99 -- LEASE OF USAF C-130J AIRCRAFT Background " The C-130J Development System Office (DSO), Aeronautical Systems Center (ASC), Wright-Patterson Air Force Base, Ohio, is contemplating the lease of C-130J aircraft under Lease Number F33657-00-L-2116, pursuant to 10 U.S.C. 2667 and Air Force Instruction (AFI) 64-103. Purposes for the lease of the C-130J aircraft include the following: air show participation; orientation, demonstration, and evaluation flights; investigation and/or testing of derivative configurations; model specifications compliance; systems tests; and the testing of new functionality and capabilities for the C-130J and derivative platforms, including Global Air Traffic Management (GATM) capabilities. The term of the proposed Lease Agreement between the United States Air Force (Lessor) and the contractor (Lessee) shall not exceed two (2) years, with the lease of individual aircraft under the Lease Agreement not to exceed six (6) months. A minimum fee of $2,644.00 per flight hour will be paid by the Lessee to the Lessor for all flights performed within the United States for the purposes listed above. This fee shall include all aircraft usage costs, as well as charges for depreciation and interest of leased C-130J aircraft. During the term of the Lease Agreement, the Lessee shall be responsible for all costs relating to leased C-130J aircraft which include -- but are not necessarily limited to -- expenses associated with operation, maintenance, display, demonstration, ferrying, transportation, support, and protection of the aircraft. The cost of maintenance and support activities performed by the Lessor shall be subject to reimbursement by the Lessee to the Lessor on an actual cost basis. The Lessee shall assume liability for charges that may be lawfully imposed on the Lessee by agencies of the United States Government, or foreign governments and their taxing authorities, for certification and registration of leased property and payment of any applicable and lawful taxes or other charges. The Lessee shall be responsible formaintaining any C-130J aircraft leased under the Lease Agreement in a safe and serviceable condition in accordance with approved procedures that meet or exceed current USAF-approved Technical Orders or pay the full cost of such maintenance. The Lessee must also affirm that it has implemented, and has in place, proper procedures and facilities to ensure the safe and proper operation and storage of leased aircraft. The Lessee shall maintain adequate property control records, and shall maintain aircraft records in accordance with the Air Force Technical Order 781 Series. The Lessee shall be solely and fully liable for any damage to, or loss or destruction of, the leased aircraft resulting from any cause whatsoever during the Lessee's possession of the leased aircraft. The Lessee must also agree to release the United States Government from all damages (including consequential damages), and defend, indemnify, and hold the United States Government, its agents, officers, and employees harmless from any and all lossand liability, whether in tort or in contract, that might arise in connection with the lease because of injury or death of personnel of the Lessor, the Lessee, or third parties, and damage to or destruction of property of the Lessee or third parties, and leased property, support equipment, or other property of the United States Government. The Lessee must possess and maintain adequate insurance to cover all such liabilities, and proof of adequate insurance (or proof of the Lessee's ability to insure against loss) shall be provided to the Lessor. Accident investigations must be done in accordance with AFI 91-204 procedures, with investigative authority to remain with the USAF. The Lessee shall conform to applicable health and safety standards and safety rules, and make such additional precautions as the Government may require to safety and accident prevention purposes. The Lessee shall secure from the Department of State or other responsible United States agency any export licenses or other approvals requiredunder the Arms Export Control Act or other United States laws or regulations prior to any use of the leased property in connection with the provision of articles or services to a foreign Lessor or other foreign persons. The Lessee agrees that its logs, reports and records relating to the leased Aircraft shall at all reasonable times be subject to inspection and review by any authorized representative of the USAF, and shall make such reports to the Lessor regarding the leased property as may be required by the Government. Usage forecasts and test plans must be submitted to the USAF for approval prior to any use of leased C-130J aircraft. All air show appearances must be approved through appropriate USAF channels and be subject to air show participation procedures stated in AFI 64-103. Any transfer, encumbrance, or other use of leased C-130J aircraft by the Lessee shall be prohibited without prior USAF approval. Any public release of information regarding the use of leased C-130J aircraft must be forwarded to and/or approved by the USAF, including news releases, photographs and photographic material, advertising, films, and pamphlets. C-130J aircraft to be leased are located at Lockheed Martin Corporation, Lockheed Martin Aeronautics Company, Marietta, Georgia. Use of leased C-130J aircraft shall be from Marietta, Georgia, and/or USAF test facilities at Edwards Air Force Base, California and Eglin Air Force Base, Florida. See Loc_Note_H. Direct all routine communication concerning this lease to Mr. Rudolph Platzer, Contract Negotiator, ASC/GRB, by telephone at (937) 255-1552 or electronic mail at Rudolph.Platzer@wpafb.af.mil, or Mr. Dexter McBrayer, Contracting Officer, by telephone at (937) 255-1082 or electronic mail at Dexter.McBrayer@wpafb.af.mil. " WEB: 00L2116-Lease of USAF C-130J Aircraft, http://www.pixs.wpafb.af.mil/pixslibr/00L2116/00L2116.asp. E-MAIL: rudolph.platzer@wpafb.af.mil, rudolph.platzer@wpafb.af.mil. Posted 05/24/00 (D-SN458306).

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