A Study to Determine the Role of Competition in Contracting for the Movement of Air Freight within the Domestic Market.
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF SYSTEMS AND LOGISTICS
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As a result of the Airline Deregulation Act of 1978, the Civil Aeronautics Board CAB, ceased setting rates which it had previously done under part 288 of its Economic Regulation. This forced the Military Airlift Command MAC to develop a new pricing method that would allow competition to determine price in the awarding of contracts for military air freight service. This study delimited the scope of the problem to only domestic military air freight service. The basis of this study was to determine a contracting method which could be used by MAC and satisfy the three objectives of maintaining a flexible and sufficient Civil Reserve Air Fleet CRAF, providing efficient peacetime domestic military air freight service, and permitting competitive market forces to determine price. The researchers recommended method is that MAC should set rates using procedures previously employed by CAB. The contract should be a fixed price type with provisions for escalation tied to rising fuel costs. The solicitation procedure as now used should be continued with USC 2304 a 16 cited as the exception for not using formal advertising. The study additionally presents possible areas of further study which might lead to alternative methods of acquiring these services. Author
- Administration and Management
- Logistics, Military Facilities and Supplies