2007 Great Lakes Region Operations and Emergency Service Conference

1. CAP Consolidated Aircraft Maintenance Program 2007 Great Lakes Region Operations and Emergency Service Conference “Citizens Serving Communities”

2. Program Objectives • Provide safe, effective aircraft for CAP missions • Meet fair competition requirements • Ensure aircraft maintenance cost “reasonableness” • Gather cost data & establish benchmarks • Reduce volunteer workload

3. Program Results • Audit findings eliminated • Aircraft maintenance quality improved • Better visibility of maintenance costs • Better able to determine/forecast flying hour costs • Coordination improves substantially • Contract administrators talk with contractors • Contractors receive payments faster • Contract administrators facilitate communication and advise on parts pricing and labor rates • Decreases workload for members

4. Alabama 16 Congressional Sq 2 Delaware 7 Florida 25 Georgia 15 Indiana 8 Missouri 7 Maine 6 New Hampshire 6 NER 2 New Jersey 9 New York 14 Pennsylvania 20 Texas 28 Vermont 3 Rhode Island 3 Massachusetts 7 Connecticut 5 Total 183 Aircraft Currently Under Contract

5. We have requests for quotes out to maintenance facilities in: Maryland 12 Nebraska 5 Michigan 9 Ohio 7 Wisconsin 12 Colorado 13 Utah 6 Idaho 7 Montana 4 Wyoming 5 Total Aircraft 106 Remaining for FY 07 By end of year FY07, well over 50% of the CAP fleet will be under ConsolidatedMaintenance

6. Aircraft Under/Pending Contract Contract Pending

7. Who’s Next? • GLR • RMR • MER: NC, SC, VA, WVA • SER: MS, TN • AK and PR • SWR: AR, AZ, NM, OK, LA • NCR: ND, SD, KS, MN, IA • PCR: CA, OR, WA, NV, HI

8. How Does it Start? Contract circles • Determine aircraft location • Identify crossing boundaries • Outliers

9. Circles

10. How Does it Start? • Wing identifies potential bidders • NHQ sends requests for quotes • Bids are scored and winners announced • Wings notified of successful bidder

11. Competitive Process

12. Getting Up and Running • Smoothing the bow wave • Work airworthiness/safety of flight first • Cosmetics on subsequent visits • Scheduling drop-off & pickup • Write-ups/squawks • Needs vs. wants • Monitor turn time • On contract/off-contract

13. Reasonableness As I See It • Price paid for goods and services should be fair and reasonable • “Fair and Reasonable” are a matter of judgment • “Fair and Reasonable” are situation dependent • A reasonable priceis a price that a prudent and competent buyer would be willing to pay, given the same conditions and the same information

14. Getting Up and Running • Product standardization • Exxon Elite • Condor tires • Engines and accessories • Leveraging our size

15. Once under contract, wings no longer pay repair facilities Contractors send invoices directly to NHQ FM will draw back wing minor maintenance funds NHQ contract administrator responsible for payment Wing maintenance officers schedule/coordinate drop-off and pickup with repair facility During 100-hr/annual contract facilities coordinate with contract administrators, in advance, for repairs that exceed $750 (parts and labor) Procedural Guidance

16. 50-hr oil change, light bulbs, other minor repairs and emergency repairs can be performed at non- contract facilities. If over $200 contact contract administrator. Exxon Elite is the oil of choice—will assist contractor to get CAP discount Use Condor tires ($69) not Goodyear Custom Flight III Contract administrator can assist repair facility in locating parts – but will not normally buy them Wing member should inspect aircraft prior to acceptance and sign or initial the invoice – work completed satisfactorily Procedural Guidance

17. NHQ covers maintenance related fuel/oil and travel expenses via the Form 108 process Covers ferry flight, post MX test, crew drop-off/pickup Include tail number of aircraft being supported Coordinate POV travel, lodging or commercial travel with NOC and NHQ/LG Program not cast in steel – there’s always room for improvement Share best practices and lessons learned Procedural Guidance

18. Maintenance Ferry Reimbursement • CAPF 108 reimbursement • Crew drop-off • Pickup • Chase • WMIRS • Ground transportation & lodging • Pre-approval required • LGM will validate requests for reimbursement • Wing reimbursed, not individual

19. Funding • FM will draw back all wing minor maintenance fund balances • A missions • B & C missions • Quarterly assessments • End of year bills

20. Concerns/Issues • Wing paying invoices – not approved! • Managing end-of-year billing • No-notice drop-offs and pickups • Abuse of maintenance sorties • Keeping NHQ in the loop

21. Write This Down • My Name - Gary Schneider • E-mail: gschneider@cap.gov • Phone # 334-953-4256 • FAX 334 953-1668