T H E N A T U R E C O N S E R V A N C Y – P A L M Y R A P R O G R A M

R E Q U E S T F O R P R O P O S A L

F L I G H T S E R V I C E H O N O L U L U - P A L M Y R A A T O L L

O c t o b e r 1 , 2 0 1 4

T H I S I S N O T A N O R D E R O R A N O F F E R

CONFIDENTIAL Disclose and distribute solely to employees and agents with a need to know.

2

1 . I NT RO D U C TI O N

1.1. A. Statement of Purpose

The Nature Conservancy (“TNC”) is soliciting proposals for on demand air charter service

between Honolulu and Palmyra Atoll. The atoll, a territory of the United States, lies

approximately 960 nautical miles south of Honolulu. There are no airfields between Honolulu

and Palmyra Atoll; the closest airfield is Christmas Island, Republic of Kiribati, approximately

300 miles beyond Palmyra Atoll to the southeast. Palmyra Atoll consists of one main island,

Cooper Island, containing a 5400-foot hard pack coral runway originally built by the US Navy in

World War II, and a research camp and associated facilities. TNC owns Cooper Island and

operates it as a nature preserve and a research station. The U.S. Fish and Wildlife Service

(USFWS) owns the surrounding islets in the atoll and manages the Palmyra Atoll National

Wildlife Refuge and nearby Kingman Reef National Wildlife Refuge, including the surrounding

waters out to 12 miles.

TNC maintains a small amount of Jet-A fuel on station for emergency use. The airstrip was

refurbished in 2012 and is a 5400 foot long, 100 foot wide crowned surface, with additional

clearance of 70 feet on either side. The airstrip was converted from a single cross slope to a

crowned slope with the center 50 feet entrained with Portland Cement for 4000 feet. The airstrip

has PCN # of 47/F/A/X/T. Since May 2012, the runway has accommodated landings and

takeoffs of Gulfstream II and C-130H aircraft.

Approximately one million seabirds nest at Palmyra Atoll annually, including periodic nesting of

several hundred thousand sooty terns in open areas, as well as red-footed boobies, brown boobies,

and other birds nesting in pisonia and beach heliotrope trees. Albatross do not nest at Palmyra

Atoll. The Palmyra Atoll birds generally fly out to sea to forage during the day and return at dusk

in large numbers, though some forage during the day near the atoll. Flights are scheduled to

minimize encounters with large numbers of birds, but there is potential for bird strikes to occur.

TNC manages the research station collaboratively with the Palmyra Atoll Research Consortium

(PARC), made up of nine member research institutions and USFWS. TNC coordinates all plane

logistics with the air service company through its office in Honolulu, Hawai‛i. Typically there is

a research season from approximately May through October each year, with on average about 12

researchers transiting to and from the station on the atoll every two weeks or so. In the spring and

fall TNC operates several VIP trips to showcase Palmyra Atoll to potential supporters. About

half a dozen such trips occur each year, approximately 4-5 nights each, approximately 12-14

passengers including guests and staff. During the months of early December to early March a

basic station crew of five to seven staff conducts annual maintenance. There are generally no

flights during this time.

For the past two years, air service Honolulu-Palmyra has been provided on a charter basis with a

Gulfstream G-II. Total annualized payload has been approximately 75,000 pounds, including

passengers and cargo. Passenger count has averaged roughly as follows:

January – February: 0 per month

March – April: 13 per month

May – October: 26 per month

November - December: 13 per month

Some trips may require the airplane and crew to layover on Palmyra for two to five nights.

3

In addition to standard FAA safety requirements, because USFWS staff often accesses the atoll

by this air service, as well, the federal government Department of Interior’s Office of Aircraft

Services(AOS) certification will be required for flights used by the Department of Interior.

FAA Part 135 Air Carrier certification (or demonstrated equivalent providing a legal certification

and safety regulations for carrying passengers as described here) is required.

G-II aircraft has most recently successfully provided air transport between Honolulu and

Palmyra. Jet –A may be available at Palmyra. Avgas is not available at Palmyra. Both jet and

turbo – prop aircraft will be considered. Ideally, aircraft will have the range to complete a round

trip with enough fuel for divert options on one tank of fuel and without the need to refuel on

Palmyra.

