B-139896, JUL. 23, 1959

B-139896: Jul 23, 1959

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DID NOT QUALIFY FOR AWARD BECAUSE IT IS NOT A "CIVIL AIR CARRIER" WITHIN THE MEANING OF SECTION 634 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT OF 1959. THAT THE AWARD IS IN DEROGATION OF THE CIVIL AERONAUTICS BOARD'S "STATEMENT OF GENERAL POLICY ON RATES FOR MILITARY TRAFFIC DATED 10 MARCH 1959.'. TWENTY-EIGHT COMMERCIAL AIR CARRIERS HOLDING CURRENT CALL TYPE BASIC AGREEMENTS FOR COMMERCIAL AIRLIFT SERVICES WERE SOLICITED. THE FIRST ISSUE RAISED IN YOUR PROTEST WAS THE SUBJECT OF OUR DECISION OF MAY 29. IN THAT DECISION WE CONCLUDED THAT "PART 45" CARRIERS ARE NOT EXCLUDED FROM AWARDS OF MATS AIRLIFT CONTRACTS MADE IN CONFORMANCE WITH SECTION 634 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT OF 1959.

B-139896, JUL. 23, 1959

TO DEWITT T. YATES, ESQUIRE:

ON BEHALF OF YOUR CLIENT, UNITED STATES OVERSEAS AIRLINES, INC., YOU PROTESTED THE AWARD TO TWENTIETH CENTURY AIRLINES MADE BY MATS PURSUANT TO REQUEST FOR PROPOSALS MAMPC-25-E-1. IN YOUR LETTER OF JUNE 9, 1959, YOU CONTENDED THAT TWENTIETH CENTURY AIRLINES, A "PART 45" CARRIER, DID NOT QUALIFY FOR AWARD BECAUSE IT IS NOT A "CIVIL AIR CARRIER" WITHIN THE MEANING OF SECTION 634 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT OF 1959, AND THAT THE AWARD IS IN DEROGATION OF THE CIVIL AERONAUTICS BOARD'S "STATEMENT OF GENERAL POLICY ON RATES FOR MILITARY TRAFFIC DATED 10 MARCH 1959.'

THE REQUEST FOR PROPOSALS IN THE INSTANT CASE INVOLVED PASSENGER AIRLIFT SERVICES IN THE PACIFIC AREA FOR THE MONTHS OF JULY, AUGUST, AND SEPTEMBER 1959. TWENTY-EIGHT COMMERCIAL AIR CARRIERS HOLDING CURRENT CALL TYPE BASIC AGREEMENTS FOR COMMERCIAL AIRLIFT SERVICES WERE SOLICITED.

THE FIRST ISSUE RAISED IN YOUR PROTEST WAS THE SUBJECT OF OUR DECISION OF MAY 29, 1959, B-139296. IN THAT DECISION WE CONCLUDED THAT "PART 45" CARRIERS ARE NOT EXCLUDED FROM AWARDS OF MATS AIRLIFT CONTRACTS MADE IN CONFORMANCE WITH SECTION 634 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT OF 1959. WE ARE ENCLOSING A COPY OF THAT DECISION FOR YOUR CONVENIENCE.

IN REGARD TO YOUR SECOND CONTENTION, THE CIVIL AERONAUTICS BOARD HAS FAILED TO ADOPT ITS POSITION AS EXPRESSED IN THE STATEMENT OF POLICY DATED MARCH 10, 1959. ON JUNE 11, 1959, THE BOARD ISSUED A STATEMENT, IDENTIFIED AS CAB 59-21, WHICH CONTAINS, AMONG OTHERS, THE FOLLOWING PARAGRAPH:

"THE CAB HAS DETERMINED THAT IT WILL NOT ADOPT THE PROPOSED STATEMENT OF GENERAL POLICY ON RATES FOR MILITARY TRAFFIC WHICH WAS MADE PUBLIC ON MARCH 10, 1959, AS A PROPOSED AMENDMENT TO PART 399 OF THE BOARD'S ECONOMIC REGULATIONS.'

UNDER THE CIRCUMSTANCES THERE IS NO LEGAL BASIS FOR US TO QUESTION THE AWARD MADE TO TWENTIETH CENTURY AIRLINES.