“Citizens Serving Communities” 2007 Great Lakes Region Operations and Emergency Service Conference

“Citizens Serving Communities” 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

“Citizens Serving Communities” 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

“Citizens Serving Communities” Aircraft Currently Under Contract  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 Total 183

“Citizens Serving Communities” Remaining for FY 07 We have requests for quotes out to maintenance facilities in:  Maryland 12  Nebraska 5  Michigan 9  Ohio 7  Wisconsin12  Colorado 13  Utah 6  Idaho 7  Montana 4  Wyoming 5 Total Aircraft 106 By end of year FY07, well over 50% of the CAP fleet will be under Consolidated Maintenance

“Citizens Serving Communities” Contract Pending Aircraft Under/Pending Contract

“Citizens Serving Communities” 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

“Citizens Serving Communities” How Does it Start? Contract circles Contract circles ─ Determine aircraft location ─ Identify crossing boundaries ─ Outliers

“Citizens Serving Communities” Circles

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

“Citizens Serving Communities” Competitive Process

“Citizens Serving Communities” 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

“Citizens Serving Communities” 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 price is a price that a prudent and competent buyer would be willing to pay, given the same conditions and the same information

“Citizens Serving Communities”  Product standardization ─ Exxon Elite ─ Condor tires ─ Engines and accessories  Leveraging our size Getting Up and Running

“Citizens Serving Communities” Procedural Guidance  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)

“Citizens Serving Communities” Procedural Guidance  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

“Citizens Serving Communities” Procedural Guidance  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

“Citizens Serving Communities” 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

“Citizens Serving Communities” Funding  FM will draw back all wing minor maintenance fund balances  A missions  B & C missions  Quarterly assessments  End of year bills

“Citizens Serving Communities” 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

“Citizens Serving Communities” Write This Down  My Name - Gary Schneider   Phone #  FAX

“Citizens Serving Communities”