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59 9.1 Columbia Metropolitan Airport (Small Hub) 9.1.1 Background Columbia Metropolitan Airport (CAE) is the main commercial airport for Columbia and the Midlands region of South Carolina. The airport is 5 miles southwest of Columbia, in Lexington County. Since 1996, the airport has been a southeastern regional cargo hub for UPS Airlines. The airport covers 2,600 acres and has two runways (8,601 ft. Ã 150 ft. and 8,001 ft. Ã 150 ft.) and a helipad (50 ft. Ã 50 ft.). The terminal opened May 30, 1965. Capital improvements undertaken since the late 1980s include a renovated and expanded terminal in 1997, a new parking garage completed in 2003, the lengthening of the runways, and better interstate access. The terminal has several services, including a gift shop, chapel, restaurants, and bars. Annually, CAE serves more than 1.2 million passengers and processes more than 168,000 tons of air cargo. CAE is serviced by American Eagle, Delta, United, and US Airways. In 2012, CAE ranked 118th among the busiest airports in the United States by total passenger enplanements (487,435) (132). 9.1.2 Ownership/Governance Since 1962, the Richland-Lexington Airport District (Airport District), acting as a political sub-division of the state of South Carolina, has operated the Columbia Metropolitan Airport. The governing body of the Airport District is the 12-member Richland-Lexington Airport Commission. 9.1.3 Characteristics of Diversity Programs Pursuant to direction from the Richland-Lexington Airport District, CAE has currently set a DBE overall participation goal of 12 percent for programs utilizing FAA funds for the years 2012 through 2014, with a proposed 2.78 percent being met with race-neutral methods and 9.22 per- cent being met through race-conscious contract goals. The airportâs DBE mission statement and pledge note that commitment to diversity goals starts at the top of the organization, stating that the airport seeks to âgo beyond simple require- ments and become a true community partner to all aspects of the surrounding communities and culturesâ (70). CAE has an ultimate goal of not only effectively implementing the DBE Program, but also of developing a Daily Operating Business Plan to ensure inclusion of diversity goals throughout operations, including âhow we include people and communities in our busi- ness needs and . . . increase opportunities for small businesses, social enterprises, and businesses C H A P T E R 9 Case Studies
60 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities owned by minorities and women in all aspects of the operations of the Columbia Metropolitan Airportâ (70). CAE tracks and reports on small and diverse business participation and achievements on a quarterly basis and tracks this participation to its overall, executive, and department goals. Beyond the federally mandated Programs, CAE also implements a local small and diverse business program. Unlike the federal programs, CAEâs local program does not require certifica- tion for participation. Executives highlighted this relaxation of restraints and regulations as a major factor in the success of the local program, which has grown to 150 participants since its adoption. 9.1.4 Staffing Model CAE has only three executive staff members. As such, CAE personnel at all levels partici- pate directly in diversity policies by necessity. Top-down commitment to diversity initiatives at the executive level allows for greater accountability by departments as well. For example, CAE executives stated that in seeking diverse business participation opportunities, they directly asked department heads to specifically identify two to three small and diverse businesses that could compete for dollars spent by their departments, and set overall participation goals as well as goals at the executive and department levels. This direct involvement and communication resulted in an increase in small and diverse business participation from roughly 10 percent to 40 percent in some areas of spending between 2010 and 2013. The smaller size of CAE requires increased personnel responsibility, but also allows CAE staff to gain knowledge in and collaborate on various areas of operations that might normally be reserved to separate departments in larger airports. To encourage this increased responsibility and involvement, CAE offers tuition reimbursement for staff that seek out educational oppor- tunities to increase their skill sets, as well as sending diversity professionals to national training programs offered by AMAC and FAA. 9.1.5 Contracting Methods CAE employs a direct contracting model for its airport contracts, and exclusively allows long- term contracts for concessions. 9.1.6 Outreach Techniques CAE organizes two outreach events per year for its local program to inform small and diverse businesses of contract opportunities. 9.1.7 Honors and Recognition Despite the relatively small size of its operations as compared to medium- and large-hub air- ports, CAE has demonstrated that it takes seriously its responsibility to increase small and diverse business participation. CAEâs active involvement in diversity initiatives from the executive level down and its concentration of personnel efforts resulted in major positive changes in small and diverse business participation in a short period of time. Historically CAE achieved an average of 10 percent small and diverse business participation, but since 2010 the airport has managed to achieve a participation rate of around 40 percent in some areas of spending. Additionally, thanks to these efforts, CAEâs food concessionaires have been 100 percent minority-owned as well as locally owned since 2012. Some consultants noted these recent positive trends, stating
Case Studies 61 their opinion that South Carolina airports have done a good job being more proactive in getting diverse businesses involved with the airport. CAEâs diversity efforts were recognized in 2012 at the 8th Annual Excellence in Workplace Diver- sity Awards Ceremony, where the airport received the Excellence in Workplace Diversity Award for Small Employers (under 500 employees). CAEâs Diversity Policy saw a greater than 300 percent increase in the total dollars spent on small, minority, and women-owned businesses from July 2011 to July 2012. Several key components of CAEâs Diversity Policy that were highlighted included: â¢ âDeveloping a DBE group comprised of staff that attends regular training on rules and changes, and seeks to serve as âairport ambassadorsâ of diversity initiatives. â¢ Efficiently creating a comprehensive Diversity Master Plan to cover all of CAEâs DBE, Title VI, and Affirmative Action Programs. â¢ Establishing a Master List of potential DBE/minority/women/small business owners for every purchase made by CAE, accessible to all airport employees and required to be referenced by staff before selecting vendors. â¢ Holding departments individually accountable for demonstrating efforts to work with DBEs on each purchase order. â¢ Promoting DBE initiatives through public outreach events and advertisements to keep DBE/minority/ women/small businesses and potential employees aware of opportunities at CAEâ (65). 9.2 Richmond International Airport (Small Hub) 9.2.1 Background Richmond International Airport (RIC) is one of the most modern, well-equipped airports in the eastern United States. It is located 6 miles east of Richmond, in Henrico County, Virginia. RIC offers about 180 daily flights to major domestic and international destinations on AirTran Airways, American Airlines, Delta Air Lines, JetBlue Airways, Southwest Airlines, United Airlines, US Airways, and their respective regional affiliates. The airport serves more than 3 million pas- sengers annually, and more than 90 million pounds of cargo travel through RIC each year. In 1995, RICâs terminal underwent a $5 million concourse expansion at Concourse A, increas- ing the number of gates to 14 and adding 8,700 square feet to the existing baggage claim area. In 2002, an expansion of Concourse B was completed, representing a 50 percent gate increase. The airport completed several more projects in 2002, including the addition of 1,300 public parking spaces in Economy Lot A, the relocation of security checkpoints, and an extension of airport taxiways. In 2007, RIC completed construction of a multimillion-dollar renovation that expanded the terminal building by 155,000 square feet, quadrupling the amount of usable floor space in the ticketing hall and baggage claim areas, doubling the space for security checkpoints, and doubling the outdoor curbside loading/unloading zones to help ease vehicle congestion for arrivals and departures. In August 2013, RIC ranked second in North America for operational and management effi- ciency among small- and mid-sized airports, according to an Air Transport Research Society study (426). 9.2.2 Ownership and Governance The Capital Region Airport Commission (the Commission) owns and operates RIC. Established in 1975 by act of the Virginia General Assembly, the Commission is governed by 14 commission- ers appointed by the City of Richmond, the County of Chesterfield, the County of Hanover, and the County of Henrico. The Commission directs the growth, operation, and business activities of RIC, which has served central Virginiaâs air travel needs since 1927 (426).
