Procuring and Managing Professional Services for Airports (2013)

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7 The organizational framework is the heart and soul of successful operations and project exe cution. The mission, guiding principles, and goals of the organization establish the context for policy, procedures, standards, roles and responsibilities, and interactions and communication among departments, stakeholders, PSPs, decisionmakers and customers (see Figure 2-1). This chapter will identify successful organizational principles and management strategies that set the tone for effective procurement and management of professional services focused on quality outcomes. Organizational Structure As airport agencies seek to respond to growing demands, fewer resources, and greater public scrutiny, it is imperative to assess how the organization is structured and what resources (e.g., people, finances, and technology) are available to meet those demands. The organization requires a renewed evaluation of what services are best performed internally and what processes are in place to procure and manage services that will be performed by PSPs. Agencies need to be mindful of the external forces affecting expectations of performance and the delivery of services. Those forces include federal and state prevailing laws, legislation and regulations; labor agreements; funding sources and budgetary obligations; and the needs of customers—agency departments, airlines, tenants, and the traveling public. To build a more effective organization that will deliver exceptional services as well as increase confidence and investment, it is necessary to harness resources with a clear understanding of the motivations and expectations of the external forces at work. External political, economic, and demographic forces can influence the priorities and structure of an agency. Therefore, it is impor- tant to develop a strategic approach to manage and respond to those forces (see Figure 2-2). It is vital to have a clear understanding of the legal and regulatory authority and the available tools that allow for flexible and innovative approaches to procuring and managing professional services. There may be a need to modify or develop new partnerships or policies to address changing demands and funding availability. Modifications to existing regulations, authority, or process may necessitate an adjustment in organizational approach and resources to communicate the direction and expectations for performance. Guiding Principles The guiding principles for procuring and managing professional services begin with a clear vision and a well-communicated approach to an integrated flexible, accountable, transparent and strategic direction to defining scope, schedule, and cost. The vision and strategic direction should be established by the executive leader of the airport agency. In addition, carefully designed procurement and contracting processes will set the tone and direction for the management of PSPs. C H A P T E R 2 Organization and Approach

8 Procuring and Managing Professional Services for Airports Figure 2-1. Critical path—strategic direction. Figure 2-2. Influences on organizations.

Organization and Approach 9 As important, a sound procurement process can decrease risk and change orders and ensure a successful delivery of the project in terms of scope-schedule-cost. The practice of tying scope, schedule, and cost together from strategic planning through close-out is critical for managing change and controlling risk. For this reason, scope-schedule- cost will be referenced as one word throughout this Handbook. Several themes emerged from the research that can be appropriately summarized with the acronym FACTS: Flexibility, Accountability, Communication, Transparency, and Strategic Direction. An airport will realize benefits from integrating the guiding principles of a FACTS- based approach into the organizational process to procure and manage professional services. • Flexibility. Balance the need to (1) adjust in changing times, (2) work in dynamic political and economic environments, and (3) collaborate with changing expectations, with an accountable process that allows for negotiation and management of various contracting venues and expected services from various expert service providers. Provide flexibility to fit the best process to the service desired. • Accountability. Provide stakeholders with a clear, concise, cost-conscious, and effective process for contracts which provides an open, clear process to validate spending, manage performance, and mitigate conflicts. • Communication. Foster regular, open, and honest communication among the providers of professional services. Establish a line and method of communication early to develop trusted relationships with the stakeholders and a better understanding of needs and expectations. • Transparency. Clearly define needs, expectations, and requirements and facilitate open, honest, and clear dialog on how, why, when, and with whom processes, procedures, and products are developed to achieve buy-in and confidence among all participants. Communicate rules and procedures and set clear expectations to increase productivity and reduce the potential for conflicts. • Strategic Direction. Harness and fit the resources, partners, and funds available for projects that meet agency goals. The need to meet expectations does not diminish when funding is limited. In the face of restricted funding, airport agencies are challenged to be innovative when procur- ing and obtaining services so as to maximize available funding to realize the goals and needs of the airport. Strategic direction should include identification, evaluation, and coordination of all partners in the process. As agencies redefine their core missions based on decreased funding and workforce and increased expectations, it is useful to engage many partners to define the current direction and to plan for the future of the organization. For example, as an organization reshapes to adapt to today’s constraints, the organization also should be keeping an eye toward tomorrow’s opportunities. Succession planning and partnerships are important organizational tools for growth. The specific services provided by PSPs today may not necessarily be appropriate in the future, especially if there is a strategic approach to build more capacity at the agency. Therefore, continual evaluation of core responsibilities, staff resources, and procurement and management strategies need to be flexible and reflect that organizing principle. The successful procuring and managing of professional services is intrinsically linked to the agency’s approach. To execute a strong mission with clearly established goals and expectations of performance, the agency should devise a set of guiding principles based on FACTS, identify the most suitable managers, provide the appropriate resources and tools, and delegate the necessary authority to empower the managers to effectively meet those expectations and to deliver the best services (see Figure 2-3). Decoupling scope, schedule, and cost will increase change orders, add risk, and jeopardize results. Empower staff and delegate responsibility to appropriate people with the tools and resources to deliver, measure, and account for performance.

