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A-1 Columbia Metropolitan Airport Airport Background Ownership/Governance Columbia Metropolitan Airport (CAE or Airport) is a small hub airport and the main commercial service airport for Columbia and the Midlands region of South Carolina. It is a significant generator of economic activity in South Carolina. The total annual economic impact resulting from all business activities associated with CAE and its tenants on the state of South Carolina is estimated to be approximately $847 million (Moore School of Business 2015). Over 40 businesses operate on the Airport and create a combined total of more than 1,871 full-time jobs with a direct payroll of nearly $80 million (CAE n.d.). CAE is formally recognized as the Richland-Lexington Airport District (RLAD) and is a special-purpose district of the state of South Carolina. A special-purpose district is an independent, special- purpose governmental unit that exists separately from local government. The governing body of the Airport District is the Richland-Lexington Airport Commission, which consists of 12 commissioners who repre- sent Lexington County, Richland County, and the City of Columbia. Contracting and Workforce Diversity Efforts The director of human resources is responsible for all matters involving CAEâs workforce and contracting diversity, including hiring processes, Title VI, and the Airport Concessions Disadvantaged Busi- ness Enterprise (ACDBE), DBE, and affirmative action programs. The Human Resources Department is supported by three other employeesâa DBE program administrator; a human resources manager who assists with Title VI matters; and an ACDBE program admin- istrator. While these individuals have other full-time responsibilities, they are particularly engaged in assisting the human resources director with outreach and related events, and together with the human resources director comprise CAEâs Disadvantaged Business Enterprise Team. In 2014, CAE developed a Diversity & Cultural Master Plan (Diversity Master Plan) that addresses the Airportâs contracting and workforce diversity initiatives. When CAE began imple- menting the Diversity Master Plan, every area where the Airport spends money was reviewed. A P P E N D I X A Case Studies Columbia Metropolitan Airport Highlights â¢ The Columbia Metropolitan Airport (CAE) supports workforce diversity through hiring processes, Title VI, and the ACDBE, DBE, and Affirmative Action programs. â¢ CAE has implemented a DBE CommuÂ nication Plan, which includes contracting and allocating projects to DBE companies to encourage diverse business participation. â¢ CAE has developed a Diversity Master Plan with a vendor outreach list that has significantly increased participaÂ tion in its business diversity events and total dollars spent with minorityÂ or womenÂowned businesses. Since the plan was initiated in 2014, the number of women and minorities on CAE execÂ utive staff and managerial positions has increased by over 50 percent.
A-2 Guidance for Diversity in Airport Business Contracting and Workforce Programs A determination was then made about the types of purchases that had opportunities for diverse business participation. The Airport then put together a vendor outreach list that has been instrumental in helping to increase diverse business participation in CAEâs goods and services contracts. The Airportâs Human Resources Department also redoubled its commitment to ensuring that women and minorities are able to compete for Airport jobs. That departmentâs standard practice is to include minority-focused publications and media outlets when posting employ- ment opportunities, contract solicitations, and Airport programs and events. For the first time in the 60+ yearsâ history of CAE, minority staff members joined the Airportâs executive staff in 2015, and the total percentage of women on staff increased to nearly 40 percent. In addition to CAEâs goal of having a diverse workforce, it works to ensure that the Airport is cultivating leaders who can make the maximum impact on the organization. Since the incep- tion of the Diversity Master Plan, the number of women and minorities on CAE executive staff increased by over 50 percent, as has the number of minorities and females represented in manage- rial positions. Women now comprise over 15 percent of CAEâs Public Safety Department with women occupying or having occupied a range of positions from Deputy Chief to Public Safety Captain. In 2014, CAE employed its first female firefighters in the history of the Airport. As CAE prepares for the next generations of Airport leadership, it has implemented an organization-wide cross-training strategy that identifies and builds on staff strengths to create opportunities to learn new skills, manage projects, and prepare to take on new roles. In addition, the Airport has invested in developing the next generations of its workforce through a formal, paid internship program that has prepared nearly 30 high school and college students with more exposure to the aviation industry. In 2018, CAE went a step further by beginning to work with one of the local school districts to engage studentsâ interest in aviation as a career path, whether they are interested in mainte- nance, IT, engineering, marketing, or another career. The goal of the program is to expose the students (through the internships, job shadowing, and airport professionals in the schools) to the opportunities they could find at airports across the country and the world. Professional development for current staff is always included in the Airportâs annual budget, and all Airport staff is supported in any interest to become industry leaders. Currently, CAE has several staff members who have achieved AAAE certification and/or accreditation. Five staff members are Certified Members, two staff members are Accredited Airport Executives, and in 2019, two Public Safety Officers became the first to achieve AAAEâs Airport Master Firefighter certification. Airport staff also attend and participate in multiple training workshops and conferences throughout the year. Specific examples of CAEâs involvement in the recruitment, development, and promotion of future aviation professionals can be seen in its growing involve- ment in the AAAE internships outreach program and in the AMAC. There are many career opportunities at the Airport with tenants such as airlines, concession- aires, and other businesses on the airfield. CAE posts these employment opportunities on its website at https://www.flycae.com/employment-opportunities. Business Diversity CAEâs policies and practices for achieving diverse business participation in its contracts were first highlighted in a case study in ACRP Report 126: A Guidebook for Increasing Diverse and Small-Business Participation in Airport Business Opportunities (Exstare 2015). This updated case study focuses on the state of practice and progress of CAEâs Diversity Programs.
