## Order 2014

- 10

- 3 Served: October 9 , 2014



## UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on the 9 th 

## day of October , 20 1 4

Essential Air Service at GULKANA, ALASKA MAY CREEK, ALASKA MCCARTHY, ALASK A DOCKET DOT

- OST

- 1995

- 492

under 49 U.S.C. § 41731 et seq. 

## ORDER REQUESTING PROPOSALS Summary By this O rder, the Department is requesting proposals from ca rriers interested in providing E ssential A ir S ervice (EAS) at Gulkana , May Creek, and /or McC arthy, Alaska , for a new contract p eriod beginning February 1, 201 5 , with or without subsidy

. Proposals are due no later than November 12 , 2014

. 1 

## (See Appendix A for a map.) Background By Order 20 1 2

- 1 1

- 34 ( November 30, 2012 ), the Department selected Cop p er Valley Air Service (Copper V alley ), to continue providing EAS at Gulkana, May Creek, and McCarthy, Alaska, for the two

- year period from February 1, 2013, through January 31, 201 5 , for a combined annual subsidy rate of $ 475,387 ($269,189 for Gulkana, an d $206,198 for both May Creek and McCarthy)

. Gulkana currently receives two nonstop round trips per week to Anchorage with six

- seat Piper PA

- 31 aircraft; May Creek and McCarthy both receive two nonstop or one

- stop round trips per week to Gulkana using thr ee

- seat Cessna 185 aircraft during winter months and four

- seat Cessna 206 aircraft during summer months. Request for Proposals As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing EAS at G ulkana, May Creek, and McCarthy, Alaska with or without subsidy, for a new contract period beginning February 1, 201 5 . Carriers should

1 

### The Department has contact ed the State of Alaska to determine if subsidized EAS is still required at May Creek as traffic there has significantly declined since th e last carrier

- selection proceeding. If the State wishes to discontinue EAS at May Creek, we will only subsidize EAS at Gulkana and McCarthy

.

## - 2

-

file their proposals no later than November 12 , 2014 . Staff will then docket the proposals, thereby making them public. Shortly afterwards, we will provide a summary of the proposals to the communities and ask them t o submit their final comments. We will give full consideration to all proposals that are timely filed. 2


## Interested carriers should prepare their proposals with every expectation that their initial proposals will represent their final and only proposals. However, we retain the discretion to negotiate proposals with carriers when we deem it desirable. We also retain the discretion to reject outright all unre asonable or unrealistic proposals and re

- solicit a new round of proposals. However, negotiation and rejection are only occasional exceptions to the rule. We are here providing interested carriers with some basic information to serve as guidance when they prepare their proposals, but we will not prescribe a precise format for their proposals. We expect proposals to adequately describe the service being proposed and the annual amount of subsidy being requested. The applicants can make their own judgments as to the level of detail they wish to present; however, we recommend they include information concerning proposed schedules and projected block hours. In addition, applicants are urged to provide financial data supporting their subsidy requests, including information on their projected expenses and revenues. We strongly encourage clear, well

documented proposals that will facilitate their evaluation by the affected communities and the Department. 3


## With respect to the se communities, we are seeking service proposals consistent with what the communities currently receive

. For Gulkana , we are re questing proposals for two nonstop round trips to Anchorage each week with aircraft having a capacity of four to six seats

. At May Creek and McCarthy , we expect propo sals consis ting of two round trips each week over a Gulkana

- McCarthy

- May Creek

- Gul kana routing with aircraft having a capacity of at least three seats during the six

- month winter season, and four seats during the six

- month summer season. Service to other hub airports will be considered. As always, we will formally solicit the communities’ views on any service options we receive

2 

### Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide EAS without subsidy and we determine that service can be reliably provided without such compensation, we typically do not proceed with the carrier

- selection case. Instead, we simply rely on that carrier’s subsidy

- free service as proposed. 3 

### In selecting a carrier to provide subsidized EAS for an eligible place in Alaska, 49 U.S.C. § 41733(c)(1) directs us to consider six factors: (a) service reliability; (b) contractual and marketing arrangements with a larger carrier at the hub; (c) interline arrangemen ts with a larger carrier at the hub; (d) community views, giving substantial weight to the views of the elected officials representing the users; and (e) whether the carrier has included a plan in its proposal to market its service to the community , and; ( f) the experience of the applicant in providing, in Alaska, scheduled air service or significant non

- scheduled service. In addition, the Consolidated Appropriations Act, 2014, Public Law No. 113

- 76, and continued in the Continuing Appropriations Resolutio n, 2015, Public Law No. 113

- 164, provides that when selecting a carrier to provide EAS, the Department may consider the relative subsidy requirements , thus codifying a factor that we have considered since the inception of the program. Interested carriers should also be aware that our general provisions governing Essential Air Service will be included in the selection Order as part of our authorization of subsidy for the selected service. Appendix C of this Order contains those general provisions.

