NATO UNCLASSIFIED

Statement of Work (SOW) for the Provision of

RFP PRE21005

Worldwide Charter Services (WACS) for Passenger (PAX) and Cargo Aircraft

Prepared by NSPA VERSION 1.00

Amendment Record

Revision/ Reference(s) Page(s) Date Of Issue Remarks Amendment 1st ISSUE All All 3 DECEMBER 2020 -

For BCR All All All 23 February 2021 PRO

NATO Support and Procurement Agency (NSPA) CAPELLEN (Grand Duchy of LUXEMBOURG)

NATO UNCLASSIFIED

Table of Contents

PART 1. EXECUTIVE SUMMARY ...... 3 PART 2. LEGAL STATUS OF NSPA AND THE CONTRACTOR ...... 3 PART 3. LIABILITY OF THE CARRIER ...... 4 PART 4. AUTHORIZED AIR OPERATOR ...... 4 PART 5. SERVICES TO BE PROVIDED ...... 5 PART 6. SPECIFIC REQUIREMENTS ...... 6 PART 7. INSURANCE ...... 7 PART 8. ACTIVATION OF SERVICES ...... 8 PART 9. REPORTING ...... 9 APPENDIX A: DEFINITIONS, ABBREVIATIONS AND ACRONYMS ...... 11

ANNEX A: STATEMENT OF WORK (SOW) WCAS Contract

PART 1. EXECUTIVE SUMMARY

1. Within the framework of this Basic Contractual Instrument (BCI), the Contractor shall provide Worldwide Aircraft Charter Services (WACS) to NSPA by providing short-, medium- and long-range passenger aircraft (PAX), or cargo aircraft (CARGO), for planned routine and short notice missions.

2. The Contractor shall be required to primarily provide -to-airport Aircraft WCAS but also door-to-door WCAS, including pre-carriage, cargo handling, aircraft ramp handling, customs clearance, ticketing, and post-carriage.

PART 2. LEGAL STATUS OF NSPA AND THE CONTRACTOR

1. The Contractor shall be legally and physically established in a NATO Member State and shall act as either a carrier or an agent of the carrier, acting on its behalf. In the latter case, the Contractor shall require the carrier to:

1.1 Remain in control of the aircraft and be responsible for navigation, operation, maintenance and insurance of the aircraft.

1.2 Ensure that the flight crew, technicians and maintenance personnel shall at all times remain the servants or agents of the carrier, whoever is the carrier.

1.3 Operate the aircraft at all times in fully safe condition and completely airworthy in compliance with laws and regulations, rules, standards and recommended practices, in particular to the Convention on International Civil .

1.4 Obtain and maintain in good standing all necessary certifications and authorizations by appropriate governmental authorities to perform air transportation services required under this Contract.

1.5 Avoid any actions, which may lead to the cancellation of any certification and authorization required to be maintained for the provision of the services.

1.6 Perform the flight(s) in accordance with the schedule provided by NSPA. However, the shall retain the right to make decisions as to the feasibility of a flight in the light of weather or other conditions, for the safety of the passengers and cargo.

1.7 The Contractor shall carry out due diligence to establish that any operator they engage for a flight or flights is properly licensed, insured, documented and competent, and that the aircraft to be used is airworthy and properly maintained.

2. NSPA is an agent of its customer and acts on its behalf. With respect to the carriage of passengers, NSPA acts as an agent of the passengers. Passengers shall be regarded as having a direct contractual relationship with the carrier for the purposes of any liability.

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PART 3. LIABILITY OF THE CARRIER

1. The carrier’s liability shall be governed by the and its amended versions, by the of 1999 and its amended versions, or by any other national or international , whichever is applicable to the carriage in question.

2. Liability for carriage originating from, or destined to, or moved within a European Union (EU) Member State or operated by a community air carrier pursuant to Regulation (EEC) No 2407/92, shall be governed by the Regulation (EC) No 2027/97, as amended by Regulation (EC) No 889/2002.

PART 4. AUTHORIZED AIR OPERATOR

1. Only Air Operators registered with the following Agencies are eligible for providing WCAS to NSPA:

1.1 European Agency (EASA), together with all the Agencies (CAAs) of the Member States, which are NATO Member States (, Bulgaria, Croatia, Czech Republic, , Estonia, , , , Hungary, Iceland, , , , Luxembourg, , , , , Romania, Slovakia, Slovenia, Spain and ), for chartered aircraft operated:

1.1.1 Either by an Operator from one of the EASA Member States, where the aircraft holds a Certificate of Airworthiness (CoA) issued by one of those EASA Member States or is subject to a dry lease agreement with a foreign Operator. if approved by the CAA of the Operator from one of those EASA Member States.

