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(ATA).

Air Transport Association

BIOGRAPHICAL SKETCH

Carol B. Hallett

Air Transport Association of America

Carol Hallett is President and Chief Executive Officer of the Air Transport Association

Mrs. Hallett joined ATA in April, 1995. ATA, founded in 1936, is the trade association representing 22 U.S. airlines and express cargo carriers and three foreign-flag associate members. ATA member airlines transport more than 95 percent of all airline and passenger traffic in the United States, and ATA assists its members by promoting aviation safety, advocating industry positions, conducting industry-wide programs and ensuring public understanding and awareness of the airline industry.

Mrs. Hallett has had a distinguished career in public service and politics. In 1989, she was appointed by President Bush to serve as U.S. Customs Service Commissioner, where she directed a workforce of 20,000 employees and was recognized by the airline industry for her efforts to modernize the Customs Service. Prior to her tenure at the Customs Service, Mrs. Hallett also served as U.S. Ambassador to the Bahamas and as Director of the U.S. Interior Department's Western Region during the Reagan Administration. Previously, she served three terms in the California State Assembly, and from 1979 to 1982, was the Assembly Minority Leader. In 1982, Mrs. Hallett was the California Republican Party's nominee for Lt. Governor.

Since taking over the leadership of ATA, Mrs. Hallen has used her experience in government and politics to increase the association's visibility and role on behalf of the industry. Mrs. Hallett testifies before Congress and appears frequently in the national news media on a variety of airline industry issues.

Mrs. Hallett is a licensed pilot with more than 5,000 hours of pilot-in-command time and experience in single and multi-engine aircraft, turboprops and business jets.

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The Federal Aviation Administration (FAA) Office of Research and Technology
Applications, AAR-201, is pleased to announce the award of an FAA
Cooperative Agreement to the Air Transportation Association. This
Cooperative Agreement is to support work proposed by Mr. Joseph Dorfler.
Your Proposal Number 96-P-0072 entitled, "Aviation Local Area Augmentation
System," has been assigned FAA Cooperative Agreement Number 97-G-007.
Please refer to this number in any future correspondence.

Enclosed are four originals of the Cooperative Agreement award letter for your signature. A copy of FAA Order 9550.7A, Research Grants Program, and a copy of your proposal, including the budget, are also enclosed. These exhibits constitute the Cooperative Agreement instrument.

Please review the terms and conditions specified in the award letter and final copy of the proposal, and return three signed originals to:

Mrs. Barbara Fuller, Research Grants Analyst, AAR-201

FAA William J. Hughes Technical Center

Building 270, Room B115

Atlantic City International Airport, NJ 08405

Upon receipt, the FAA accounting office will be authorized to release funds in accordance with the conditions of the cooperative agreement and Chapter 6

of the enclosed FAA directive. Please contact me at (609) 485-4919 with any questions regarding the administration of this Grant.

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COOPERATIVE AGREEMENT

The Federal Aviation Administration (FAA) hereby awards Cooperative Agreement Number 97-G-007 to the:

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in the amount of $1,000,000 to pursue the research described in Proposal Number 96-P-0072 submitted by the Air Transport Association ("grantee" or "recipient") entitled: Aviation Local Area Augmentation System, under the direction of the Principal Investigator: Mr. Joseph Dorflez, telephone number: 202-626-4010. The period funded under this agreement is 12 months, beginning on the date of the final signature by the grantee (estimated to be on or about January 6, 1997), and ending 12 months later.

This is a continuing grant and additional funding may be provided for

2 follow on years in the amount of $2,000,000, subject to the special conditions cited in paragraph f below. Exercising this additional funding option will result in a total estimated Cooperative Agreement amount of $3,000,000 for 36 months.

The FAA technical monitor for this Cooperative Agreement is: Ray Swider,
AND-510, telephone number (202) 358-5428. The FAA grants analyst is:
Barbara Fuller, AAR-201, telephone number (609) 485-4919.

The FAA makes this Cooperative Agreement subject to the following terms and conditions, which are hereby incorporated into this agreement:

a. the proposal submitted by the grantee;

b.

C.

the budget for the research as proposed by the grantee;

the FAA Research Grants Program Directive, FAA

Order 9550.7A;

d. all obligations and responsibilities imposed by statute or

regulation, or both, on grant recipients, whether or not explicitly stated in FAA Order 9550.7A (i.e., the responsibility for compliance with all applicable statutes and regulations rests with the grantee);

e.

