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A I R P O R T C O O P E R A T I V E R E S E A R C H P R O G R A M ACRP REPORT 126 TRANSPORTAT ION RESEARCH BOARD WASHINGTON, D.C. 2015 www.TRB.org Research sponsored by the Federal Aviation Administration Subscriber Categories Aviationâ â¢â AdministrationâandâManagement A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities ExstarE FEdEral sErvicEs Group, llcÂ® Alexandria, VA i n a s s o c i a t i o n w i t h rosalEs law partnErs llp San Francisco, CA wHp rEsEarcH, inc. Chevy Chase, MD
AIRPORT COOPERATIVE RESEARCH PROGRAM Airports are vital national resources. They serve a key role in transÂ portation of people and goods and in regional, national, and interÂ national commerce. They are where the nationâs aviation system connects with other modes of transportation and where federal responÂ sibility for managing and regulating air traffic operations intersects with the role of state and local governments that own and operate most airports. Research is necessary to solve common operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport CooperaÂ tive Research Program (ACRP) serves as one of the principal means by which the airport industry can develop innovative nearÂterm solutions to meet demands placed on it. The need for ACRP was identified in TRB Special Report 272: Airport Research Needs: Cooperative Solutions in 2003, based on a study sponÂ sored by the Federal Aviation Administration (FAA). The ACRP carries out applied research on problems that are shared by airport operating agencies and are not being adequately addressed by existing federal research programs. It is modeled after the successful National CooperaÂ tive Highway Research Program and Transit Cooperative Research ProÂ gram. The ACRP undertakes research and other technical activities in a variety of airport subject areas, including design, construction, mainteÂ nance, operations, safety, security, policy, planning, human resources, and administration. The ACRP provides a forum where airport operaÂ tors can cooperatively address common operational problems. The ACRP was authorized in December 2003 as part of the Vision 100ÂCentury of Aviation Reauthorization Act. The primary participants in the ACRP are (1) an independent governing board, the ACRP Oversight Committee (AOC), appointed by the Secretary of the U.S. Department of Transportation with representation from airport operating agencies, other stakeholders, and relevant industry organizations such as the Airports Council InternationalÂNorth America (ACIÂNA), the American AssociaÂ tion of Airport Executives (AAAE), the National Association of State Aviation Officials (NASAO), Airlines for America (A4A), and the Airport Consultants Council (ACC) as vital links to the airport community; (2) the TRB as program manager and secretariat for the governing board; and (3) the FAA as program sponsor. In October 2005, the FAA executed a contract with the National Academies formally initiating the program. The ACRP benefits from the cooperation and participation of airport professionals, air carriers, shippers, state and local government officials, equipment and service suppliers, other airport users, and research orgaÂ nizations. Each of these participants has different interests and responÂ sibilities, and each is an integral part of this cooperative research effort. Research problem statements for the ACRP are solicited periodically but may be submitted to the TRB by anyone at any time. It is the responsibility of the AOC to formulate the research program by idenÂ tifying the highest priority projects and defining funding levels and expected products. Once selected, each ACRP project is assigned to an expert panel, appointed by the TRB. Panels include experienced practitioners and research specialists; heavy emphasis is placed on including airport proÂ fessionals, the intended users of the research products. The panels preÂ pare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing cooperÂ ative research programs since 1962. As in other TRB activities, ACRP project panels serve voluntarily without compensation. Primary emphasis is placed on disseminating ACRP results to the intended endÂusers of the research: airport operating agencies, service providers, and suppliers. The ACRP produces a series of research reports for use by airport operators, local agencies, the FAA, and other interested parties, and industry associations may arrange for workÂ shops, training aids, field visits, and other