1.1.2 Or into, within or out of one of the EASA Member States, by a Third Country Operator (TCO) holding a TCO Authorization issued by EASA, in accordance with EC Regulation 452/2014. This is also applicable to foreign Operators providing aircraft under a wet lease agreement.

The up-to-date list of TCO Authorizations issued by EASA is accessible on the following webpage: https://www.easa.europa.eu/download/tco- lists/TCO%20Status%20Report.pdf

1.2 U.S. Federal Aviation Administration (FAA) for chartered aircraft operated:

1.2.1 Either by an U.S. Operator, where the aircraft holds a CoA issued by the FAA or is subject to a dry lease agreement with a foreign Operator.

1.2.2 Or into, within or out of the U.S., by a foreign Operator holding a Foreign Air Carrier Permit issued by the U.S. Department of Transportation (DoT) further to an evaluation of the CAA of the State of the Operator carried out by the FAA in the frame of the International Aviation Safety Assessment (IASA) Program. This is also applicable to foreign Operators providing aircraft under a wet lease agreement.

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1.3 Transport Civil Aviation (TCCA) for chartered aircraft operated:

1.3.1 Either by a Canadian Operator, where the aircraft holds a CoA issued by TCCA or is subject to a dry lease agreement with a foreign Operator.

1.3.2 Or into, within or out of Canada, by a foreign Operator holding a Foreign Air Operator Certificate (FAOC) issued by the Minister of Transport in accordance with Section 701.01 of the Canadian Aviation Regulations (CARs). This case is also applicable to foreign Operators providing aircraft under a wet lease agreement.

1.4 An operator registered in Albania, Montenegro, North Macedonia or , or, after 31 December 2020, the United Kingdom shall hold:

1.4.1 Either a TCO Authorization issued by EASA in accordance with EC Regulation 452/2014 (This case is also applicable to foreign Operators providing aircraft under a wet lease agreement);

1.4.2 Or a Foreign Air Carrier Permit issued by the Department of Transportation (DoT) further to an evaluation of the CAA of the State of the Operator carried out by the FAA in the frame of the International Aviation Safety Assessment (IASA) Program (This case is also applicable to foreign Operators providing aircraft under a wet lease agreement);

1.4.3 Or a Foreign Air Operator Certificate (FAOC) issued by the Minister of Transport in accordance with Section 701.01 of the Canadian Aviation Regulations (CARs) (This case is also applicable to foreign Operators providing aircraft under a wet lease agreement).

3. In the event a chartered aircraft is tendered for a flight by chartered aircraft outside US, Canada and the EASA Member States, and the contracted Operator holds either a Foreign Air Carrier Permit issued by FAA, or an FOAC issued by TCCA, or a TCO Authorization issued by EASA applicable to the aircraft, NSPA will assess, on a case-by-case basis, whether the FAA, TCCA or EASA is applicable.

4. Charter flights to be provided in areas where no Operators that are registered with either FAA, TCCA or EASA can be sourced shall be authorized by NSPA on a case-by-case basis.

PART 5. SERVICES TO BE PROVIDED

1. The Contractor shall provide WCAS services by all types of aircraft according to the load configurations in terms of CARGO and PAX.

1.1 CARGO may include heavy, bulky, oversized and dangerous goods items. The Contractor shall issue a cargo manifest and an Air Waybill (AWB) for each flight.

1.2 PAX aircraft charter flights are usually arranged for military personnel (e.g., combat troops) and/or civilian personnel, including their personal belongings up to ninety (90) kg per PAX, including small arms and weapons, with or

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without ammunition as notified by NSPA on a case-by-case basis. The Contractor shall issue a PAX manifest and tickets and arrange for the necessary boarding and catering services.

2. The Contractor shall provide the following ancillary service:

2.1 Aircraft ground handling at of embarkation (APOE) and debarkation (APOD) if and as required. Therefore, he shall nominate a Ground Handling Agent (GHA), for both airports, within two (2) days after order confirmation and provide all necessary point of contact (POC) details.

2.2 Cargo handling to include temporary storage and warehousing, if and as ordered by NSPA.

2.3 Pre- and/or post-carriage, if and as ordered by NSPA.

2.4 Customs clearance and associated services, if and as ordered by NSPA.

3. The Contractor shall be responsible for all flight clearances, including landing, parking and take- off, as well as diplomatic flight clearances. In the event the Contractor cannot obtain such diplomatic flight clearances without NSPA’s intervention, NSPA will be prepared to help.

PART 6. SPECIFIC REQUIREMENTS

1. The Contractor shall assign to NSPA a qualified, experienced and competent account manager and alternate that can be reached twenty-four hours, seven days-a-week (24/7) to respond to NSPA’s administrative and operational queries. The account manager and his alternate are expected to manage NSPA’s charter bookings from enquiry to completion. Therefore, they shall have an adequate level of knowledge in terms of aircraft, aircraft charter processes, air operations etc.

