O rder: 2014

- 10

- 5

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 of October , 20 1 4

ORDER REQUESTING PROPOSALS

Summary By this O rder, the Department is requesting proposals from air ca rriers interested in providing

E ssential A ir S ervice (EAS) at Ogdensburg , New York, for a new contract period beginning April 1, 201 5 , w ith or without subsidy

. (See Appendix A for a map). Air c arriers should file their proposals no later than November 12

, 2014

.

Background
By Order 2011

- 1

- 6 (January 7, 2011 ), the Department selected Hyannis Air Service, Inc. d/b/a Cape Air (Cape Air)

, to provide EAS at Ogdensburg for a four

- year period beginning when Cape Air inaugurated its service until the 48 th month thereafter. 1 Cape Air provides Ogdensburg with 3 daily round trips (21 per week) to Albany International Airport (ALB)

, with continuing service to Boston Logan International Airport (BOS), using 9

- passenger Cessna 402 aircraft for an annual subsidy of $1,708,911

.

The complet e public file for EAS at Ogdensburg may be accessed online through the Federal Dockets Management System at www.regulations.gov by entering “DOT

- OST

- 1997

- 2842 ” in the “Search for Rules, Comments, Adjudications, or Supporting Documents” field.

Request for Proposals

As the end of the current contract approaches, the Departmen t is requesting proposals from air carriers interested in providing EAS at Ogdensburg

, with subsidy support if necessary , for a new contract period beginning April 1

, 201 5

. Carriers should file their proposals no later than

November 12

, 20 14

. Staff will the n docket the proposals, thereby making them public

.

1 Cape Air began service at Ogdensburg on March 8, 2011, thereby making the contract expiration date

March 31, 2014.

Essential Air Service at

OGDENSBURG , NEW YORK

Under 49 U.S.C. § 41731 et seq

. DO T

- OST

- 1997

- 2842- 2

-

Shortly afterwards, we will provide a summary of the proposals to the communit y and ask

them to submit their final comments. We will give full consideration to all proposals that are timely filed. 2

Interested air 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; in such cases, of course, we will give all applicants the same opportunity. 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 occas ional 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. Air carrier proposals should be su bmitted 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. We expec t 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 conc erning 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

- document ed proposals that will facilitate their evaluation by the affected communit ies and the Department. 3

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In order to assist air carriers in developing traffic and revenu e projections for their proposals, we have provided a summary of historical passengers in Appendi x B. During the year ended

June 30

, 2014

, Ogdensburg averaged 17 enplanements per day. The Department expects proposals that are co nsistent with what the com munity currently receives (3 daily round trips

with 9

- passenger aircraft) to a hub airport that provides numerous connecting opportunities to the national air transportation system. For car riers proposing 19

- passenger or larger aircraft,
we expect proposa ls for 2 round trips a day (1 2 to 1 4 per week). Air c arriers are also welcome

2 Carriers should not expect th e Department to accept late fil ings. In cases where a carrier proposes to provide

EAS without subsidy and we determine that basic EAS, as required by 49 U.S.C. § 41732, can be reliably provided without such compensation, we typically will 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 not in Alaska, 49 U.S.C. § 41733(c)(1) directs us to consider five 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) commun ity 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. In addition, the Consolidated Appropriations Act, 20 14, 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 facto r 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 sele cted service. Appendix C of this Order contains those general provisions.- 3

-

to propose more than one service option, if they choose. T hey also need not limit themselves

to the se requirements if they envision other, potentially more attractive service p ossibilities

-- different hubs or length of contract, for example

-- with subsidy requirements that remain competitive.

Community Comments The community and State are welcome to submit comments at any time. We encourage prospective applicants to contact the community before they submit their proposals so that they can tailor them to the community’s needs, as they will not be able to amend them after the due date. As noted earlier, we will provide a summary of the proposals to the civic parties shortly af ter the deadline for carrier proposals, and ask them to submit their final comments.

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

- free workplaces, and nondiscriminat ion. 4 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 contract 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

pro posals involving subsidy should be aware that the selected carrier will be required to complete the required certifications. Interested carriers requiring more detailed information regarding these requirements should contact the Offic e of Aviation Analysi s at (202) 366

- 5903. 5

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re

- delegated to the Director, Office of Aviation Analysis.

ACCORDINGLY, 1. We request that carriers interested in providing Essential Air Service at Ogdensb urg, New

Y ork

, submit their proposals, with subsidy support if necessary , no later than

November 12

, 20 14 . The proposals should be e

- mailed to: michael.f.martin@dot.gov with the

title “Proposal to Provide E A S at Ogdensburg ”; 6

2. Th is docket will remai n open until further O rder of the Department; and

4 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 D epartment of Transportation

-- Effectuation of Title VI of the Civil Rights Act of 1964; (3) 49 CFR Part 27

-- Nondiscrimination on the Basis of Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance; (4)

14 CFR Par t 382

-- Nondiscrimination on the Basis of Disability in Air Travel; and (5) 49 CFR Part 29

-- Government

- Wide Debarment and Suspension (Non

- Procurement) and Government

- Wide Requirements for Drug

- Free Workplace (Grants).

5 The certifications are also avail able on the web at http://www.dot.gov/policy/aviation

- policy/small

- community

rural

- air

- service/essential

- air

- service

. 6 Questions regarding filings in response to this O rder may be directed to Michael Martin at (202) 366

- 6494 or michael.f.martin@dot.gov

.- 4

-

3 . We will serve copies of this O rder on the M ayor and Town Supervisor of Ogdensburg

, New York ; the Airport Manager of Ogdensburg International Airport ; the E xecutive Director

of Ogdensburg Bridge and Port Authority

, and the service list for this docket.

Persons entitled to petition the Department for review of this Order under the Department’s Regulations, 14 CFR Part 385.31(a), must file such petitions withi n 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 electr onic version of this document is available

o nline at www.regulations.gov

.Appendix A

AREA MAP

Maps generated by the Great Circle Mapper

- copyright © Karl L. Swartz

.Appendix B

Ogdensburg, NY

Year Quarter Deplanements Enplanements Total Traffic Enplanements per Day

2010 3 520 582 1,102 7

2010 4 607 668 1,275 8

2011 1 536 592 1,128 7

2011 2 79 7 822 1,619 10

Annual

Totals 2,460 2,664 5,124 8

2011 3 1,051 1,069 2,120 13

2011 4 992 1,074 2,066 13

2012 1 969 954 1,923 12

2012 2 1,228 1,288 2,516 16

Annual

Totals 4,240 4,385 8,625 14

2012 3 1,357 1,382 2,739 17

2012 4 1,335 1 ,401 2,736 17

2013 1 1,141 1,133 2,274 15

2013 2 1,391 1,373 2,764 18

Annual

Totals 5,224 5,289 10,513 17

2013 3 1,409 1,464 2,873 18

2013 4 1,255 1,407 2,662 17

2014 1 1,144 1,155 2,299 15

2014 2 1,385 1,441 2,826 18

Annual

Totals 5,193 5 ,467 10,660 17Appendix 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, i ncluding 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 r ates, 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 disal lowed, 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 carr ier 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 availabil ity 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 suff icient 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 a mended 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 cl aims, must be submitted within 9 0 days of the last day of th e month for which compensation is being claimed. For example, claims for service provided in July must be filed by October 31 st ; August claims must be submitted by November 30 th , and so on.