CESAR CONTRACT
                                                                                  UPDATE
                                                                                        
                                                                                 11/4/96
                                                                          (402) 294-8216
                                                               Room 2H29, Lemay Building





Web Site              We we will advise you when we have made major additions of
                      information to the CESAR World Wide Web site if you have provided
                      your EMail address.  Send additions or changes  to
STRATCOM Industry     CESAR@STRATCOM.AF.MIL.
Day
                      Briefings and papers presented at the STRATCOM Industry Day 17-18
                      Sep 96 are available on the CESAR  web site
Questionnaires        (HTTP://WWW.STRATCOM.AF.MIL/CESAR/CESAR.HTM).

                      Compilation of your replies to the second CESAR questionnaire has
Answers to Questions  started.  We appreciate your  comments which will be considered
                      in shaping the CESAR acquisition effort.  It is still early in
                      our process so feel free to make additional inputs.

                      We have received some questions which we have not answered.
Communication         We've acknowledged receipt recently.  They are not being ignored
                      --we do not want to mislead anyone by "speculating at this point"
                      with information that is highly susceptible to change.  Please
                      have confidence that when we are sure of the answer we will let
                      you know.  In the future, expect a prompt receipt.  You will get
                      final word when it is available.

                      Teaming
                      
                      Valuable feedback from industry indicates some potential offerors
                      are working to commit other firms in partnerships.  USSTRATCOM
                      does not support this activity; we seek  to reduce industry
                      teaming efforts in the early phases of the CESAR acquisition
                      process.

                      USSTRATCOM will select the CESAR prime contractor in stages.
                      Each stage will include only a subset of offerors from earlier
                      stages.  (See the explanation of the Down Selection Plan offered
                      during the 18 Sep 96 Industry Day presentation.  That slide is
                      available on the CESAR WWW site in the "CESAR" PowerPoint 4.0
                      briefing.)  We hope pre-award teaming decisions will occur no
                      earlier than the last stage of procurement.  Premature exclusive
                      teaming arrangements in industry would inhibit the flexible
Schedule              teaming opportunities USSTRATCOM seeks.

                      USSTRATCOM plans to examine the prime offerors' representations
                      of their teaming arrangements at only two points in the
                      acquisition process (see "CESAR" briefing):


                      *  "More Qualified" Offerors:  USSTRATCOM will assess how  prime
                      offerors plan to gather the needed CESAR skills (in-house/sub/
                      associate), and how  they will manage the supporting teaming
                      relationships.  At this point, USSTRATCOM will not consider
                      information offered or received about identity of teaming
                      partners.

                       *  "Best Qualified" Offerors:  In addition to the "how's" above,
                      USSTRATCOM will assess capabilities of the then-formed team.

                      USSTRATCOM reminds all potential offerors that there is no
                      requirement to conclude exclusive business relationships with
                      other offerors at any time.  USSTRATCOM values each firm's
                      interest in participating in the CESAR contract either in a "Best
                      Qualified" role or in support of a "Best Qualified" offeror.
                      USSTRATCOM realizes that some teaming decisions may occur after
                      award.


                      Watch your Email!!  CESAR information, when available, will be on
                      CESAR web site.  We will notify industry via EMail about
                      signifcant additions of information.





                      POC:  CESAR Team
                                 USSTRATCOM/J6614
                                   Marcia  Kerby
                                 901 SAC Blvd Ste 2H29
                                       Peggy Kowalczyk
                                 Offutt AFB NE 68113-6600
                                     Steve Louis
                      FAX:  (402) 294-6786  PHONE:  (402) 294-8216, 232-5354, 232-5355
                      E-Mail   CESAR@STRATCOM.AF.MIL
                                    KERBYM@STRATCOM.AF.MIL

                                    KOWALCZP@STRATCOM.AF.MIL

                                    LOUISS@STRATCOM.AF.MIL

                      WWW             HTTP://WWW.STRATCOM.AF.MIL/CESAR/CESAR.HTM