SOLICITATION NOTICE
15 -- Solicitation D10PS30142 - Purchase of Up to Three Used Boeing 737-400 Aircraft.
- Notice Date
- 8/4/2010
- Notice Type
- Presolicitation
- Contracting Office
- NBC, ACQUISITION SERVICES DIVISION, BOISE BRANCH 300 E. MALLARD DR., STE 200 BOISE ID 83706
- ZIP Code
- 83706
- Solicitation Number
- D10PS30142
- Response Due
- 9/22/2010
- Archive Date
- 8/4/2011
- Point of Contact
- MICHAEL MCFARLANE CONTRACTING OFFICER 2084335027 michael_mcfarlane@nbc.gov;
- E-Mail Address
-
Point of Contact above, or if none listed, contact the IDEAS EC HELP DESK for assistance
(EC_helpdesk@NBC.GOV)
- Small Business Set-Aside
- N/A
- Description
- Purchase of one used Boeing 737-400 with the option to purchase as many as two additional aircraft meeting the requirements specified in Section B of the solicitation. At a minimum, the aircraft must meet the following requirements: -Be equipped with CFM56-3C1 engines-Have less than 45,000 airframe cycles at time of delivery-Have an MTOW of 150,000 pounds or be compatible with Boeing STC to increase the MTOW to 150,000 (list of Serial Numbers that are upgradeable will be provided with the solicitation)-Have EFIS Cockpit Displays-Have all Aircraft records maintained English Target Aircraft Equipment: -Aux Fuel Tanks-Configured for forward airstair-Rear airstair This requirement is not set-a-side for small business. The Contractor must be capable of verifying that they are the owner of the offered aircraft or provide documentation that they represent the owner of the aircraft. Closing shall be handled through a Department of the Interior selected Title Company. The anticipated date for issuance of the solicitation is August 20, 2010. Due to the fact that the capability of the Boeing 737-400 is essential to the Government's requirement, this requirement is being solicited using Brand Name Specifications. A redacted version of the justification for Brand Name Specifications is included below. Justification for Other Than Full and Open Competition (JOFOC) - Purchase of up to three Used Large Transport Aircraft- Brand Name Specification.1.The U.S. Department of the Interior (DOI), National Business Center (NBC), Acquisition Services Directorate (AQD), Boise Branch plans to contract by means of other than full and open competition for up to three used transport category aircraft in support of the National Nuclear Security Administration (NNSA), Office of Secure Transportation (OST), Program Office for Aviation Operations (POAO).This document sets forth the justification and approval for the use of other than full and open competition in the form of brand name description in the procurement of the supplies identified within. 2.AQD intends to procure up to three used transport category aircraft in support of the NNSA through two or more separate procurement actions. This justification will be used for all subsequent procurement actions for used transport category aircraft until all three aircraft are acquired. The first procurement will consist of a solicitation that anticipates the award of one used transport category aircraft with an option to award additional contracts (multiple awards) for aircraft depending on a combination of the offers received and funds made available by the NNSA at the time of the evaluation. Funds are currently available for the base award of one aircraft; however, funds for the additional aircraft are contingent upon congressional approval. The aircraft will be solicited with the anticipation of receiving multiple offers however; this justification is required due to the Brand Name product identification required to meet the minimum requirements of the NNSA. 3.The NNSA has the following mission requirements for transport category aircraft:Large Aircraft Requirements by Mission Payload and Performance National Emergency Response and Federal Agent TransportQuantity Units - Required Seats 60-70 - Mil 108 in x 88 in pallets 4 - Total payload 27,200Pounds - Range 2000NMAll Missions - Reserve fuel (30 minutes) NBAA IFR (200 NM Alt)Aircraft Configuration Passenger Seating - Required Seat Pitch 36Inches - Required Seats per Row Economy Class - Interior furnishings Standard Pax ConfigurationPilot seats 2Cockpit jump seat 1Galley 1 AftLavatories 2 (1 in front, 1 in back)Auxiliary Power Unit 1Cabin Configuration - Combi Modification Cargo Configuration - Pallets(4) Mil 108 x 88 Pallets - Minimum Seats 4 (in rear)-Minimum Seats 60 - 70 - Cargo Smoke barrier and fire suppression system FAA Approved Miscellaneous Certification Day/Night/IFR/RVSMAvionics IFR + TAWS & TCAS IICockpit Displays EFIS (LCD desired)Aux Fuel Tanks Desirable Forward airstair configured DesirableAft Airstair Desirable The NNSA has a statutory requirement to transport armed Federal agents to and from convoy locations and nuclear emergency responders to and from accident and incident sites throughout the United States and potentially overseas. Federal and contractor employees aboard these flights carry automatic weapons and grenade launchers and significant amounts of mission required pyrotechnics, explosives, ammunition, HAZMAT and specialized cargo. Carriage of passengers, hazmat, explosives, and pyrotechnics in the same aircraft is strictly prohibited in civil aircraft. The