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 9th day of October, 2014

Essential Air Service at

GULKANA, ALASKA

MAY CREEK, ALASKA

MCCARTHY, ALASKA

DOCKET DOT-OST-1995-492

under 49 U.S.C. § 41731 et seq.

ORDER REQUESTING PROPOSALS 

Summary

By this Order, the Department is requesting proposals from carriers interested in providing 

Essential Air Service (EAS) at Gulkana, May Creek, and/or McCarthy, Alaska, for a new 

contract period beginning February 1, 2015, with or without subsidy. Proposals are due no 

later than November 12, 2014.

1

 (See Appendix A for a map.)

Background

By Order 2012-11-34 (November 30, 2012), the Department selected Copper Valley Air 

Service (Copper Valley), to continue providing EAS at Gulkana, May Creek, and 

McCarthy, Alaska, for the two-year period from February 1, 2013, through January 31, 

2015, for a combined annual subsidy rate of $475,387 ($269,189 for Gulkana, and 

$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 

three-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 Gulkana, May Creek, and McCarthy, Alaska with or 

without subsidy, for a new contract period beginning February 1, 2015. Carriers should 

 1 The Department has contacted the State of Alaska to determine if subsidized EAS is still required at May 

Creek as traffic there has significantly declined since the 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 to 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 unreasonable 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, welldocumented proposals that will facilitate their evaluation by the affected communities and 

the Department.3

With respect to these communities, we are seeking service proposals consistent with what 

the communities currently receive. For Gulkana, we are requesting 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 proposals consisting of two round trips 

each week over a Gulkana-McCarthy-May Creek-Gulkana 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 arrangements 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 Resolution, 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 selection decision. The communities and air carriers are 

encouraged to work together in advance 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 encourage proposals that meet these 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) with 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 revenue forecasts, we have 

included historical traffic data for 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 same 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 implementing 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 drug-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 prohibited 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 Carriers 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 Part 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 

drug-free workplace (grants).
- 4 -

carriers requiring more detailed information regarding these requirements should contact 

the Office of Aviation Analysis at (202) 366-5903.6

Community and State Comments

The communities and the state are welcome to submit comments at any time. We 

encourage prospective applicants to contact the communities before they submit their 

proposals in order to 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 shortly 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 carriers interested in providing WAS at Gulkana, May Creek, and 

McCarthy, Alaska, submit their proposals, with or without subsidy requests, no later than 

November 12, 2014. 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. This docket will remain open until further order of the Department; and

3. We will serve copies of this Order 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/smallcommunity-rural-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 Order 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 Order will be effective immediately, and the filing of a petition for review shall not 

preclude its effectiveness.

By:

TODD M. HOMAN

Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available

at http://www.regualtions.gov
Appendix A

 
Appendix 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
Appendix 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
Appendix 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 carrier 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 required 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 entire 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 approval 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; flights 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 extent 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 for 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 requirement 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 available 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 Government 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 operate 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 must be filed by October 31st; August claims must be submitted by November 

30th, and so on.