Case Studies A-3 Program Implementation To increase DBE participation, CAE has implemented a DBE Communication Plan which includes, among others, the following objectives: â¢ Publishing an annual list of all upcoming federally assisted projects â¢ Contacting and distributing list of projects to DBE companies â¢ Hosting a meeting for all DBE-certified companies and general contractors to discuss specific elements of projects to be bid and opportunities to bid work â¢ Notifying DBEs of all projects going out for bid â¢ Holding a pre-bid conference and providing a list of all South Carolina DBE-certified companies to general contractors â¢ Providing DBEs with access to the plan holder list on all projects â¢ After the bid opening, following up with each DBE company that attended the pre-bid conference to inquire if the company bid the project â¢ Developing a detailed analysis of all responses and sharing it with the Airport Commission CAE is also a member of the South Carolina Airport Coalition (Coalition) that includes Greenville-Spartanburg International Airport, Myrtle Beach International Airport, and Charleston International Airport. In 2015, the Coalition began a series of events at the respec- tive airports with the goal of a collaborative effort and one-stop outreach to small, local, minority-, and woman-owned businesses on how to do business with the aviation community. Most recently, CAE hosted the Coalitionâs November 2018 Small Business Fly-In, which included all South Carolina airports and Charlotte-Douglas International Airport (CLT) in North Carolina. Approximately 20 entities participated, among them the South Carolina Department of Transportation (SCDOT) and the Department of Commerce. This was the Coalitionâs largest outreach event to date. Approximately 250 businesses attended and were provided infor- mation on $2 billion worth of business opportunities, including SCDOT and CLT opportunities. Attendees also received information on certification, training, insurance, how to do business with airports, and upcoming business opportunities. CAE and the other airport members of the Coalition are in the process of creating the Southeast Airports Alliance, which will extend the growth of the Coalition from just South Carolina to include the neighboring North Carolina and Georgia airports. The Alliance was in the planning stages, and the neighboring airports were invited to the 2019 Coalition Fly-In that took place on October 10, 2019, in Charleston, South Carolina. When hosting its own outreach events, the Airport sends details to Coalition airports as well as to surrounding communities and the businesses on CAEâs vendor list of about 275 small, minority-owned, and woman-owned businesses. This vendor outreach list is also used to notify these businesses of contract opportunities, to seek quotes from them, and to notify them of the Airportâs pre-bid meetings and other Airport events and opportunities. The list also enables the Airport to have a robust pool of vendors who might be able to engage in future CAE business opportunities and to connect those firms with other businesses or airports. The list is also used to help ensure internal accountability and outreach to DBE, ACDBE, Minority-owned Businesses (MBE), Woman-owned Businesses (WBE), and other small firms. CAE department heads are required to reach out to firms on the vendor list, and to document reasons why a firm on that list was not used for a specific business opportunity. Before creation of the vendor list, this type of outreach was not the norm at CAE. CAE also refers interested and qualified businesses to training, certification, and funding opportunities and programs offered by agencies including the SCDOT. The Airport also engages high school and college students thinking of becoming entrepreneurs. Soon, the Airport will
A-4 Guidance for Diversity in Airport Business Contracting and Workforce Programs begin an aviation program in partnership with a local magnet high school to provide training to students interested in aviation entrepreneurship. The Airport recently initiated a program known as the Community Outreach Leasing Agree- ment (COLA) Program to help create opportunities at the Airport for smaller businesses. Under the COLA Program, CAE provides small kiosks in the terminal that smaller businesses can apply for to have either a 3-month or 6-month lease option to display their services or operate a concession. This program is similar to the kiosk program offered at Charleston International Airport, which has large, intermediate, and small kiosks. While CAE does not have technical assistance programs, it refers businesses to other agencies, for example, SCDOT and the Small Business Administration (SBA) for training services they may need. Outcomes and Achievements Since the adoption of the Diversity Master Plan in 2014, the total dollars spent with minority/ woman-owned businesses increased by over 300 percent and participation in CAEâs business diversity events has grown from a few dozen to nearly 200. The human resources director shared during the interview for this case study that among the best results of CAEâs diversity and inclusion efforts has been when the Airport can see that it has made a large difference for small, diverse businesses and these businesses actually get work. When these businesses do great work, the Airport enjoys recommending them for other oppor- tunities at the Airport and to other businesses. In 2017, for example, Sims Fuel became the first