10 Procuring and Managing Professional Services for Airports Misconception: Flexibility, Accountability, Communication, Transparency, and Strategic Direction (FACTS) Conundrum Several airports interviewed for this research cited concerns about incorporating flexibility, communication, and transparency into their approach to procurement, expressing fears that doing so would increase the cost of doing business as well as make agencies vulnerable to litigation. Reality Contrary to this perception, airport agencies that made information (e.g., selection criteria, selection committee notes, and debriefings) publicly available and estab­ lished regular communication and evaluation of PSPs were more accountable and transparent and reported fewer disputes and limited litigation. Although it takes time to implement organizational changes to achieve these results, many agencies have found that litigation, costly changes, and inadequate outcomes will decrease, not increase, when the FACTS methodology is put in place. As public and political pressure increases to improve delivery with fewer resources, agencies need to demonstrate sound accountability and transparency in their processes to gain the confidence of stakeholders. The more open and communi­ cative an agency is, the less confusion and erosion of trust occurs and, therefore, more reliable results are obtained. Agencies should be more flexible, accountable, communicative, transparent, and strategic to adapt to changing times and meet new and growing demands in a cost–effective manner. The FACTS approach can be implemented without compromising operations and performance when there is strong leadership with a commitment to provide resources and people from the start. The benefits of integrating a FACTS–based approach to procuring and managing professional services can result in an improved process that reduces the cost and time involved and increases the public’s confidence in the agency. Figure 2-3. Establishing a strong foundation. Require Regular Communication and Accountability Delegate Authority and Empower Staff Set Expectations and Manage Performance Establish Guiding Principles Based on the FACTS Approach Strategic Approach to Mission and Goals

Organization and Approach 11 Policy and Standards of Performance The research shows that a formal and clearly defined approach that sets achievable expectations for performance, communication, and accountability is vital for success. This process begins with taking the time to understand the agency’s needs and the PSP’s orientation to providing needed services. Then ideas, resources, and expectations regarding scope-schedule- cost should be shared (e.g., what is known, what is the risk, what is the plan to manage change and develop deliverables?). This establishes the basis for a common ground in relationships. It is equally important to position the appropriate staff to develop strategic partners as a pre- cursor to building trusted relationships (see Figure 2-4). Relationships built on trust, under- standing, a shared vision, and expectations of outcomes can save time, money, and stress for all parties. The composition of the management team and the ability of each member to be a mutual resource are essential for delivering better with less. The agency and the PSP must discuss the composition of the workforce, experience, organization of labor, growth opportunities, training, and educational requirements to allow for better sharing of resources. To this end, both sides must take the time early, clearly, and often to discuss concerns so as to identify resources and determine the best approach for delivery of services. People Select the right people with the right skills, experience, training, and authority to manage the process, PSP contracts, projects, and services. Basic actions to guide the identification and placement of people are as follows: • Select, train, and empower the appropriate personnel to procure and manage professional services and to create a platform for collaborative interaction throughout the life of the pro- fessional service contract. • Define roles and responsibilities, and redefine as necessary. Strong strategic direction needs to be established up front and communicated to managers and PSPs regularly and often. The organization and managers need to focus on process, people, and relationships and must maintain high integrity and a commitment to achieving desired outcomes/results. • Expectations need to be clearly communicated and established to avoid unnecessary risk, project changes, and lower quality. • Recognize that agencies and PSPs do not consist of just one person. Each has several key managers and decisionmakers who have different views and priorities based on their roles and experience. Know the players and their needs, skills, and resources. Figure 2-4. Achieving common ground. Meet, Talk, Learn, Agree, Act

