The US Military’s International Airlift Contracts

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

Stand-alone articles have covered FY 2006 ($2.29 billion), FY 2007 ($2.32 billion), and FY 2008 (over $3 billion) orders, which saw a steady ramp-up in both absolute dollar amounts, and participating firms. Orders remained high through 2010, which was a boon to a recession-ravaged air transport industry, but the ebbing of hostilities has seen FY 2011 – 2012 contract totals drop by over a third.

Contracts and Key Events, FY 2008 – Present

Unless otherwise noted, the US Transportation Command Directorate of Acquisition at Scott AFB, IL manages these contracts.

FY 2015

SkyLease MD-11F
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Oct 1/14: US TRANSCOM Directorate of Acquisition at Scott AFB, IL has awarded 9 international airlift services contracts this year, to a different mix: 3 teams, and 6 individual airlines have received the indefinite-delivery/ indefinite-quantity, fixed-price with economic price adjustment contracts. The total cumulative face value of the program is $441 million, with work specified per task order, and performed at worldwide locations until Sept 30/15. Note that this is about 1/3 of the FY 2014 awards, as the drawdown from Afghanistan is mostly behind them. Competitors for future contracts include:

Federal Express Charter Programs Team Arrangement in Memphis, TN (HTC711-15-D-CC01) has effectively merged with the FY 2014 American Airlines “Alliance” team, minus World Airways. It includes:

• American Airlines, Inc. in Fort Worth, TX
  
• Atlas Air, Inc. in Purchase, NY
  
• Delta Air Lines, Inc. in Atlanta, GA
  
• FedEx Charters in Memphis, TN
  
• Polar Air Cargo Worldwide, Inc. in Purchase, NY
  
• US Airways, Inc. in Phoenix, AZ.

Miami Air Team in Miami, FL (HTC711-15-D-CC02) is made up of small business qualifiers who includes:

• Miami Air International, Inc. in Miami, FL
  
• MN Airlines, LLC, doing business as Sun Country Airlines in Mendota Heights, MN.

Patriot Team in Tulsa, OK (HTC711-15-D-CC03) includes a mix of small businesses {+} and larger companies. Omni Air International rejoins the team for the 1st time since FY 2012, and Air Transportation International, Inc. moves over from the FedEx team:

• ABX Air in Wilmington, OH+
  
• Air Transportation International, Inc. in Wilmington, OH+
  
• JetBlue Airways Corporation in Long Island City, NY
  
• Kalitta Air, LLC in Ypsilanti, Michigan+
  
• Northern Air Cargo, Inc. in Anchorage, AK
  
• Omni Air International, Inc. in Tulsa, OK+
  
• Sky Lease I, Inc. in Greensboro, NC+
  
• Southern Air, Inc. in Norwalk, CT+
  
• United Airlines, Inc. in Elk Grove Village, IL
  
• United Parcel Service Co. in Louisville, KY

Individual airlines are:

• Allegiant Air, LLC, Las Vegas, Nevada (HTC711-15-D-CC04).
  
• Hawaiian Airlines, Inc. in Honolulu, Hawaii (HTC711-15-D-CC05).
  
• Lynden Air Cargo, LLC in Anchorage, AK (HTC711-15-D-CC06).
  
• Small business qualifier National Air Cargo Group, Inc., doing business as National Airlines in Orlando, FL (HTC711-15-D-CC07).
  
• Southwest Airlines Co. in Dallas, TX (HTC711-15-D-CC08).
  
• Alaska Airlines, Inc. in Seattle, WA (HTC711-15-D-CC09).

FY 2014

UPS 767
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July 14/14: The Federal Express Charter Programs Team Arrangement in Memphis, TN (q.v. Nov 11/1) receives an estimated $57.8 million modification, bringing the total cumulative face value of their contract to $1.177 billion. FY 2014 funds will be committed for specific task orders as required.

