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CHAPTER 1
Introduction
Overview
Airports are facing unprecedented challenges as they struggle to manage competing demands
from a diverse group of stakeholders, decreasing financial resources, crowded airspace, and
higher expectations of a traveling public. Responding to the needs of new and financially unsta-
ble airlines as well as changing safety and security issues have overwhelmed many airports and
their financial resources. To stay competitive in this industry, it is critical for airports to be on
top of the changes and to maintain state-of-the art facilities with the safety and comfort of the
traveling public as a top priority. This translates into significant funds invested to maintain
and improve facilities. The capital planning process provides one of the most effective mech-
anisms for organizations to plan and manage investments to get the best results for the available
resources.
Airports usually enumerate capital investment requirements in a capital improvement plan
or program composed of many individual projects that together form a plan to maintain and
improve airport facilities. A typical capital plan outlines how the plan was developed, how its
constituent projects will be funded, and how the financing plan will affect airport rates and
charges. However, every airport has a different capital planning process based on its size, com-
plexity and organization, and many have not formally documented the processes.
As demands for services increase while funding and staffing become more limited, many air-
ports are so overwhelmed with resource constraints and organizational changes that the value
and importance of collaborating on the airport capital planning process is not considered or
abandoned. Currently, there is minimal guidance available on how to develop and implement
an airport capital plan or how to measure the performance of key programs and projects, and
there is little or no guidance on how to do either collaboratively. Airports continue to face chal-
lenges to establishing collaborative procedures, developing useful performance metrics and
selecting appropriate and cost-effective information technology systems to develop and imple-
ment their capital plans. This Handbook provides the guidance airports have needed to address
these challenges.
Objective of the Collaborative Airport Capital Planning Process
and the Handbook
The objective of this Handbook is to research best practices in airport capital planning and
outline a process for developing, implementing and overseeing a Collaborative Airport Capital
Planning (CACP) process. This Handbook provides a guide for the development, implementa-
tion and oversight components of the process, which details the basic goals, key actions, timing,
key participants, methods for communicating and collaborating, recommended products and
suggested results for a CACP process.
1
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2 Collaborative Airport Capital Planning Handbook
This Handbook is a guide, not a prescriptive "how to" manual, for a CACP process. It includes
methods for effective communication and collaboration among the parties responsible and
accountable for the airport capital plan (ACP). It demonstrates the importance of a carefully
planned and managed capital planning process and the value of a CACP process for developing
financially sound capital plans, predictive execution and delivery of projects, accountable per-
formance and reliable results regardless of political, management or leadership changes. This
Handbook provides illustrative examples of
· Best practices currently in use,
· Methods and processes for implementing and sustaining collaboration throughout the
process,
· Performance metrics for achieving collaboration (qualitative and quantitative), and
· Sample guidance strategies and methods to assist managers in achieving a CACP process.
The CACP process has three components: 1) The Foundation: Leadership, 2) The Nuts and
Bolts: Development and Implementation Phases of the CACP process; and 3) Checks and Bal-
ances: Oversight. This Handbook includes a step-by-step process that outlines the actions to be
completed in each step, defines the roles and responsibilities of key participants, recommends
methods for collaboration and communication and suggests products to get the results.
The process in this Handbook is designed for use by airports of different sizes, organizations,
governing structures, and management characteristics, and will therefore be flexible in its appli-
cation. Furthermore, this process is presented in detail in this Handbook. In an ideal world, all
airports could do every step of this process in its entirety. However, smaller airports with fewer
resources (funding and personnel) might start with a simplified version of the steps presented
herein and build from there, and larger airports with hiring freezes and financial challenges
might start with a streamlined version of the process to reduce the demand on resources.
Figure 1 illustrates how the number of steps and level of detail may change depending on the
airport size, number of facilities and complexity of capital projects and programs. This process
can be simplified or streamlined to fit any size airport. The mechanics of the Development and
Implementation phases are more complex due to the technical nature of the actions executed in
those phases, and that complexity increases with the size of the airport and number of facilities.
Regardless of the number of steps used in the Development and Implementation phases (see
Chapter 5), it is always important to build a strong foundation to address the four areas of Lead-
ership discussed in Chapter 4 (Agency Policy, Organization, Resources and Management) and to
establish a system of Checks and Balances for executing the four elements of Oversight outlined
in Chapter 6 (Performance Management, Evaluation, Meeting and Reporting and Motivation).
These two components, Leadership and Oversight, are critical to establishing a collaborative
organization that is flexible, transparent and accountable.
Research
This Handbook is based on research that included a literature search and preliminary and
detailed surveys. The following is a summary of the research effort.
The Literature Search. Hundreds of sources were examined, including documents and web-
sites, from many industries, including
· Aviation;
· Transportation;
· Program and project management;
· Capital program and asset management systems and technology; and
· Housing, healthcare, and secondary and higher education.
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Introduction 3
GA/Non-Hub Small/Medium Hub Large Hub
1. ACP Policy, Planning
1. ACP Policy 1. Translate Mission and Goals
and Programming
2. Financial Planning 2. Targets, Revenue and Operating Expenses
3. Capital Plan Revisions
3. Capital Planning 4. Identify Needs
5. Develop ACP Project Request List
Development
4. Programming 6. Prioritize Projects
7. Identify Funding Sources
8. Analyze ACP Project Request List
Leadership
Oversight
9. Financial Analysis of ACP
10. Trade-Off Analysis
2. Draft ACP 5. Draft ACP 11. Draft ACP
12. Vet with Stakeholders
13. Final ACP Approval
3. Planning and Design 6. Project Planning and Definition 14. Planning Studies and Project Definition
Implementation
7. Design 15. Design
4. Construction, Closeout
8. Construction 16. Construction
and Evaluation
9. Project Closeout and
17. Project Closeout
Evaluation
18. Project Evaluation
5. Operation 10. Operation 19. Operation
Figure 1. The CACP process and airport diversity.