Government conducts these missions as public aircraft and mitigates passenger risk to the maximum extent possible; however, even after implementing the most rigorous risk mitigation factors, NNSA cannot protect its employees and contractors from cargo fires or from fumes emitting from hazardous materials in an aircraft where the passengers and cargo share the same cabin space without bulkhead separation. In order to fulfill the NNSA mission requirements above, the aircraft must be capable of carrying both passengers and cargo in the main cabin at the same time in such as the combi configuration. The combi is a modification that coverts a regular passenger aircraft main cabin into two separate compartments; cargo and passenger. The compartments are separated by a barrier wall (bulkhead) which isolates the passengers section of the main cabin from any possible fire and/or toxic chemicals carried in the cargo compartment area. The combi cargo compartment is sealed from the passenger compartment and incorporates very effective HALON fire extinguishers. Note: HALON displaces air and is not allowed in closed compartments like airplanes where people are present. The cargo compartment is designed to vent to the exterior of the aircraft allowing HALON discharge, noxious fumes, toxic chemicals, and carcinogens to flow overboard, thus protecting passengers. The NNSA completed an OMB A-11 Exhibit 300 Business Case Analysis that evaluated several large transport category aircraft. The analysis revealed the following are the most cost effective aircraft with the capacity and range to accomplish the NNSA mission. The European Airbus 319 /320, the McDonald Douglas 80 and 90 series, and the Boeing 737-300/400 were airframes determined to meet both the mission requirements and also the appropriate weight and class category necessary to economically perform these critical missions. Larger more costly transport category aircraft are available and are capable of meeting the NNSA's requirements; however, these aircraft were eliminated from consideration due to budgetary constraints associated with acquiring and operating larger more expensive aircraft. Operating costs of the aircraft include maintenance costs, fuel costs, training costs, and the cost that would be required to increase the size of the hangar to park the aircraft inside for maintenance at the NNSA's current facility. These on-going operating costs increase significantly with the size of the aircraft and year after year of increased operating budgets that are not sustainable to the NNSA. Market research has determined that the within this particular class of aircraft, the Boeing 737-400 is currently the only known aircraft with an Federal Aviation Administration (FAA) approval for the "combi" modification and meets the aircraft capability requirements as stated above. As further detailed in paragraph 9 below, it is not practical to risk the time, effort, and cost associated with developing a new STC for a combi on an additional aircraft type such as the European Airbus. Used Boeing 737-400 aircraft are currently listed for sale between $8M to $13M per aircraft. Although this is a rather wide range, the eventual price is dependent upon the market conditions, airframe age, number of flight hours, airframe cycles, and current condition of the aircraft. Therefore, the Government's best estimate for the total purchase of three used Boeing 737-400 aircraft is between $24M to $39M. 4.The authority used to justify this procurement of other than full and open competition is 41 U.S.C. 253(c) due to the fact that no other supplies other than the Boeing 737-400 aircraft will satisfy Agency Requirements. This authority is required for the use of brand name descriptions. 5.The only aircraft that can meet all of the NNSA's essential mission requirements is the Boeing 737-400 aircraft with the combi cargo/passenger modification. The Boeing 737-400 combi is compliant with all 14 CFR and 49 CFR requirements which is critical to aviation and personal safety for NNSA as it conducts its challenging Governmental mission. The Boeing 737-400 model series is no longer in production and therefore, we will have to purchase used aircraft to support the NNSA mission requirements. The NNSA completed an OMB A-11 Exhibit 300 Business Case Analysis that evaluated several large transport category aircraft and the analysis revealed that the most cost effective aircraft with the capacity and range to accomplish the NNSA mission is the Boeing 737-400 with the combi modification. The NNSA, DOE, OMB and Congress have approved the Exhibit 300 and the acquisition of the Boeing 737-400 aircraft in support of the NNSA mission requirements. A lease versus purchase analysis has been completed during the exhibit 300 process and it was determined that the most cost effective method to support the NNSA mission was to purchase three used Boeing 737-400 aircraft and operate them as NNSA fleet aircraft. There are only five (5) Boeing 737-400 airframes with the combi modification in existence all owned and operated by Alaska Airlines. Once procured, a separate contract will have to be negotiated and awarded to have the Combi modification done to these used Boeing 737-400 aircraft under the FAA approved Supplemental Type Certificate (STC) STC ST03387AT. A supplemental type certificate (STC) is a type certificate (TC) issued when an applicant has received FAA approval to modify an aircraft from its original design. The STC, which incorporates by reference the related TC, approves not only the modification but also how that modification affects the original design.Therefore, the intent of this justification is to receive approval to solicit offers under the brand name of Boeing 737-400. 