## - 3

-

before making a long

- term carrier se lection decision. The communities and air carriers are encouraged to work together in advanc e of the due date for proposals to craft a service pattern that is desirable to the community and meets the operational needs of the airline interested in submitting a proposal.
We e ncourage proposals that meet the se requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities (e.g. different hubs or length of contract) wi th subsidy requirements that remain competitive. Filing Procedures Carrier proposals should be submitted to the Department with all materials merged into a single document. In addition, because the document will be published on www.regulations.gov , each page should be formatted to be viewed online and for easy printing

.


## Historical Traffic In order to assist prospective applicants in making traffic and rev enue forecasts, we have included historical traffic data f or each community in Appendix B

. For the most recent 12

- month period for which data are available (August, 2013

- July, 2014), Gulkana generated 267 origin and destination (O&D) passengers, along with 584 pounds of freight and 242 pounds of mail. For the s ame period, McCarthy generated 195 O&D passengers, 344 pounds of freight, and 30,727 pounds of mail. May Creek generated 19 O&D passengers, 249 pounds of freight, and 2,388 pounds of mail. 4 

## Other Carrier Requirements The Department is responsible for i mplementing various Federal statutes governing lobbying activities, drug

- free workplaces, and nondiscrimination. 5 

## Consequently, all carriers receiving Federal subsidy for EAS must certify that they are in compliance with Department regulations regarding d rug

- free workplaces and nondiscrimination, and those carriers whose subsidies exceed $100,000 over the life of the rate

- term must also certify that they are in compliance with the regulations governing lobbying activities. Because the Department is prohib ited from paying subsidy to carriers that do not submit these documents, all carriers that plan to submit proposals involving subsidy should be aware that the selected carrier will be required to complete the required certifications. Interested

4 

### Carrier s should refer to Appendix B for more detail. All three communities have varying traffic profiles with significant peaks and directionality

. 5 

### The regulations applicable to these areas are: (1) 49 CFR Part 20

-- New restrictions on lobbying; (2) 49 CFR P art 21

-- Nondiscrimination in federally

- assisted programs of the Department of Transportation

-

- Effectuation of title VI of the Civil Rights Act of 1964; 49 CFR Part 27

-- Nondiscrimination on the basis of disability in programs and activities receiving or benefiting from Federal financial assistance; and 14 CFR Part 382

-- Nondiscrimination on the basis of disability in air travel; and (3) 49 CFR Part 29

-- Government

- wide debarment and suspension (non

- procurement) and government

- wide requirements for dr ug

- free workplace (grants).

## - 4

-

carriers r equiring more detailed information regarding these requirements should contact the Office of Aviation Analysis at (202) 366

- 5903. 6


## Community and State Comments The communit ies and the state are welcome to submit comments at any time. We encourage prospec tive applicants to contact the communit ies before they submit their proposals in order t o tailor them to the communities’ needs. As noted earlier, we will provide a copy of the proposals to the civic parties and ask them to submit their final comments sho rtly after November 12 , 2014 , the deadline for filing carrier proposals. This Order is issued under authority delegated in 49 CFR 1.25a(b) and re

- delegated to the Director, Office of Aviation Analysis. ACCORDINGLY,

1. We request that ca rriers intereste d in providing WAS at Gulkana , May Creek, and McCarthy, Alaska , submit their proposals, with or without subsidy requests, no later than November 12 , 201 4 . The proposals should be e

- mailed to EAS@dot.gov , with the title:

“ Proposal to Provide Essential Air Service at Gulkana , May Creek, and /or McCarthy, Alaska, Docket DOT

- OST

- 1995

- 492”; 7



## 2. Th is docket will remain open until further o rder of the Department; and

3

. We will serve copies of this O rder on the communities of Gulkana, May Creek, and McCarthy, Alaska, the State of Alaska Department of Transportation and the service list for this docket

.