minority-owned fuel provider in the history of CAE. This was through the efforts of the human resources director, who is also the Airportâs disadvantaged business enterprise liaison officer (DBELO). She worked in tandem with the fuel companyâs owner, Mr. Wayne Sims, who already had his DBE certification. Mr. Sims proceeded to obtain ACDBE certification, and then engaged in a mentor-protÃ©gÃ© effort with a large estab- lished fuel company providing fuel for CAE. In 2018, Mr. Sims started the Sims Petroleum Company, which delivers fuel to CAE and other customers in the southeast. He has also had the opportunity to provide fuel for CAE car rental concessionaires and is working on other non-Airport fuel projects. There are several components to the success of CAEâs Diversity Policy initiatives: â¢ The development of a DBE group composed of staff that attends training to keep up to date with rules and changes and to be ambassadors of the Airportâs initiatives. â¢ The creation of a Diversity Master Plan that covers all Airport DBE, Title VI, and Affirmative Action Programs. â¢ The establishment of a Master List of potential DBE/minority/women/small business owners for every purchase made by the Airport. The list is accessible to all Airport employees, and staff is required to reference this list prior to selecting a vendor. â¢ The accountability of each department to indicate their efforts toward working with a DBE on every purchase order. â¢ The promotion of DBE initiatives through public events and advertising avenues to ensure that DBE/minority/women/small businesses and potential employees are aware of opportunities available with the Airport (CAE 2012). Leadership and engagement from the Airport Commission and executive director, coupled with deep relationships in the surrounding community, are CAEâs most significant best prac- tices. The human resources director shared during the interview that having a diverse team of people with different strengths is critical. Engaging businesses in the community where your
Case Studies A-5 airport is located and hiring people who are representative of the passengers that fly through your airport is equally important. The networks CAE establishes and its outreach to local busi- nesses, partners, and airport groups are vital. Keeping businesses connected with the Airport (e.g., providing updates on business opportunities and attending events in person) is important. If a small-business owner cannot attend an event, the DBELO suggests having a representative attend to obtain and pass on key information. Costs and Benefits All costs associated with CAEâs contracting diversity programs are included as a line item in the Human Resources & Diversity Departmentâs annual budget. Categories of costs include catering, training, prizes, giveaways, facility rental for outreach events, promotional products, and diversity booklets/handouts. The 2018 budgeted amount was $5,000. However, approxi- mately $7,000 was spent, which included costs for an ACDBE consultant to handle media and event registration for the Coalitionâs November 2018 Small Business Fly-In event. Honors and Recognition In 2015, when CAE hosted the first South Carolina Airports Coalition outreach event, over 500 businesses were reached. For these efforts CAE and the other Coalition airports were awarded the Outstanding Business Award as a part of the 2016 Upstate 12th Annual Diversity Leadership Awards hosted by the Riley Institute at Furman and the Greenville Chamber of Commerce. This award is given to a business that exhibits leadership in promoting diversity and inclusion internally and serves as an example for others to follow. CAE was also the small hub airport recipient of the ACIâNAâs Inclusion Champion Award in 2015. The award recognized the Airport for its efforts to re-focus its diversity initiatives and the development of an engagement cycle to help put DBEs on equal footing with larger, prime companies, as well as for its commitment to workforce diversity. Oakland International Airport Airport Background Ownership/Governance Oakland International Airport (OAK) is a medium-hub airport owned by the Port of Oakland (Port), an independent department of the City of Oakland, California, that is responsible for aviation, mari- time and commercial real estate activities. OAK is the fourth largest commercial service airport in California, with more than 11 million passengers traveling through the Airport every year. It is served by 13 airlines that currently offer nonstop service to a growing list of 55 international and domestic destinations. Exclusive control and management of the Airport is vested in a seven-member Board of Port Commissioners (Board) who are nominated by the mayor of Oakland and appointed by the City Council. Contracting and Workforce Diversity Efforts The Portâs Social Responsibility Division (SRD) works to ensure that small firms have access and opportunity to seek and participate in Port contracts. The SRD assists businesses throughout the bid process with Oakland International Airport Highlights â¢ Oakland International Airport (OAK) supports workforce diversity through its federal DBE and ACDBE programs and local programs for small and very small businesses. â¢ OAK has adopted local hire requireÂ ments to advance the Port of Oaklandâs policy for increased employment and construction career opportunities. â¢ OAKâs NonÂDiscrimination and Small Local Business Utilization Policy has been a main driver in increased local small business participation.
