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Air Force Announces CRAF Contracts valued at over 2.3 billion

  • Published
SCOTT AIR FORCE BASE, Ill. --  Headquarters Air Mobility Command (AMC) is announcing the award of its annual indefinite-delivery-indefinite quantity (IDIQ) International Airlift Services contracts, which support the Civil Reserve Air Fleet (CRAF) Program.

Civilian airlines contractually commit to the CRAF to support Department of Defense airlift requirements in emergencies when the need for airlift exceeds the capability of military aircraft. To provide incentives for civil carriers to commit aircraft to the CRAF program and to assure the United States of adequate airlift reserves, AMC annually awards peacetime airlift business to civilian airlines that offer aircraft to the CRAF. The Defense Department offers business through the International Airlift Services contract.

Airlines may contract as teams to optimize their resources for commitment. The following airlines and teams were awarded contracts for fiscal year 2007. The minimum guaranteed value of the contract is listed first, followed by the estimated contract value. Team members awarded at least 25% of the minimum guarantee are listed in parentheses below:

- Alliance contractor Team (Evergreen International Airlines, Inc., and North American Airlines, Inc.), $142,000,000, $1,080,000,000 (FA4428-06-D-005)

- Federal Express Team (Air Transport International LLC and Atlas Worldwide Holdings, parent company of Atlas Air, Inc., and Polar Air Cargo, Inc), $185,000,000, $1,020,000,000 (FA4428-06-D-0006)

- UPS Team (Kalitta Air, LLC), $25,000,000, 119,000,000 (FA4428-06-D-0007)

- Miami Air Team (Miami Air International), $11,000,000, $43,000,000
(FA4428-06-D-0008)

- Continental Airlines, Inc., $1,700, $10,000,000 (FA4428-06-D-0009)

- Lynden Air Cargo LLC., $42,000,000, $45,000,000 (FA4428-06-D-0013)

In addition, Grand Air Holdings Inc., Hawaiian Airlines, Inc., MN Airlines LLC, Northern Air Cargo, Inc., and Spirit Airlines Inc., also were awarded contracts valued between $6,000 and $1,291,329.

Estimated contract values include both fixed and expansion business. Fixed buy contracts are comprised of requirements that are known far enough in advance to allow their inclusion in the solicitation. Carriers awarded this business know exactly where and when they will perform their contract obligations in the coming year. The estimate is based on current DOD contract airlift utilization. Change in DOD contract airlift requirements may cause actual value to vary significantly. Team member shares of team business may vary depending on member capability and team organization.

Expansion business awards consist of airlift requirements that are unknown at this time. Once these requirements are known, carriers may offer to perform these missions. Expansion business can comprise a significant amount of the total contract value.

Offers from other carriers are under consideration and may result in future awards.