6 

### The certifications are also available on the web at http://www.dot.gov/policy/aviation

- policy/small

community

- rur al

- air

- service/essential

- air

- service

. 7 

### Questions regarding filings in response to this Order may be directed to A.J. Muldoon at (202) 366

- 1058 or albert.muldoon@dot.gov

.

## - 5

-

Persons entitled to petition the Department for review of this O rder under the Department’s Regulations, 14 CFR Part 385.50, must file such petitions within seven (7 ) days after the date of service of this order.

This O rder will be effective immediately, and the filing of a petition for review shall not preclude its effectiveness. By:

TODD M. HOMAN Director Office of Avi ation Analysis
(SEAL)

An electronic version of this document is available at http://www.regualtions.gov

## Appendix A

## A ppendix B Page 1 of 3

Year Month Airport_1 Airport_2 Carrier Pax Freight (Lbs.) Mail (Lbs.) Direction 2012 8 GKN ANC Ellis Air Taxi Inc. 15 47 0 OutBound 2012 8 GKN ANC Ellis Air Taxi Inc. 19 210 0 InBound 2012 9 GKN ANC Ellis Air Taxi Inc. 4 6 0 OutBound 2012 9 GKN ANC Ellis Air Taxi Inc. 6 12 0 InBound 2012 10 GKN ANC Ellis Air Taxi Inc. 3 8 0 OutBound 2012 10 GKN ANC Ellis Air Taxi Inc. 5 149 0 InBound 2012 11 GKN ANC Ellis Air Taxi Inc. 4 6 0 OutBound 2012 11 GKN ANC Ellis Air Taxi Inc. 0 0 0 InBound 2012 12 GKN ANC Ellis Air Taxi Inc. 6 4 0 OutBound 2012 12 GKN ANC Ellis Air Taxi Inc. 4 0 0 InBound 2013 1 GKN ANC Ellis Air Taxi Inc. 4 8 0 OutBound 2013 1 GKN ANC Ellis Air Taxi Inc. 2 0 0 InBound 2013 2 GKN ANC Ellis Air Taxi Inc. 0 6 0 OutBound 2013 2 GKN ANC Ellis Air Taxi Inc. 4 0 0 InBound 2013 3 GKN ANC Ellis Air Taxi Inc. 1 6 0 OutBound 2013 3 GKN ANC Ellis Air Taxi Inc. 5 0 0 InBound 2013 4 GKN ANC Ellis Air Taxi Inc. 3 7 0 OutBound 2013 4 GKN ANC Ellis Air Taxi Inc. 4 0 0 InBound 2013 5 GKN ANC Ellis Air Taxi Inc. 4 6 0 OutBound 2013 5 GKN ANC Ellis Air Taxi Inc. 4 1 0 InBound 2013 6 GKN ANC Ellis Air Taxi Inc. 11 0 0 OutBound 2013 6 GKN ANC Ellis Air Taxi Inc. 17 0 0 InBound 2013 7 GKN ANC Ellis Air Taxi Inc. 19 0 0 OutBound 2013 7 GKN ANC Ellis Air Taxi Inc. 26 0 0 InBound YE 7-31-2013 170 476 0