Work will be performed at worldwide locations with an expected completion date of Sept. 30/14. This was a competitive acquisition, and 28 offers were received under the initial contract from the U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, IL (HTC711-13-D-CC02, PO 0012).

Feb 11/14: US TRANSCOM awards 2 firm-fixed-price contract modifications for international airlift services. Work will be performed at worldwide locations and will end with the fiscal year on Sept 30/14. Actual funds spent will depend on specific task orders, as always. The players are familiar (q.v. Oct 1/12), but there have been some changes.

The Alliance Contractor Team in Leesburg, VA receives an estimated $635.5 million modification. They’re the American Airlines team, and also include:

• North American Airlines Inc. in Jamaica, NY
  
• US Airways Inc. in Phoenix, AZ
  
• World Airways Inc. in Peachtree City, GA

Evergreen (q.v. Jan 1/14) and Ryan Air are no longer included (HTC711-13-D-CC01, PO 0019).

The Patriot Team in Tulsa, OK win an estimated $804.8 million modification. Technically, Omni Air International Inc. in Tulsa, OK founded the team, but UPS is the big player here. Others include:

• ABX Air Inc. in Wilmington, OH
  
• JetBlue Airways Corp. in Long Island City, NY
  
• Kalitta Air, Ypsilanti, MI
  
• Northern Air Cargo in Anchorage, AK
  
• Sky Lease I in Greensboro, NC
  
• Southern Air Inc. in Norwalk, CT
  
• United Airlines Inc. in Elk Grove Village, IL

This team is completely stable since the last award (HTC711-13-D-CC04, PO 0010).

Dec 31/13: Category A. US TRANSCOM’s Directorate of Acquisition at Scott Air Force Base, IL issues a $146.6 million multi-award set of Year 1 contract options, covering Category A international commercial air cargo transportation service for less-than-full pallet/plane loads. The larger umbrella contract’s scope is wider (q.v. Jan 3/13), and includes HAZMAT items, etc. 11 contractors will compete for each task order until Jan 31/15:

• Alaska Airlines in Seattle, WA (HTC711-13-D-C001, PO 0006)
  
• Atlas Air in Purchase, NY (HTC711-13-D-C002, PO 0006)
  
• Federal Express Corp. in El Segundo, CA (HTC711-13-D-C003, PO 0006)
  
• Kalitta Air LLC in Leesburg, VA (HTC711-13-D-C004, PO 0006)
  
• Miami Air International Inc. in Miami, FL (HTC711-13-D-C005, PO 0006)
  
• National Air Cargo Inc. in Ypsilanti, MI (HTC711-13-D-C006, PO 0006)
  
• Northern Air Cargo in Anchorage, AK (HTC711-13-D-C007, PO 0006)
  
• Omni Air International in Tulsa, OK (HTC711-13-D-C008, PO 0006)
  
• United Parcel Service Co. in Louisville, KY (HTC711-13-D-C009, PO 0006)
  
• US Airways Inc. in Tempe, AZ (HTC711-13-D-C010, PO 0006)
  
• World Airways Inc. in Peachtree City, GA (HTC711-13-D-C011, PO 0006)

Contract terms are indefinite delivery/indefinite quantity, fixed-price, economic price adjustment contract. The umbrella contract was a competitive acquisition, with 13 offers received under the initial procurement. The original umbrella contract had 12 members, but Evergreen International Airlines (q.v. Nov 8/13) is absent from this round.

Nov 11/13: FedEx FY 2014. The Federal Express Charter Programs Team Arrangement in Memphis, TN receives an estimated $145.2 million contract modification for international airlift services – about 1/3 of the FY 2013 award. Work will be performed at worldwide locations, and will run until Sept 30/14. FY 2014 Transportation Working Capital Funds will be committed as individual task orders are issued. The team remains the same, and other FedEx team members include:

• Air Transport International LLC in Little Rock, AR
  
• Atlas Air, Inc. in Purchase, NY
  
• Delta Air Lines, Inc. in Atlanta, GA
  
• Polar Air Cargo Worldwide, Inc. in Purchase, NY
  
• MN Airlines LLC, DBA Sun Country Airlines in Mendota Heights, MN ll., is the contracting activity (HTC711-13-D-CC02).

