FY18_-_FY22_MOU_Carrier_Letter_V2.pdf

14 April 2017

MEMORANDUM FOR ALL CARRIERS

FROM: USTRANSCOM/TCAQ-P

508 Scott Drive Scott AFB IL 62225-5357

SUBJECT: Notice of Proposed Fiscal Year 2018-Fiscal Year 2022 (FY18-FY22) Memorandum of Understanding (MOU) for CRAF Ratemaking (SUSPENSE: 25 APR 17).

1. We are in the final stages of updating the FY18-FY22 MOU. USTRANSCOM released the original proposed MOU in October 2016. Attached is an updated draft, in Word redline format, for your review and final comment. The redline version accepted changes from the original October 2016 proposed MOU and highlights any additional changes not previously released.

Please provide comments via email to scott.e.rader.civ@mail.mil and cc to chad.s.lindauer.civ@mail.mil by 25 APR 17. Negative responses requested.

2. USTRANSCOM released all comments to the initial proposed MOU in December 2016.

USTRANSCOM addressed these comments during individual carrier meetings in December 2016, two group conference calls in February 2017, and a 22 February 2017 meeting with industry. Therefore, comments shall focus on new changes or topics not already addressed.

3. One item to note in your final review is an update to pages 1-6 (Introduction) which captures discussions between Atlas and the Government. As stated during the 22 February 2017 meeting, Atlas’ proposed changes to the introduction did not affect ratemaking methodologies. Therefore, it was agreed Atlas and the Government would further discuss their recommended changes at a different time. The revised MOU highlights changes discussed between the two parties. One difference of opinion not discussed in an open forum included a proposed change to paragraph 6 on page 4. Atlas proposed, and the Government declined, changing the word “may” to “shall” before “issue proposed rates for carrier comments.”

4. Another noted change not fully discussed in an open forum included an update to paragraph 1.1.1.4, Cost Efficiency Factor. A discussion during the 22 February 2017 meeting stated the change was still “TBD”. No additional conversations took place between Government and Industry; however, proposed changes take into account feedback from the 22 February 2017 meeting and prior noted meetings.

5. It is USTRANSCOM’s intent to release all comments received to this request. Next, USTRANSCOM will address any comments received on the new changes or topics. The final MOU is expected to be released for signature in May 2017.

UNITED STATES TRANSPORTATION COMMAND

508 SCOTT DR

SCOTT AIR FORCE BASE, IL 62225-5357

mailto:scott.e.rader.civ@mail.mil mailto:chad.s.lindauer.civ@mail.mil

6. Please direct any questions or concerns to me at scott.e.rader.civ@mail.mil or 618-220-6711.

//SIGNED//

SCOTT E. RADER

Chief, Cost & Pricing Branch

Attachment:

Proposed FY18-FY22 MOU for CRAF Ratemaking for International Service mailto:scott.e.rader.civ@mail.mil