A-6 Guidance for Diversity in Airport Business Contracting and Workforce Programs the appropriate Port policy and program application, bonding and financial advice, the certi- fication process, and networking with potential contractors. It also facilitates a wide variety of local training, workforce development and apprenticeship programs that reach out to new and unskilled workers. The Port sets workforce goals for construction contracts only, and not for its internal work- force. It is party to the Maritime and Aviation Project Labor Agreement (MAPLA) with the Building and Construction Trades Council of Alameda County, American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), and its affiliated unions. MAPLA applies to all of the Portâs aviation and maritime capital projects and is designed to ensure project labor stability, employment of Port local residents, and utilization of Port-recognized small businesses (Port of Oakland n.d.b.). The current agreement, MAPLA 2016, applies to Port projects advertised for bid and tenant projects for which the Port issued a building permit on or after February 1, 2016. For example, a provision of OAKâs 2018 solicitation for food and beverage concessionaires states, âMAPLA will apply to all construction activity (as described in MAPLA Article 2 (Scope of Agreement)) performed in connection with this concession opportunity . . .â (Port of Oakland 2018). Among other key changes in MAPLA 2016, the MAPLA SBE Program was improved, and enhancements were made to local hire requirements to advance the Portâs policy for increased employment and construction career opportunities for residents from the Portâs Local Impact Area (LIA) (Oakland, Alameda, San Leandro, and Emeryville) and Local Business Area (LBA) (Alameda County and Contra Costa County). The goal is that LIA residents will perform 50 percent of all hours worked on a craft-by-craft basis, to ensure local resident utilization in all crafts. If LIA residents are not available, capable, or willing to work, LBA residents may count for compliance purposes (Port of Oakland 2019). Under the Portâs Non-Discrimination and Small Local Business Utilization Policy (NDSLBUP) point system for bids, preference points are given to businesses utilizing certified firms in the LIA/LBA, with additional points awarded to bids that include SBEs and very small business enterprises (VSBEs). During construction, $0.30 per every craft hour worked is collected for the Portâs Social Justice Labor Management Cooperation Trust Fund that supports workforce development and local organizations. Businesses seeking contracting and airport concessions opportunities are asked to make a good faith effort to hire residents from the Portâs Local Impact Area and those who face barriers to employment. Some of the good faith steps that a contractor can take to demonstrate that it has made every effort to reach the Portâs local hiring goals include submitting a compliance plan to the Port that outlines local workforce projection prior to pre-construction meetings, using community-based organizations as a resource if unions cannot provide local residents, and sponsoring local residents for apprenticeship, when possible (Port of Oakland 2014). The Port also offers a 9-week summer college internship program for residents of nine counties in the Bay Area (Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma) who have a high school diploma (or equivalent) and are currently enrolled as a full-time college student when they apply. Preference is given to residents of Alameda and Contra Costa counties. Interns are exposed to all aspects of Port operations inclusive of all departments, including Engineering, Social Responsibility, Legal, Aviation, Maritime, Information Technology, Finance, Communications and Governmental Affairs. This exposure helps interns develop an understanding of the mission and business objectives of the Port. They interact with the Port team, including senior leadership and internal and external stakeholders, and perform a wide range of critical assignments and projects. These projects vary from general administrative to technical and project-based. The varied
Case Studies A-7 expertise and skills of Port staff allows interns to gain insight into a wide range of public-sector careers. Interns also have the opportunity to participate in various workshops and trainings to broaden their experience. Business Diversity OAKâs policies and practices for achieving diverse business participation in its contracts were first highlighted in a case study in ACRP Report 126: A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities (Exstare 2015). This updated case study focuses on the state of practice and progress of the Airportâs business diversity programs. Program Implementation The Port of Oaklandâs Social Responsibility Division (SRD) administers OAKâs business diversity programs, which include the federal DBE and ACDBE programs, and the Portâs local programs for SBEs and VSBEs known as the Non-Discrimination and Small Local Business Utilization Policy (NDSLBUP). The SRD includes a contract compliance supervisor and eight staff members, three of whom handle compliance matters. The Social Responsibility team is responsible for nondiscrimination policies for the entire Port and implements the Portâs NDSLBUP to ensure maximized use of small and local businesses within the designated Local Impact Area, specifically for Port-funded public works and goods and services contracts. The Port also offers support services such as technical assistance to small businesses. Annually, the Port offers a Contracting 101 course specifically tailored for entrepreneurs to learn how to do business with the Port. This course includes sessions with Port engineers and bid admin- istrators. The Social Responsibility team also discusses the NDSLBUP in this course. A session on Prevailing Wage requirements is also offered. The Port engages in numerous outreach activities, including hosting and co-hosting busi- ness events and frequently attending job fairs. In March 2019, for example, the Port hosted a Small-Business Expo with the Associated General Contractors, Bay Area Rapid Transit (BART), the City and County of San Francisco, California Department of Transportation, and the Department of General Services. The expo was geared toward small businesses in the construction sector. Outcomes and Achievements During an interview for this case study, Lila Zinn, the Portâs Social Responsibility Division Contract Compliance Supervisor, discussed the benefits of business growth, particularly for small businesses, as a key contributor to economic development in the community. The Port has seen significant success due to its policies, particularly its NDSLBUP. The NDSLBUP has enabled small businesses to partner with prime contractors on teams that might not otherwise have assembled in such a way. The NDSLBUP has also provided local workforce power, and allows minority entities to access opportunities at the Port as well. For example, during the period of 2010 to 2016, the Port, using its own cash and not grant funding, spent over $58 mil- lion in professional services, with 55 percent going directly to its Local Impact Area. In that same period under public works, there was a bid total of $74 million, with 68 percent going to the Portâs Local Impact Area. Parceling out large projects into smaller opportunities is a best practice for OAK. One successful example is its 2018 food and beverage solicitation that was divided into four packages. The Port did not establish a contract-specific Airport Concessions Disadvantaged Business Enterprise (ACDBE) goal for this concession opportunity. Two of the four awards were intentionally set