Nov 11/13: NAC. National Air Cargo Group, Inc., DBA National Airlines of Orlando, FL, receives an estimated $12.3 million firm-fixed-price contract modification, increasing the maximum value of a previous award. Work will be performed at worldwide locations, and will run until Sept 30/14. FY 2014 Transportation Working Capital Funds will be committed as individual task orders are issued (HTC711-13-D-CC08).

Nov 8/13: Evergreen. Evergreen International Airlines, Inc. in McMinnville, OR issues a statement:

“As has been previously reported in the press, Evergreen’s business has been adversely impacted over the past several years by decreased demand in military spending and weakness in global economic markets. Management has moved to aggressively address these challenges, including through the divestiture of businesses and assets and the significant reduction of secured debt. Evergreen is in discussions with its significant constituencies and is exploring available strategic alternatives with those constituencies. While Evergreen generally does not comment on market rumor or conjecture, rumors that a decision has been made to cease operations at this time are false. Evergreen remains committed to continuing to address the current business environment with its customers.”

Those asset divestitures include 3 Boeing 747s and 2 helicopters up for sale.

FY 2013

Bagram crash
click for video

April 29/13: Crash at Bagram. A National Air Cargo 747-400 crashes shortly after takeoff from Bagram, Afghanistan, killing all 7 people on board. The video shows what appears to be a steep takeoff profile that’s more commonly associated with C-17As or C-130s.

A caveat: while the stall is crystal clear, the viewing angle is just one vantage point, and could mislead. The question is what happened inside the cockpit, and why the pilot made his decisions. We subsequently heard stories that vehicles on board broke free and shifted, which would certainly explain what the video shows, but don’t have an accident report to corroborate the story. Regardless, our condolences to the families and friends of those on board.

Crash at Bagram

Jan 3/13: HAZMAT, etc. US TRANSCOM issues a $694 million, 5-year indefinite-delivery/ indefinite-quantity, fixed-price award contract for international commercial scheduled air cargo transportation services. It includes general, refrigerated, oversized, hazardous material (HAZMAT), life and death cargo services, and less than full pallet loads (non-463L palletized), for both domestic and international shipments. The base year runs from Feb 1/13 to Jan 31/14, with 4 more 1-year option periods that can extend it to Jan 31/18.

Winners will compete for task orders that can add up to the contract’s maximum value, but each is guaranteed only a minimum award amount of $2,500. Eligible firms include:

• Alaska Airlines in Seattle, WA (HTC711-13-D-C001)
  
• Atlas Air in Purchase, NY (HTC711-13-D-C002)
  
• Evergreen International Airlines, Inc. in McMinnville, OR (HTC711-13-D-C012)
  
• Federal Express Corp. in El Segundo, CA (HTC711-13-D-C003)
  
• Kalitta Air LLC in Leesburg, VA (HTC711-13-D-C004)
  
• Miami Air International Inc. in Miami, FL (HTC711-13-D-C005)
  
• National Air Cargo Inc. in Ypsilanti, MI (HTC711-13-D-C006)
  
• Northern Air Cargo in Anchorage, AK (HTC711-13-D-C007)
  
• Omni Air International in Tulsa, OK (HTC711-13-D-C008)
  
• United Parcel Service Co. in Louisville, KY (HTC711-13-D-C009)
  
• US Airways Inc. in Tempe, AZ (HTC711-13-D-C010)
  
• World Airways Inc. in Peachtree City, GA (HTC711-13-D-C011)

Oct 1/12: FY 2013. US TRANSCOM receives 28 proposals, and issues firm, fixed-price contracts to 5 winners for FY 2013 international airlift services. Carriers receiving awards are part of the Department of Defense Civil Reserve Air Fleet program, and work will be performed at worldwide locations until Sept 30/13, when contract funds will expire. Winning teams included…

