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24 C h a p t e r 3 After reviewing each potentially responsible organization and location for ramp control, the airport operator should conduct a formal cost analysis. Appendix B provides some high-level insight into the initial and recurring costs associated with ramp control decisions, including guidance associated with each type of management option, such as: ⢠Airport operator â Initial costs may include hiring and training of personnel, workspace costs (e.g., facility or workspace, furniture, equipment). â Recurring costs may include wages and benefits, maintenance and upkeep of the work- space, upgrade/replacement of equipment, furniture, technology, etc. ⢠Air carrier â From the airport operatorâs perspective, most of the initial and recurring costs are the responsibility of the air carrier and the airport operator may not be aware of them. How- ever, changes in lease agreements or other contracts will likely involve the airport operator. ⢠Third partyâThe cost of a third-party provider may vary depending on who the contract is with: â Contracted with the airport operatorâthe airport operator will know all initial and recur- ring costs as they will likely be part of any request for proposals. â Contracted with an air carrierâmost of the initial or recurring costs will be unknown to the airport operator. However, changes in lease agreements or other contracts will likely involve the airport operator. Note: The costs of airport operators contracting with a third party are often passed on to the airlines, generally through lease agreements. Potential costs may be documented by entering answers into the Decision Support Tool or by answering the questions in Appendix A. Figure 14 illustrates an example response to the Appendix A, Table A-3 questions and details the high-level initial and recurring costs that may apply if an airport operator is being considered to manage the ramp control facility. Appendix A questions and the Decision Support Tool can also be used to assess: ⢠Initial costs, such as: â Facility (traditional or virtual) including equipment and furniture; â Selection and training of personnel; and â Initial contract obligations (e.g., lease agreements, licensing fees, liability insurance). ⢠Recurring costs such as: â Maintenance and upkeep of the facility; â Wage and benefit of personnel; â Upgrade or replacement of the equipment and furniture, and technology required to per- form ramp control; and â Changes to contracts (e.g., lease agreements, licensing fees). Initial and Recurring Costs
Initial and recurring Costs 25 Once costs have been outlined, it is time to consider the benefits of ramp control. While costs are somewhat straightforward to understand and calculate, benefits are often harder to quantify and can be arbitrary. Some benefits to consider include: ⢠Improving ramp safety, ⢠Mitigating ramp congestion, and ⢠Linking surface operations to the NAS. How an airport operator decides to compare costs to benefits is going to be his/her decision. However, some guidance exists that might be useful to help in this process. ACRP Report 106: Being Prepared for IROPS: A Business Planning and Decision-Making Approach includes a Business Case Analysis Primer that can be used to help in conducting cost estimating and benefit analysis for airport business initiatives, such as a ramp tower. There is also a document entitled, FAA Airport Benefit-Cost Analysis Guidance, originally published in 1999 and recently updated in 2010, that also may be consulted. An important note about ramp tower costs: Eligibility for Airport Improvement Plan (AIP) funding is normally limited to public-use facilities. Tower construction is limited to contract towers only. Airports considering constructing ramp control facilities on common-use aprons should contact their FAA Regional Office of Airport Planning and Programming for guidance on their specific project eligibility. Figure 14. Example: Step 3 worksheet.