activities to ensure that results are implemented by airportÂindustry practitioners. ACRP REPORT 126 Project 01Â25 ISSN 1935Â9802 ISBN 978Â0Â309Â30829Â8 Library of Congress Control Number 2014958311 Â© 2015 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and notÂforÂprofit purposes. Permission is given with the understanding that none of the material will be used to imply TRB or FAA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and notÂforÂprofit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The project that is the subject of this report was a part of the Airport Cooperative Research Program, conducted by the Transportation Research Board with the approval of the Governing Board of the National Research Council. The members of the technical panel selected to monitor this project and to review this report were chosen for their special competencies and with regard for appropriate balance. The report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the Governing Board of the National Research Council. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board, the National Research Council, or the program sponsors. The Transportation Research Board of the National Academies, the National Research Council, and the sponsors of the Airport Cooperative Research Program do not endorse products or manufacturers. Trade or manufacturersâ names appear herein solely because they are considered essential to the object of the report. Published reports of the AIRPORT COOPERATIVE RESEARCH PROGRAM are available from: Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet at http://www.nationalÂacademies.org/trb/bookstore Printed in the United States of America
The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. C. D. Mote, Jr., is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Victor J. Dzau is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academyâs purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. C. D. Mote, Jr., are chair and vice chair, respectively, of the National Research Council. The Transportation Research Board is one of six major divisions of the National Research Council. The mission of the Transporta- tion Research Board is to provide leadership in transportation innovation and progress through research and information exchange, conducted within a setting that is objective, interdisciplinary, and multimodal. The Boardâs varied activities annually engage about 7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individu- als interested in the development of transportation. www.TRB.org www.national-academies.org
C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR ACRP REPORT 126 Christopher W. Jenks, Director, Cooperative Research Programs Michael R. Salamone, ACRP Manager Theresia H. Schatz, Senior Program Officer Terri Baker, Senior Program Assistant Eileen P. Delaney, Director of Publications Sharon Lamberton, Editor ACRP PROJECT 01-25 PANEL Field of Administration Kenneth H. Gwyn, Irving, TX (Chair) Steven C. Baker, Metropolitan Washington Airports Authority, Washington, DC Courtney Beamon, Delta Airport Consultants, Inc., Richmond, VA ThianÃ© Carter Edwards, Raleigh-Durham Airport Authority, RDU Airport, NC Nedra Farrar Swift, Swift Services, Inc., Atlanta, GA Diego Rincon, Philadelphia International Airport, Philadelphia, PA Simeon O. Terry, Austin Commercial, Dallas, TX Lillian Miller, FAA Liaison Starla Bryant, American Association of Airport Executives Liaison
ACRP Report 126: A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities is a compilation of industry best practices and other meaÂ sures airports can utilize to attract and enhance participation in their contract opportuniÂ ties. The guidebook identifies best practices and outlines applicable federal requirements to enable consistent administration of the federal DBE Program. It includes an overview of federal programs, grant assurances, and enabling legislation; discusses options for coorÂ dinating and integrating local efforts and programs with federal requirements; offers conÂ tracting methods to promote and increase opportunities for diverse business participation; and addresses roles and responsibilities for administering business diversity programs with particular emphasis on the importance of engaging the DBELO (disadvantaged business enterprise liaison officer) in the airport procurement process. Various contracting models, team structures, and other strategies for obtaining diversity (e.g., jointÂventures, partnerÂ ships) are discussed, as are impediments