1 The average fleet age is based on our own calculations and may differ from other figures. [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. Missouri Mach. Id. 29 Sep 1995. See FAR 6.302-3. Ever innovative and creative, Coulson Aviation has established night firefighting operations in Australia and California. As relevant here, the settlement agreement stated that: the Forest Service will award the Contract using noncompetitive procedures, pursuant to 41 U.S.C. 3. Noncompetitive awards should be limited to only what is needed to achieve the objective, in this case to maintain a vital source of supply . 3301(a)(1); FAR 6.101. 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. 2020 Our teams pride themselves on operating safely and efficiently, with the ability to handle intense pressure in the most extreme firefighting theatres on earth. [Forest Service] also has two firms on the legacy contract that can supply planes. Coulson Protest, Dec. 20, 2013, at 7-8; Coulson Protest, Feb. 10, 2014, at 4. [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. [1][2][3] The crash resulted in the first hull loss of a Boeing 737 in Australia.[4]. 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. 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. The Forest Service contends that this immediate need for additional NextGen airtankers provided it with an industrial mobilization need in December 2013 when it decided to award Neptune a solesource, 9-year contract for NextGen airtanker services. Tr. 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. 41 U.S.C. Tr. Naval Aviation Museum in Pensacola, Fla. Those plans fell through, but the plane may still find its way to a museum. 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. . T-137 was purchased in May 2019 by the NSW Rural Fire Service along with the two Coulson Citation II C550 support jets. 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 138, 235. 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. Get the latest business insights from Dun & Bradstreet. 3304(a), it is required to execute a written J&A with sufficient facts and rationale to support the use of the cited authority. at 45. Canada V9Y 8E9. This redacted version has been approved for public release. [2][6], The aircraft involved in the crash was a 27-year-old Boeing 737-300, with serial number 28035 and registered as N619SW. 18, 2014, at 7. OTC Markets Group Inc. was founded in 1904 and is headquartered in New York, New York. Tr. 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). 4. T: +255 76 898 8640. Agency Report (AR), Tab 143, Forest Service Large Airtanker Modernization Strategy, Feb. 10, 2012, at2. Global Leaders in Aerial Firefighting Coulson Aviation (Coulson Aircrane Ltd.) is a privately owned family company based in Port Alberni, British Columbia, Canada. [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. Overview. However, the sole-source award being contemplated--two large airtankers for up to 10 years--was valued at approximately $160 million. 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. These protests followed publication of the sole-source award to Neptune in FedBizOpps. at 597, 615-16. [2] Large airtankers can carry 1,800-8,000 gallons of fire retardant. AR, Tab 40, Forest Service Email, Nov. 7, 2013, at1-2. 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. Tr. . 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. 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. AR, Feb. 19, 2014, at 17. In this regard, the agency maintains that it cannot tolerate any further delay in acquiring additional NextGen airtankers for the 2014 fire season. Neptune currently provides eight of nine Legacy airtankers (this includes the two BAe-146 aircraft provided by Neptune for the 2013 fire season). The two crew members aboardboth pilotssurvived with minor injuries and were taken to hospital. Aircraft fuel was to be provided by the government or, if contractor-incurred, separately reimbursed. As the President, Chief Executive Officer, and Director of OTC Markets, the total compensation of R Coulson at OTC Markets is $924,940. 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. In a subsequent meeting conducted by the SPE, RUS employees generally agreed with the FI findings and conclusions. 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. at 439-41. 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. AG-024B-C-14-9000, atB-1. The NextGen RFP required aircraft to have a minimum payload of 2,400gallons, and a target of 3,000-5,000 gallons. . AR, Jan. 31, 2014, at 2526; Tab 1, FAM Director Declaration, Jan. 28, 2014, at 7; Tr. End of Chile Aerial Firefighting Season 2022. Id. In accordance with the Competition in Contracting Act (CICA), 31U.S.C. at127-29, the agency decided not to override the stay. See AR, Tab 35, USDA Email to Neptune, Sept. 17, 2013, at 1; Tr. 2 Future records only include new-built aircraft close to delivery and expected second-hand deliveries. [33] Id. Planespotters.net 2023. FI found that the fundamental difference was that RUS had solely relied on Neptune-provided financial projections while FI had had access to a wider range of information that allowed it to develop its own projections. The FireLiner conversion is scheduled to be completed in May 2021 in time for the next fire season in North America. 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. 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. 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. 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. FAR 6.302-2(c)(2). AR, Jan. 31, 2014, at 16 n.14. 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. Tr. . 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. Prior to OTC Markets Group, he was a trader and portfolio manager at Carr Securities Corporation, an institutional broker-dealer and market maker. 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. 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. Competition encourages innovation and lower prices. The decision issued on the date below was subject to a GAO Protective Order. 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. 