62 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities 9.2.3 Characteristics of Diversity Programs RICâs business diversity program is a shared responsibility, with the CEO driving the diversity efforts and the board fully supporting them. The CEOâs direction and hands-on involvement sets the tone and achieves buy-in from the staff. Nine directors who report to the CEO and purchasing managers are involved in administering the DBE and ACDBE programs. Notably, RIC does not have a local or small business program. It advertises bidding opportunities for contracts over $1,000 through the Commonwealth of Virginia eVA system (a statewide procure- ment broadcast system) in order to reach thousands of vendors and ensure that the procure- ment process is transparent. The CEO directs the staff to purchase from small businesses at every opportunity. Diversity purchasing is always part of RICâs weekly staff meeting agenda. The board receives a monthly report that covers goods, services, concessions, and procurements. The CEO uses the board report to determine if and why there are decreases in participation, and has his staff report back. Active involvement in the community and hosting outreach events or participating in othersâ outreach events all contribute to the airportâs business diversity success. RIC has an open-door policy. If there are issues or concerns, small companies working at the airport can talk directly with the CEO and/or the CEOâs staff without having to go through a prime contractor. RIC maintains statistical information on a daily basis. It also tracks diverse business utiliza- tion through monthly participation reports and pay applications from the prime contractors. The DBELO also calls diverse businesses randomly to make sure they are being paid in a timely manner. RIC bid documents have DBE clauses, and the airportâs race-neutral DBE goal is stated in bid documents. The Commission established an overall race-neutral DBE participation goal for federal fis- cal years (FFY) 2012â2014 for the first time in the history of RICâs implementation of the DBE Program. The airport achieved 5.02 percent of its 5.06 percent race-neutral goal in the FY 2012 period, and only fell short by 0.04 percent due to one project anticipated in that year not being committed or awarded. This race-neutral participation occurred in the following areas: â¢ Airfield Consulting: 7.9 percent DBE participation. â¢ Airfield Construction Upgrade: 7.9 percent DBE participation. â¢ Airfield Electrical Upgrade: 25.4 percent DBE participation. â¢ Apron Expansion Design: 9.7 percent DBE participation. â¢ Taxiway Rehab General Engineering: 7.8 percent DBE participation. â¢ Taxiway Rehab Construction Administration: 3.7 percent DBE participation. â¢ East Side Aviation Expansion: 13.9 percent DBE participation. For its ACDBE program for FFY 2013â2015, the Commission established an overall goal of 17.19 percent for its non-car rental concessions, of which 14.80 percent is race-conscious and 2.39 percent is race-neutral. In FFY 2013, the Commission achieved 23.18 percent ACDBE par- ticipation in those concessions. Examples of RICâs ACDBE program accomplishments include: â¢ Under the current CEO, ACDBE participation increased in food and beverage (F/B) conces- sions from being almost non-existent to consistent participation of 15 percent, in spite of the fact that major F/B concessionaires did not anticipate that they could achieve a level of participation beyond 10 percent at an airport the size of RIC. â¢ ACDBE participation in retail concessions also increased from being almost non-existent to a consistent participation of 20 percent. â¢ Until 2007, management of RICâs advertising concession was handled in-house by RIC staff. Its first-ever advertising contract was awarded to an ACDBE that is one of the top airport
Case Studies 63 advertising management firms in the country. The goal for that opportunity was 11 percent, and RIC continues to achieve 100 percent ACDBE participation in this contract. 9.2.4 Staffing Model RICâs 173 employees are led by the Commissionâs president and CEO, who has ultimate respon- sibility for executing the airportâs DBE and ACDBE programs. The designated DBELO, who has direct independent access to the CEO concerning diversity program matters, is also the director of real estate and facilities, with responsibility for managing all airport facilities, including the ter- minal building, concessions, and airfield and cargo facilities. Other personnel assigned DBE and ACDBE program responsibilities include the Commissionâs outside legal counsel and consultants. 9.2.5 Contracting Methods Line managers can purchase up to $1,000 in supplies they need for a job with the approval of the director to whom they report. These managers seek vendors from the stateâs SWaM (small, women, and minority) directory, enabling RIC to advertise smaller opportunities to well over a thousand companies. Procurements over $1,000 are advertised. RICâs DBE program provides for contracting requirements that are structured to facilitate com- petition by small businesses and their participation in procurements as prime contractors or sub- contractors. For example, in multi-year design-build contracts or other large contracts, bidders on the prime contract are asked to specify elements of the contract or specific subcontracts that are of a size that small businesses, including DBEs, can reasonably perform. On a case-by-case basis, the Commission makes reasonable efforts to divide contracts into smaller-sized packages based on the type, size, and dollar value of a contract, the availability of small businesses, and the financial resources and capacity of small businesses. On contracts without DBE goals, prime contractors are asked to identify business opportunities for small business participation in the contract of a size that small businesses, including DBEs can reasonably perform or provide, rather than self- performing all the work involved or supplying all the goods and services in support of the contract. Although many of the DBEs that participate in airport construction projects for RIC are located in Virginia, the Commissionâs outreach efforts have produced DBE participation from firms located as far away as Texas and Michigan. This is a great achievement for a small hub air- port and one that is in the spirit of the national scope of the DBE Program. Moreover, a minority- owned firm that was formerly a DBE is now a prime contractor providing design consulting services to RIC. The firm has contracted with DBEs to perform some of the components of its more recent work, thus enabling RIC to exceed DBE participation goals. The Commissionâs diversity policies and outreach efforts do not just extend to the Part 23 and Part 26 Programs: virtually all of RICâs contract opportunities include participation from disadvantaged and other small, minority- and woman-owned businesses. Contractors are well aware of the Commissionâs business diversity expectations, and they have to make good faith efforts or they are disqualified. 9.2.6 Outreach Techniques Involvement in the community by the CEO and by RIC staff gives smaller companies an opportunity to see and talk to Commission staff directly. The Commissionâs CEO states that âCommunity outreach is a key to making DBEs and small women- and minority-owned busi- nesses aware of contracting opportunities at the airport. We work to get the word out by encour- aging all of our current and potential suppliers to register with eVA, the state of Virginiaâs online procurement service that posts business opportunities at the airport.â