Alliance Contractor Team in Leesburg, VA wins a $400.6 million maximum, with $187 million guaranteed (HTC711-13-D-CC01). It’s led by American Airlines, Inc. in Ft. Worth, TX. Arrow Air and ASTAR have dropped out, and Ryan International joined from the UPS team. Beyond AA, team members include:

• Evergreen International Airlines Inc. in McMinnville, OR
  
• North American Airlines Inc. in Jamaica, NY
  
• Ryan International Airlines Inc. in Rockford, IL
  
• US Airways Inc. in Phoenix, AZ
  
• World Airways Inc. in Peachtree City, GA

Federal Express Charter Programs Team in Memphis, TN wins a $434.4 million maximum, with $197.6 million guaranteed (HTC711-13-D-CC02). Other team members include:

• Air Transport International LLC in Little Rock, AR
  
• Atlas Air, Inc. in Purchase, NY
  
• Delta Air Lines, Inc. in Atlanta, GA
  
• Polar Air Cargo Worldwide Inc. in Purchase, NY
  
• MN Airlines LLC (DBA Sun Country Airlines) in Mendota Heights, MN. They’re a new member, who used to be on the UPS team.

Patriot Team in Tulsa, OK wins a $444.7 million maximum, with $218.1 million guaranteed. (HTC711-13-D-CC04). Omni Air International Inc. in Tulsa, OK founded the team, but they effectively merged with Team UPS this year. Within that combination, Alaska Airlines bowed out this year, Sun Country switched to the FedEx team, and RyanAir switched to AA’s. Continental Airlines isn’t really missing this year, they just completed their merger with United. FY 2013 team members include Omni, and:

• ABX Air Inc. in Wilmington, OH
  
• JetBlue Airways Corp. in Long Island City, NY
  
• Kalitta Air, Ypsilanti, MI
  
• Northern Air Cargo in Anchorage, AK
  
• Sky Lease I in Greensboro, NC
  
• Southern Air Inc. in Norwalk, CT
  
• United Airlines Inc. in Elk Grove Village, IL
  
• UPS in Louisville, KY

Lynden Air Cargo LLC in Anchorage, Alaska, with an estimated guarantee of $15.4 million, for the use of their civil C-130s (HTC711-13-D-CC07).

National Air Cargo Group, Inc. (DBA National Airlines) of Ypsilanti, MI, with an estimated maximum award of $13 million and a minimum guarantee of $4.3 million (HTC711-13-D-CC08).

Oct 1/12: Toughest haul. Kalitta Charters LLC in Ypsilanti, MI receives its own $12.7 million award, exercising the 3rd option year of a fixed-price indefinite delivery/ indefinite quantity contract to transport human remains. Missions will normally originate from Dover Air Force Base, DE, but in some instances may originate from other locations. Flight coverage includes the continental USA; Alaska; Canada; Mexico; Puerto Rico; Jamaica; U.S. Virgin Islands, and “other North American countries agreed upon.”

The contract runs to the end of FY 2013, on Sept 30/13. It was solicited as a 100% small business set aside, with 4 proposals received (HTC711-11-D-R004, Delivery Order 0003).

“Theater Express II,” 2012-2016.

CENTCOM
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July 11/12: US TRANSCOM awarded 3 contracts under their $2.916 billion Theater Express II program, for international air cargo pickup and delivery service within the U.S. Central Command (CENTCOM) area of operations. Services will include on-time Aerial Port-to-Aerial Port pick-up and delivery, Intransit Visibility (ITV), and customs processing and clearance, of palletized and roll-on/roll-off vehicle cargo. This includes “last leg” shipment to CENTCOM Forward Operating Bases and Forward Operating Locations (FOB/FOL).