12 Procuring and Managing Professional Services for Airports • Understand mutual needs and shared values. This may require bringing different people to the table. Ask questions; identify the needs, concerns, and goals of key players; and come to a shared understanding of expectations and deliverables. • Assemble the right people for effective outcomes, which are best defined and delivered by using the diverse skills and understandings of different people. Everyone communicates, listens, and understands differently. Collaborate and work together to identify the best approach. One size does not fit all. Each situation is different, and available tools and resources change constantly. • Be open to change and new ideas. Work with partners to test ideas and develop processes to manage risk but also to identify and track opportunities. • Evaluation of performance is important. Engage in an evaluation process. Formalize regular meetings to allow for continual monitoring of performance and refinement of actions and practices. Track performance and exchange lessons learned to enhance the ability of the agency and PSP to manage change, modify actions, and improve performance. • Proactively implement succession planning. Professional service needs change constantly, and the workforce is dynamic. Look ahead and develop staff to manage change, maintain relationships, and prepare for tomorrow. Misconception: Anyone Can Do the Job The research found that, as resources become more constrained and the size of the workforce declines, staff is taking on more procurement and management responsibilities with the assumption that they can do both jobs. The workload is not declining but the available staff and training is declining. Agencies experiencing these changes tend to consolidate very different functions under one manager. Reality It takes a team to procure and manage PSPs, and various skill sets, experience, and training within the team are required to procure and manage professional services. The research shows that having the right people, appropriately trained and skilled, to perform the required services is at the heart of achieving the best results. A skilled and competent manager of procurement does not necessarily have the appropriate experience, resources, relationships, and training to effectively manage PSP performance and oversee contract implementation, and vice versa. At airports with limited staffing and funding, it may not be feasible to convene a comprehensive internal procurement and management team. Some practical solutions to this situation would include cross­training available staff in functions, sharing resources with other airports in the region, or hiring a third party to handle the process. Roles and Responsibilities The procurement and management process detailed in Chapters 3 through 5 identifies the potential key participants and their associated responsibilities. As illustrated in Figure 2-5, the following description summarizes the typical responsible parties and their roles in the procurement and management process: • Executive Leader. The individual at an airport responsible for determining the strategic direction of the airport, managing all operations, and accountable to regulatory and approving authorities

Organization and Approach 13 for the financial integrity of all operations, programs, and services, including the delivery of projects. The Executive Leader can be the Executive Director or President and CEO of the airport or the Director of the airport facility of a multi-purpose authority, depending on the size, governmental structure, and complexity of the airport. • Leadership Team. The leadership team consists of senior managers responsible for accomplish- ing the mission and overall operations of the airport. The senior management staff within an airport organization consists of those individuals responsible for overseeing the financial, engineering, planning, operating, administration, and IT departments. The leadership team at a GA or small-hub airport may be the same as the management team. Accountable: ultimate ownership of all decisions, actions and outcomes of the Agency Responsible: executes actions, makes decisions and ensures the outcomes of the Agency Obligated: actively participates in the process; provides data required to support decision-making Informed: receives information and provides feedback as needed Figure 2-5. Responsibility matrix.

14 Procuring and Managing Professional Services for Airports • Management Team. The management team consists of senior managers from those departments responsible for and accountable to develop, implement, and oversee the strategic direction of the agency. The composition of the management team will depend on the size, governmental structure, and complexity of the airport. For example, a management team at a large-hub airport might include a CEO of the authority, director of aviation, director of operations and maintenance (O&M), and senior managers from finance, planning, engineering, and IT. • Procurement Team. A procurement team consists of procurement and project managers who implement individual projects under the strategic plan of the airport, are responsible for delivering the projects on time and on schedule, and are accountable to the project’s internal and external stakeholders. The procurement team should be involved in the project from the initial project concept to the final close-out to maintain continuity and ensure that the initial project expectations are met. A typical procurement team might include the contracting officer and the airport’s project manager or designee. • Internal Stakeholders. Internal stakeholders are individuals, groups, or departments internal to the airport organization and may include the executive administration, O&M, administrative, and technical departments, and any board of directors internal to the airport. • External Stakeholders. External stakeholders are those individuals, groups, or organizations that exist and operate outside of the airport organization and may include financial, regulatory, and approving agencies such as the FAA; TSA; outside boards and commissions; federal, state, and local governmental agencies; tenants (e.g., airlines, concessions, and car rental agencies); and the general public (e.g., neighbors, advocacy groups, and the traveling public). Figures 2-6 and 2-7 illustrate two different sample structures for airports of various size and governing structures and where potential participants in the procurement process may fit into the responsible party categories described above. These categories and the responsibility matrix can be adapted to airports of all sizes and structures. Figure 2-6. Typical structure of AGA.

