Military Contracts 2009

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The US Military’s International Airlift Contracts
11-Sep-2008 17:45 EDT
Related Stories: Americas - USA, Contracts - Awards, Logistics, Other Corporation, Transport & Utility

Every year, US Air Mobility Command at Scott Air Force Base, IL issued a slew of indefinite-delivery/ indefinite-quantity, firm-fixed-price contracts for “International Airlift Services” to various commercial carriers. DID has covered FY 2006 ($2.29 billion), FY 2007 ($2.32 billion), and FY 2008 (over $3 billion) in previous articles.

The FY 2008 contracts appeared to bring far more consortia into the fold, as opposed to the FY 2007 and FY 2006 awards. That trend continues this year with rosters that are almost the same, and a contract ceiling of over $3 billion.

The way these awards work is that each contractor submits a bid, and the US military allocates awards according to each bid’s scope and competitiveness. Winning bidders included:

FY 2009 Contracts

For all contracts under this heading, work will be performed at worldwide locations, and is expected to be complete in September 2009. Contract funds will expire at the end of the current fiscal year. Electronic proposals were solicited and 30 proposals were received by the United States Transportation Command Acquisition Directorate at Scott Air Force Base, IL.

The total amount, if all contracts are maximized, is about $3.047 billion.

Sept 8/08: The Alliance Contractor Team of Leesburg, VA contains many of America’s major airlines. They received an estimated $1.351 billion firm fixed-price contract, with a minimum guarantee of $206.4 million (HTC711-08-D-5000). Team members include:

American Airlines, Inc., of Ft. Worth, Texas
Arrow Air, Inc. of Miami, Fla.
ASTAR Air Cargo, Inc., of Miami, Fla.
Delta Air Lines, Inc., of Atlanta, GA
Evergreen International Airlines, Inc., of McMinnville, OR
North American Airlines, Inc., of Jamaica, NY
United Airlines, Inc., of Elk Grove Village, IL
US Airways, Inc., of Phoenix, AZ
World Airways, Inc., of Peachtree City, GA
Gemini Air Cargo, Inc. of Dulles, VA had an inoperative web site last year, and their removal from the consortium is the only roster change for FY 2009. This year’s award is an improvement over FY 2008’s $1.03 billion maximum and $123.2 million minimum.

As an aside, Evergreen offers a couple of services that won’t be covered under this contract, but are interesting nonetheless. One is a “supertanker” aerial firefighting modification to the Boeing 747, and accompanying services. The other is a UAV service using the Insitu A-20 Insight, otherwise known as the ScanEagle UAV operated by Boeing on behalf of US and Australian forces on CENTCOM’s front lines.

Sept 8/08: The Federal Express Charter Programs Team Arrangement in Memphis, TN received an estimated $1.374 billion firm fixed-price contract for international airlift services, with a minimum guarantee of $150.7 million (HTC711-08-D-5001). Team members include:

Federal Express Corporation of Memphis, TN
Air Transport International LLC of, Little Rock, AK
Atlas Air, Inc., of Purchase, NY
Northwest Airlines, Inc., of St. Paul, MN
Omni Air International, Inc., of Tulsa, OK
Polar Air Cargo Worldwide, Inc., of Purchase, NY; they are 51% owned by Atlas Air Group.
Tradewinds Airlines, Inc., of Greensboro, NC
This year’s roster adds Tradewinds Airlines, but it is missing ATA Airlines, Inc. of Indianapolis, IN. ATA was driven out of business when FedEx canceled their long-standing relationship a year before the Letter of Understanding’s term ended, and informed them they would not be on the FY 2009 bid team. ATA folded on April 3/08.

This year, the team’s maximum is higher than FY 2008’s initial $1.07 billion award, but lower than the eventual $1.68 billion total when additional contracts involving rush shipments of MRAP vehicles to the front were added mid-year. The FY 2009 minimum is lower, compared to last year’s $158.5 million.

Sept 8/08: The UPS Contractor Team of Louisville, KY received an estimated $189.3 million firm fixed-price contract for international airlift services, with a minimum guarantee of $36.5 million (HTC711-08-D-5002). Team members include:

United Parcel Service Company of Louisville, KY
ABX Air, Inc., of Wilmington, OH
Kalitta Air LLC of Ypsilanti, MI
National Air Cargo Group, Inc., d/b/a Murray Air of Ypsilanti, MI
Ryan International Airlines, Inc. of Rockford, IL
Southern Air, Inc., of Norwalk, CT
This is the exact same team as last year, when the group won a maximum $126.8 million contract with a $9.6 million minimum.

Sept 8/08: Continental Airlines, Inc. of Houston, TX won an estimated $20.5 million firm fixed-price contract for international airlift services with a minimum guarantee of $501,650 (HTC711-08-D-5003).

Continental was entirely absent from the awards roster in FY 2008, after winning a maximum $10.1 million contract for FY 2007 and $11.7 million in FY 2006.


L-382 Hercules
Sept 8/08: Lynden Air Cargo LLC of Anchorage, AK received an estimated $77.7 million firm fixed-price contract for International airlift services with a minimum guarantee of $57.8 million (HTC711-08-D-5006).

The firm flies the L-382, a civilian version of the C-130H Hercules. This year sees a higher maximum and minimum than FY 2008’s $63.7 million/ $47.4 million award, but FY 2008 also featured a mid-year spike that revised the contract to $108.7 million, in order to make rush shipments of MRAP vehicles to the front lines.

Sept 8/08: Miami Air International, Inc., of Miami, FL received an estimated $34.3 million firm fixed-price contract, with a minimum guarantee of $3.3 million (HTC711-08-D-5007).

FY 2008’s contracts were set a $32.6 million maximum, with a minimum guarantee of $2 million.
 
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