Each “winning” contractor is guaranteed just $2,500, which doesn’t even begin to cover bid preparation costs. The 3 winners out of 9 submissions will compete for individual orders over the contract’s lifetime. Theater Express II’s base year runs from Aug 1/12 to July 31/13. That will be followed by 3 more 1-year option periods. If US TRANSCOM orders all possible services over all 4 years, they could reach the $2.9+ billion maximum. Winners included:

• Atlas Air Inc. in Purchase, NY (HTC711-12-D-C004). Their fleet will include the new Boeing 747-8F freighter.
  
• Kalitta Air LLC in Ypsilanti, MI (HTC711-12-D-C005). It’s an all-747 fleet.
  
• National Air Cargo Group, Inc. in Ypsilanti, MI (HTC711-12-D-C006). Ypsilanti will be busy. Their services include a wide variety of aircraft, from arrangements for super-huge Russian AN-124s and AN-225s; to civil A-300, B747-400F, DC-8, and DC-10s; to planes like the AN-26, AN-12, L-100 (C-130), and IL-76 with strong short-field capabilities.

FY 2012

Dec 22/11: FY 2012. USTRANSCOM awarded 5 contracts for international airlift services. Work will be performed at worldwide locations during FY 2012, and contract funds will expire at the end of the current fiscal year, on Sept 30/12. 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 $1.678 billion.

The Alliance Contractor Team in Leesburg, VA won an estimated $631.9 million firm-fixed-price contract, with a minimum guarantee of $211.1 million (HTC711-12-D-CC01). Team members include:

• American Airlines, Inc., Ft. Worth, Texas (currently in Chapter 11 bankruptcy proceedings)
  
• Arrow Air, Inc. of Miami, FL
  
• ASTAR Air Cargo, Inc., of Florence, KY.
  
• Evergreen International Airlines, Inc., of McMinnville, OR
  
• North American Airlines, Inc., of Jamaica, NY
  
• US Airways, Inc., of Phoenix, AZ
  
• World Airways, Inc., of Peachtree City, GA

The big changes here from the FY 2011 contract are the loss of United Airlines and Continental Airlines to the new Patriot team. Arrow Air, who didn’t figure in the FY 2011 contracts, returns to this team.

The Federal Express Charter Programs Team Arrangement in Memphis, TN won an estimated $693.6 million firm-fixed-price contract for international airlift services, with a minimum guarantee of $268.2 million. Team members include:

• Federal Express Corporation of Memphis, TN
  
• Air Transport International LLC of, Little Rock, AK
  
• Atlas Air, Inc., of Purchase, NY
  
• Delta Air Lines, Inc. in Atlanta, GA
  
• Polar Air Cargo Worldwide, Inc., of Purchase, NY; they are 51% owned by Atlas Air Group.

The big change here is former FedEx CPTA member Omni Air, who left and founded the new Patriot Team (HTC711-12-D-CC02).

The new Patriot Team in Tulsa, OK won an estimated $303.6 million firm fixed-price contract for international airlift services, with a minimum guarantee of $153.6 million. Team members include:

• Omni Air International, Inc., of Tulsa, OK
  
• ABX Air, Inc., of Wilmington, OH
  
• Continental Airlines, Inc. of Houston, TX
  
• Sky Lease I of Greensboro, NC
  
• Southern Air, Inc., of Norwalk, CT
  
• United Airlines, Inc. of Elk Grove Village, IL

Most members come from other teams. Omni was part of the FedEx team. Continental and United Airlines come from the ACT team. ABX, Sky Lease, and Southern Air were part of the UPS team (HTC711-12-D-CC04).

The UPS Contractor Team in Louisville, KY won an estimated $181 million firm-fixed-price contract, with a minimum guarantee of $88 million. Team members include:

• United Parcel Service Company of Louisville, KY
  
• Alaska Airlines, Inc. of Seattle, WA
  
• JetBlue Airways Corp. of Forest Hills, NY
  
• Kalitta Air LLC of Ypsilanti, MI
  
• MN Airlines, LLC, doing business as Sun Country Airlines of Mendota Heights, MN
  
• Northern Air Cargo of Anchorage, AK
  
• Ryan International Airlines, Inc. of Rockford, IL

ABX and Southern Air left for the new Patriot Team, and were replaced by contract newcomer Sun Country. National Air Cargo Group is still an international air cargo mover, but they’re no longer with this team, and didn’t join any others (HTC711-12-D-CC05).