A-8 Guidance for Diversity in Airport Business Contracting and Workforce Programs aside for small businesses, with one award going to a small, minority-owned ACDBE and one to a woman-owned ACDBE. Of the two non-ACDBE businesses that were awarded contracts, one had ACDBE participation exceeding the Portâs overall ACDBE goal of 20.26 percent, and the other achieved ACDBE participation slightly under the triennial goal. Collectively, among the four, they had high ACDBE participation levels. During the interview for this case study, Ms. Zinn also shared an example of a small, woman- owned electrical firm that had graduated from OAKâs small business program and became a prime contractor. She expressed that it is rewarding to see that when the Port parcels out larger projects into small jobs that are set aside for small businesses, some of those businesses can become prime contractors. The Port is having challenges achieving its race-neutral airport DBE goals. For Federal Fiscal Years (FFYs) 2014â2016, for example, DBE participation was 4.80 percent under the race-neutral goal of 10.28 percent (Port of Oakland n.d.a). One challenge is that public works contracts are awarded to the lowest qualified bidder, which may exclude some compa- nies when the deciding factor is price. The Port has learned that the low-bid requirement is challenging for some small businesses and is working on conducting more outreach and encouraging prime contractors to partner more often with DBEs. The Port has also parceled out DBE projects as SBE set-asides under the small business component of the DBE program, under 49 CFR Part 26. The Port has consistently met and exceeded non-car rental ACDBE goals. It was granted permission by the FAA on September 19, 2017, to utilize its existing race-neutral ACDBE goal of 20.26 percent for non-car rental concessions during the FFYs of 2018â2020 goal period. During this period a disparity study process will be undertaken that may inform the ACDBE goal (Port of Oakland n.d.b). Pending the outcome of the Portâs disparity study, FAA will indicate whether the ACDBE goals need to be adjusted for FFY 2018â2020. Costs and Benefits A significant portion of the costs for the Portâs business diversity programs is staffing. The Port also spends on outreach, sponsorships, disparity studies, and technical assistance. Each Port department has its own budget, and how that budget is spent is at the discretion of each department. Alone, the SRD fiscal year budgeted amount for community outreach and spon- sorships is approximately $475,000. Additionally, 18 grants totaling $490,000 were awarded to community-based organizations, a collaborative effort to identify and retain Oakland-based workers with a focus on apprentices, including pre-apprentice preparation and retention, and placement. Phoenix Sky Harbor International Airport Airport Background Ownership/Governance Phoenix Sky Harbor International Airport (PHX or Sky Harbor), known as Americaâs Friend liest AirportÂ®, is a large hub airport and Arizonaâs largest and busiest airport. In 2016, the direct economic impact of Sky Harbor was 57,432 jobs, $3.7 billion in payroll, and $12.3 bil- lion in direct economic activity. These activities include the airlines and in-terminal businesses and passenger services (e.g., shops, food service, auto rental, and parking). Sky Harborâs spending for on-airport capital improvement projects was $474.4 million, which supported 2,851 worker- years of employment (one job for 1 year) and created $170.6 million in payroll for construction
Case Studies A-9 services (Seidman Research Institute 2017). Between 2011 and 2016, direct jobs created by Sky Harbor made the Airport the largest employer in the state (PHX n.d.). The City of Phoenix (City) Aviation Department (Aviation Depart- ment) owns and operates Sky Harbor and two general aviation airports that are part of the Phoenix Airport System. A nine-member Phoenix Aviation Advisory Board, appointed by the mayor and City Council, reviews airport policies and makes recommendations to the City Council on major airport projects, concession contract, and leases. Contracting and Workforce Diversity Efforts The Aviation Department is a proactive partner to the small business community through its development and implementation of programs and services that are designed to increase contracting, professional services, and procurement opportunities with the goal of increasing small business competitiveness and capacity at PHX (PHX n.d.). Through outreach and the creativity of its staff, and due in part to recommendations in its Airport concessions disparity study, PHX carves out some of its concession opportunities for small busi- nesses (Exstare Federal Services Group, Rosales Law Partners, and WHP Research 2010). During the interview for this case study, special services/small business engagement manager Valerie Churchwell shared that although some of these businesses may not meet the prescribed ACDBE size standards of 49 CFR Part 23, they can participate in concession opportunities if they meet national small business NAICS codes standards. Based on community feedback, the Aviation Department has also made adjustments in contractual requirements for some of its contract opportunities. For example, the multicultural community, particularly the refugee community, shared concerns about barriers to entry into the taxicab services program at Sky Harbor. As a result, the Airport relaxed the requirement to have new vehicles, reduced the car fleet size requirement from 100 cars to 20 cars, and made other adjustments to address these concerns. These modifications resulted in two new taxicab services contracts with diverse businesses and may help these companies grow for the future. Ms. Churchwell also shared that modifications had been made in the janitorial and security guard services contract requirements to help small businesses be better able to participate in those opportunities. Through its local Small Business Enterprise (SBE) Program that is also applicable to PHX, several City departments engage in support services to assist the economic growth of local businesses. The Equal Opportunity Department (EOD) offers certification services at no cost for small business owners interested in participating in the SBE program. SBE certifica- tion workshops are offered quarterly, and staff is available to assist in the application process. The community and economic development department helps businesses create and retain jobs by providing business consulting services. These include general business planning, marketing, accounting, financing and loan packaging, organizational development, human resource manage- ment, and information technology. The City also provides workforce development services, tax incentives to businesses located in specific incentive areas, collateral assistance on commercial loans, business site selection, and business retention and expansion services. The educational and networking services offered help SBE firms grow and connect to new business opportuni- ties. These services include certification workshops, consultant and construction subcontracting networking events, and links to other business services (City of Phoenix n.d.). Phoenix Sky Harbor International Airport Highlights â¢ The Cityâs business diversity practices are economic development focused rather than numerical goal focused. â¢ Phoenix Sky Harborâs (PHX) business diversity programs engage several City departments to offer a full range of services and support to small businesses. â¢ A federal government audit report named PHX as one of the top airports in the country for new small businesses. â¢ PHX employs a special services/small business engagement manager who is responsible for developing and impleÂ menting educational programs and services to support business diversity.