3553(c)(2). 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. R. Cromwell Coulson serves as President, Chief Executive Officer, Director of the Company. 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 set forth above, agencies are generally required to conduct procurements using procedures designed to obtain full and open competition. at 52. and the results or a statement of the reason market research was not conducted. FAR 6.303-2(b)(3), (5), (8). 3553(d)(3)(A), Neptunes protest triggered a stay of the NextGen contract awards pending our resolution of the protest. 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. T: (250) 724-7600 F: (250) 723-7766. N619SW, the aircraft involved in the accident, photographed in 2022, Learn how and when to remove this template message, List of accidents and incidents involving the Boeing 737, "Rescue mission launched after firefighting aircraft crashes in WA's Great Southern", "Two pilots survive after 737 large air tanker crashes in Fitzgerald River National Park while battling bushfires", "Plane crashes as firefighters battle blaze in WA's south", "Boeing 737 crash pilots walk away from fiery wreckage as Mark McGowan hails their survival a 'miracle', "Breaking: A Boeing 737-300 Has Crashed Fighting Fires In Australia", "Boeing 737 'firefighter' crashes in Australia", "Another 737 air tanker takes to the skies -", Aviation accidents and incidents in Australia, Australian National Airways Stinson crash, Queensland Airlines Lockheed Lodestar crash, Australian National Airways Douglas DC-4 crash, Essendon Airport Beechcraft King Air crash, https://en.wikipedia.org/w/index.php?title=2023_Coulson_Aviation_crash&oldid=1141270040, Accidents and incidents involving the Boeing 737 Classic, Aviation accidents and incidents in Western Australia, Accidents and incidents involving cargo aircraft, Use Australian English from February 2023, All Wikipedia articles written in Australian English, Articles lacking in-text citations from February 2023, Creative Commons Attribution-ShareAlike License 3.0, Crashed into terrain, under investigation, This page was last edited on 24 February 2023, at 06:02. at 691, 696. 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. The fourth jet is awaiting delivery. Only two of the five NextGen contractors are now in compliance with the contract and providing operational airtankers. 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. [20] Id. [31] The agency points to the fact that the NextGen contracts include exclusive-use restrictions, such that the large airtankers that Coulson and Minden each already have under NextGen contract cannot also be offered to meet additional agency requirements. 5. 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. 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. 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. One exception to this requirement is where an agency determines that it is necessary to maintain a vital source of supply for industrial mobilization. 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. There are no executives at OTC Markets getting paid more. This will be the third converted 737 for Coulson; the first two are identified as T-137 and T-138. The company will do the same . First, the SPE and her staff familiarized themselves with the NextGen procurement and the Forest Services requirements for large airtankers generally. . 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. 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. In this regard, the protesters claim that the agencys actions have been motivated by the desire to fulfill the terms of a settlement agreement and to avoid a lawsuit by Neptune for allegedly breaching that agreement. Gen. LEXIS 735 at *12. [34] AR, Feb. 19, 2014, at 3-7. 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. [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. [16] The Forest Service believed RUS possessed financial expertise that could be of assistance. Interested Party Status of Coulson and Minden. 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). 31, 1992, 92-2 CPD 29 at 3-4. Id. 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. 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. 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. They pride themselves on being the most efficient and safety conscious aerial firefighting team in Australia. 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. at 477-78; AR, Tab 36, AQM Director Email, Oct. 30, 2013. Co., B-228502, Jan. 4, 1988, 88-1 CPD 1 at 3. AR, Jan. 31, 2014, at 9. Specifically, the ASA stated that he wanted to be sure that we could ensure that the Forest Service would be able to meet its mission of responding to forest fires for the 2014 season. 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. DOCUMENT FOR PUBLIC RELEASE Agencies are provided, however, with authority to conduct noncompetitive procurements in specific limited circumstances. We have six 737 FireLiner tankers, each receiving 43,000+ technician hours to become fully compliant and operational. LouisA.Chiarella, Esq., and GuyR.Pietrovito, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. FI also found that Neptune had based its revenue projections for the same period on the use of seven P2V aircraft, rather than six P2V and one BAe-146 aircraft (and the higher BAe-146 rates) as specified by the terms of the Legacy contract. See 31 U.S.C. 18, 2014, at 5. [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. 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. Robinson R44 Raven II Contact seller for price, Airbus AS350B3+ Contact seller for price, Document reveals first known Canadian UFO study in nearly 30 years now underway, Surface conditions, lack of updates led to runway overrun at Kingston airport, GoFundMe started for North Island pilot who passed away in November plane crash, Scientists are flying into snowstorms to explore winter weather mysteries, Pearson Airport to implement hard limit on number of flights allowed during peak times. ) ; FAR 6.101 be of assistance of supply for industrial mobilization and. 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