Important general criteria include safety, dependability of the aircraft and the air service,

immediate maintenance and repair capability and parts availability, adequate passenger and

payload capacity, priority for scheduling, and cost. Bidder will be responsible for the operation

of the charter aircraft, including retaining and training appropriate flight crew, all aircraft repairs,

maintenance, inspections, certifications and compliance with US Federal Aviation Regulations

(14 CFR Part 135 – also referred to as FAR Part 135 – or equivalent, such as 14 CFR Part 121)

and Department of the Interior requirements.

There are no Air Traffic Control facilities, crash, fire rescue, or runway lights on the Atoll. All

approaches, landings, take-offs and departures are Visual Flight Rule and self-reporting.

Proposals should include terms for delays due to mechanical problems, description of plan to

minimize delays, and any backup service plan offered.

The Nature Conservancy and the US Fish and Wildlife Service have similar contracting needs

and requirements for charter air service to Palmyra, as well as, Midway Atoll National Wildlife

Refuges. USFWS intends to issue an RFP for service from Honolulu to Midway in the next

several months for service to start in May 2015. Bidding entities must disclose any conditions on

price and service that may be dependent upon also being the winning bidder for the USFWS RFP.

B. Alternate Structures.

Due to the importance of controlling overall cost for this air service, TNC is willing to consider:

1) alternate aircraft options that may meet the general passenger and payload requirements

outlined above in a different configuration

2) a contract period of up to three years

3) a minimum number of guaranteed flights during all or a portion of the contract period

4) alternate financing/operational arrangements other than straight air charter fees, if substantial

savings can result to the overall annual cost for the air service

Proposals should outline (1) basic air charter terms and pricing, as well as (2) alternate terms and

pricing under another proposed financing model, if any.

Use of the aircraft and air service by the Contractor for other commercial charters is acceptable,

provided TNC shall have priority over charters when requested on at least two weeks’ notice.

Credit towards charter costs to TNC based on a percentage of other charters earned may be

calculated as part of the proposed cost terms.

C. Specifications are as follows:

4

Aircraft and Pilot requirements

Aircraft Required: Appropriately maintained and certified multi-engine airplane, extended

overwater capability, equipped as specified in this Section B for same day, round trip, flights

between Honolulu, Hawai‛i, and Palmyra Atoll.

Crew Complement Required: Appropriately trained and certified Pilot-in-Command (PIC) and

Second-in-Command (SIC), or two appropriately, trained qualified and certified in-model pilots.

Designated Base: Hawai‛i; all departures out of Honolulu, HI.

Performance Period: Up to three years

Minimum Aircraft and Carrier Requirements:

Aircraft must have a Standard Airworthiness Certificate and be in a current maintenance

program under the Carrier’s FAR Part 135, or equivalent, Certificate.

An aircraft of a make and model for which engineering and logistical support for

continued airworthiness is provided by the current Type Certificate holder or

Supplemental Type Certificate holder.

AOS certified pilots and aircraft

Carrier must have passenger certification (under Part 135 or equivalent)

IFR/VFR, Day/Night

Capable of operating from a 5,400-foot x 100-foot, crowned calcium carbonate and

Portland cement, runway at sea level

ISA +15ºC as configured above. (Refer to special airfield notices.)

Speed capacity or double flight crew, enabling round trip (Honolulu-Palmyra-Honolulu)

in one day.

Preferred combination load of passengers and cargo: Payload 4,000 lb.; fifteen (15)

passengers plus cargo. Exterior cargo load capacity is preferred, though not required.

Range 1300 nautical miles minimum, 2200 preferred, with adequate fuel reserve for

divert.

Fuel type: Jet A preferred

May be asked to provide emergency evacuation service for sick or injured atoll personnel

Aircraft must be free of rodents and other invasive non-native pest species

5

General liability insurance with limits not less than $50,000,000, naming TNC as

additional insured, and appropriate insurance on airplane hull and engines

Note: Ideally contractor will operate aircraft that does not require refueling on the atoll. If not,

TNC will charge the contractor market Honolulu price plus transportation markup for providing

Jet-A fuel on Palmyra.