2. On exceptional basis, NSPA may have a requirement for the chartering of one (1) narrow body PAX aircraft, one (1) narrow body CARGO aircraft and one (1) wide body CARGO aircraft (type B-747 / AN-124) to support unexpected military emergencies. In that event the Contractor shall be prepared to position such aircraft within 48 hours at ETNG (ICAO) airport after NSPA’s request.

3. The Contractor warrants that they will only subcontract the transportation of passengers and cargo directly to the carrier who will ultimately perform the flight. In the event of non- compliance, NSPA may terminate its contractual relationship with the Contractor at no cost to NSPA, claim damages incurred by NSPA due to such non-compliance and remove the name of the Contractor from the Agency’s source file after having informed the relevant National and NATO authorities.

4. If the aircraft or crew is unavailable for any reasons, the Contractor shall provide NSPA with an approved equivalent aircraft. In case of failure to provide such an equivalent aircraft, equipped with a qualified crew, NSPA reserves the right to obtain similar services elsewhere and to charge any costs more than the agreed price to the Contractor.

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5. NSPA reserves the right to request the Contractor’s (or carrier’s) representative’s attendance at APOE and APOD, regardless of the location, to anticipate and resolve any potential conflicts that may arise during passenger or cargo loading operations, at no additional cost for NSPA.

6. The Contractor shall, to the greatest extend possible, accommodate modifications or any amendments to the initially agreed flight schedule. Due to the varying nature of operations, NSPA may cancel the order any time up to twenty-four (24) hours prior to the positioning flight (first leg) at no extra charges to NSPA. If NSPA cancels the order within less than twenty-four (24) hours of the positioning flight, NSPA will pay the Contractor reasonable and unavoidable expenses occasioned by the cancellation, provided the Contractor has not dispatched the aircraft earlier than agreed to start the flight. Supporting evidence of the costs, including any third-party invoice and proof of payments shall be provided by the Contractor.

7. Whenever cargo and/or PAX miss a booked departure through no fault of the Contractor, the Contractor shall re-schedule the departure, after receipt of the respective NSPA order.

8. In case any such re-scheduling of a departure has generated additional costs to the Contractor, they will be reimbursed to the Contractor, under the conditions that these costs are duly supported by documentary evidence as to the payment of these costs by the Contractor and that they are not incurred due to the negligence of the Contractor.

9. The Contractor agrees to take all steps reasonably to facilitate the establishment and settlement of claims by passengers against the carrier, at no additional costs.

PART 7. INSURANCE

The Contractor shall be responsible to ensure that the carrier meets the following insurance requirements:

1. The carrier will effect and maintain, from an insurance provider acceptable to NSPA, comprehensive liability insurance, including liability insurance for war risks and kindred perils if required, to cover its liability under the contract throughout the entire duration of the relevant air transportation service to be provided under the contract. Such insurance shall cover NSPA, its officers, directors, agents, servants and employees as additional insured parties.

Such insurance shall be worldwide with minimum insurance amounts as required by Regulation (EC) No 785/2004 or any other national or international law that may apply for the air transport service to be provided. The insurance shall cover:

1.1 The legal liability of the carrier, towards the passengers authorized by NSPA and towards its customers, for accidental bodily injury or death suffered by passengers while on board the aircraft or while embarking or disembarking. This insurance shall also cover the legal liability of the carrier for damage, loss, destruction, or delay of cargo and checked and unchecked .

1.2 The legal liability of the carrier or aircraft Operator to third parties for damages to persons or property outside the aircraft. This insurance shall cover at least the highest

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levels of liability applicable for:

1.2.1 Flying within, into, out of or overflying the territory of a Member State of the European Union.

1.2.2 The country where either the aircraft is registered, or the Air Operator Certificate is issued.

1.2.3 The countries where the APOE and APOD are located.

1.3 Workmen’s compensation.

1.4 The carrier shall also effect and maintain, throughout the entire duration of the relevant air transportation service. full hull insurance covering all risks, both in flight and not in flight, including war risk insurance if required, hijacking and kindred perils.

1.5 The Contractor shall ensure that the carrier:

1.5.1 Does not violate the terms and conditions of any insurance policy, which is or may be required.

1.5.2 Takes all measures necessary to avoid any actions, which may lead to cancellation or voidance of such insurance policies.

1.5.3 Notifies NSPA, before the carriage is initiated and without any delay, in the event of cancellation or voidance of such insurance policy.