64 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities In addition to community events, RIC holds a public Business Opportunity Forum (Forum) each year to help current and potential suppliers better understand and participate in the bid- ding process at RIC. The Forum offers an opportunity for current and potential suppliers to meet airport managers and learn about capital projects as well as goods and services contracts. It includes interactive and informative sessions designed to help companies identify and bid on projects. Commission staff routinely consults directly with business owners, participates in other local and national outreach meetings, and publishes information about contract opportunities on RICâs website. The Commissionâs commitment to supplier diversity is a priority for the CEO, who takes a hands-on approach in diversity awareness training for management staff and in ensuring that the airport honors its diversity program policies. 9.2.7 Performance Measures The CEO and RIC staff meet weekly, and diversity purchasing is always part of the agenda. The CEOâs direction to staff is to purchase from small businesses at every opportunity. As noted above, RIC advertises contract opportunities through the eVA system, which helps the airport from a transparency standpoint. 9.2.8 Honors and Recognition RICâs long-term commitment to DBE/ACDBE participation goals is underscored by the airportâs ongoing efforts to educate and maintain support of Commission members and staff, demanding good faith efforts from vendors, aggressive community outreach, and adoption of procurement policies that support the inclusion of diverse businesses. These efforts earned the Commission the 2012 Vision of Excellence Award from the Metro- politan Business League. The award was given in recognition of RICâs conscious efforts to make small, disadvantaged, minority-owned, and women-owned businesses aware of contract oppor- tunities at RIC, and its demonstration and promotion of economic diversity and small business development. In June 2013, the Commission was a recipient of the AMAC Award of the Organization, which recognized the airportâs outreach and business diversity accomplishments. The award cited the airportâs efforts to enable DBE and other small enterprises to participate in highly competitive business opportunities. Those opportunities ranged from runway lighting and paving to major concessions, ground transportation, and master planning, as well as a wide range of goods and services that support the airportâs daily activities. 9.3 Oakland International Airport, California (Medium Hub) 9.3.1 Background Oakland International Airport (OAK) is a public airport 5 miles south of downtown Oakland, in Alameda County, California. It is one of three international airports in the San Francisco Bay Area. The airport began operations in 1927, but OAKâs first modern terminal opened in 1962. Since then, the airport has undergone numerous large-scale capital improvements, including the addition of a $16.3 million second terminal in 1985, a $120 million roadway improvement project completed in 2004, and a $300 million expansion and renovation project beginning that same year (including the addition of a new concourse, security and baggage facilities, improved
Case Studies 65 terminal access, and renovated curbsides, roadways, and parking lots). The airport is currently undergoing a $200 million upgrade to its first terminal, and in 2013 it completed construction on a $51 million, environmentally friendly âgreenâ air traffic control tower funded by a $33.2 mil- lion FAA grant, the single largest FAA grant under the American Recovery and Reinvestment Act of 2009. OAK currently serves more than 9 million passengers and processes more than 480,000 tons of air cargo annually. OAK is serviced by 11 passenger airlines, and in 2013 it ranked 39th among the busiest airports in the United States by total passengers served and 13th in total freight and mail processed (9). 9.3.2 Ownership and Governance OAK is owned by the Port of Oakland (the Port). The charter of the City of Oakland vests the Board of Port Commissioners with exclusive control and management of the Port. The board consists of seven members nominated by the mayor and appointed by the City Council for 4-year terms. Members must live in Oakland during their terms and for at least 30 days prior to their appointments. 9.3.3 Characteristics of Diversity Programs OAKâs small and diverse business participation programs are administered through the Portâs Social Responsibility Division (SRD), which manages and monitors contractor compli- ance with federal, state, local, and Port policies and regulatory requirements related to eco- nomic and equal employment opportunity. Pursuant to the federal regulations, the Port has also appointed the director of the SRD as its DBELO, with independent and direct access to the executive director of the Port. The social responsibility director works closely with the Portâs divisions to administer the federal DBE program. OAK employs a direct contracting model with prime contractors and concessionaires as well as an indirect contracting model through those prime contractors. Over the years, OAK has implemented its small and diverse business participation programs with notable flexibility and effectiveness. For example, in FY 2003â04, OAKâs 21 percent ACDBE participation goal was met. However, having been unable to reach its overall ACDBE participa- tion goals (between 21 percent and 32 percent) from 2001â03, the Port adopted an ACDBE pro- gram implementation for 2006â08 that included both race-neutral and race-conscious measures to attempt to achieve overall ACDBE participation goals of 8.5 percent (car rental) and 18.7 per- cent (non-car rental). (The OAK ACDBE program was also the subject of a civil suit challenging the race-conscious measures under the California Constitution, subsequently dismissed.) The shift to a race-conscious program was remarkably successful, as subsequent to this change the Port consistently exceeded its overall ACDBE participation goal by an average of almost 5 percent over the stated 3-year period (2006â08). Advancing from this progress, the Port made another program shift for 2009â11, this time proposing to meet its overall ACDBE participation goals entirely through race-neutral means. These policies also proved effective: Despite doing away with race-conscious measures, the Port consistently met and exceeded its ACDBE car rental (8.5 percent ) and non-car rental (19.8 percent) participation goals by an average of 3 percent over this period using entirely race-neutral measures. Today, the Port administers 100 percent race-neutral DBE and ACDBE program measures and continues pushing for increased participation with each triennial goal submission, pro- posing high aspirational participation goals for both DBEs (10.28 percent for 2014â16) and ACDBEs (a notable 25.28 percent for car rental concessions and 16.89 percent for non-car rental