Bidders are encouraged to provide TNC options to consider, and provide written documentation

explaining advantages and disadvantages of the various options and approaches that may be

proposed by Bidder. Upon review of the proposals and alternatives provided therein, TNC may

reconsider the Request for Proposal (RFP) based on existing physical constraints, other

conditions, and any budget limitations.

1.2 The Nature Conservancy

The Nature Conservancy is a District of Columbia, USA, non-profit corporation with its principal

place of business in Arlington, Virginia, USA. TNC has offices across the U.S. and in over 35

countries around the world.

Since 1951, The Nature Conservancy has been working with communities, businesses and people

to protect more than 116 million acres around the world. Our mission is to preserve the lands and

waters on which all life depends. Please see www.nature.org for more details on what we do and

where we work.

1.3 TNC’s Palmyra Program

Generally: Palmyra is a remote atoll located 1,102 miles south of Honolulu at 5°53'N,

longitude 162°05' W (see attached map). Palmyra is a territory of the United States, under

the jurisdiction of the Department of the Interior, and not a part of any State. The atoll

consists of 680 acres of emergent land making up several dozen islets. TNC owns Cooper

Island where it operates a base camp and research facility consisting of 16 cabins; a galley

and associated food preparation and storage facilities; a research laboratory; power

generators; a maintenance shop and equipment; restroom, shower, and laundry facilities;

docks; and boating and diving facilities.

There are no medical facilities on the atoll.

Staffing: Five to seven personnel live on Cooper Island and operate all facilities year round.

The remaining islets are uninhabited and owned and managed by the US Fish and Wildlife

Service as a National Wildlife Refuge.

Environment, generally: Palmyra is a tropical wet atoll, receiving approximately 174 inches

of rain annually (see attached annual rainfall information). Wildlife: The atoll hosts large

populations of native rare and endangered ground and tree nesting seabirds, land crabs, and

invasive species such as ants, wasps, and white fly infestations.

6

2. GENERAL ADMINISTRATIVE PROVISIONS

2.1 TNC’s Procurement Process

TNC reserves the right to deal with submitted bids in any manner it deems in the best interest of

TNC, and may communicate and/or negotiate with any or all bidders on all or any portion of any

submitted bid at any time. TNC may reject any bid, in whole or in part, for any reason.

2.2 TNC’s Obligations

TNC incurs no obligation or liability whatsoever by reason of issuance of this RFP or action by

anyone relative thereto.

2.3 Bidder’s Obligations

Bidder must analyze and respond to all sections of this RFP providing sufficient information to

allow TNC to evaluate the Proposal. Bidder, by submitting its Proposal, agrees that any costs

incurred by the Bidder in responding to this RFP are to be borne by Bidder and may not be billed

to TNC.

Sections of Bidder’s Proposal must match the order in which the RFP was drafted or clearly state

where the information resides within the Proposal. If TNC has any confusion or difficulty in

retrieving the required information from a Bidder’s Proposal, it may result in such Proposal being

disqualified. Bidder may not have the ability to resubmit their Proposal to TNC.

Bidder must submit a cost summary in the attached template.

TNC requests firm fixed pricing for your Proposal. If you are chosen as an award winner and

any additional costs are presented at the time of agreement, negotiations, or implementation,

TNC has the right to disqualify your organization as the award winner.

7

. B I D D ER SUB M I S S I O N REQ UI R EM EN T S

3.1 Submission of Proposal:

Bidder will send their response to this RFP via email and mail one hard copy. However, if your

response exceeds 10MB, please do not send the complete proposal via email, but email your

intent to submit a bid and mail a USB flash drive.

3.2 Address and email for Bidder’s Submission of Proposal:

The Nature Conservancy

Laurie Moore - Palmyra Program Director

923 Nuuanu Avenue

Honolulu, HI 96817

Email: LMoore@tnc.org

Phone: (808) 587-6282

3.3 Critical Dates

3.3.1 Questions Regarding the RFP

Members of the evaluating committee for the Project will meet with all interested,

qualified bidders to discuss the Project during a Proposal Conference on October 15,

2014 at 11:00 a.m., at the offices of The Nature Conservancy, 923 Nuuanu Ave.,

Honolulu, Hawai‛i . Bidders not located on Oʻahu may participate by conference phone

and Web-Ex. Bidders will not give presentations at this conference but will ask

clarification questions about the Project and the RFP. Bidder understands and agrees that

it has a duty to inquire about and clarify any RFP questions that the Bidder does not fully

understand or believes may be interpreted in more than one way. TNC, however, is not

required to answer all questions that are not pertinent to the RFP or considered to involve

TNC’s Proprietary information.