2013 8 GKN ANC Ellis Air Taxi Inc. 27 0 0 OutBound 2013 8 GKN ANC Ellis Air Taxi Inc. 28 0 0 InBound 2013 9 GKN ANC Ellis Air Taxi Inc. 10 0 0 OutBound 2013 9 GKN ANC Ellis Air Taxi Inc. 8 0 0 InBound 2013 10 GKN ANC Ellis Air Taxi Inc. 3 0 0 OutBound 2013 10 GKN ANC Ellis Air Taxi Inc. 5 0 0 InBound 2013 11 GKN ANC Ellis Air Taxi Inc. 3 0 0 OutBound 2013 11 GKN ANC Ellis Air Taxi Inc. 1 0 0 InBound 2013 12 GKN ANC Ellis Air Taxi Inc. 1 8 0 OutBound 2013 12 GKN ANC Ellis Air Taxi Inc. 2 0 0 InBound 2014 1 GKN ANC Ellis Air Taxi Inc. 1 7 0 OutBound 2014 1 GKN ANC Ellis Air Taxi Inc. 3 0 0 InBound 2014 2 GKN ANC Ellis Air Taxi Inc. 3 0 0 OutBound 2014 2 GKN ANC Ellis Air Taxi Inc. 4 0 0 InBound 2014 3 GKN ANC Ellis Air Taxi Inc. 3 148 0 OutBound 2014 3 GKN ANC Ellis Air Taxi Inc. 7 175 0 InBound 2014 4 GKN ANC Ellis Air Taxi Inc. 6 48 0 OutBound 2014 4 GKN ANC Ellis Air Taxi Inc. 10 175 0 InBound 2014 5 GKN ANC Ellis Air Taxi Inc. 11 7 0 OutBound 2014 5 GKN ANC Ellis Air Taxi Inc. 10 0 0 InBound 2014 6 GKN ANC Ellis Air Taxi Inc. 20 8 0 OutBound 2014 6 GKN ANC Ellis Air Taxi Inc. 13 0 0 InBound 2014 7 GKN ANC Ellis Air Taxi Inc. 44 8 121 OutBound 2014 7 GKN ANC Ellis Air Taxi Inc. 44 0 121 InBound YE 7-31-2014 267 584 242 GKN-ANC Traffic

## A ppendix B Page 2 of 3

Year Month Airport_1 Airport_2 Carrier Pax Freight (Lbs.) Mail (Lbs.) Direction 2012 8 GKN MXY Ellis Air Taxi Inc. 18 671 3,511 OutBound 2012 8 GKN MXY Ellis Air Taxi Inc. 14 0 289 InBound 2012 9 GKN MXY Ellis Air Taxi Inc. 7 173 1,979 OutBound 2012 9 GKN MXY Ellis Air Taxi Inc. 5 0 304 InBound 2012 10 GKN MXY Ellis Air Taxi Inc. 1 305 2,058 OutBound 2012 10 GKN MXY Ellis Air Taxi Inc. 1 0 419 InBound 2012 11 GKN MXY Ellis Air Taxi Inc. 0 17 1,538 OutBound 2012 11 GKN MXY Ellis Air Taxi Inc. 1 0 104 InBound 2012 12 GKN MXY Ellis Air Taxi Inc. 0 44 1,684 OutBound 2012 12 GKN MXY Ellis Air Taxi Inc. 0 17 114 InBound 2013 1 GKN MXY Ellis Air Taxi Inc. 3 5 1,233 OutBound 2013 1 GKN MXY Ellis Air Taxi Inc. 3 0 86 InBound 2013 2 GKN MXY Ellis Air Taxi Inc. 2 64 1,081 OutBound 2013 2 GKN MXY Ellis Air Taxi Inc. 0 0 78 InBound 2013 3 GKN MXY Ellis Air Taxi Inc. 1 115 1,535 OutBound 2013 3 GKN MXY Ellis Air Taxi Inc. 3 0 107 InBound 2013 4 GKN MXY Ellis Air Taxi Inc. 1 19 1,706 OutBound 2013 4 GKN MXY Ellis Air Taxi Inc. 1 0 71 InBound 2013 5 GKN MXY Ellis Air Taxi Inc. 3 119 3,016 OutBound 2013 5 GKN MXY Ellis Air Taxi Inc. 3 0 151 InBound 2013 6 GKN MXY Ellis Air Taxi Inc. 15 0 3,548 OutBound 2013 6 GKN MXY Ellis Air Taxi Inc. 7 0 291 InBound 2013 7 GKN MXY Ellis Air Taxi Inc. 19 0 4,743 OutBound 2013 7 GKN MXY Ellis Air Taxi Inc. 15 0 883 InBound YE-7-31-2013 123 1,549 30,529