Lynden Air Cargo, LLC of Anchorage, Alaska won an estimated $17.5 million firm-fixed-price contract, with a minimum guarantee of $15 million. The firm operates civilian C-130 turboprops (HTC711-12-D-CC10).

Other 2010-2011

L-382 Hercules
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Jan 25/11: Lockheed Martin delivers the 1st of 3 replacement Center Wing Box (CWB) assemblies to Lynden Air Cargo in Anchorage, AK. Their 6 L-382s are the civil variant of the C-130E/H, operating on behalf of customers that include the Pentagon. The deep refurbishment is expected to give these 3 planes another 15 years of safe service.

The USAF is doing the same thing with many of its C-130H Hercules planes, but this delivery marks the first upgrade of a civilian Hercules with a new center wing box, which is arguably a plane’s most critical, and most stressed, component. It forms the top section of the aircraft’s main fuselage, where the wings attach, and the Hercules CWB includes a small wing section that holds the 2 inboard engines.

Singapore Technologies Aerospace Engineering will perform the installation, using Lockheed Martin-designed tooling. That choice is not surprising. Singapore is one of Lynden’s charter flight origin airports, due to its convenient access to trans-shipping, and its strategic location serving Asia and CENTCOM. Lockheed Martin.

Oct 12/10: Afghan crash. A National Air Cargo L-100/C-130 that had taken off from Bagram AB crashes into mountains and bursts into flames near Kabul, Afghanistan, killing all 8 crew on board: 6 Filipinos, 1 Indian and 1 Kenyan. Agence France Presse.

December 2010

B747-200F Load
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On Dec 3/10, USTRANSCOM awarded 5 contracts for international airlift services. Work will be performed at worldwide locations during FY 2011, and contract funds will expire at the end of the current fiscal year, on Sept 30/11. Electronic proposals were solicited and 29 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 $1.88 billion.

The Alliance Contractor Team in Leesburg, VA wins an estimated $811.7 million firm-fixed-price contract with a minimum guarantee of $281.4 million. Team members include:

• American Airlines, Inc. of Ft. Worth, Texas
  
• ASTAR Air Cargo, Inc., of Florence, KY.
  
• Continental Airlines, Inc. of Houston, Texas
  
• 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

The big changes here from the September 2009 contract is Delta’s switch from the ACT to the FedEx team. Northwest Airlines, who was also an ACT member in September 2009, finished merging with Delta in 2010, and was fully absorbed, so the 2 effectively transferred together. In exchange, ACT picks up Continental airlines from the FedEx team. Arrow Air is the other missing party, but they’d be back for the FY 2012 contract (HTC711-11-D-C001).

The Federal Express Charter Programs Team Arrangement in Memphis, TN wins an $863.6 million firm-fixed-price contract, with a minimum guarantee of $290.9 million. Team members include:

• Federal Express Corporation of Memphis, TN
  
• Air Transport International LLC of, Little Rock, AK
  
• Atlas Air, Inc., of Purchase, NY
  
• Delta Air Lines, Inc. in Atlanta, GA
  
• Omni Air International, Inc., of Tulsa, OK
  
• Polar Air Cargo Worldwide, Inc., of Purchase, NY; they are 51% owned by Atlas Air Group.

The big change here is Delta’s switch in from the Alliance Contractor Team, while Continental Airlines went the other way. No draft picks or players-to-be-named later were involved (HTC711-11-D-C002).