3.3.2 Proposal Timeline

RFP Activities Estimated Dates

Distribute RFP October 1, 2014

TNC Pre-Bid meeting (RSVP to LMoore@tnc.org by

Oct 13 COB)

October 15 at 11:00 a.m.

Bidder Submits Clarification Questions October 17, 2014

TNC Response to Questions October 24, 2014

Expression of Interest Letters Due October 31, 2014

Bidder Written Proposals Due November 7, 2014

Decision November 14, 2014

Contract Negotiation/Finalization November 26, 2014

Confirmation of Plane Acquisition/Equipment Status December 23, 2014

Confirmation of Plane Certifications December 23, 2014

First Flight After January 1, 2015

3.4 Restricted Communications.

It is the policy of TNC to avoid situations which (1) place it in a position where its judgment may

be biased; (2) create the appearance of or actual conflict of interest with respect to rendering an

impartial, fair, technically sound and objective decision prior to selection; or (3) give an unfair

competitive advantage to competing Bidders. Therefore, to ensure an ethical evaluation process,

8

all inquiries or other communications regarding this RFP shall be exclusively directed to the

person and location specified in Article 3.1.2 of this RFP.

3.5 Disposition of Proposals.

All material submitted in response to this RFP will become the property of TNC and may be

returned only at the option of TNC and at the expense of the Bidder. Successful and unsuccessful

bidders will be notified in writing via email. TNC shall not be obligated to detail any of the

results of the evaluation.

3.6 Contractual Commitment of Proposal.

The contents of submitted Proposals will be considered obligations of the successful Bidder. No

information should be submitted that is not intended to be incorporated into the Proposal and/or

any contract which may result from such Proposal. If there is any inconsistency between the terms

herein and any of the other contract documents, the terms in the other contract documents shall

prevail.

3.7 Confidentiality.

Any data, documentation or other business information furnished or disclosed to the Bidder shall

be deemed the property of TNC and must be returned to TNC upon request.

3.8 Disclosure Statement.

The Nature Conservancy, being a non-profit organization, relies heavily on contributions from its

members. In order to eliminate any conflict of interest or perceived conflict of interest, it is

necessary to require the disclosure of the names of any of your employees who will be working,

directly or indirectly, to respond to this RFP, that currently hold or have ever held, director

positions of either TNC worldwide Board of Directors, or on a TNC state chapter Board of

Trustees.

We will need the names, title, type of board they served, and the years they held that position.

Please forward this information to the contact listed in section 3.2.

The information will be kept confidential and given out only on a “need to know” basis.

The above mentioned employees of the successful bidder will be required to sign the attached

TNC Disclosure Form.

Please check the following web link for RFP updates and further information,

including information on how to join the Pre-bid Conference:

http://www.nature.org/palmyra

9

4 . PRO P O S AL – B I DD E R QU A LI F I C A TI O NS

Bidder shall detail its technical experience, qualifications, financial capacity:

Experience and scope of the Bidder’s technical and professional competence: Describe Bidder’s

experience in providing comparable air service. List air service by routes, aircraft type, and

conditions. Describe Bidder’s safety record and provide any relevant safety audits, certifications or

other records. Describe qualifications, certifications and experience of flight crew, if already

identified.

Licensing: Indicate specifically whether Bidder is licensed/certified by air service regulations, and

the type of license/certification held.

References: TNC requires Bidder to provide at least five (5) references with contact name and phone

number. All references must be contacted by Bidder and permission given for TNC to make contact.

Financial Capacity: Describe Bidder’s financial strength.

Aircraft: Bidder must be able to articulate capacity, cost, and advantages and disadvantages of proposed aircraft.

