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Aircraft Procurement – Industry & Gov't Backgrounder – January 2011 New Aircraft Procurement, RCMP Style – or ... Oh What a Difference Sensible Contraints can make when Government Buys New Aircraft This LOI is not for the military, rather it is for Canada's federal para-military gendarmerie, the Royal Canadian Mounted Police. Specifically, this LOI is for the phased replacement of  two of the RCMP Air Services'  Pilatus PC-12/45  turboprop transport airplanes –  identified here by an older marketing moniker, "Pilatus XII".  The PC-12 first entered RCMP service in 1999. But every seven years,  like all  RCMP-operated aircraft,  these turboprops must be replaced. This system of procurement was imposed on the RCMP. While the RCMP Air Services have a solid reputation, the RCMP's procurement practices did not. That came to a head with their 2003 purchase of a luxuriously-appointed Piaggio VIP transport.  The public impression was of RCMP Commissioners and  Brass flying around in spendor while day-to-day Air Services operations struggled on with aging equipment. That former perception hasn't disappeared – headlines like 'RCMP planes used to fly to social events' do recur. But, at least that problem of an aged aircraft fleet has been eliminated by a mandated phased replacement of airframes. The implications for DND procrurement are obvious. The government has already begun to question the wisdom of paying for 20 year maintenance and support contracts for Air Force aircraft. The next logical step would be to abandon the lump purchases of replacement fleets in favour of a phased-in replacements before the 'rust out'  is allowed to take hold in earnest. Obviously there are huge differences in scale between off-the-shelf  RCMP buys and a DND order but it does suggest a way around future procurement stalemates –  like the drawn-out Hercules replacement or the  Maritime Helicopter Project  fiasco. The sensible bit about that mandated RCMP fleet replacement is that, by law,  the Mounties are obliged to sell off  their aircraft before airframes are old enough to become a liability. Then, the money received from the sale must be ploughed  back into the purchase of  a direct replacement airframe. Perhaps not  foolproof  but,  even allowing  for scale,  a system working more smoothly than DND's! ________________________________________ Letters of  Interest  (LOI)   –   TWO NEW SINGLE ENGINE PRESSURIZED AIRCRAFT  [ Replacments for the RCMP ] ________________________________________ Reference Number                PW-$$BY-509-20845 Solicitation Number              M7594-113061/A Organization Name               Public Works and Government Services Canada Source ID                               FD.DP.QC.10077.C2 Associated Components     No Dates Published     2010-12-23 Revised        — Closing         2011-01-07  02:00 PM  Eastern Standard Time  EST Details Category                          Aerospace GSINS                               N1680: MISCELLANEOUS AIRCRAFT ACCESSORIES AND                                            COMPONENTS Region of Delivery         Ontario Agreement Type             Agreement on Internal Trade (AIT) Tender Type                    Letter  of  Interest  ( LOI ) Estimated Value               — Solicitation Method        — Notice Description   TWO NEW SINGLE ENGINE PRESSURIZED AIRCRAFT Trade Agreement:                         Agreement on Internal Trade (AIT) Tendering Procedures:                 Generally only one firm has been invited to bid Attachment:                                                   None Competitive Procurement Strategy:  Lowest/Lower Bid Comprehensive Land Claim Agreement:   No  [ ... ] THIS IS A LETTER OF INTEREST/STATEMENT OF INTEREST AND QUALIFICATION FOR TWO SINGLE ENGINE, TURBO PROP, PRESSURIZED AIRCRAFT The object of this procurement is to continue the replacement of the RCMP Pilatus XII aircraft fleet currently consisting of fourteen aircraft of type. PWGSC's Policy encourages a supplier pre-qualification process where the cost of proposal preparation by the industry is seen to be high. By using a Letter of Interest / Statement of Interest and Qualification to initiate the procurement process, firms evaluated as not meeting the mandatory criteria are informed before they undertake the effort and expense of preparing a complete technical and price proposal. The proposed Contractor must supply two (2) single Engine, pressurized aircraft (new) no later than April 1, 2011 and April 1 2012 for the second aircraft. There will be an option for the supply of a third aircraft. The purpose of this document is to qualify suppliers through an evaluation of aircraft currently in production against the mandatory criteria herein. It will be a mandatory requirement that payment for the first and second aircraft includes trade in of the following: Trade-in Aircraft Pilatus PC-12/45 SN 315 C-FMPW Trade-in Aircraft Pilatus PC-12/45 SN 374 C-GMPP 1: All trade in aircraft will be sold in an AS IS, WHERE IS BASIS. 2: All trade in aircraft will have a reserve price. If this reserve is not met, the aircraft will not be sold. 3: Times and equipment subject to change due to operational requirements on the trade in aircraft. Qualifications of the Suppliers: In order to be qualified, aircraft proposed by the Supplier must meet all of the following minimum mandatory requirements: - Be two (NEW) light utility, pressurized, single engine, turbo prop aircraft, with the ability to offer an option for one additional aircraft. - Be easily convertible from a minimum of eight passenger cabin seating to cargo carrying capabilities. - Have a cargo door, (size minimum 52 inches by 52 inches) to accommodate items to include, snowmobiles, plywood sheets, coffins, and evidence containers - Have a fluid barrier floor, - Be capable of operating at an altitude up to 30,000 feet - Be capable of short take off/landing (2,500 ft/ 2,000 ft) at remote airfields - Be equipped with "state of the art" avionics equipment, - Meet Canadian Regulatory Requirements, - Be certified in compliance with FAR 23 (Federal Aviation Regulations) category requirements at time of delivery - Have a Maximum Gross Take Off Weight (MGTOW) of 12,500 lbs or less - Must be a proven type on the market and certified at time of delivery Each of the mandatory requirements shall be addressed in sufficient detail to permit the evaluation team to verify the Supplier's compliance. Canada reserves the right to seek clarification of the Supplier's response at any time during the evaluation period. Any request for clarification does not imply in any way, whatsoever, that the Supplier is compliant. All qualified suppliers will be issued a Request for Proposal. No contract will be issued as a direct result of this LOI/SOIQ. Inquiries to the LOI/SOIQ are to be submitted by email or facsimile to the Officer named below no later than five days prior to the closing date of this LOI at 2:00 P.M. Eastern Savings Time. All qualified suppliers shall contact the following person named below, by email or facsimile by no later than 2:PM on the closing date of the LOI/SOIQ to indicate that they have available and are interested in supplying an aircraft that meets, at a minimum, the requirements listed on this letter of interest and would like to be provided with a solicitation bid package. Any suppliers not meeting the above mandatory requirements need not apply as they will not be considered in this process. Hal Scharfe  Supply Specialist Public Works and Government Services Canada  Land, Aerospace, Marine Systems 11 Laurier St.  8C1, Place du Portage Gatineau, Quebec  K1A 0S5 Telephone number: (613) 829-5172  Facsimile number: (613) 829-7336 Email address: hal.scharfe@pwgsc.gc.ca Delivery Date: Above-mentioned