The UPS Contractor Team in Louisville, KY receives an estimated $180.5 million firm-fixed-price contract, with a minimum guarantee of $30.5 million. Team members include:

• United Parcel Service Company of Louisville, KY
  
• ABX Air, Inc., of Wilmington, OH
  
• Alaska Airlines, Inc. of Seattle, WA
  
• JetBlue Airways Corp. of Forest Hills, NY
  
• Kalitta Air LLC of Ypsilanti, MI
  
• National Air Cargo Group, dba National Airlines of Ypsilianti, MI
  
• Northern Air Cargo of Anchorage, AK
  
• Ryan International Airlines, Inc. of Rockford, IL
  
• Sky Lease I, dba Tradewinds Airlines of Greensboro, NC
  
• Southern Air, Inc., of Norwalk, CT

Sky Lease I is new to these contracts. They were fully reorganized in 2009, and fly MD-11/DC-10s (HTC711-11-D-C003).

Lynden Air Cargo, LLC in Anchorage, AK wins an estimated $15.5 million firm-fixed-price contract with a minimum guarantee of $13 million. The firm operates civilian C-130 turboprops (HTC711-11-D-C007).

Miami Air International, Inc. in Miami, FL wins an estimated $11.1 million firm-fixed-price contract, with a minimum guarantee of $93,763. The firm flies 737s; its luxury 737-400s are often used to fly professional sports teams, while the 737-800s serve the military and other customers (HTC711-11-D-C008).

March 2010

FedEx DC-10
(click to view full)

On March 23/10 USTRANSCOM awarded 5 contracts worth a total of $869.5 million to haul military freight around the US CENTCOM’s area of responsibility, which includes the Middle East and Central Asia. The winning contractors will compete for task orders to deliver cargo door-to-door for USCENTCOM.

For contracts under this heading, work will be performed in the CENTCOM AOR. Each contract is for 1 year with a 1-year option. Should that option be exercised, the contract would be good through March 31/12. Total contract value for all 5 contracts is $869.5 million, with a minimum guarantee of $2,500 per awardee. Electronic proposals were solicited and 9 proposals were received by the USTRANSCOM Acquisition Directorate at Scott Air Force Base, IL.

Air Transport International in Little Rock, AR won an indefinite delivery/ indefinite quantity, fixed-price award and will compete daily for business at the task order level. The contract is for time-definite, door-to-door transportation service for full pallet, less than full pallet and outsized/ oversized cargo shipments in the US CENTCOM AOR (HTC711-10-D-W001).

Evergreen International Airlines in McMinnville, OR won an indefinite delivery/ indefinite quantity, fixed-price award and will compete daily for business at the task order level. The contract is for time definite, door-to-door transportation service for full pallet, less than full pallet, and outsized/ oversized cargo shipments in the US CENTCOM AOR (HTC711-10-D-W002).

Federal Express Corp. in Washington, DC won an indefinite delivery/ indefinite quantity, fixed-price award and will compete daily for business at the task order level. The contract is for time definite, door-to-door transportation service for full pallet, less than full pallet, and outsized/ oversized cargo shipments in the U.S. Central Command area of responsibility. (HTC711-10-D-W003).

National Air Cargo Group in Ypsilanti, MI won an indefinite delivery/ indefinite quantity, fixed-price award and will compete daily for business at the task order level. The contract is for time definite, door-to-door transportation service for full pallet, less than full pallet, and outsized/ oversized cargo shipments in the US CENTCOM AOR (HTC711-10-D-W004). Their site says that:

“National offers airlift solutions at short notice with appropriate aircrafts including AN-26, AN-12, L-100 [DID: civilian C-130], IL-76, A-300, DC-8, DC-10, B747-400F, AN-124 and AN-225 with payload options ranging from 4 tons to 250 tons.”

United Parcel Service in Louisville, KY won an indefinite delivery/ indefinite quantity, fixed-price award and will compete daily for business at the task order level. The contract is for time definite, door-to-door transportation service for full pallet, less than full pallet, and outsized/ oversized cargo shipments in the US CENTCOM AOR (HTC711-10-D-W005).