10

5 . PRO P O S AL

Proposals should include a narrative describing the plane service to be provided, the plane or planes

recommended and the relevant specifications and suitability for TNC’s requirements, plus an outline of costs and

fees in accordance with the following cost summary template (if recommending more than one airplane option,

please provide the following information for each plane option provided):

Plane Model / Type (tail number if available): ___________________________

Summary of Key Specifications:

Payload (total passenger and cargo combined)

Passenger Capacity

Range with Divert Option

Speed

Ceiling

Engines

Certifications

Guaranteed Start Date

Pilots

Costs and Fees: Mobilization Fee (if any): $

Minimum Annual Hours (if any): $

Roundtrip Charter Fee (HNL-Palmyra-HNL): $

Rate for related routes, e.g. HNL-Kona; Kona-Palmyra; Palmyra-Christmas: $

Layover Fee (per day): $

Misc. fees to be passed on to TNC such as navigational fees imposed by governments, ramp

fees, loading or unloading charges, trash disposal, fuel surcharge or parking fees identified

by type of fee and amount:

$

Any discounts if flights exceed a given number in a given year $

Pilots’ total number of flight hours Pilot 1: Pilot 2:

Pilot certificates Pilot 1: Pilot 2:

Aircraft in which they are type-rated Pilot 1: Pilot 2:

Number of hours in each type-rated

aircraft

Pilot 1: Pilot 2:

List pilot training in the last two years Pilot 1: Pilot 2:

11

6 . AD DI TI O NA L I NF O RM A TI O N

6.1 Environment: Please state what your company does to help the environment and what policies

and procedures you have in place.

6.2 Subcontracting: Any subcontractors must be identified along with the defined work they will

perform. The Nature Conservancy will not refuse a proposal based on the use of subcontractors,

but does retain the right to refuse the subcontractors selected. Bidder shall remain solely

responsible for all subcontracted work. Describe your rationale for using subcontractors.

6.2.1 Specify length of time bid is good for. This must be a minimum of 60 days.

6.2.2 Attach a draft copy of your contract for our review.

6.3 TNC is a non-profit organization. We strive to minimize administrative costs to ensure that

maximum dollars goes to our mission. If your organization can aid in our efforts by a donation or

special pricing, please describe.

6.4 Quarantine Procedures. TNC will provide additional information regarding quarantine

procedures applicable to Palmyra at or prior to the Pre-Bid meeting.

7. ATTACHMENTS

7.2 The Nature Conservancy’s Conflict of Interest Disclosure Form

7.2 Site Map – Atoll & Runway Images

7.3 Rainfall Data

REMINDER

Please check the following web link for RFP updates and further information,

including information on how to join the Pre-bid Conference:

http://www.nature.org/palmyra

12

8 . B I D D ER QUE S T I ON N AI R E

Please answer each of the following questions in the space provided. If additional space is required, please

continue on a separate sheet and attach it to this form.

General Information:

Company Name:

Company Address:

Contact Name:

Phone & Email:

Federal ID or SSN #

Years in Business:

TNC Information:

Please indicate if you have done business with TNC in the past and provide contact information below

Financial Information

Indicate your annual sales (in thousands of $) for the past three (3) years

Employee Information

Number of Employees:

Minority and Women - Owned Business Enterprise

Please indicate below if your firm is at least 51% minority or women owned, controlled and operated. Identify

the % of minority or women ownership.

13

Legal

If your firm is bonded, please indicate type:

Performance Bond YES NO

Labor & Material Payment Bond YES NO

Are there any judgments, suits or claims pending against your firm?

YES NO

If yes, please explain:

Has your firm operated under a different name? (Please provide)

What ground and/or air mishaps have occurred involving your company, pilots or aircraft in the last 20 years, if

any?_______________________________________________________________________________________

___________________________________________________________________________________________

___________________________________________________________________________________________

What, if any, limitations has the FAA placed on your company’s operations specifications? (e.g. no IFR

flights)_____________________________________________________________________________________

___________________________________________________________________________________________

___________________________________________________________________________________________

In the last five years has your company been part of a merger or acquisition of a like entity?

___________________________________________________________________________________________

___________________________________________________________________________________________

___________________________________________________________________________________________

Please submit, as part of your proposal, your most recent FAA inspection results.

14

15

16