A-10 Guidance for Diversity in Airport Business Contracting and Workforce Programs Business Diversity In addition to its race- and gender-neutral local SBE program, PHX implements the federal Airport Concessions Disadvantaged Business Enterprise (ACDBE) program for concessions and the DBE program for federally assisted capital improvement projects. Program Implementation Assistant aviation director Charlene Reynolds, a member of the PHX executive team who has experience and expertise in contract management, procurements, and project management, leads Sky Harborâs business diversity and inclusion efforts. The Airportâs special services/small business engagement manager, who is a former employee of Turner Construction, is responsible for development and implementation of educational programs and services designed to increase competitiveness, capacity, and awareness of small, disadvantaged, minority, and woman-owned business contracting, professional services, and procurement opportunities at PHX and the Cityâs two general aviation airports. This dedicated role is the only one of its type in the City. As discussed, the PHX team also includes other City departments responsible for compliance, certification, training, support services, and technical assistance to small businesses. Sky Harbor provides a wealth of information on its website (www.skyharbor.com) to help vendors and contractors do business with the Aviation Department. This information includes a brochure with extensive details on how a company can be included on the interest lists for business opportunities, who to contact to learn about these opportunities, and how a firm can register their business in the database that Aviation Department staff use to find companies that can provide needed products or services. PHX holds various workshops annually, such as the 2018 Aviation Business Summit, to discuss the contracting process. Other events include first-time concessionaires at PHX as speakers who can share their experiences with potential concessionaires. Several months in advance of issuing solicitations for concessions and other major procurements, the Aviation Department conducts a series of business information meetings and small business work- shops, such as those held in preparation for the release of solicitations for Sky Harborâs retail and food and beverage concessions opportunities. The Aviation Department has also created a small business participation plan for car rental concessionaires. This contractual obligation requires that 90 days after contract award, car rental concessionaires must identify the companies they pay in support of their concession operations at PHX. Annually, the car rental concessionaires have to prepare a report of all companies they have used and provide it to the Cityâs EOD compliance team. Outcomes and Achievements Sky Harbor emphasizes local business participation in its concession opportunities. The Airport has many local food brands, especially in the new Terminal 3 concourse, that incorporate local flavor from both large and small businesses. When Sky Harborâs new Terminal 4 was under- going a retail transformation, and in preparation for the release of competitive RFPs for retail concessions opportunities, the Aviation Department conducted workshops and business informational meetings for retail operators and other interested parties. Those outreach activi- ties included the PHX Fast Pitch program, which offered a series of instructional workshops and a matchmaking event to give small business retailers and goods and services providers an opportunity to pitch their business to large retail concessionaires. Like in speed dating, small businesses had 3 minutes to tell their story and introduce the concepts or goods/services they offer. This initial introduction was intended to help small businesses secure formal meetings with large concessionaires to further discuss their offerings and potential inclusion in a conces- sionaireâs proposal for the Terminal 4 retail opportunities. The RFP offered between 14 and 18 contracting opportunities for specified retail operators in Terminal 4.