September 2009

UPS 767
(click to view full)

These contracts were announced on Sept 17/09, and work will be performed at worldwide locations during FY 2010. 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 $3.51 billion. That will be very welcome news to an air cargo industry that Flight International has described as “locked in the worst depression it has ever known.”

The Alliance Contractor Team of Leesburg, VA contains many of America’s major airlines. They received an estimated $1.58 billion firm fixed-price contract, with a minimum guarantee of $327.8 million (HTC711-09-D-5004). Team members include:

• American Airlines, Inc., of Ft. Worth, TX
  
• Arrow Air, Inc. of Miami, FL
  
• ASTAR Air Cargo, Inc., of Florence, KY.
  
• Delta Air Lines, Inc., of Atlanta, GA
  
• Evergreen International Airlines, Inc., of McMinnville, OR
  
• North American Airlines, Inc., of Jamaica, NY
  
• Northwest Airlines, Inc., of St Paul, MN
  
• United Airlines, Inc., of Elk Grove Village, IL
  
• US Airways, Inc., of Phoenix, AZ
  
• World Airways, Inc., of Peachtree City, GA

This year, Northwest Airlines switched to the Alliance Contractor Team from the FedEx team. The FY 2010 award is an improvement over FY 2009’s $1.351 billion maximum and $206.4 million minimum.

The Federal Express Charter Programs Team Arrangement in Memphis, TN received an estimated $1.51 billion firm fixed-price contract for international airlift services, with a minimum guarantee of $222.6 million (HTC711-09-D-5005). Team members include:

• Federal Express Corporation of Memphis, TN
  
• Air Transport International LLC of, Little Rock, AK
  
• Atlas Air, Inc., of Purchase, NY
  
• Continental Airlines, Inc., of Houston, TX
  
• Omni Air International, Inc., of Tulsa, OK
  
• Polar Air Cargo Worldwide, Inc., of Purchase, NY; they are 51% owned by Atlas Air Group.

This year’s roster adds Continental Airlines, which flew solo in FY 2009, but drops Tradewinds Airlines and Northwest Airlines. This year’s award is an improvement over FY 2009’s $1.374 billion maximum and $150.7 million minimum award.

The UPS Contractor Team of Louisville, KY received an estimated $331.7 million firm fixed-price contract for international airlift services, with a minimum guarantee of $74.4 million (HTC711-09-D-5006). Team members include:

• United Parcel Service Company of Louisville, KY
  
• ABX Air, Inc., of Wilmington, OH
  
• Alaska Airlines, Inc., of Seattle, WA
  
• Kalitta Air LLC of Ypsilanti, MI
  
• National Air Cargo Group, Inc., d/b/a National Airlines of Ypsilanti, MI
  
• Northern Air Cargo of Anchorage, AK
  
• Ryan International Airlines, Inc. of Rockford, IL
  
• Southern Air, Inc., of Norwalk, CT

Two members joined the UPS team this year: Alaska Airlines, Inc., of Seattle, WA, and Northern Air Cargo of Anchorage, AK. Another member, National Air Cargo Group, Inc., changed its d/b/a name from Murray Air to National Airlines. Last year, the group won a maximum $189.3 million contract with a $36.5 million minimum.

Lynden Air Cargo LLC of Anchorage, AK received an estimated $51.7 million firm fixed-price contract for international airlift services with a minimum guarantee of $3,700 (HTC711-09-D-5009).

The firm flies the L-382, a civilian version of the C-130H Hercules. This year sees a lower maximum and minimum than FY 2009’s $77.7 million/ $57.8 million award.

Miami Air International, Inc., of Miami, FL received an estimated $38.2 million firm fixed-price contract, with a minimum guarantee of $1 million (HTC711-09-D-5009).

September 2008

L-382 Load
(click to view full)

These contracts were announced on Sept 8/08, and work will be performed at worldwide locations, during FY 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.

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.

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.

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.

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.

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.

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.