to the success of diverse businesses and what airÂ ports can do to alleviate the impediment. The guidebook also provides case studies of six airports that are successful in their efforts to achieve increased participation of diverse busiÂ nesses in their contract opportunities. A glossary of terms and an appendix of available industry resources are also included. This is a guidebook for airport operators and businesses to promote more airport contract opportunities to disadvantaged business enterprises (DBEs), airport concession disadvantaged business enterprises (ACDBEs), minorityÂowned businesses, womanÂowned businesses (MBEs and WBEs), and other small and local businesses. These businesses, referred to as âdiverse businessesâ in this guidebook, provide a variety of services or products utilized in airport contracts. Collectively, âairport contractsâ encompass federally funded projects, concessions, passenger facility chargeÂfunded projects, and goods and services used in daily airport activities. Although federal, state, and local statutes and regulations require airport operators to promote diverse business participation in their contracts, some airport operators take volÂ untary steps to achieve diverse business participation. Airports of all sizes implement proÂ grams that may vary with respect to their specific requirements, but many of the methods for promoting airport contracts to diverse businesses can be applied broadly. Under ACRP Project 01Â25, research was conducted by Exstare Federal Services Group, LLC, in association with Rosales Law Partners LLP and WHP Research, Inc. To supplement information from the literature review, 112 airport industry stakeholders, including airport board members, chief executives, DBELOs, business owners, government officials, and others were interviewed. F O R E W O R D ByâTheresiaâH.âSchatz StaffâOfficer TransportationâResearchâBoard
1 Chapter 1â IntroductionâtoâtheâGuidebook 1 1.1 Purpose of the Guidebook 1 1.2 Methodology and Data Collection 2 1.3 Potential Benefits of the Guidebook 2 1.4 Navigating the Guidebook 4 Chapter 2â FederalâDisadvantagedâBusinessâEnterpriseâPrograms 4 2.1 Enabling Legislation 5 2.2 Grant Assurances 5 2.3 49 CFR Part 26âAirport DBE Program 8 2.4 49 CFR Part 23âACDBE Program 11 2.5 Constitutional Parameters 12 2.6 Integrating Local Efforts and Policies with Federal Requirements 16 Chapter 3â Non-FederalâBusinessâEnterpriseâPrograms 17 3.1 Local Business Enterprise Programs 19 3.2 Small Business Enterprise Programs 20 3.3 Minority and Womenâs Business Enterprise Programs 21 3.4 Creating LBE or SBE Programs 22 Chapter 4â PolicyâandâImplementationâRolesâandâResponsibilities 23 4.1 Governing Body 24 4.2 Chief Executive 25 4.3 Liaison Officer (DBELO) 27 4.4 Other Offices and Departments 31 4.5 The Role of the Airport in Disputes Between Primes and Diverse Businesses 32 Chapter 5â ContractingâMethodsâtoâObtainâDiversity 32 5.1 Small Business SetÂAsides 33 5.2 Direct Contracts 33 5.3 Concessions Joint Ventures 34 5.4 Construction Joint Ventures and Partnerships 36 5.5 Cart and Kiosk Programs 36 5.6 Mentor/ProtÃ©gÃ© Programs 38 Chapter 6â AddressingâImpedimentsâtoâtheâSuccessâ ofâDiverseâBusinesses 38 6.1 Certification Requirements 39 6.2 Proposal Requirements 42 6.3 Size of Contracts 42 6.4 Bonding and Insurance Requirements 45 6.5 Financial Resources 45 6.6 Prompt Payment 46 6.7 Politics C O N T E N T S
48 Chapter 7â StrategiesâandâPartnershipsâtoâEnhanceâ DiverseâBusinessâParticipation 48 7.1 Planning for Diverse Business Participation 48 7.2 The Role of Disparity Studies 50 7.3 Bilingual Translation 50 7.4 Utilizing Technology 51 7.5 Measuring Internal Performance 52 7.6 Sharing Accomplishments 52 7.7 Industry Associations 53 7.8 Other Partnerships 54 7.9 Training Programs 56 Chapter 8â ThinkingâBeyondâCompliance 56 8.1 Community Benefits 57 8.2 Economic Benefits 59 Chapter 9â CaseâStudies 59 9.1 Columbia Metropolitan Airport (Small Hub) 61 9.2 Richmond International Airport (Small Hub) 64 9.3 Oakland International Airport, California (Medium Hub) 68 9.4 RaleighÂDurham International Airport (Medium Hub) 71 9.5 San Diego International Airport (Large Hub) 75 9.6 Phoenix Sky Harbor International Airport (Large Hub) 77â Sources A-1 Appendix Aâ Glossary B-1 Appendix Bâ IndustryâResources Note: Photographs, figures, and tables in this report may have been converted from color to grayscale for printing. The electronic version of the report (posted on the web at www.trb.org) retains the color versions.