66 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities concessions for 2012â14). This history of consistent change to grow participation exemplifies the flexibility mandated by the federal programs, described in Chapter 2. (See also 49 CFR Â§26.51(f).) As discussed in Chapter 2, in 2011 the U.S. DOT added a DBE Program requirement to fos- ter small business participation, stating that these small business plans could also constitute race-neutral program measures (49 CFR Â§26.39). OAK has leveraged this recent small business requirement to supplement its entirely race-neutral program, adding innovative elements to its DBE program designed to increase small business participation. For example, the Port has employed a small business pilot program that includes small business contract set asides for prime contracts. This policy promotes small business participation by both prime contractors and subcontrac- tors, and adds another race-neutral element to OAKâs DBE program to continue the airportâs trend of consistently increasing DBE participation through program changes. Additionally, OAK adopted small business enterprise (SBE) pilot projects as part of its Part 26 DBE Program. OAKâs creativity in devising contracting methods which are aimed at attracting and retaining DBE business partners in construction contract opportunities is well illustrated by a recent staff request of the Board of Port Commissioners. In June 2014, the aviation director sought the boardâs approval of actions associated with continued implementation of the Runway Safety Area (RSA) project at OAK, approximately 80 percent of which is expected to be funded by existing and future FAA Airport Improvement Program (AIP) grants. Congress has man- dated that all Part 139-certificated airports (which includes OAK) improve RSAs to meet FAA standards by December 31, 2015. The ongoing RSA project at OAK is one of the implementing actions in the Port Strategic Plan. The RSA project includes both the South and North airfields at OAK. The South Field Run- way Safety Area Project (SF RSA) portion of the work is currently under construction and is scheduled to be completed in September 2014. Ongoing work on the SF RSA includes major modifications to the main air carrier runway, replacement of the existing airfield lighting control system, addition of two new taxiways, relocation of instrument landing system equipment, shift- ing the threshold of Runway 12 by 512 feet, repaving approximately 2,500 linear feet of runway, and enhanced signage and markings. The total expected budget for the SF RSA improvements is approximately $60 million. Under the DBE Program, the Portâwith FAA approvalâwas permitted to establish and implement a SBE pilot program for the SF RSA project. The pilot program was designed to provide a list of pre-qualified SBE subcontractors that the prime contractor would be required to utilize on specific bid items. The overall small business response did not produce an adequate pool of qualified firms to proceed as originally envisioned for the SF RSA project. The small businesses faced two major challenges: 1. Some firms did not possess the requisite experience or license or provide all the services requested in a single subcontractor package. 2. Firms were not able to provide audited or reviewed financial documentation that met the Portâs minimum standards. Independently of the Portâs pilot program, the prime contractor/subcontractors on the SF RSA project did include a number of SBE subcontractors in the bid. The dollar value of this SBE work is expected to total approximately 7.2 percent of the bid by the end of construction. Based on lessons learned from SF RSA, Port staff developed a new pilot program specifically for the North Field (NF RSA). This program addresses the small business utilization for NF RSA using independent carve-out packages of work to be bid and awarded to SBE contractors directly by the Port. The FAA approved this approach for NF RSA.
Case Studies 67 The small business utilization strategy for NF RSA incorporates the lessons learned from the SF RSA pilot effort by initiating a two-pronged approach that promotes small business participa- tion on the main NF RSA project, as well as utilizing carve-outs on the project (268): 1. In the main NF RSA project, the contract will require the successful low bidder to seek bids for cer- tain components of work to SBE-certified firms. In addition, Port staff will strongly encourage the prime general contractor to seek out SBEs to subcontract services (i.e., subcontracting and provision of supplies and materials) for the main NF RSA project prior to bid award. Staff will facilitate a meet and greet between the potential general contractors, SBEs and DBEs to help facilitate the maximum amount of SBE/DBE participation. 2. For this pilot, Port staff has identified specific independent project packages that will be bid separately from the main NF RSA project solely for SBE contractors. Parameters for these projects included: â¢ SBE carve-out projects were tailored to be successfully managed and completed by small business enterprises (project sizes allow for a greater number of SBEs) â¢ SBE carve-out projects were chosen where licenses are held by a large pool of certified SBE contrac- tors to ensure a viable pool of potential applicants (268). From this strategy, Port staff evaluated components from the NF RSA project scope and selected those components that would not have a direct effect on the schedule of the main NF RSA project. These components were developed into three individual bid packages for participa- tion solely by SBE contractors as described below: 1. Runway 10R-28L Shoulder Rehabilitation Project. Work scope for this project includes crack sealing; installing a seal coat over the entire runway shoulder pavement; and pavement striping. 2. Demolition of Pump House No. 3 and Drainage Improvement Project. The scope of this project includes the demolition of existing obsolete Pump House No. 3 structure; removal of demolition debris; grading; and installation of new drainage pipe. 3. North Field VSR Paving project. The scope of this project consists of base material installation; fine grading; asphalt concrete paving; and pavement striping and marking (268). 9.3.4 Staffing Model SRD aims to facilitate inclusion, fairness, equity, and access to economic opportunities, pro- grams, and services of the Port for the people and businesses in the Port community. SRDâs supporting core areas include: â¢ Administering and managing federal, state, local and Port policies and regulatory require- ments as they relate to economic and equal employment opportunity. â¢ Ensuring that the Port and its contractors, vendors and tenants fulfill their regulatory compli- ance requirements (i.e., federal, state, local, and Port mandates). â¢ Strengthening the Portâs commitment to strategic collaboration and outreach with key stake- holders and engagement with its community (Port staff, contractors, tenants, vendors, and community partners and residents) to maximize community economic opportunity and development (269). 9.3.5 Contracting Methods Some of the race-neutral program measures implemented at OAK include: â¢ Structuring contracting and concession activities to encourage and facilitate DBE and ACDBE participation when practical, including working with individual airport departments to carve out work specifically fit for small, local, and/or disadvantaged businesses. â¢ Ensuring that competitors for opportunities are informed during pre-solicitation meetings about how the Portâs DBE and ACDBE programs are administered. â¢ Encouraging the use of the maximum number of subcontractors on projects and encouraging the use of joint venture and partnering opportunities on all projects.