2013 8 GKN MXY Ellis Air Taxi Inc. 29 0 3,836 OutBound 2013 8 GKN MXY Ellis Air Taxi Inc. 28 0 246 InBound 2013 9 GKN MXY Ellis Air Taxi Inc. 7 0 2,446 OutBound 2013 9 GKN MXY Ellis Air Taxi Inc. 12 0 253 InBound 2013 10 GKN MXY Ellis Air Taxi Inc. 1 0 1,615 OutBound 2013 10 GKN MXY Ellis Air Taxi Inc. 0 0 178 InBound 2013 11 GKN MXY Ellis Air Taxi Inc. 0 0 994 OutBound 2013 11 GKN MXY Ellis Air Taxi Inc. 0 0 82 InBound 2013 12 GKN MXY Ellis Air Taxi Inc. 0 22 1,486 OutBound 2013 12 GKN MXY Ellis Air Taxi Inc. 0 0 122 InBound 2014 1 GKN MXY Ellis Air Taxi Inc. 0 2 1,335 OutBound 2014 1 GKN MXY Ellis Air Taxi Inc. 0 0 55 InBound 2014 2 GKN MXY Ellis Air Taxi Inc. 1 0 882 OutBound 2014 2 GKN MXY Ellis Air Taxi Inc. 2 0 93 InBound 2014 3 GKN MXY Ellis Air Taxi Inc. 5 80 1,727 OutBound 2014 3 GKN MXY Ellis Air Taxi Inc. 2 100 106 InBound 2014 4 GKN MXY Ellis Air Taxi Inc. 9 40 1,177 OutBound 2014 4 GKN MXY Ellis Air Taxi Inc. 2 100 89 InBound 2014 5 GKN MXY Ellis Air Taxi Inc. 10 0 3,466 OutBound 2014 5 GKN MXY Ellis Air Taxi Inc. 6 0 165 InBound 2014 6 GKN MXY Ellis Air Taxi Inc. 20 0 5,150 OutBound 2014 6 GKN MXY Ellis Air Taxi Inc. 20 0 205 InBound 2014 7 GKN MXY Ellis Air Taxi Inc. 32 0 4,746 OutBound 2014 7 GKN MXY Ellis Air Taxi Inc. 9 0 273 InBound YE 7-31-2014 195 344 30,727 GKN-MXY Traffic

## A ppendix B Page 3 of 3

Year Month Airport_1 Airport_2 Carrier Pax Freight (Lbs.) Mail (Lbs.) Direction 2012 8 GKN MYK Ellis Air Taxi Inc. 0 0 47 OutBound 2012 8 GKN MYK Ellis Air Taxi Inc. 3 0 12 InBound 2012 9 GKN MYK Ellis Air Taxi Inc. 0 1 22 OutBound 2012 9 GKN MYK Ellis Air Taxi Inc. 1 10 13 InBound 2012 10 GKN MYK Ellis Air Taxi Inc. 2 6 32 OutBound 2012 10 GKN MYK Ellis Air Taxi Inc. 0 0 10 InBound 2012 11 GKN MYK Ellis Air Taxi Inc. 0 11 458 OutBound 2012 11 GKN MYK Ellis Air Taxi Inc. 1 0 104 InBound 2012 12 GKN MYK Ellis Air Taxi Inc. 0 0 716 OutBound 2012 12 GKN MYK Ellis Air Taxi Inc. 0 0 12 InBound 2013 1 GKN MYK Ellis Air Taxi Inc. 0 0 894 OutBound 2013 1 GKN MYK Ellis Air Taxi Inc. 0 0 18 InBound 2013 2 GKN MYK Ellis Air Taxi Inc. 0 12 439 OutBound 2013 2 GKN MYK Ellis Air Taxi Inc. 0 0 20 InBound 2013 3 GKN MYK Ellis Air Taxi Inc. 1 0 261 OutBound 2013 3 GKN MYK Ellis Air Taxi Inc. 0 0 17 InBound 2013 4 GKN MYK Ellis Air Taxi Inc. 0 0 35 OutBound 2013 4 GKN MYK Ellis Air Taxi Inc. 0 0 9 InBound 2013 5 GKN MYK Ellis Air Taxi Inc. 0 0 40 OutBound 2013 5 GKN MYK Ellis Air Taxi Inc. 1 0 13 InBound 2013 6 GKN MYK Ellis Air Taxi Inc. 0 0 18 OutBound 2013 6 GKN MYK Ellis Air Taxi Inc. 0 0 12 InBound 2013 7 GKN MYK Ellis Air Taxi Inc. 7 0 16 OutBound 2013 7 GKN MYK Ellis Air Taxi Inc. 3 0 10 InBound YE 7-31-2013 19 40 3,228

