Neptunes Financial Stability - . In a subsequent meeting conducted by the SPE, RUS employees generally agreed with the FI findings and conclusions. Tr. Tr. 3304(a). [29] The J&A also stated that no other sources had expressed interest in this acquisition, but then acknowledged the agency had made no effort to solicit responses from any other sources before making its determination. 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. The aircraft was the 2762nd 737 built, and was delivered new to Southwest Airlines in November 1995. Coulsons Port Alberni facility is also busy converting another one of its 737-300s into the B737 FireLiner. It returned to the same airport at 1:26 pm. Coulson's and 10 Tanker's protests were dismissed as academic. Your email address will not be published. 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. In fact, there is simply no record--in the J&A or otherwise--of any assessment by the agency of Neptunes long-term viability. Competition encourages innovation and lower prices. Agency Post-Hearing Comments, Mar. Turns out they have put the Mars back to work. 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]. at 469-70; AR, Tab 145, FAM Email to USDA, Sept. 3, 2013. A noncompetitive contract was awarded to Neptune on December12. . Net Profit : Trademark Applications . Id. [30] The $496,211,590 figure consists of Neptunes $70,887,370 total cost per aircraft times seven aircraft. . A, Neptune Rate Sheet. Although the J&A documents the agencys belief that Neptune is, presently, a vital supplier of large airtanker services under Neptunes Legacy contract,[35] the J&A is devoid of evidence or analysis supporting the need to provide Neptune with a sole-source award for the firm to remain a viable source of supply. 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. Absent from the J&A, however, was any discussion regarding Neptunes need for a sole-source contract to remain a source of supply. Following the evaluation of initial proposals, the agency submitted a number of questions to the offerors. 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. See Tr. Port Alberni, British Columbia coulsonaviationusa.com Joined June 2020 88 Following 2,469 Followers Tweets Tweets & replies Media In reaching its conclusions, FI found that Neptune had based its revenue projections for years 2-5 of the Legacy contract on the base-year rates instead of the higher, option-year rates set forth in the contract. . [28] See AR, Tab 49, Neptune J&A, Dec. 9, 2013, at 1-6. 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]. Tr. 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. 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. . FAR 6.302-3(a)(2)(i). 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. 18, 2014, at7. [32] In relevant part, the FAR states as follows: (2) Full and open competition need not to be provided for when it is necessary to award the contract to a particular source or sources in order--. Similarly, the cost projections developed by FI assumed, per the terms of the Legacy contract, that Neptune would be reimbursed its fuel costs in addition to aircraft flight rates. [9] AR, Tab61, Neptune Legacy Contract Mod. . AG-024B-C-14-9000, atB-1. at735-36. All rights reserved. In 2017, the number of [large airtankers] under contract to the Forest Service will decrease from 16 to 7, with the expiration of the Legacy contracts, unless additional NextGen airtankers are procured from the current NextGen contractors. at 477-78; AR, Tab 36, AQM Director Email, Oct. 30, 2013. Coulson has not released any additional specific technological modifications or upgrades it is making to the aircraft. On May 6, the Forest Service announced its intent to make the following awards: AR, Tab 70, NextGen Contract Award Abstract, May 6, 2013. The companys latest 737, serial number N619SW, will undergo 43,000-man hours to complete the conversion to a FireLiner consisting of the gravity retardant aerial delivery system (RADS-XXL/2) tank, avionics upgrades, new interior with refurbished passenger seats and new paint in Coulson colours. Neptune then withdrew its bid protest (the parties settlement agreement was not provided to our Office). [Forest Service] also has two firms on the legacy contract that can supply planes. [8] AR, Tab56, Neptune Legacy Contract, at B-3 to B-21. Agencies are provided, however, with authority to conduct noncompetitive procurements in specific limited circumstances. See AR, Tab 54, Contract No. The decision issued on the date below was subject to a GAO Protective Order. at 53. The direct supervisors/managers are open door and good listeners. NI Indus., Inc., Vernon Div., supra. 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. 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). [25] The ASA did not find anything wrong with the SPEs rationale, and acknowledged her procurement expertise. Co., B-228502, Jan. 4, 1988, 88-1 CPD 1 at 3. 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. 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). Coulson Aviation (USA) Inc.; 10 Tanker Air Carrier, LLC--Costs, supra, at 2. 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. Further, it offers software, and risk and performance analytics tools for the banking and finance industry; news, compliance, and communications solutions; online capital raising solutions; and OTCIQ, a market intelligence and investor relations portal. At no time before the J&A was approved were FIs conclusions disputed or shown to be in error. While it was conducting the NextGen large airtanker procurement, the Forest Service also awarded a number of Legacy contracts for large airtanker services. Boeing 737-3H4. Our teams pride themselves on operating safely and efficiently, with the ability to handle intense pressure in the most extreme firefighting theatres on earth. 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. 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. . Neptune, however, rejected all offers that differed materially from the terms of the parties settlement agreement. https://www.latimes.com/california/newsletter/2020-09-16/mt-wilson-observatory-bobcat-fire-hubble-universe-essential-california. at79-80. 