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National wins large military contract

ORLANDO, FL: The National Air Cargo Group (NAC) has been awarded a US$513,625,650 12-month contract by the U.S. Department of Defence for international multimodal transport services.

In a notification on its website, the DOD said it was exercising a second option with a "maximum ceiling modification" to a previously awarded contract from the U.S. Transportation Command Directorate.

National Air CargoAs indicated in the original award, NAC "will provide all personnel, training, supervision, equipment, Prior Permission Requests (PPRs), Diplomatic Clearances (DIPS), and Customs clearance procedures necessary to perform international commercial door-to-door and/or port-to-door transportation services to move DOD and other Government approved cargo. Multiple modes (i.e. airlift, sealift, linehaul) of transportation may be used to move cargo to/from multiple zones globally. Cargo moved under this contract will not transit the Pakistan GLOC (Ground Line Of Communication)".

The original "HTC711-12-D-R010" contract required NAC to provide the DOD with an all-inclusive price-per-pound rate for specific city pairs, or regional zones and cover air, ocean and truck transport.

NAC is also required to use EDI ANSI X-12 (not Cargo-IMP/XML) data sets covering reservations, confirmations, cancellations, bills of lading, and status updates.

According to the announcement, the work will be performed worldwide with an expected completion date of July 31, 2015. NAC operates a mixed fleet of B747-400BCF and B757-200 aircraft.

In April 2013 one of the company's B747-400 freighters crashed shortly after take-off from Bagram, Afghanistan reportedly due a sudden shift in the military materiel on board. Commerce & Industry Insurance, a unit of American International Group (AIG), subsequently paid NAC US$42 million for the loss of the aircraft. In October last year the insurance company and NAC filed suit against the federal government claiming breach of contract for the crash that also killed seven crew members.

Based in Orlando, NAC combines global forwarding with commercial and military cargo and passenger airline charters. Recently it completed a large shipment of horses from Dubai to Ostend on behalf of Chapman Freeborn's subsidiary Intradco.

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