Organization and Approach 15 Figure 2-7. Typical structure of authority. Communication Strategy Communication forms the basis for trust and partnerships that are necessary during changing political and economic times and throughout the course of each project (see Figure 2-8). As such, it is essential to document the process and communicate changes often and regularly during a project. Have as much face-to-face interaction as possible to ensure that expectations are mutually understood and that scope-schedule-cost milestones and deliverables will be achieved. Each participant brings different skills, concerns, and ideas, so match the appropriate people to communicate and develop a shared understanding of needs, approaches, and expectations. How to identify the best people will be different for each situation. For example, appropriate selection committee members will vary based on agency or department need. People with a dif- ferent set of skills are needed to negotiate a contract. A management team will need to possess different administrative and technical skills critical for developing the procurement and management process. It is important to know the players and what they bring to the discussion. Finally, as the process is not a one-time event, it will require that a formal system of communication be established through regular reports and meetings, with the goal of identifying issues early to better address ongoing concerns. Engage the right partners; define needs, concerns and ideas; work together on an approach; and meet often to monitor and review process.

16 Procuring and Managing Professional Services for Airports Basic elements of effective communication include • The Art of Listening. There has to be motivation and willingness on both sides to listen and understand other’s perspectives and to agree on expectations and approaches. • Develop a Common Language for Goals and Values. Use unbiased, clear terminology that each party understands. For example, use language that talks about “profit” or “lump sum” or “acceleration” simply and clearly so the terms, value and approach are understood. Take the time to clearly define and agree on terminology and expectations. Agencies and PSPs must have a mutual agreement on terms and outcomes. • Diversity Quotient. Bring different people with diverse skills and backgrounds to the table. Everyone learns, sees, and understands differently. Bring together different expertise and perspectives to allow for a broader and more comprehensive view of needs and concerns while opening the door to more creative and strategic solutions. One example is the accommodation of the various needs of people with disabilities. Include members of that community at the table to share their insights with owners, managers, and PSPs who do not have direct experience or understanding of the barriers. • Be Open to New Ideas. The “we have always done it this way” mentality is at the heart of some of the most frustrating and counterproductive organizational challenges. Learn the motivations, training, skills, and willingness to change of the people involved in procuring or managing a professional service. For example, are the people involved in negotiations well-prepared, do they understand the agency’s goals, and are they able to listen and be open to new approaches where both sides can mutually agree and be successful? • Ego. The ultimate end of collaboration begins with ego. Assess whether the people involved are able to develop mutual understanding and exchange ideas. Team members must be willing to participate with respect and openness in shaping the direction and managing the process. • Succession Planning. Inevitably, people move on to other positions or retire. Fostering growth and developing talent is critical to sustaining any organization—agency or PSP. Creating opportunities for training and engagement is an important part of developing good managers and leaders. • Play to One Another’s Strengths. Work with the knowledge and experience of team members to explore opportunities for innovation and develop better solutions. Understand the com- petencies and interests of the individuals involved. For example, on the PSP side, technically trained staff may have the innovative solution with the right support and interaction among their peers, but those same individuals may not be interested in working with the public or in Figure 2-8. Effective communication.

