy of the rationale and conclusions set forth in the J&A is dependent on the completeness and accuracy of the information included in the J&A. Tr. 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. . 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. Protecting Australia from bushfires with our state-of-the-art aerial firefighting fleet, pilots and support staff. Agencies are provided, however, with authority to conduct noncompetitive procurements in specific limited circumstances. AR, Jan. 31, 2014, at 57. . The second Mars aircraft, Philippine Mars, was repainted in 2015 back to its original dark blue U.S. Navy livery; the plan at that time was for it to fly to its final resting place and be preserved at the U.S. 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. Coulsons and 10Tankers protests were dismissed as academic. Tr. at 4-5. [a] description of the supplies or services required to meet the agencys needs (including the estimated value), [a] demonstration that the . Neptune subsequently withdrew its request before any advance payment was made, stating that the company no longer needed the advance payment. Subsequently, the Forest Service realized that the sole-source contract promised to Neptune would require the approval of USDAs senior procurement executive (SPE). This statement is also factually inaccurate insofar as 10 Tanker had a certified large airtanker currently available, which the Forest Service actually contracted for in 2013. Coulson Aviation (USA) Inc.; 10 Tanker Air Carrier, LLC--Costs, supra, at 2. 4. 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. Critical to this justification are the following facts: 1. Boeing 737-3H4 (WL) First Flight. 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. AR, Jan. 31, 2014, at 9. in order . AR, Tab66, USDA Email to GAO, Sept. 6, 2012. AR, Tab 40, Forest Service Email, Nov. 7, 2013, at1-2. 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. 3301(a)(1). See also Federal Acquisition Regulation (FAR) 6.302-3. AR, Tab 70, NextGen Contract Award Abstract, May 6, 2013. Id. Neptune subsequently protested to our Office on May 16 challenging all of the NextGen contract awards. First, the SPE and her staff familiarized themselves with the NextGen procurement and the Forest Services requirements for large airtankers generally. 9 of the 16 potential [large airtankers] for 2014 are older and riskier to operate than newer NextGen airtankers. [26] These assertions, however, ignore the possibility or likelihood of Neptune acquiring additional work over the course of the next 4years. Mr. Coulson is responsible for the Companys overall growth and strategic direction and has led the transformation of the company into an operator of regulated financial markets for U.S. and global companies. 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. Subsequently, the Forest Service amended the NextGen solicitation and received revised proposals from offerors. The direct supervisors/managers are open door and good listeners. While agencies have authority to make noncompetitive awards when necessary to maintain vital sources, they do not have authority to make noncompetitive awards merely because an offeror is unsuccessful in a competitively-conducted procurement, or because such action was promised in a settlement agreement. The Forest Service considers Neptune to be a vital supplier of airtankers. 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. 3304(a)(3), and will comply with all related statutory and Federal Acquisition Regulation (FAR) requirements, including, but not limited to, CICA, and FAR 6.303-6.305. Experience. We find Coulson and Minden (and 10 Tanker) to be interested parties to challenge the reasonableness of the agencys sole-source award to Neptune for industrial mobilization reasons, as the protesters all have a direct economic interest that would be affected by the award of such a contract. Only supported aircraft types that are active with this airline are included in the calculations. Only two of the five NextGen contractors are now in compliance with the contract and providing operational airtankers. at658), the agency acknowledges that the 9-year, sole-source contract awarded to Neptune was based on the industrial mobilization exception to CICA. 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. . Coulson Aviation puts employee and Aircraft safety as Job 1. On March 27, 2013, the Forest Service awarded Neptune a Legacy contract for five P2V aircraft for 5-years, and for one P2V and one BAe-146[7] aircraft for a base year with four option years, at a total estimated price of $180,252,600. 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). [26] Neptune Aviation [presently] supplies the Forest Service with 8 of the 9 total Legacy airtankers, which represents 88 percent of the Legacy fleet. AR, Tab 49, Neptune J&A, Dec. 9, 2013, at 1. at 439-41. What is the salary of R Coulson? 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. Aircraft fuel was to be provided by the government or, if contractor-incurred, separately reimbursed. 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. at 464. [17] Id. 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. . Alternatively, if the J&A was accurate here, then the contract awarded to Neptune impermissibly exceeded what the ASA had approved. Turns out they have put the Mars back to work. By contrast, Neptune did not provide any detail with its cost projections to RUS, so it is unclear if fuel is included, or if government reimbursement is considered. Id. 2. In a Coulson Aviation media release from Aug. 14, the company said: Since 2009 we have pioneered various intelligence programs focused on creating additional accountability and value for government agencies. Interested Party Status of Coulson and Minden. As explained below, the record does not support the USDAs decision to award a sole-source contract to Neptune for industrial mobilization purposes. NI Indus., Inc., Vernon Div., supra. at 735; Agency Post-Hearing Comments, Mar. OTC Markets Group Inc. was founded in 1904 and is headquartered in New York, New York. 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. . It returned to the same airport at 1:26 pm. 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. 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. . 1 The average fleet age is based on our own calculations and may differ from other figures. Sales Res. End of Chile Aerial Firefighting Season 2022. Consequently, the Forest Services belief that Neptune is a vital source, as documented in the J&A, is based upon Neptunes supply of Legacy large airtankers, which the NextGen contract awards were designed to ultimately replace. Id. Rationale The rules do not support the issuance of a sole source award based on the fact that a firm did not win a competitive procurement or in exchange for a particular action, such as the withdrawal of a protest or [Freedom of Information Act] request. Tr. The RUS also questioned whether Neptune had the ability to modify the payment terms of any of its existing long terms debts. Please refer to the current fleet list to see each aircraft's individual age. Subsequently, the Forest Service amended the NextGen solicitation and received revised proposals from offerors. . 21.8(d)(1). at 658. In accordance with the Competition in Contracting Act (CICA), 31U.S.C. On December 2, the SPE provided the ASA with a detailed memorandum and documents in support of her recommendation that he not approve the J&A. [8] AR, Tab56, Neptune Legacy Contract, at B-3 to B-21. 41 U.S.C. OTC Markets Group Inc. engages in the financial market business in the United States and internationally. Agency Report (AR), Tab 143, Forest Service Large Airtanker Modernization Strategy, Feb. 10, 2012, at2. DOCUMENT FOR PUBLIC RELEASE . Coulson Aviation (USA) Inc.; 10 Tanker Air Carrier, LLC., B-406920 et al., Sept. 7, 2012. The agency anticipates issuing a similar contract modification for the 2014 fire season. 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. Our Office confirmed the withdrawal of Neptunes protest and closed the file without rendering a decision on the protests merits. at 441, 451; AR, Tab24, SPE Email to AQM Requesting Additional Neptune Information, July12, 2013, at 1-2. [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. Although the Forest Service had significant concerns about its ability to adequately respond to the 2013 fire season without the protested NextGen large airtankers being available, see Tr. See Sabreliner Corp., supra. 21.0(a)(1), 21.1(a) (2013); Cattlemens Meat Co., B-296616, Aug. 30, 2005, 2005 CPD 167 at 2 n.1. 41 U.S.C. [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. 18, 2014, at7. 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 . . Theres no evidence to support the assertion that Neptune would not be able to meet an emergency need for aircraft. 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. Naval Aviation Museum in Pensacola, Fla. Those plans fell through, but the plane may still find its way to a museum. 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. There are 6 older and 13 younger executives at OTC Markets. Your email address will not be published. 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. 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