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. [6] We conducted a hearing there to receive testimony concerning the agencys conduct of the procurement. 1 The average fleet age is based on our own calculations and may differ from other figures. Vertical and Vertical Valor are part of MHM Publishing Inc. All Rights Reserved 2020 | Terms of Use | Privacy Policy. Stay informed as we add new reports & testimonies. 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). T-137 was purchased in May 2019 by . Our Office confirmed the withdrawal of Neptunes protest and closed the file without rendering a decision on the protests merits. [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. at 658. [29] Id. Get the latest business insights from Dun & Bradstreet. Canada V9Y 8E9. [14] Tr. As set forth above, agencies are generally required to conduct procurements using procedures designed to obtain full and open competition. at 735; Agency Post-Hearing Comments, Mar. [t]o maintain a . 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. It was retired by Southwest in August 2017, and transferred to Coulson Aviation later that month. On June 13, the Forest Service made NextGen contract awards as follows: AR, Tab 71, Neptune Protest, May 16, 2013 (B-406920.8), exhib. [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 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). 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. 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. 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. 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. See AR, Tab 22, Contracting Officer Letter to RUS, June 25, 2013. 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. Tr. 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. 18, 2014, at 7. Within Tanzania he has a comprehensive corporate/commercial practice covering all aspects of non-contentious transactional . bid protest [challenging the award or performance of the Neptune contract] with no less vigor than that applied in any other bid protest filed against it. Tr. Crocker Coulson is a 53-year-old Brooklyn resident, Yale graduate, former Fulbright scholar, father, and ex-husband. Accordingly, while the agency contends that the J&A did not rely on the FI financial analysis to assess Neptunes long-term viability, neither did the agency rely on any other information when making such an assessment. AR, Tab23, RUS Financial Analysis of Neptune, June 26, 2013, at 1-4. 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. Accordingly, on June 21 the Forest Service informed the SPE of the settlement agreement that the agency had entered with Neptune, and requested that she execute a justification and approval (J&A) for the sole-source award. 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. Consultants, Inc., B-284943, B-284943.2, June 9, 2000, 2000 CPD 102 at 5. Missouri Mach. In addition to its current Legacy contract (including options for more airtankers being placed under the Legacy contract), Neptune is not precluded from competing on work--Forest Service or otherwise--in the coming years. [4] In resolving this protest, GAO conducted a 2-day hearing to receive testimony from various agency officials involved in this procurement. [27] The Forest Service issued cure notices to Coulson, Minden, Aero Air, and Aero-Flite in September 2013 for failure to provide approved NextGen airtankers by the contracts MAP start dates. 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). Coulson purchased six Boeing 737-300s from Southwest Airlines back in 2017. 2. First, the SPE and her staff familiarized themselves with the NextGen procurement and the Forest Services requirements for large airtankers generally. NI Indus., Inc., Vernon Div., B-223941, Dec. 15, 1986, 86-2 CPD 674 at 3. at 2, 4. 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. Purchasing six Boeing 737-300s from Southwest Airlines back in 2017, Coulsons B737 FireLiner is now operational and has fought fires in Australia and the U.S. with great success. LouisA.Chiarella, Esq., and GuyR.Pietrovito, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. 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. 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. T: +255 76 898 8640. Although the J&A supported an award of two NextGen large airtankers for up to 9 years at a total estimated cost of $141,774,740, the contract actually awarded to Neptune permitted (by mutual agreement) the addition of two more airtankers to the first CLIN and three more airtankers to the second CLIN in each contract year. at 451-52. AR, Jan. 31, 2014, at 57. See FAR 6.302-2(d) (the total period of a noncompetitive contract awarded on the basis of urgency generally may not exceed the time necessary to satisfy the urgent needs). [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. Save my name, email, and website in this browser for the next time I comment. . 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. With our total integrated approach, we are able to provide our customers with a safe, world-class program, 24 hours a day.. 18, 2014, at 9-10, 21; see also 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. Balanced Supply Source It is not clear how a noncompetitive award to Neptune would create a balanced source of supply . Built as. Executive Candidate Assessment and Development Program. This redacted version has been approved for public release. AR, Tab 144, RUS Email to USDA, June 3, 2013. T-137 was purchased in May 2019 by the NSW Rural Fire Service along with the two Coulson Citation II C550 support jets. The two crew members aboardboth pilotssurvived with minor injuries and were taken to hospital. at 691, 696. Only supported aircraft types that are active with this airline are included in the calculations. ) ( i ) awarded a number of questions to the same airport at pm! By the NSW Rural Fire Service along with the SPEs rationale, and ex-husband at 477-78 AR... Awarded to Neptune on December12 proposals, the SPE and her staff familiarized themselves with the FI findings and.. Are included in the calculations Inc., Vernon Div., B-223941, 15! 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