68 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities â¢ Assisting in overcoming limitations in bonding and financing through referral to and col- laboration with the surety bond and financing programs of various agencies. â¢ Ensuring compliance with prompt payment specifications. â¢ Tracking and monitoring compliance with federal programs, including monitoring commer- cially useful functions performed by listed DBE and ACDBE firms. â¢ Providing technical assistance in orienting small businesses to contracting opportunities at OAK through the Internet and via periodic website updates that provide information and practical advice to interested individuals on business marketing and opportunities at the Port and other agencies. â¢ Facilitating introductions to the Portâs and other U.S. DOT recipientsâ contracting activities through small business conferences and local Chamber- and trade association (i.e., Hispanic Chamber, Black Caucus, Black Board of Trade and Commerce, and Asian Business Chamber)- sponsored events, as well as monthly breakfasts, quarterly Port procurement fairs, and other outreach activities. â¢ Providing outreach and communications programs on contract procedures and opportuni- ties to ensure DBE and ACDBE inclusion, including a âHow to Do Business with the Portâ booklet providing information on DBE/ACDBE certification and procurement and contract- ing procedures. â¢ Working with organizations such as the Associated General Contractors (AGC), Engineering and Utility Contractors Association (EUCA), and other industry groups to identify ways to assist small businesses to increase participation as prime contractors or subcontractors on Port projects. â¢ Partnering with the SBA and other government agencies to increase opportunities and resources for small businesses. â¢ Ensuring the distribution and marketing of the California Unified Certification Program Database of certified DBEs and ACDBEs to potential contractors by listing its website address in RFPs and RFQs and emphasizing its user-friendly format. â¢ Providing business development assistance through the Portâs Owner Controlled Insurance Program and referrals to the East Bay Small Business Development Center and other assis- tance agencies. 9.3.6 Outreach Techniques OAKâs innovative efforts with diverse business participation in its construction industry con- tracts are part of a robust social responsibility agenda. The Port continuously strives to ensure equal opportunity to construction jobs as well and has developed an impressive number of strategic partnerships to stimulate local workforce utilization. 9.4 Raleigh-Durham International Airport (Medium Hub) 9.4.1 Background Raleigh-Durham International Airport (RDU) is a public international airport located approximately 15 miles west of Raleigh, North Carolina. The airport covers 4,929 acres and has three runways. In 2011, more than 9 million passengers traveled through RDU. The airport has two terminals. Terminal 1 is a hub to AirTran and Southwest. A brand new Terminal 2 opened in 2011 and handles the majority of airlines and passengers. The airport serves the area known as Research Triangle Park, home to more than 170 global companies such as IBM, Syngenta, Cisco and Credit Suisse. The surrounding area includes Cary, Durham and Chapel Hill, home to the University of North Carolina.
Case Studies 69 9.4.2 Ownership and Governance Raleigh-Durham International Airport (RDU) is governed by the Raleigh-Durham Airport Authority (Airport Authority), an eight-member board. The cities of Durham and Raleigh and the counties of Durham and Wake each appoint two members to the board. The Airport Authority is a local government responsible for the development, operation, and maintenance of RDU (428). 9.4.3 Diversity Programs and Characteristics RDU has three business diversity programs: (1) a minority- and women-owned small busi- ness (MWSB) program, (2) a DBE program, and (3) an ACDBE program, together designed to provide contracting and procurement opportunities for socially and economically disadvan- taged persons. The airportâs MWSB program applies to all of RDUâs state- and airport-funded contracts and procurement activities, and encourages equal opportunity for minority- and women-owned small businesses to compete as contractors, subcontractors, suppliers, and service providers. This program encourages and fosters the inclusion of MWSB firms in RDUâs business activi- ties, including the procurement of goods and services as well as leasing and development. The Airport Authority requires that each business partner make good faith efforts to promote this policy throughout its engagement with the Airport Authority. Authority staff has implemented the MWSB program to eliminate any present and ongoing effects of past and present discrimina- tion against minority- and woman-owned small businesses. The MWSB program is implemented to achieve a level of utilization commensurate with the current availability of interested and qualified minority- and women-owned small businesses; to encourage the development of new minority- and women-owned small businesses; to facilitate the participation of minority- and women-owned small businesses in the selection of Authority and third-party contracts for construction, professional services, and procurements; to facilitate the participation of minority- and women-owned small businesses in the selection of Authority and third-party contracts for construction, professional services, and procurements; to facili- tate diversity in the entities with which the Authority does business in order to benefit from the economic value of diverse providers and shield against the economic volatility of single providers in the marketplace, where appropriate; to ensure that minority- and women-owned small businesses are afforded an equal opportunity to compete on all Authority contracts; and to support the growth and development of minority- and women-owned small businesses that can successfully compete, outside of the MWSB Program, for Authority contracting opportunities. To further the objectives of the airportâs MWSB program, the Authority engages in a com- bination of initiatives such as Strategic Sourcing and Coordination, through which RDU staff responsible for procuring goods and services identify upcoming opportunities and work with the small business program officer to build professional relationships with potential MWSBs and educate firms on Authority procurement practices. RDUâs ACDBE program is designed to increase opportunities for minority- and woman- owned small businesses to operate as concessionaires in the airport or provide goods and services related to the airport concessions program. 9.4.4 Staffing Model In coordination and cooperation with other Airport Authority staff and board members, RDUâs small business program officer, who is the DBELO, is responsible for implementing all aspects of the ACDBE and DBE Programs and ensuring that the Airport Authority complies with
70 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities all provisions of Part 23 and Part 26. The DBELO has direct, independent access to the airport director concerning DBE and ACDBE Program matters. The DBELO also is responsible for providing information to DBE firms about the Authority, its functions, and the full range of its contractual needs; providing DBE firms with information on future procurement and contracting schedules; sending bid notices to DBE trade associa- tions, technical assistance agencies, DBE economic development groups, and DBEs with capa- bilities relevant to the bid notice; offering instructions and clarification on bid specifications, the Authorityâs procurement policy, procedures and general bidding requirements; providing instructions about contract performance requirements; and notifying, whenever possible, certi- fied DBEs of informal bid solicitations for contracts within their areas of qualification to ensure a full and fair opportunity to participate in such contracts. RDUâs DBELO also chairs the ACDBE Advisory Committee and provides ACDBEs with information and assistance in preparing pro- posals, obtaining bonding, financing, and insurance. RDU has one concessions manager who involves the DBELO from the very beginning of the procurement process, especially in some of the planning and determining what type of oppor- tunities can generate the most ACDBE participation. The early involvement of the DBELO in the procurement process allows time for the properties/concessions staff to work through issues concerning business requirements and maximizing ACDBE participation. It is a winâwin and not a situation of simply developing a goal. 9.4.5 Outreach Techniques RDU sponsors and participates in outreach and training opportunities for small businesses through various partnerships. The Airport Authority also provides scholarships to the North Carolina Department of Transportation Business Opportunities Workforce Development Exec- utive Management Program for Design and Construction (BOWD Executive Management Pro- gram). Small businesses that could benefit from the BOWD Executive Management Program are identified and provided scholarships to attend the 5-day program. RDU staff also participate in business outreach sessions conducted by local municipalities and non-profit agencies (e.g., the North Carolina Institute of Minority Economic Development; the Carolinas Minority Supplier Development Council), which are designed to introduce small and minority-owned businesses to the RDUâs procurement processes and practices. MWSB program outreach efforts are designed to document initiatives and establish proce- dures which best inform, present, and achieve results for maximum consideration and partici- pation by MWSBs. RDU engages in activities that promote MWSB growth and development, including offering technical assistance. The Airport Authority engages in various processes to facilitate the development of qualified new entrants into Authority business activities. RDU actively supports the participation of bona fide mentor-protÃ©gÃ© programs and joint venture arrangements in the areas of construction, professional services and other services. The Airport Authority evaluates the merits of each mentor protÃ©gÃ© relationship and joint venture individually and encourages such relationships where possible. 9.4.6 Honors and Recognition In June 2009, AMAC awarded its Airport Innovation Award to the Raleigh-Durham Airport Authority. The airport received the award for its Small and Emerging Business (SEB) Assistance Program, which offers small businesses in the airportâs concession program additional access to financial resources. The program is designed to help small businesses compete and succeed in an airport environment.
