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$ 16. Purchasing Goods and Services for Your Airport general Key Po i nt Airports purchase a wide array of supplies, services, equipment, and even land. Because public funds are expended for these items, state and local laws and regulations have been established to govern how these purchases are made. Correspondingly, federal regulations (49CFR Part 18) dictate the award of design engineering contracts, construction contracts, land acquisition procedures, and equipment purchased through the AIP. Those charged with making decisions about procurement need to be aware of these regulations. D i s cu s s i on Basic procurement principles airports follow include: The Airport Purchase quality goods and services; Procuring Professional Obtain best possible prices for goods and services; Services Deliver goods and services when and where needed; Assure a continuing supply of needed goods and services; and Publish Request for Give suppliers a fair opportunity to compete. Qualifications Goods State and local procurement requirements generally govern the purchase of airport supplies Evaluate based on and other goods needed for the day-to-day operation of the airport. selection criteria (not cost) Architec ture/Engineering Consultant Ser vices It is the sponsor's responsibility to ensure qualified technical resources are used for airport architectural, engineering, and planning services. For most capital projects and studies, consultants are typically utilized due to the technical nature of the work and the fact that Short-list/Interview/ F INAN C IAL most airports lack sufficient in-house resources. The design and planning of airports require Select specialized experience and qualifications. Consultants are normally contracted for planning studies, preparation of environmental reviews, project design, and construction administration. The cost of consultant services is an allowable cost under AIP and most state programs, provided the costs are associated with an (Perform Independent Receive project scope eligible planning, development, or equipment project, and the and cost proposal from Fee Analysis) consultant services are procured in accordance with federal and selected consultant state procurement regulations. For AIP and most state programs, selection of architectural and engineering services must be qualification-based, with fees for services negotiated after selection is made. Selections based on cost proposals are not permitted if AIP participation in the cost of consultant services is desired. Negotiate Construc tion Construction contractors are normally selected through an openly advertised process per local law to seek the lowest qualified bidder. There are exceptions to this for projects with minor, Award Contract rules inexpensive scopes of work. Also, in some instances, a pre-qualification process may be used whereby contractors submit their experience and qualifications in order to be eligible to submit a price-based bid. This is typically used for large critical projects. Large projects are sometimes procured under non-traditional methods. An example of this might be where one firm receives a contract to design and construct the project. 38

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Construction contractors need to be properly licensed and bonded and must comply with the construction plans and specifications developed for the project. The construction plans show the project requirements in a graphic form, while the GENERAL specifications describe in greater detail the requirements of the materials to be used, testing/quality assurance methods, how work is measured and accepted for payment, schedule/time, and employee wage rates requirements. Projects funded under AIP are developed in accordance with FAA policies, standards, and specifications. FAA has the responsibility of determining whether or not all construction work accomplished under the AIP is in accordance with federal standards. Equipment Equipment needed on an airport to ensure its safe operation is eligible for AIP or state funding. Suppliers are solicited through an open bidding process with award made to the lowest qualified bidder. Examples of equipment used on an airport to ensure its safe operation include snow removal equipment and vehicles, aircraft rescue and fire-fighting (ARFF) equipment and vehicles, and airport lighting equipment. Acquisition of these items must meet applicable FAA and state standards, and be necessary as demonstrated by snow removal plans, applicable ARFF index, etc. THE AIRPORT Land Procedures established in the Uniform Acquisition and Relocation Act govern how an airport sponsor acquires property through AIP. These procedures include: Establishing through an appraisal process the fair market value of the property to be acquired before negotiations with the landowner are conducted; Conducting an environmental audit of the proposal property and including results in the appraisal report; Taking the land through condemnation should negotiations fail to secure an agreement; and Providing an adequate relocation assistance program for those residents and businesses displaced by the acquisition as is obligated under the Uniform Act. Businesses on Your Airpor t Other services such as FBOs, rental car agencies, food service tenants, and other concessionaires, are typically competitively FINANCIAL bid and procured based on the highest qualified bid. The airport receives rent, payment, or a share of revenue for these types of services. Disadvantaged Business Enterprises (DBE) In order to receive AIP funding, an airport must have a DBE program that establishes goals for minority/disadvantaged business participation in AIP-funded projects and procurements, as well as all concessions (even though AIP funds are not utilized for concessions). App l i c at i o n Be very conscious of the fact that federal/state programs and the law specify procurement requirements, which are to be followed by the airport in purchasing goods and services. See FAA Advisory Circular 150/5100-14 for more information about the selection of architectural, engineering, and planning consultant services for airport grant projects. RULES 39