CESAR CONTRACT
                                                                        UPDATE

                                                                      12/19/96
                                                                (402) 294-8216
                                                     Room 2H29, Lemay Building
                                                          US Strategic Command
                                                      Offutt AFB NE 68113-6600

CESAR Requirements      The CESAR Team and USSTRATCOM continue to define
Development             CESAR.  Detailed requirements are starting to
                        develop, but we're not ready for release to industry,
                        yet.  We plan an industry feedback session sometime
                        in the period of late February to middle March 1997;
                        we'll communicate program status to industry then.
                        In the meantime, be confident that we'll give you
                        adequate time to prepare for the acquisition.  The
                        start of the CESAR selection process will certainly
                        be later than March 1997 and will probably be later
                        yet.

Answers to Questions    What is the status of the Fly-Off concept briefed at
                        the 19 Jun 96 Industry Day at Offutt AFB?

                        There will not be a fly-off.  We anticipate issuing a
                        single contract.  USSTRATCOM briefed the 18 Sep
                        Industry Day that we would  1) issue a call for
                        Statements of Corporate Capabilities via Commerce
                        Business Daily,  2) select some of the responders for
                        site visits (a "More Qualified" list),  3) select
                        some of those we visit to participate in fine-tuning
                        the RFP (a "Best Qualified" list), and  4) select one
                        of the offerors as the awardee.  The CESAR briefing
                        from the 18 Sep Industry Day contains details; find
                        it at
                        http://stratcom.af.mil/cesar/strt_ind/Ind_sess.htm,
                        look in the "CESAR" Powerpoint file.

Communication           CESAR information, when available, will be on the
                        CESAR web site.  If you request notification, we'll
                        send email each time we make a "major" update of
                        information.  File requests with the CESAR Team,
                        preferably by email.

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