FY 2008: US Military International Airlift Contracts
In late September 2007, 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. The total value of these contracts has a higher ceiling of just over $3 billion in 2007, compared to $2.32 billion in 2006 and $2.29 billion in 2005.
The 2007 contract also appeared to bring far more consortia into the fold, as opposed to the 2006 and 2005 awards. 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.
Recent developments include an additional award to Lynden…
2007 International Airlift Contracts
Work will be performed at worldwide locations, and is expected to be complete in September 2008. Contract funds will expire at the end of the current fiscal year. Electronic proposals were solicited, and 32 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 $3.09 billion.
April 25/08: Lynden Air Cargo LLC of Anchorage, AK had their $63.7 million firm-fixed-price contract for international airlift services (see Sept 26/07 entries) revised to $108.7 million, with the same minimum guarantee of $47.4 million. This revision includes dollars associated with urgent missions to move Mine Resistant, Ambush Protected (MRAP) vehicles (HTC711-07-D-0028).
April 23/08: Federal Express Charter Programs Team Arrangement of Memphis, TN had its earlier $1.07 billion contract revised to an estimated $1.68 billion. “This is a revision to the original announcement to include dollars associated with urgent missions to move Mine Resistant, Ambush Protected vehicles” (HTC711-07-D-0021).
April 3/08: ATA Airlines, part of FedEx’s team, issues a site notice and press release [PDF] announcing the company’s end:
“[Front page] After filing for Chapter 11 on April 2, 2008 in the U.S. Bankruptcy Court in Indianapolis, IN, ATA Airlines has discontinued all operations and cancelled all current and future flights. Following the loss of a key contract for our military charter business, it became impossible for ATA to continue operations. Unfortunately, we were not in a position to provide our customers or others with advance notice.”
“[Release] Despite its financial challenges, ATA continued to seek solutions for its scheduled service business and create value from its longstanding presence in the Hawaii market and its planned international expansion. But these efforts suffered a major blow recently when ATA received abrupt and unexpected notification from FedEx Corporation that ATA would no longer be a member of the FedEx Teaming Arrangement. This arrangement gave ATA a significant share of the airlift contracts under the International Program of the Department of Defense Air Mobility Command, which facilitates transportation for military personnel and their families to and from overseas destinations. This arrangement accounted for most of ATA’s charter business. Even though ATA had been a member of the FedEx team for nearly two decades, FedEx informed ATA that it would be denied membership on the FedEx Team for the government’s 2009 fiscal year – a period that begins in October 2008 and runs through September 2009. This termination is a full year earlier than the term specified in a letter of agreement between FedEx and ATA.”
Sept 26/07: Alliance Contractor Team c/o AMCS of Leesburg, VA won an estimated $1.03 billion firm-fixed-price contract for international airlift services with a minimum guarantee of $123.2 million (HTC711-07-D-0020). Work will be performed at worldwide locations, and is expected to be completed September 2008. Team members include most of America’s major airlines, oin addition to the 2006 duo of Evergreen and World Airways:
- 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
- Gemini Air Cargo, Inc., of Dulles, VA (web site inoperative)
- 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
Evergreen is also introducing a couple of services that won’t be covered under this contract, but are interesting nonetheless: a “supertanker” aerial firefighting modification to the Boeing 747, and accompanying services; and a UAV service using the Insitu A-20 Insight, otherwise known as the ScanEagle operated by Boeing on behalf of US and Australian forces on CENTCOM’s front lines.
Sept 26/07: Federal Express Charter Programs Team Arrangement of Memphis, TN won an estimated $1.07 billion firm-fixed-price contract for international airlift services, with a minimum guarantee of $158.5 million (HTC711-07-D-0021). In 2006, FedEx bid alone. In 2007, team members include:
- Federal Express Corporation of Memphis, TN
- Air Transport International LLC of, Little Rock, AK
- ATA Airlines, Inc., of Indianapolis, IN (now defunct, see April 3/08)
- 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; 51% owned by Atlas Air Group.
Sept 26/07: The United Parcel Service Contractor Team of Louisville, KY won an estimated $126.8 million firm-fixed-price contract for international airlift services, with a minimum guarantee of $9.6 million (HTC711-07-D-0022). 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
Sept 26/07: Lynden Air Cargo LLC of Anchorage, Alaska won an estimated $63.7 million firm-fixed-price contract for international airlift services with a minimum guarantee of $47.4 million (HTC711-07-D-0028). Lynden uses the L-382, a civilian version of the C-130H Hercules.
Sept 26/07: Miami Air International, Inc., of Miami, FL won an estimated $32.6 million firm-fixed-price contract for international airlift services with a minimum guarantee of $2 million (HTC711-07-D-0029).