Case Studies 71 9.5 San Diego International Airport (Large Hub) 9.5.1 Background San Diego International Airport (SAN), also known as Lindbergh Field, is a public airport 3 miles northwest of downtown San Diego in San Diego County, California. The airport covers 661 acres and has one runway (9,401 ft. Ã 200 ft.). San Diego is the largest metropolitan area in the United States that is not an airline hub for passenger or freight airlines; however, it is a focus city for Southwest Airlines, which began service at SAN in 1982 (308). SAN opened in 1928, and its first modern terminal opened in 1967. Since then, SAN has added two additional terminals and undergone various capital improvements, including a $232 million expansion of the second terminal completed in 1998, and âThe Green Build,â a massive, $1 bil- lion expansion and sustainability renovation project completed in 2013 to meet SANâs high travel demands, one of the largest public works projects in San Diego County history (308, 310, 313). Despite its relatively small size, SAN is considered a large hub airport. It is the busiest single- runway commercial service airport in the United States and the second-busiest single-use runway in the world after Londonâs Gatwick Airport, with an average of 515 departures and 50,000 passengers arriving or departing from SAN on any given day. In 2013, SAN ranked 29th among the busiest airports in the United States by total passengers served and 30th in total freight and mail processed. SAN is serviced by 22 passenger airlines and five cargo airlines which fly nonstop to 54 destinations in the United States, Canada, Mexico, Great Britain, and Japan (312, 313). 9.5.2 Ownership and Governance SAN is operated by the San Diego County Regional Airport Authority, whose governing body is an appointed board of nine members who represent all areas of San Diego County and three ex-officio members. Three members serve as the Executive Committee. The president/CEO is responsible for management oversight of the Airport Authority, the Authorityâs annual budget, and a staff of approximately 370 aviation professionals. 9.5.3 Diversity Programs Characteristics SANâs local, small, and diverse business participation programs are administered through the Airport Authorityâs Small Business Development Department (SBD), established to ensure that local, small, historically underutilized, disabled veteran-owned, and other emerging businesses have increased business opportunities at SAN. The SBD is the primary resource for all airport departments in fostering small and diverse business opportunities, and it manages and imple- ments the Airport Authorityâs federal, state, and airport-specific policies related to economic opportunity. SAN has managed to implement its diversity programs and initiatives effectively at both the federal and local levels despite a changing and uncertain legal landscape, using inventive program measures to overcome obstacles to increasing diverse and small business participation. In the early 2000s, SANâs DBE and ACDBE program implementations utilized race-and gender-conscious con- tracting goals. However, in 2005, the Ninth Circuit Court of Appeals ruled that a Washington State race-conscious DBE program implementation was unconstitutional as applied in Western States Paving v. Washington State Department of Transportation. The case was decided in San Diegoâs own judicial circuit. Faced with uncertainty as to the continuing constitutionality of race-conscious federal Program measures, SAN began a major program shift, proposing to achieve subsequent participation goals using only race- and gender-neutral measures wherever possible. (For a more current discussion of constitutional concerns in federal diversity programs, see Chapter 2).
72 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities In 2009, SAN commissioned a disparity study to provide statistical evidence of any difference between SANâs utilization of minority- and women-owned firms in airport contracts and those firmsâ availability to perform work. Before the studyâs completion, SAN adopted an overall DBE participation goal of 17 percent for 2010, and an additional single-contract DBE participation goal for its Terminal Development Program (part of The Green Build) of 19 percent. Both goals focused solely on race- and gender-neutral measures. SAN also adopted an overall ACDBE par- ticipation goal of 25 percent for 2009â11, affecting non-car rental concessions. (All of SANâs car rental companies operate via an agreement not providing property rights, so there are no on- airport car rental operators and a car rental-specific ACDBE goal is inapplicable). In 1994, when SAN solicited its then-existing concessions contracts, the airport had race- and gender-conscious contracting goals in place through which it had achieved ACDBE participation of around 24 per- cent in previous years. Given that the race-conscious contracting goals were still in effect at the time of the disparity study, the study did not make conclusive findings as to SANâs concessions contracts, and focused primarily on DBE rather than ACDBE Program measures and utilization. The Airport Authority published the disparity study on March 10, 2010. The study recommended a future base figure for overall DBE participation on federally funded contracts of 17.2 percent. The study also found that SAN achieved fairly low levels of participation by minority- and women- owned firms in both federal and local contractsâeven under SANâs previous race-conscious program implementationsâand recommended that SAN expand its efforts to assist these firms. Notably, however, the disparity study found little difference between the participation of these firms under SANâs prior race-conscious measures and under its entirely race- and gender-neutral program. In fact, the study revealed that participation by minority- and women-owned firms was slightly higher after SAN shifted to a neutral program, suggesting that expanded neutral measures might effectively achieve higher diverse business participation. Following the recommendations of the disparity study, and committing to its post-Western States program shift, SAN set an overall DBE participation goal of 17 percent for 2011â13, again utilizing entirely race- and gender-neutral program measures. In 2011 and 2012, SAN achieved DBE participation between 10.5 percent and 12.7 percent. At the time of this writing, the Air- port Authority has proposed an overall DBE participation goal for 2014â16 of 14 percent (also entirely race- and gender-neutral). SAN also adopted an overall ACDBE participation goal for 2012â14 of 24 percent. Because SANâs race-conscious ACDBE contracting goals remained in effect through November 2012, the airport projected that 8 percent of the 24 percent overall goal would be met through race- and gender-conscious measures, while the remaining 16 percent would be met through neutral means upon expiration of the existing contract goals. At the time of this writing, both SANâs DBE and ACDBE programs are fully race- and gender-neutral. In sum, SANâs diversity programming was greatly influenced by the Western States decision, which was the primary reason SAN adapted its federal and local programs to utilize entirely race- and gender-neutral measures. Although the uncertainty and scrutiny brought by Western States and the ensuing policy shift initially presented a tremendous challenge to SANâs diverse and small business policies, particularly in light of the disparity studyâs recommendation that SAN increase diverse business participation, SAN executives stated that those obstacles forced policy leaders and personnel to innovate, and over the years the airport has developed creative and effective ways to âcast a broad netâ and increase the participation of diverse, small, and underutilized firms in air- port contracts while avoiding the potential legal entanglements of race-conscious programming. Some notable examples of SANâs creative race- and gender-neutral initiatives include: â¢ The Bonding and Contract Financing Assistance Program (a partnership between the Air- port Authority and Merriwether & Williams Insurance Services), which provides assistance to small businesses in obtaining bonds or lines of credit for airport contract work. This pro- gram offers bid, performance, and payment bond guarantees and loan guarantees for airport