2. In case a flight is subject to war risk insurance, the Contractor shall contact NSPA prior to the commencement of the flight and provide information on the costs of the insurance premium. The acceptance of the war risk insurance must be confirmed in writing by NSPA.

3. Prior the commencement of any ordered air transport service, the Contractor shall provide NSPA with a copy of the carrier’s insurance certificate.

4. The Contractor shall hold an Errors and Omissions (E&O) insurance to cover his liability for the financial loss incurred by NSPA or its customer due to a failure to perform contractual obligations.

PART 8. ACTIVATION OF SERVICES

1. Whenever the services of the Contractor are required, NSPA, through a Simplified Request for Proposal (SRFP), will contact the Contractor and submit the mission’s detailed requirements in a separate SOW, providing at a minimum the below listed information:

1.1 Number of PAX and/or quantities, type and configuration;

1.2 Desired aircraft type (not mandatory);

1.3 Desired flight schedule including APOE, APOD, departure date/time; and

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1.4 Information on additional service requirements (e.g., catering, cargo handling, flight clearances, pre-post carriage requirements, customs clearance, ticketing, boarding etc.).

2 The Contractor shall assess NSPA's request and provide an offer, which shall be in line with the requirements of the SOW, at the best overall charter price. The Contractor may submit offers from more than one (1) aircraft operator/carrier.

3. The Contractor’s offer shall include the following information:

3.1 Operator/Carrier name and country of registration.

3.2 Aircraft type and age, Maximum Take-off Weight (MTOW) and anticipated tail number.

3.3 Flight schedule to include aircraft positioning and ferry flights.

4. The offered charter price shall be all-inclusive. Nonetheless, potential war risk insurance costs shall be shown separately, and their application will be subject to prior approval by NSPA.

5. Any cost for ancillary services, which could not be reasonably assessed prior mission start, and thus were not part of the all-inclusive charter price offered by the Contractor, will be assessed by NSPA upon invoice submission. Any such actual costs will be reimbursed by NSPA under the condition that they were not incurred due to the negligence of the Contractor and that they are substantiated by priced documentary evidence proving their payment by the Contractor.

6. NSPA will evaluate the proposals received and select the most suitable offer for contract award.

7. Upon NSPA’s contract award notification to the Contractor, the Contractor shall obtain from the operator/carrier the following certificates:

7.1 Air Operator Certificate (AOC)

7.2 Certificate of aircraft registration

7.3 Certificate of Airworthiness (CoA)

7.4 Insurance Certificate

The Contractor shall forward those certificates to NSPA and explicitly confirm their validity.

8. A call-off Purchase Order will be issued by NSPA to cover the selected option and will specify the price, the flight schedule, the name of the operator, the aircraft type and registration number.

PART 9. REPORTING

1. Following any charter flight, the Contractor shall provide a report showing actual departure

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dates/times for each APOE/APOD of the flight schedule, from the positioning flight to the ferry flight.

2. The Contractor shall provide information about any issues faced throughout the execution of the flight.

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APPENDIX A: DEFINITIONS, ABBREVIATIONS AND ACRONYMS

1. “AOC” stands for “Aircraft Operator Certificate”

2. “APOD” stands for “Airport of Debarkation”

3. “APOE” stands for “Airport of Embarkation”

4. “AWB” stands for “Airway Bill”

5. “CAA” stands for “Civil Aviation Agency”

6. “CARs” stands for Canadian Aviation Regulations”

7. “CoA” stands for “Certificate of Airworthiness”

8. “DoT” stands for “Department of Transportation”

9. “EASA” stands for “European Aviation Safety Agency”

10. “FAA” stands for “U.S. Federal Aviation Administration”

11. “FAOC” stands for “Foreign Air Operator Certificate”

12. “GHA” stands for “Ground Handling Agent”

13. “IASA” stands for “International Aviation Safety Assessment”

14. “ICAO” stands for “Convention on International Civil Aviation”

15. “NSPA” stands for “NATO Support and Procurement Agency”

16. “PAX” means “Passenger”

17. “SRFP” stands for “Simplified Request for Proposal”

18. “TCCA” stands for “Transport Canada Civil Aviation”

19. “TCO” stands for “Third Country Operator”

20. “WACS” stands for “Worldwide Aircraft Charter Services”

21. The Member States of NATO are: ALBANIA, BELGIUM, BULGARIA, CANADA CROATIA, CZECH REPUBLIC, DENMARK, ESTONIA, FRANCE, GERMANY, GREECE, HUNGARY, ICELAND, ITALY, LATVIA, LITHUANIA, LUXEMBOURG, NETHERLANDS, NORWAY, POLAND, PORTUGAL, ROMANIA, SLOVAKIA, SLOVENIA, SPAIN, TURKEY, UNITED KINGDOM and UNITED STATES

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