Comments_and_Questions_to_PMA.docx

Comments and Questions to PMA-226 on N00421-16-R-0032 Draft PBWS Dated 1 Aug, 2017

Para 1. Scope

Comment: The Period of Performance has been deleted. Potential offerors need some baseline POP for aircraft leasing, maintenance, insurance, basing, hiring considerations, etc. As offerors have stated before, the longer the POP the lower the overall cost to the Navy, but we need some planning factor.

Para 3.2 Aircraft Certification (AC), Maintenance Practices and Operating Procedures

Comment: It would be prudent to direct more discussion and clarification of the NAVAIR and FAA MCO certification process and expectations. We believe this is an area of high risk for all potential bidders and they will make cost allowances based on perceived risk. NAVAIR will reap the cost benefit of lowering the perceived risk by making the process as transparent as possible.

In correspondence (5 July 2017) NAVAIR stated it was considering a NAVAIR, FAA, FAA-MCO Industry Day devoted to certification. We strongly recommend and request this meeting be scheduled prior to draft RFP release.

Para 3.2.2 Regarding this excerpt from this paragraph “Note that currently, V-22 and E2-D aircraft are only authorized to refuel from a centerline system.”

Question: Is it acceptable to have only one contractor aircraft configured with a centerline drogue or do you expect simultaneous East and West MV-22 and E-2D requirements?

Para 3.3 Contract Line Item Number Descriptions

Question: The Industry Day II Questionnaire and direct correspondence indicated an intent to use a Readiness CLIN to help small businesses effectively manage their cash flow between times of heavy flight ops and periods of less demand.

The Readiness CLIN was removed from the latest PBWS, has NAVAIR backed away from considering a Readiness CLIN?

Para 7.2 Insurance

Comment: There is no civil equivalent for Air Refueling Ops in the commercial aviation insurance lexicon. (Please see the attached CASS Insurance Background paper sent to the Contracting Officer after the 9 May Industry Day.) Without the government self-insuring military-only tasks, commercial insurance for non-commercial activities may be exceptionally expensive. Insurance costs will be a direct pass through to the Navy in the Bidder’s hourly rates.

We strongly suggest the Navy considered providing a compromise approach where the Navy covers all activity inside the air refueling track-upon declaration of MARSA (military assumes responsibility for separation of aircraft) and the bidders would cover the everything outside the air refueling track—per normal commercial operations.

We note that the Navy has now omitted any mention of a specific minimum liability insurance amount. This places an undefined burden on the bidders to assess risk of loss and insurance amounts. This will likely produce an un-level playing field among bidders if some decide to procure little to no insurance and others attempt to acquire and price a more industry standard amount.

We strongly suggest that if the Navy is not going to self-insure then it must define the desired amounts to ensure all bidders are performing at a common level of responsibility.

We have also noticed the addition of Third Party Liability. This undefined liability will add significant cost. Since this is a Public Aircraft Operation (PAO) supporting a unique military mission, we again recommend the government self-insure in this area.

In initial discussions with domestic and overseas insurers indicate the cost for this insurance, if an underwriting can be found, will be exceptionally expensive. As a point of reference and an acknowledgement of the difficulty of obtaining commercial insurance for military air refueling, the UK government self-insures all military operations on their commercially provided tankers.

Appendix A, Reference this excerpt below on Ferry Missions “A ferry mission is a flight flown at the direction of the Government for the purpose of repositioning contractor aircraft. The Contractor is required to pre-position the aircraft to the designated base for refueling detachment operations. CONUS Ferry Missions only fund 150 miles of the transit from the Contractors Commercial Operating Base to the designated detachment base of operations.”

Question: Discussion with NAVAIR reps at the Industry Days indicated there might be some flexibility for funding a bigger radius than 150 miles for movements from the Contractor home base to a NAVAIR tasking…is NAVAIR still discussing this?