2013 8 GKN MYK Ellis Air Taxi Inc. 0 0 29 OutBound 2013 8 GKN MYK Ellis Air Taxi Inc. 3 0 9 InBound 2013 9 GKN MYK Ellis Air Taxi Inc. 0 0 28 OutBound 2013 9 GKN MYK Ellis Air Taxi Inc. 5 0 21 InBound 2013 10 GKN MYK Ellis Air Taxi Inc. 1 0 32 OutBound 2013 10 GKN MYK Ellis Air Taxi Inc. 1 0 12 InBound 2013 11 GKN MYK Ellis Air Taxi Inc. 0 0 22 OutBound 2013 11 GKN MYK Ellis Air Taxi Inc. 0 0 21 InBound 2013 12 GKN MYK Ellis Air Taxi Inc. 0 0 453 OutBound 2013 12 GKN MYK Ellis Air Taxi Inc. 0 0 12 InBound 2014 1 GKN MYK Ellis Air Taxi Inc. 0 0 665 OutBound 2014 1 GKN MYK Ellis Air Taxi Inc. 0 0 20 InBound 2014 2 GKN MYK Ellis Air Taxi Inc. 1 209 574 OutBound 2014 2 GKN MYK Ellis Air Taxi Inc. 0 0 17 InBound 2014 3 GKN MYK Ellis Air Taxi Inc. 1 20 201 OutBound 2014 3 GKN MYK Ellis Air Taxi Inc. 0 0 21 InBound 2014 4 GKN MYK Ellis Air Taxi Inc. 3 20 89 OutBound 2014 4 GKN MYK Ellis Air Taxi Inc. 0 0 9 InBound 2014 5 GKN MYK Ellis Air Taxi Inc. 0 0 32 OutBound 2014 5 GKN MYK Ellis Air Taxi Inc. 0 0 9 InBound 2014 6 GKN MYK Ellis Air Taxi Inc. 0 0 27 OutBound 2014 6 GKN MYK Ellis Air Taxi Inc. 0 0 10 InBound 2014 7 GKN MYK Ellis Air Taxi Inc. 2 0 61 OutBound 2014 7 GKN MYK Ellis Air Taxi Inc. 2 0 14 InBound YE 7-31-2014 19 249 2,388 GKN-MYK Traffic

## Appendix C

Example of General Terms and Conditions for Essential Air Service

The ca rrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulations of the rate Order, including the service plans outlined in the Order and any other significant elements of the re quired service, without prior approval. The carrier understands that an aircraft take

- off and landing at its scheduled destination constitutes a completed flight; absent an explanation supporting subsidy eligibility for a flight that has not been completed , such as certain weather cancellations, only completed flights are considered eligible for subsidy. In addition, if the carrier does not schedule or operate its flights in full conformance with the Order for a significant period, it may jeopardize its ent ire subsidy claim for the period in question. If the carrier contemplates any such changes beyond the scope of the Order during the applicable period of these rates, it must first notify the Office of Aviation Analysis in writing and receive written approv al from the Department to be ensured of full compensation. Should circumstances warrant, the Department may locate and select a replacement carrier to provide service on these routes. The carrier must complete all flights that can be safely operated; fligh ts that overfly points for lack of traffic will not be compensated. In determining whether subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to which the goals of the program are met and the ex tent of access to the national air transportation system provided to the community. If the Department unilaterally, either partially or complete, terminates or reduces payments for service or changes service requirements at a specific location provided f or under this Order, then, at the end of the period for which the Department does make payments in the stipulated amounts or at the stipulated service levels, the carrier may cease to provide service to that specific location without regard to any requirem ent for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agreed to in writing by the Department and carrier do not constitute a total or partial reduction or cessation of payment. Funds may not be avai lable for performance under this Order beyond [DATE]. The Government’s obligation for performance under this Order beyond [DATE], is subject to the availability of funds from which payment for services can be made. No legal liability on the part of the Gov ernment for any payment may arise for performance under this Order beyond [DATE], until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond [DATE], the Department will provide notice in writing to the carrier. Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not o perate to controvert the foregoing paragraph. All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the month for which compensation is being claimed. For example, claims for service provided in July mu st be filed by October 31st; August claims must be submitted by November 30th, and so on.