Case Studies 73 projects; sponsors seminars in funds administration; helps small firms network with fund administrators; offers one-on-one financial counseling with small firms; and hosts technical assistance workshops on finance and management topics. Several participants in the program have subsequently been able to obtain bonding on their own. â¢ The Turner School of Construction Management (a partnership between the Airport Author- ity and Turner Construction), which offers free nightly courses to improve the technical, administrative, and managerial skills of small construction management firms. Topics include how to work with SANâs financial systems and how to network and make internal connections, among others. The Turner School has graduated over 15,000 students. â¢ SANâs Online Education Program, which offers online courses and tutorials on how to do business at SAN, such as how to successfully bid airport work, understanding required forms, and developing safety and security procedures, among other topics. â¢ SANâs SBD, which engages in outreach to provide small firms with information on contract- ing opportunities at SAN. Small firms also can register with the SBD online to receive bidding notifications, advertisements, and information on networking and outreach events. â¢ The Airport Authorityâs support of the San Diego Contracting Opportunity Center, which assists small firms in doing business with other federal, state, and local government agencies at no cost to the participants. â¢ The Airport Authorityâs membership in the San Diego County Public Agency Consortium, a group of local public agencies that pool resources to host quarterly outreach and networking events for small businesses with the goal of pairing prime contractors with subcontractors across procurement areas. â¢ SANâs membership with a number of local trade organizations that host regular outreach and networking events to encourage small businesses to participate in work at SAN. â¢ SAN maintains a participant-accessible file of successful bid documents from past pro- curements for potential participant review and evaluation, and shares its DBE and ACDBE certification databases with prime contractors to allow them to use it in their own diverse contracting activities. â¢ SAN conducts regular debriefing sessions on each awarded contract to explain why certain bids were unsuccessful. â¢ Where feasible, SAN establishes a minimum percentage goal of the total value of certain con- tracts to be performed or subcontracted by small businesses, and requires prime contractors to meet or exceed this goal or make good faith efforts to do so. In addition to these effective neutral federal program measures, SAN has also demonstrated a local commitment to increasing the participation of small and diverse businesses via neutral means. SANâs Policy 5.12, Preference to Small Businesses, is a preference program developed to give small businesses preference in non-federal contract procurement. Policy 5.12 provides a bidding preference of up to 5 percent to small businesses in the award of selected authority con- tracts. For example, up to 5 percent of the bid of the lowest responsive non-small bidder can be subtracted from the bid of the lowest responsive small bidder in price-based selections. Similarly, SANâs Policy 5.14, Small Business, Local Business, and Service Disabled Veteran Owned Small Business Goal and Preference Program, establishes a series of goals for small, local, and ser- vice disabled veteran owned small business participation, whichâif met or exceeded by prime bidsâwill trigger price preferences in the non-federal contract award process to incentivize bidders to include these firms in bids. SAN personnel also engage in regular practices that have contributed to diverse business par- ticipation at SAN, such as continuous unbundling of contracts, an average turnaround of pay- ments to small businesses of 12â15 days, regular compliance monitoring, and ongoing review of contracting requirements to minimize obstacles for small businesses. Local policies such as these achieve several important objectives, including increasing small and diverse business
74 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities participation in both federal and non-federal projects, enhancing the race- and gender-neutral measures of the federally mandated programs, and signaling airport-wide commitment to and visibility of program policies. 9.5.4 Staffing Model The director of the SBD serves as the Airport Authorityâs DBELO and has independent access to the Airport Authorityâs president and CEO pursuant to federal regulations. Aside from the director, the SBD has three staff-level positions and an administrative assistant, and has occa- sionally added temporary positions for specific projects such as The Green Build. 9.5.5 Contracting Methods SANâs stated inclusion philosophy is that the people involved in every part of the contracting processâexecutives, staff, and even contractors themselvesâare responsible for diversity. A prime example of this philosophy was SANâs approach to The Green Build, which followed a design-build contracting structure. Within this structure, prime contractors were responsible for maintaining fully staffed diversity outreach programs and ensuring diverse participation in contract execution in cooperation with SAN staff. This decentralized and collaborative structure brought prime con- tractors in direct contact with small and diverse firms. SAN also integrates diversity goals through- out its concessions opportunities, following a multiple-prime contracting structure that provides 16 prime concessions packages with the restriction that no single contractor can have more than 30 percent of the total square footage. This effectively unbundles SANâs concessions opportunities, creating accessibly sized concessions packages for ACDBE firms to bid on directly. 9.5.6 Honors and Recognition SANâs creative development of its program measures has been largely successful according to numerous observers, both within and outside of SAN. Although a shift from a race-conscious to an entirely race- and gender-neutral program might initially seem counter-intuitive in increasing diverse business participation, SAN executives noted that diversity has actually increased over this period, confirming the indications of the 2010 disparity study. Executives attribute this success to SANâs continuous efforts to get all levels of airport contracting involved in inclusion and specific and personal outreach to diverse DBE groups. SAN personnel also highlighted The Green Buildâs design-build contracting structure as a case study in effective inclusionary practices because of its decentralized approach, which gave prime contractors a personal stake in diversity efforts. SAN also was recognized as having excellent diverse and small business inclusion practices by several outside observers, including business executives, consultants, and FAA personnel. Observers indicated SANâs focus on community outreach, technological education resources, organization-wide commitment to the inclusion process, and innovative race-neutral program measures as best practices that have brought tremendous visibility and credibility to the airportâs diversity programs and goals. In 2013, the Airport Authority received ACIâNAâs first-ever Inclusion Champion Award, which recognized the Airport Authorityâs âexceptional achievement in promoting and sustain- ing diversity throughout the airport industryâs workforce.â Among the diversity and inclusion practices highlighted by ACIâNA in making this award were: â¢ The Airport Authorityâs active recruiting of a diverse workforce, including 43 percent of employees identifying as non-Caucasian, with 20 percent identifying as Hispanic, 12 percent as African American, 8 percent as Asian, and 3 percent as Native Hawaiian/Pacific Islander.