1.

the FAA Cooperative Agreement General Condition 1 (See Page 4);

the following special conditions applicable to this Award:

(1) This continuing grant is awarded with expectation of renewal as a noncompeting continuation award. It is the intent of the FAA to provide incremental support of the project for additional periods, as specified below, subject to satisfactory scientific progress, availability of funds, and continued relevance to FAA programs.

(2) Changing FAA program constraints and developments within the project itself may dictate adjustments in the originally anticipated level of funding, this is not; however, a binding commitment and is not to be construed as

assurance of a renewal of award. The FAA retains the right of "Refusal and Renewal,~ i... to discontinue funding after the period currently funded under this grant.

(3) No Indirect Cost Agreement is included. The ATA is a not-for-profit organization and the Aviation Local Area Augmentation System work performed under this grant will be based on a Government-industry partnership. Therefore, there will be no indirect costs associated with this work activity.

(4) The grantee has agreed to a COST SHARE of $3,000,000. This research activity is estimated to be 36 months in duration at a cost of $2 million per year. The FAA will fund $1 million per year for 3 years with the ATA and its industry partners contributing matching in-kind resources of $1 million per year. Please note: since this is a continuing cooperative agreement, subject funding addressed is dependent upon program funds being available and provided each year by the program office.

(5) Under the partnership, the airlines will make resources available to support flight testing requirements for this project, along with possibly several ATA member airlines joining in after modification of their aircraft This will also constitute a form of COST SHARE since aircraft operating costs per hour of flight can range from approximately $2,000 per hour for a B737 to $7,500 per hour for a B747 aircraft (based on 1995 average operating costs per hour). After the project is completed, we will attempt to capture this cost share figure.

g. This Cooperative Agreement may have substantial FAA involvement as defined in the following paragraphs:

(1) It is understood by the grantee that by accepting this Cooperative Agreement that there could be substantial involvement and collaboration by the Government with the grantee in the performance of the research.

(2) A formal Government-industry partnership will be formed in the execution of this project which will be led by the ATA. This open partnership will include participation from representatives from most key aviation interests, including the airlines, general aviation, the military, the FAA, the avionics and ground systems manufacturers, airframe manufacturers, etc. (3) All data results and information will be made available to the

public.

(4) The resources of the Government-industry partnership will be combined to conduct the necessary design, flight testing and analysis to address various questions and issues which will cover relevant and meaningful concerns of the operators, manufacturers, regulators, and users. Through this arrangement FAA managers, regulators and engineers will have direct access to managers, operators, and engineers in the airline/aviation industry and will be able to rely on the resources that the industry participants will be able to make available through this partnership.

(5) Under this partnership, airline resources will be readily available to support flight testing requirements. Specifically, fully instrumented flight testing will be performed using modern transport type aircraft making

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use of appropriate data recording equipment and current airline or other user air crews supported by aviation industry engineers.

(6) Actual flight tests will be conducted at appropriate Government and industry facilities, such as the FAA Technical Center in Atlantic City, N.J., NASA flight test facilities at Crows Landing, California, and Boeing test facilities in Everett, Washington.

(7) A copy of each semi-annual report and the final report will be submitted to both the technical monitor and the grants analyst.

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By signing this document, the grantee acknowledges receipt of the Cooperative
Agreement and agrees to abide by all the terms and conditions set out by this
award letter. The grantee explicitly assures the FAA that it will comply with
the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972,
the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, Drug-Free
Workplace Act, and Executive Order 11246, dealing with Equal Employment
Opportunity.

As a Cooperative Agreement recipient, you are responsible for providing the
FAA a copy of all single audit reports. Further, since you are receiving
Department of Transportation (DOT) funds, you are also required to send copies
of these audits to the DOT Office of Inspector General, Attention: Assistant
Inspector General for Auditing, JA-30; 400 7th Street, S.W...
Washington, D.C., 20590.

NOTICE: In accordance with Section 306 (b) of Public Law 103-305, you are advised, "It is the sense of Congress that any recipient of a cooperative agreement under this title, or under any amendment made by this title, should purchase, when available and cost-effective, American made equipment and products when expending cooperative agreement monies."

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