Case Studies A-11 At least five companies that participated in the Fast Pitch program for the Terminal 3 food and beverage opportunities are now concessionaires in that terminal, which opened in January 2019. A small business that participated in the Fast Pitch program and provides unpasteurized juice had previously pursued opportunities at PHX. The company is now providing its juices to concessionaires at the Airport. Another company that had never pursued a concession opportu- nity at the Airport subsequently started as a food truck operator at PHX and has since expanded to a restaurant operator providing jobs and employee benefits. The Cityâs practices are economic developmentâfocused rather than numerical goalâfocused. Unbundling large contracts, entering into direct contracts or leases with DBE/ACDBE firms, extensive outreach, and listening to the community about requirements that may create barriers to diverse business participation have assisted PHX in its efforts to create a level playing field for diverse businesses and to advance its economic development goals. Costs and Benefits Excluding staff salaries and benefits, the Cityâs costs related to its contracting diversity efforts include outreach events, the B2Gnow software for tracking diverse business participation, printed materials, professional memberships, travel, and sponsorships of other organizationsâ events. Honors and Recognition The Aviation Department was recognized as a 2017 Corporate Supplier Diversity Champion by the Pacific Southwest Minority Supplier Development Council. A local minority business nomi- nated Sky Harbor for the award based on its outstanding outreach, training, and mentorship programs, as well as significant dollar or percentage spent with diverse suppliers (PHX 2017a). The Aviation Departmentâs small business engagement manager Valerie Churchwell received the 2017 Calvin C. Goode Lifetime Achievement Award at the Dr. Martin Luther King 2017 Awards Breakfast that was sponsored by the Arizona Dr. Martin Luther King Jr. Celebration Committee and supported by the Phoenix Human Relations Commission. This award, named for Calvin C. Goode, who spent 22 years on the Phoenix City Council, recognizes an exceptional individual who has contributed to making Phoenix a better place to live by promoting social and economic justice. In addition, Phoenix Aviation Advisory Board Member Alan âAPâ Powell received the Dr. Martin Luther King Jr. Living the Dream Award for his personal commitment to social justice and human relations through the vital work he does for the community. He is the founder of the Checkered Flag Run Foundation, which strives to give diverse and quality educational programs to underserved students (PHX 2017b). As mentioned in ACRP Report 126, published in 2015, a federal government audit report named Sky Harbor one of the top airports in the country for new small businesses (U.S.DOT Office of the Inspector General 2014). Raleigh-Durham International Airport Airport Background Ownership/Governance Raleigh-Durham International Airport (RDU or Airport) is a medium-hub airport. Its core service area is the Research Triangle Region, an area surrounding multiple major universities in Raleigh, Durham, and Chapel Hill and the home of the Research Triangle Park, a major research and technological economic development area (RDU 2018). RDU served over 11 million passengers in 2017 and 2016 and has an $8.5 billion annual economic impact supporting 5,000 on-airport jobs and 20,000 regional jobs (RDU 2018).
A-12 Guidance for Diversity in Airport Business Contracting and Workforce Programs RDU is owned by the cities of Durham and Raleigh, and the counties of Durham and Wake in North Carolina (Cities and Counties). The Airport is governed by the eight-member board of the Raleigh-Durham Airport Authority (Authority), a special joint agency of the Cities and Counties. The Authority is responsible for the development, operation, and maintenance of RDU. Contracting and Workforce Diversity Efforts The City and County owners of RDU, the Airport Authority Board, and the Airportâs chief executive are committed to diversity and inclu- sion. That commitment trickles down to the various Airport depart- ments. Leadership emphasizes publicly that contracting diversity is a best practice and that it is engrained in all aspects of the Airportâs operation. During an interview for this case study, RDUâs president and chief executive officer, Michael Landguth, shared that the entire organization is responsible for the Airportâs business diversity programs. The Airport Authority Board expects RDU to invest and spend dollars in all of its contracting opportunities in a manner that reflects the entire commu- nity that the Airport serves. RDU emphasizes to contractors that they are expected to recruit, develop, and retain minority- and woman- owned companies in the Authorityâs business activities, including the procurement of goods and services as well as leasing and development. Notably, the policies for RDUâs Minority and Women-owned Small Business (MWSB) Pro- gram are not exclusive to local businesses and are similar to those of its federal DBE and Airport Concessions Disadvantaged Business Enterprise (ACDBE) Programs. The Authority requires that each business partner make good faith efforts to promote the Airportâs MWSB policy on all of RDUâs state- and airport-funded contracts and procurement activities. The MWSB Pro- gram policies extend to small businesses that are certified as a DBE by the North Carolina Department of Transportation (NCDOT), those that hold SBA Business Development Certifi- cation SBA 8(a), and to firms certified by the Womenâs Business Enterprise National Council as a Women-Owned Small Business. Once a firmâs size has been verified, RDU will also accept Historically Underutilized Business certifications from the North Carolina Department of Administration, certifications from the Carolinas-Virginia Minority Supplier Development Council or any affiliate council of the National Minority Supplier Development Council, and the National Association of Women Business Owners. The Authorityâs MWSB policies are noteworthy because many airports do not accept the wide variety of certification types for locally funded contracts and procurements, and many local small business programs are restricted only to businesses in an airportâs locality. RDUâs MWSB policies were implemented: â¢ To achieve a level of utilization commensurate with the current availability of interested and qualified minority- and woman-owned small businesses; â¢ To encourage the development of new minority- and woman-owned small businesses; â¢ To facilitate the participation of minority- and woman-owned small businesses in the selec- tion of Authority and third-party contracts for construction, professional services, and procurements; â¢ To facilitate 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; Raleigh-Durham International Airport Highlights â¢ The Airport Authority has created transparency and clarity in its process, which allows ACDBEs and DBEs to get involved in RaleighÂDurham International Airport (DU) business opportunities. â¢ The policies for RDUâs MinorityÂ and WomanÂOwned Small Business (MWSB) Program are not exclusive to local businesses. â¢ RDUâs executive leadership emphasizes the entire organization is responsible for the business diversity programs. â¢ RDU hosts outreach sessions and business opportunity workshops on average twice a year.