6. Market Survey: There are several recognized industry aircraft listing sources for used aircraft, namely Airfax, Boeing and SpeedNews. At this time, there are approximately 39 Boeing 737-400s currently available in the marketplace. The owners of all aircraft that meet our requirements will be solicited, and we will offer detailed instructions as to what to submit in response to the solicitation. The goal will be to the keep the amount of information required to be submitted consistent with the commercial practices. A concerted effort will be made to obtain as many offers as possible in an attempt to gain as much competition as possible and obtain the best value for the Government. The pre-solicitation announcement will be posted on the Government Point of Entry (GPE) for a minimum of 15 days consistent with the requirements of FAR Part 5.203(a) even though Commercial Items procedures allow for less time. Should World Trade Organization Government Procurement Agreements or Free Trade Agreements be applicable the announcement will be posted for a period of 40 days from time of synopsis until receipt of offers in accordance with FAR Part 5.203 (h). This justification for other than full and open competition will also be posted with the synopsis and the solicitation in accordance with FAR Part 5.102(a)6. 7.We are aware of the current marketplace and know that there are numerous aircraft of the same make and model available for sale. Therefore, determining that the price is fair and reasonable should be easily accomplished based upon list prices for used Boeing 737-400s on the market and our expectation that there will be adequate price competition received in response to the solicitation. 8.Market research was conducted by searching available 737-400 aircraft for sale online, contacting various aircraft manufacturers, researching trade publications, reviewing FAA data bases for Supplemental Type Certificates users, informal discussions with large transport aircraft operators, and searching the Internet for information related to aircraft capabilities, airframe modifications, and aircraft makes and models. A significant amount of material is available and printed for the file, however information related to this justification consisted of attempting to locate and identify other airframes that would meet the NNSA mission requirements. In addition, we contacted companies that perform major airframe modifications to large transport aircraft to see if it would feasible to develop a new Supplemental Type Certificate (STC) to modify the Airbus 319/320, the MD 80 and 90 series, or other models of the Boeing 737 series to make them capable of carrying both passenger and hazardous cargo at the same time. The response was that not only would it not be cost effective to develop the STC, and it would most likely take years to develop. We also researched the current market and determine that there were a significant number of aircraft currently available and found there were 39 used Boeing 737-400 aircraft listed for sale on June 1, 2010. In addition, I have been contacted by companies that lease Boeing 737-400s and they indicated they will offer several aircraft for sale in response to our solicitation once published. 9.At this time, the Boeing 737-400 aircraft is the only aircraft with a combi version that can be economically operated within NNSA's budget constraints to support this critical NNSA national security mission. There are other approved combi aircraft in the market; however, those aircraft cannot be acquired nor operated within the operational budgetary constraints of the NNSA. Because of the combination of funds available, capability requirements, and the need to have the separate cargo barriers provided by the combi modification, there are no other options available at this time. To allow the development of the combi capability by another company for three aircraft would be expensive, take a significant amount of time, and impose a significant amount of risk on the Government. A complete program review of the NNSA security mission requiring was conducted and the Boeing 737-400 aircraft which can be modified with combi cargo/passenger cabin is the best candidate available to meet the NNSA mission. 10.The following companies have contacted me in writing that they are interested in providing offers in response to a solicitation for used Boeing 737-400s:a.Boeingb.AAR Corporation 11.We will actively seek offers from aircraft currently available in the market as well as contact all companies that we can identify may have aircraft for sale. 12.I hereby certify that the justification is accurate and complete to the best of my knowledge and belief. Michael McFarlane /s/, Contracting Officer
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