Organization and Approach 17 public speaking. On the agency side, individuals may know the process well, but may not be interested in engaging in conversation with the PSP. • Set the Context and Tone Carefully. Provide the best environment for a productive conversation to occur. Determine the desired outcome: result-focused (i.e., partnership, collaboration, and insight) or compliance-focused (i.e., provide direction, establish oversight, and exert control). Be clear on the approach so as to set the parameters and tone of a meeting. Selection of the appropriate PSPs should consider the specific agency need and desired outcome. A requirement for a routine service is distinctly different from a need for a creative and innovative solution. When creativity and innovation are needed, the process for soliciting and selecting the PSP will need to be commensurate with that expectation in mind. Determine in advance what you are willing to pay for a service and understand the risks and expected duration. Risky, high-demand projects will require a more sophisticated approach. “Right-size” each project. Define the task, select the right people to manage it on the agency side, and then tailor the process to get the best results. Oversight Procuring and managing professional services encompasses a set of procedures that provides a roadmap to identify needs, set expectations, and monitor performance. The formula for a successful procurement process (see Figure 2-9) includes the following steps. 1. Written Documentation. Establish and formalize all procedures in writing; document the purpose, rationale, expectations, and outcomes of the procurement. Establish strong and flexible procedures that set expectations up front for project controls, delivery, and close-out and formalize the management of risk, change, and performance. Procedures should include steps that require accountability, evaluation, and review that are consistent, reliable, and regular in their occurrence. 2. Effective Communication. As processes and procedures change over time, a mechanism must be in place to communicate those changes to both internal and external stakeholders, including agency staff, tenants, PSPs, and the public to ensure transparency and so that everyone knows the rules. Establish expectations regarding performance and improvement for all involved. Develop written procedures on how to get the job done and communicate them across departments. 3. Training. As organizations, funding, and resources are constantly shifting, rules and regulations are also changing. Training must be provided regularly for staff to be fully aware of changing rules, ethics, and funding requirements. Training needed for procurement staff is not necessarily the same as training required for PSP managers. Contract officers must know the prevailing rules, laws, and regulations and understand how and when to use the best method for service and outcome. On the management side, project managers need to understand how to execute their contracts and must have a clear understanding of different project delivery mechanisms and how to contract for the best result. Figure 2-9. Formula for a successful procurement. Form a basis of understanding—ask questions and share information and expertise.

18 Procuring and Managing Professional Services for Airports 4. Tools and Technology. Resources must be made available to execute the process, commu- nicate effectively, empower staff to procure and manage professional services, and provide continuous feedback and improvement. Resources include tools (e.g., manuals, organization charts, model documents and forms) and technology (e.g., software and websites) for carrying out procurement processes, eliciting information, and educating stakeholders. For example, a procurement officer should have appropriate software to distribute RFPs, notify PSPs of upcoming opportunities, perform quantitative analysis, create and manage budgets and schedules, and access data required to procure and manage PSPs effectively. Strategic Approaches For the process to manage and procure PSPs to be effective, the approach needs to reflect the strategic direction of the agency. The strategic direction should define both the current mission and future goals, beginning with FACTS–a flexible, accountable, communicative, transparent, and strategic process for defining scope-schedule-cost. The Dallas-Fort Worth International Airport and Massachusetts Port Authority were found to be excellent examples of agencies that devised and promulgated a formal strategic direction for the airport that aligned the available resources with the procurement and management process for PSPs. These agencies also shared their strategic direction with PSPs so that PSPs could better align their resources with the agency’s, resulting in a more efficient process for both the agency and the PSP. Create a Fair and Level Playing Field The research shows that airports that facilitate fair competition and a level playing field will obtain the best results in the procurement process. The best method to create fair competition and a level playing field are to ensure that the procurement process is communicative and transparent to all internal and external stakeholders, including the PSPs. The strategic direction, mission, and goals of the airport, as well as any upcoming projects, should be openly communicated to all stakeholders. This communication can be done at meetings with individual PSPs, at regularly scheduled quarterly/bi-annual meetings, and through technology (e.g., website postings and email subscriptions). Misconception: Keeping PSPs at Arm’s Length Leads to More Protection for the Airport One consequence of increased regulations guiding procurement has been the separation of airport managers from PSPs. Many of the agencies interviewed for this research noted concerns about the appearance of collusion or favoritism as well as concern for disputes and litigation. Reality The research showed that agencies that clearly explained the process and communi­ cated expectations early developed successful partnerships with PSPs. Almost every agency interview commented on the importance of developing and maintaining strong communications and relationships with PSPs to manage change, address risk, avoid conflicts, and monitor quality and performance. Airport agencies that engaged in constant communications with PSPs had fewer conflicts, change orders, and disputes, and experienced more effective delivery of scope­schedule­cost as a result of their efforts. An open and transparent communication with PSPs achieved a better understanding of project purpose and expectations of performance.