Case Studies 75 â¢ Project LIFT, a partnership between the Airport Authority, San Diego City College, and the Airport Minority Advisory Council, which introduces students to aviation careers. â¢ SANâs innovative contracting structure for The Green Build, which focused on improving small and diverse business participation (7). 9.6 Phoenix Sky Harbor International Airport (Large Hub) 9.6.1 Background Phoenix Sky Harbor International Airport (PHX) is located 3 miles southeast of downtown Phoenix in Maricopa County, Arizona. The airport serves more than 100,000 passengers daily, with more than 1,200 aircraft operations per day and a daily economic impact that surpasses $79 million for the Phoenix metro area. Nearly 40 million passengers are served at PHX every year. In 2012, PHX served 40,448,932 passengers, making it one of the top 10 busiest airports in the United States by passenger count. The airport also handles more than 800 tons of cargo per day. FAA records show the airport had 20,169,926 enplanements in calendar year 2012 and 20,211,799 in 2011. US Airways is the airportâs largest carrier. PHX is Arizonaâs largest and busiest airport. 9.6.2 Ownership and Governance The City of Phoenix (City) owns the Phoenix Airport System which consists of three airports: PHX, Deer Valley Airport (which serves to relieve air traffic from PHX), and Goodyear Airport (a general aviation reliever airport for PHX). The City of Phoenix Aviation Department (Avia- tion Department) operates the three airports. The City has owned and operated PHX since 1935. The nine-member Phoenix Aviation Advisory Board, appointed by the Mayor and City Coun- cil to four year terms, meets monthly to review airport policies and makes recommendations to the City Council on major airport projects, concession contracts and leases. 9.6.3 Diversity Program Characteristics The goal of the city is to achieve the maximum participation possible of ACDBE, DBE, and small businesses through the use of race- and gender-neutral measures carried out by the City and proposers for airport contracts. The goal of the Aviation Department is to increase small business competitiveness and capacity at PHX, Goodyear, and Deer Valley Airports. The Aviation Department is a committed and proactive partner to the small business community through the development and implementation of programs and services designed to increase contracting, professional services, and procurement opportunities. Small business outreach requirements for proposers on PHX contracts include: â¢ Identifying small business participation opportunities. â¢ Conducting outreach for small business participation. â¢ Evaluating small business proposals. â¢ Notifying each small business contacted of the proposerâs selection decision, whether or not the small business was selected. â¢ If a small business is a proposer, completing outreach requirements to other small businesses (429). 9.6.4 Staffing Models The Aviation Department has established a Small Business Development team to ensure that local, small, and historically underutilized businesses have every opportunity to do business with
76 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities the airport, and to serve as a resource for all the divisions within the Aviation Department. The teamâs mission is: To lead a cooperative effort to enhance the Aviation Departmentâs small business participation through strategic outreach, innovative processes, education and training, strong community involvement and interdepartmental partnerships (429). The cityâs Equal Opportunity Department (EOD) reviews scope-of-work specifications that the Aviation Department prepares for concession solicitations; conducts availability analysis to identify interested businesses and appropriate race-neutral or race-conscious participation goals; reviews third-party contracts (e.g., joint venture agreements) for Part 23 compliance; reports statistical data and other information to U.S. DOT and/or FAA; and provides technical assistance and support services to disadvantaged businesses. The EOD also makes determinations regarding the responsiveness of proposals to the cityâs affirmative action policies and diverse business participation requirements, and provides guidance to the Aviation Department on ways to avoid barriers to ACDBE participation. 9.6.5 Contracting Methods PHX has three business diversity programs administered by the EOD. The airportâs SBE pro- gram offers small local businesses opportunities for doing business with the city. It is applicable to procurement and contracting that use city funds and is only available to firms with a pri- mary or principal location in Maricopa County. Certified SBE firms can participate in the cityâs Reserve Contract Program, which includes opportunities for goods and general services providers to participate in city procurement opportunities. Selected contracts are reserved by the Finance Department for competition only among certified SBE firms. The city reserves the right to award to bidders other than the low bidder if quality and qualifications are not equitable among bidders. PHXâs DBE program is available to socially and economically disadvantaged business owners who are interested in the airportâs federal contracting opportunities. The airportâs ACDBE pro- gram is available to socially and economically disadvantaged businesses whose activity is relevant to the PHX concessions program. The city is a member of the Arizona Unified Certification Pro- gram (UCP), and its EOD certifies firms to participate in the SBE, DBE, and ACDBE programs. 9.6.6 Outreach Techniques The city holds numerous workshops, training sessions, and technical assistance programs throughout the year. In addition to the EOD, the city has an individual dedicated solely to out- reach. The city is among the very few airport operators that have such an individual. The small business outreach manager advocates on behalf of diverse businesses, provides contracting opportunity information and education to small businesses about how to access contracting opportunities, and assists prime contractors with identifying diverse businesses. This individual also hosts small business networking forums and assists with monitoring small business partici- pation on contracts with participation goals. In addition, the small business outreach manager brings the interests, ideas, and concerns of community and business leaders regarding the airport concessions and contracting programs to the cityâs attention. 9.6.7 Honors and Recognition According to a June 2014 audit report by the U.S. DOTâs Office of the Inspector General, PHX is the number-one airport in the country for new small businesses. The goal of the report was to identify which of the nationâs 64 largest airports have been able to successfully incorporate new DBE operators. In fiscal year 2012, Phoenix Sky Harbor International Airport added 14 new small businessesâthe most of any airport in the nation. In addition, the City of Phoenix helped secure $4 million in financing for small and disadvantaged businesses at PHX (276).