Vertol Systems Company, Inc., B-295936, April 18, 2005

B-295936 Apr 18, 2005 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Vertol Systems Company, Inc. protests the actions of the Department of the Air Force in acquiring foreign threat systems aircraft for use in military training exercises. Vertol generally asserts that the agencies improperly procured the aircraft from the Threat Systems Management Office (TSMO), Department of the Army, by means of a transaction under the Economy Act, 31 U.S.C. 1535 (2000). The protest is denied. View Decision B-295936, Vertol Systems Company, Inc., April 18, 2005 Decision Matter of: Vertol Systems Company, Inc. File: B-295936 Date: April 18, 2005 Lawrence J. Sklute, Esq., Sklute &; Assocs., for the protester. Clarence D. Long, III, Esq., Department of the Air Force, for the agency. David A. Ashen, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that procurement of foreign threat systems aircraft under Economy Act is improper, and that agency instead should conduct competitive acquisition under which protester could compete, is denied where Air Force reasonably determined that protester was not viable competitor because its helicopter could not satisfy the agency's requirement for demonstrated airworthiness. DECISION Vertol Systems Company, Inc. protests the actions of the Department of the Air Force in acquiring foreign threat systems aircraft for use in military training exercises. Vertol generally asserts that the agencies improperly procured the aircraft from the Threat Systems Management Office (TSMO), Department of the Army, by means of a transaction under the Economy Act, 31 U.S.C. 1535 (2000). We deny the protest. Vertol's protest challenges the Air Force's action in acquiring foreign threat systems aircraft from TSMO--instead of allowing Vertol, a small business, to compete to provide the required aircraft--for use in military exercises. [1] In this regard, TSMO controls a fleet of government-owned foreign ground and aviation systems, which are used to provide realistic threats during training exercises and the testing of U.S. weapons systems. On January 28, 2005, the Air Force executed a determination and findings (D&;F) pursuant to the Economy Act, in support of a military interdepartmental purchase request to TSMO for the provision of a Russian Mi-24 attack helicopter, to serve as an opposition force during Dissimilar Air Combat Training (DACT) with the 14thWeapons Squadron to occur February 13-17, 2005 and August 15-19, 2005. Specifically, the agency contemplated that the Mi-24 would engage in mock air-to-air combat with an MH-53 helicopter, to include low, tree-level flight, sharp acceleration, and abrupt changes in attitude and altitude, for purposes of providing defensive maneuvering training. The agency anticipated that a student or squadron cadre would occupy the front gunner position in the Mi-24, allowing the occupant to view the air combat from the enemy perspective. The Air Force determined that safety considerations required that only an aircraft with a standard air worthiness certificate from the Federal Aviation Administration (FAA), or the military equivalent certification from TSMO to carry government employees, could be used. The D&;F, and the agency's accompanying market research report, indicated that no private source was qualified to provide aircraft with the required certification and approved flight operations. In this regard, while the Air Force was aware that Vertol owned an Mi-24 helicopter, the agency noted that FAA had only granted that aircraft a limited, "experimental" airworthiness certificate, which the Air Force viewed as insufficient to meet its safety concerns. [2] The Air Force concluded that TSMO was the only source capable of providing an Mi-24 helicopter meeting the agency's needs. Air Force Market Research Report, Jan. 24, 2005; Air Force Mi-24 D&;F, Jan. 28, 2005; Contracting Officer's Statement, Mar. 22, 2005. Vertol asserts that, as an alternative to a standard FAA airworthiness certificate, the agency should be required to accept the "experimental" certification of its Mi-24. Vertol concludes that, by virtue of this certification, its helicopter was available, and that the Air Force therefore should have competed the requirement. The Competition in Contracting Act of 1984 requires that agencies specify their needs and solicit offers in a manner designed to achieve full and open competition, so that all responsible sources are permitted to compete. 10 U.S.C. 2305(a)(1)(A)(i) (2000). However, the determination of a contracting agency's minimum needs and the best method for accommodating them are matters primarily within the agency's discretion. Tucson Mobilephone, Inc. , B-250389, Jan. 29, 1993, 93-1 CPD 79 at 2, recon. denied , B-250389.2, June 21, 1993, 93-1 CPD 472.