Organization and Approach 19 It is critical to establish clear rules of engagement, which are different between the procurement and management cycle, to allow the fair and open exchange of information and to create a level playing field. Allow PSPs to meet with and learn from an agency prior to advertisement to allow for a good understanding of the needs of the agency—This promotes more thoughtful, quality responses that can assist in guiding development of scope-schedule-cost and the selection of the best PSP for the service. Establishing a level playing field need not be at the expense of sharing useful information with interested parties. Be open about the needs and resources, allow a conversation to occur, and encourage site visits and research on needs and conditions prior to solicitation. Several airports that participated in the outreach had established a best practice of instituting a “cone of silence” once a solicitation had been advertised. With the cone of silence, the agencies would not meet individually with any interested PSP after advertisement, but communicated exactly the same information (e.g., changes to the solicitation) to all parties, via the same methods (e.g., internet postings, email subscriptions, or briefings). The cone of silence rule has been implemented by Indianapolis Airport Authority and Dallas-Fort Worth International Airport during their pro- curement processes. The implementation of this rule has resulted in fewer disputes during the procurement process and has created a level playing field for all participants. Create a Strong Foundation in Scope-Schedule-Cost Create a foundation for the efficient management of professional services to achieve project goals and outcomes. This foundation is the practice of keeping scope, schedule, and cost tied together, from strategic planning to close-out: • Scope: develop a well-defined scope with clarity of purpose and clear objectives through an engaged and interactive process. • Schedule: plan for all operational requirements, funding, and budget mandates while anticipat- ing and managing change and risk factors. • Cost: develop forecasts using reliable data while managing the expectations of stakeholders and maintaining clear, concise, and regular communication. The ability to prepare a well-defined, concise scope-schedule-cost for a project is the first step to a successful procurement. Based on the research, the decoupling of scope-schedule-cost is the single biggest contributor to project change orders, cost overruns, and schedule delays. A well-communicated strategic approach that clearly defines needs sets the foundation necessary to align the resources to develop scope-schedule-cost (see Figure 2-10). Identify and Prioritize Needs Ideally, projects will be identified and prioritized based on the needs and strategic direction of the airport. In reality, several other factors influence the selection and prioritization of projects, including safety/security improvements mandated by the FAA and/or the TSA, operational impacts/improvements, economic viability, customer service improvements, tenant requests, political influences, and other factors (e.g., environmental or sustainability requirements and internal/external stakeholders demands). Agency leadership must balance these factors and ensure that projects meet the strategic direction of the airport. Research indicates numerous methods agencies use to identify and prioritize upcoming projects. Successful organizations integrate the guiding principles of FACTS into the identification and prioritization process. • Flexibility. The process should balance the requirements of the FAA/TSA with the needs of the airport stakeholders including airport tenants (e.g., airlines and concessions) and the traveling public.

20 Procuring and Managing Professional Services for Airports • Accountability. The process should be clear and concise. Project costs and performance objectives should be factored into the prioritization process. • Communication. The process, expectations, and results should be clearly communicated to all internal and external stakeholders. • Transparency. The criteria for the process should be clear and consistent. The final selection and prioritization should be available for review by internal and external stakeholders. • Strategic Direction. The process should incorporate the strategic direction of the airport in the selection criteria. An example of a document incorporating the guiding principles into the identification and prioritization of projects is the “Project Priority Ranking Form” provided in Appendix D, Sample Forms. Identify Resources and Match Needs This exercise will require reaching beyond one’s area of expertise and engaging others to better define needs as well as to develop methods and a process to address those needs. As future events and hidden conditions cannot be known ahead of time, it is critical to make strong connections and share resources to manage change and risk effectively. There is a limit to how much can be known about site conditions, but taking the time to talk to those familiar with the area and managing or operating in the site may reduce the unknowns and more clearly define a project or even change the direction of a procurement as better information is gathered. On the other hand, external forces may require early delivery of a project. Reaching out to agency partners to learn each other’s concerns as well as defining the best method to develop scope-schedule-cost may reveal a new way to amend the procurement method to achieve best results. Careful conversations about process and risk, clearly communicated to participants, will be required so that expectations will be clear. The bottom line is, we do not know everything going into any venture. However, having a system to communicate regularly, monitor performance, and make adjustments throughout the process allows for mutual understanding and optimal mitigation, thereby saving time and money. Figure 2-10. Collaborative and interactive approach to develop scope-schedule-cost.

