Q A.doc

FY09 Questions & Concerns

26 March 2008

1. Clarify what the shift to FAR 12 means to the carrier.

Answer: Format change primarily but the fuel adjustment process must change due to the conversion from FAR 15 to FAR 12. Also, if we remain under FAR 15, contractors would be required to become CAS compliant.

2. Is it possible to introduce Fuel adjustment as a temporary phase to be revisited after a quarter/year before permanent implementation?

Answer: No but we’ll be evaluating its effects since the monthly fuel adjustment process will continue.

3. When will draft Cat A solicitation be available and what will the response time be?

Answer: TBD and POCs are Greg Hunt, 618-229-2462 and Ellen Green, 618-229-2499.

4. Any cost savings USTRANSCOM is hoping to derive from a stand-alone CAT A contract will in all likelihood be more than offset by the risks of relying on low-quality operators. The number of aircraft designated for CRAF purposes may shrink.

Answer: It’s not our intent to affect the CRAF commitment, but the decision has been approved to convert to a separate competitive solicitation which also requires CRAF commitment.

5. Give the AMC Contract Officer the discretion to award a greater percentage of CAT A business to those that offer the lowest cost, generate positive customer feedback, and meet or exceed the performance requirements established within the contract.

Answer: USTRANSCOM/CC has determined that CAT A will be removed from the CRAF Int’l contract and solicited competitively using CRAF contractors; therefore current contractors will still have the opportunity to receive this business. This will ensure that the end customer receives the service requested.

6. CRAF’s CAT B program has always been tailored to reward carriers that contribute the most and have good performance records while penalizing those that do not. Is there any reason to handle CAT A differently?

Answer: Yes, due to loss/degradation of customer base, CAT A is being removed from the CRAF Int’l contract. It will be solicited competitively using CRAF contractors, therefore current contractors will still have the opportunity to receive this business.

7. Award to the low-cost bidder (Team) providing the service at the specified levels of performance with the highest percent of tonnage. This allows competitive pricing while elevating the need for quality to a level equal to quantity.

Answer: Evaluation criteria will be determined by the POC’s working the Cat A program.

8. A bidder that clearly demonstrates better rates and better performance (based on past performance) could be assigned “Quality MVPs” or additional entitlement rights.

Answer: Evaluation criteria will be determined by the POC’s working the Cat A program.

9. How will rates be determined after switching to Part 12?

Answer: No change in rate development procedures.

10. Will annual submission of cost packages still be required?

Answer: Yes, but certified submissions are no longer required.

11. Due to volatility of energy markets, how can DOD shift this exposure from themselves to charter carriers?

Answer: Intent isn’t to shift exposure but to develop a fuel adjustment that doesn’t put contractors at risk.

12. Under new methodology how will AMC deal with carriers who do not wish to operate into the high cost locations?

Answer: Intent of identifying the change in the fuel reimbursement process is to obtain carrier input with the objective of not putting carriers at risk of incurring high costs due to extreme fuel fluctuations. We’re confident that there will be carriers that wish to perform the missions, even to the high cost locations.

13. Describe breakout of Wide Body Cargo with regards to entitlement procedures

Answer: Entitlement procedures will be the same for Wide Body II cargo as for the other entitlement categories.

14. Wide body cargo breakout doesn’t take into account all wide body cargo aircraft

Answer: All cargo aircraft currently listed in the “Rates and Rules” as Large Aircraft with maximum payloads of less than 90T are included in the Wide Body II cargo category.

15. Leave Cat A as part of CRAF contract – award as competitive. Delay implementation until the FY10.

Answer: It has been determined by TRANSCOM Commander that Cat A will be removed from the CRAF contract for FY09.

16. Do not remove Cat A from the FY09 CRAF solicitation – could affect number of aircraft offered to program, will cause unnecessary disruption within organizations, teams, and the CRAF program as a whole.

Answer: It has been determined by TRANSCOM Commander that Cat A will be removed from the CRAF contract for FY09.

17. In regards to the breakout of the business between these two categories (peacetime expansion airlift wide-body categories) would an offeror receive any less 90T business under this new methodology if it had both 90T and <90T (or previous 75-86T) offered capability?

Answer: Approximately 20% of the wide body cargo requirements have been set-aside for contoured aircraft. A carrier offering both 90T and < 90T capability should see no decrease in the number of requirements being offered.

18. There is no mention made of the new <90T category. Please confirm if the fixed and expansion entitlement will be handled differently.

Answer: There is no change to the entitlement procedures other than the creation of the new Wide Body II cargo category.

19. Do you anticipate a change to the recently provided draft 'Fix Buy' that did not have any 75-86T routes?

Answer: No, we do not expect any change to the “draft” fixed buy requirements.

20. Can the 75-86T Contoured Cargo category be expanded to include three aircraft types DC-10-10F; L-1011-50/500; and 767-300F? If not, can these aircraft types be used for either fix or expansion buys?

Answer: All cargo aircraft currently listed in the “Rates and Rules” as Large Aircraft with maximum payloads of less than 90T are included in the Wide Body II cargo category.