Nothing is really all that simple when in comes to DOD. Of course, they like to make it more complicated than it is, but…!
The AMC charters, cargo and passengers, are part of the DOD commercial airlift augmentation program. It is related to the CRAF (Civil Reserve Airlift Fleet) program where the commercial companies put up planes that DOD can call on if there is ever an emergency where it simply has to take over the routing of planes to meet national emergencies. We rarely get to point, but to get companies to commit planes to the program, DOD, through AMC, agrees to give committing carriers’ cargo or passengers during peacetime (when will that happen…but really, anything short of full mobilization) under various types of contracts.
Some companies thrive on these contracts; others really don’t want them (regular commercial service, they feel, is more profitable) but they all play along.
Typically, AMC will use the planes over “requirement” or “frequency” channels, sort of major, major routes, like out of Dover AFB to Germany. DOD knows pretty much how much lift and how often planes will be required on these channels months ahead of the actual flights.
There are other routes that are as-needed, some more as-needed than others. Then there are some routes where the move might be one-flight only. I think DOD refers to both these types of requirements as “enhanced” service, but I’m not quite clear on that.
How a particular company’s plane is selected varies somewhat. Of course, the plane must be of the size DOD is looking for. Beyond that, the actual choice might be made specifically by DOD, or it might be a company “nominated” or picked by a carrier “alliance.” These alliances are something of a recent invention and help DOD get around the ever-increasing backruptcy problems of the industry.
Airliners.net has a “military” forum that sometimes discusses all this. Do a search under “CRAF” and you might find more or better information than I’ve provided.