Organization and Approach 21 Integrity, Ethics, and Conflict of Interest Integrity and ethics are the foundations of a successful procurement process. Agencies and PSPs should practice being honest and ethical during the procurement process. For example, agencies should provide exactly the same information to all potential PSPs during the process. One method of ensuring this is to hold regular, open meetings with the PSP community to discuss the strategic vision of the airport and any upcoming projects that will be advertised in the near future. This ensures that PSPs have the same information and can pursue the projects that best fit their experience and skills. Agency personnel should not allow situations that could lead to an ethical dilemma, such as permitting PSPs to request information not readily available to all. In addition, agencies and PSPs should avoid conflicts of interest as a matter of law and professional conduct. A conflict of interest is defined as a set of circumstances that creates a risk whereby professional judgment or actions regarding a primary interest could be unduly influ- enced by a secondary interest. A best practice employed by several airports for avoiding even the appearance of a conflict of interest is to limit the type of work that PSPs can pursue. PSPs are required to select a type of work they will pursue at the airport (e.g., design or construction management). Once the type of work is selected, PSPs cannot change the type of work selected without notifying the airport and ensuring that all prior design or construction management work is completed before pursuing additional projects. By ensuring that the procurement process is handled ethically and with integrity and by avoid- ing even the appearance of conflicts of interest, internal and external stakeholders can trust that a fair, open, and competitive process has been followed and the best solution for the airport has been selected. Tools and Technology Tools Tools that can provide guidance in developing policies and procedures for procurement include an agency’s mission, goals, and guiding principles that are thoughtful, well-documented, and clearly communicated. A carefully devised capital plan, comprehensive procurement manuals, forms, and templates are also useful for supporting the process. Regular meetings and reports facilitate accountable procurement and management. Local, state, and federal knowledge bases regarding relevant laws and regulations allow staff to gain a solid understanding of limitations and restrictions. Another useful tool is an organization chart that illustrates the available human resources and identifies key decisionmakers. Critical elements include points of contact, chain of command, and availability. Agencies need to know whom to contact if problems arise or needs change so that people and resources can be adjusted to mitigate any adverse impacts on scope-schedule-cost. The agency’s organization chart should be shared with the PSP so that the PSP can organize appropriately, respond more effectively to solicitations, and better understand the agency’s needs and resources to develop an effective scope-schedule-cost. Typically, agencies will require PSPs to furnish organization charts in their proposals detailing availability, lead expertise, and staff resources; this information should be shared with the agency’s procurement staff and with those who will be managing the PSP. Mapping relationships can be an effective tool to identify the right match of people that will attain the best results. This should be done on both sides of the table. Agencies and PSPs do not consist of just one person; key managers and decisionmakers each bring different views, priorities, concerns, and skills to the table based on their respective roles and experience.

22 Procuring and Managing Professional Services for Airports Project charters can be worthwhile for identifying roles, responsibilities, and authority for formalizing partnerships in managing complex projects. At minimum, a project charter should include clearly defined • Purpose, scope, and agency/partner organization(s); • Membership, including roles and responsibilities; • Meeting schedules, quorums, and operating guidelines; and • Key milestones. Technology Technology used in developing and implementing the organization’s approach to procurement includes various methods of communication and collaboration as well as software to prepare and manage capital plans, budgets, and schedules. Communication and collaboration technology includes • Email; • Software and web-based systems for shared document creation and content management; • Conferencing via telephone, video, and web; and • Interactive whiteboards. Technology to assist in capital planning ranges from simple productivity software as the least expensive option (e.g., spreadsheets, word processing, and rudimentary databases), to sophisticated capital management systems that allow multiple simultaneous users to update data and monitor all phases of capital projects. At the most comprehensive (and expensive) end of the range, enterprise resource planning (ERP) systems can integrate financial and HR information with capital program management and asset management systems, allowing instant access to data that measures progress and performance. Resources Publications • ACRP Report 16: Guidebook for Managing Small Airports, TRB • ACRP Report 20: Strategic Planning in the Airport Industry, TRB • ACRP Report 49: Collaborative Airport Capital Planning Handbook, TRB • FAA Advisory Circular (AC) 150/5100-14 Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects • FAA Airport Improvement Program (AIP) Handbook • Federal Acquisition Regulations (FAR) • Improving the Quality of Airport Projects: Best Practices, Airport Consultants Council (ACC)/FAA • NIGP Values and Guiding Principles, National Institute of Governmental Purchasing (NIGP) • Seven Steps To Performance Based Acquisition - Executive Summary, GSA • State & Local Government Procurement: A Practical Guide, National Association of State Procurement Officers (NASPO) Forms • Project Priority Ranking Form (See Appendix D)