Case Studies A-13 â¢ To ensure that minority- and woman-owned small businesses are afforded an equal opportu- nity to compete on all Authority contracts; and â¢ To support the growth and development of minority- and woman-owned small businesses that can successfully compete, outside of the MWSB Program, for Authority contracting opportunities (RDU 2013). Business Diversity RDUâs policies and practices for achieving diverse business participation in its contracts were first highlighted in a case study in ACRP Report 126: A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities (Exstare 2015). This updated case study focuses on the state of practice and progress of the Airportâs business diversity programs. Program Implementation Through RDUâs Small Business Programs office, the Airport administers its federal DBE and ACDBE programs, and the MWSB Program. The office is currently staffed by a small business programs officer who reports to the General Counsel, and a compliance analyst. The office: â¢ Serves as a liaison between small businesses and Airport Authority staff; â¢ Provides information and various referral services for small businesses; â¢ Assists prime contractors in identifying minority- and woman-owned small businesses with which to achieve MWSB or DBE/ACDBE participation goals; â¢ Educates minority- and woman-owned small businesses on how to access contracting and procurement opportunities; â¢ Hosts and facilitates opportunities for networking and business development among firms interested in procurement and contracting opportunities; and â¢ Monitors MWSB/DBE/ACDBE participation in all Airport Authority contracts and procure- ments (RDU n.d.). In addition to the Small Business Programs office staff, other RDU personnel have respon- sibilities for implementation of the MWSB Program. Among others, these responsibilities include: â¢ Promoting the MWSB Program and MWSB participation in the contracting and procure- ment activities of their divisions; â¢ Providing information to the small business officer on contracting and leasing opportunities, together with a breakdown of subcontracting possibilities; â¢ Providing sufficient lead time for advertisement of all invitations for bids so that all firms have reasonable time to develop a complete bid package or proposal; â¢ Consulting with the small business officer on procurement policies and practices, including bonding, licensing, and other requirements; â¢ Participating in MWSB outreach and training workshops; and â¢ Including MWSBs whenever possible in all informal bid solicitations for contracts within their areas of qualification to ensure a full and fair opportunity for them to participate in such contracts (RDU 2013). Contract award requests of more than $5,000 require approval by multiple RDU depart- ments and the small business programs officer. The request must also state the diverse business participation goal expected to be achieved in the contract when it is presented to the Board for approval. This ensures a high level of visibility of a contractorâs commitment to achieving the goal. In addition, all contract change orders must be approved by the small business programs officer. The Procurement Department provides a hybrid centralized and uniform system for the
A-14 Guidance for Diversity in Airport Business Contracting and Workforce Programs acquisition of goods and services. This includes monitoring quality, overseeing the documenta- tion, and fostering contractor diversity. Like many airports, RDU uses the B2Gnow tracking software to ensure vendor accountability. It allows the airport to monitor contract compliance in real time and to see when payments are being made to subcontractors. If timely payments are not being made to these small businesses, the Airport will know immediately and intervene to resolve the issue. Outreach to and assistance from local businesses, agencies, and organizations are integral components of the business diversity programs at RDU. The Airport works with other agen- cies that can provide technical assistance to small businesses (e.g., access to capital, bonding assistance), and it relies on partner organizations in the region, including the NCDOT, other airports, other cities, and local school systems to share information about RDU contracting opportunities with their vendors. The small business programs officer also sends information about these opportunities to approximately 300 businesses on RDUâs vendor list. The Airport participates in and shares information about its contracting opportunities at other organiza- tionsâ outreach events, such as the City of Raleigh annual small business outreach event. RDU also hosts outreach sessions and business opportunity workshops approximately twice yearly. RDU also conducts outreach by hosting targeted events. In 2015, for example, RDU spon- sored a very large âre-introduction to the airportâ event at the Raleigh Convention Center to share information about everything the Airport expected to purchase over the next year. During an interview for this case study, RDUâs small business programs officer, ThianÃ© Carter, described the event as âhighly successfulâ because it provided information about the volume of purchases the Airport makes, which RDU had not been as open about in the past. The Airport does not hold events of this magnitude often; they are held when significant opportunities are on the horizon. For example, the Airportâs on-call professional services contracts will be expiring soon. RDU will have a vendor fair specifically for professional services companies to inform them about this upcoming opportunity. About 6â8 weeks before a RFP is issued for a concession opportunity, the Airport conducts at least one outreach meeting to alert the entire community. Once the RFP is issued, a pre-proposal meeting is conducted to discuss the specific opportunity and proposal requirements. The Authority also offers a booklet, Doing Business with the Raleigh-Durham Airport Authority, that provides guidance on RDUâs procurement processes, vendor registration, purchases and solicitations, tips for completing bids and proposals, information on its DBE, ACDBE, and MWSB programs, and other useful information for those seeking and/or participating in the Airportâs contracts. This booklet can be downloaded from this link on RDUâs website: https://www.rdu.com/do-business-with-rdu/business-opportunities/. Outcomes and Achievements RDUâs small business programs officer shared that one major economic benefit that the Airport can confirm is the multiplier effect of contracting to small businesses, though it is not measured. The smaller the businesses obtaining business contracts and concessions at the Airport, the more likely they are to hire from the community. One benefit that Mr. Landguth attributed to a diverse workforce is that when a surrounding community is diverse, it is beneficial for the airport to reflect that diversity in its own staff. For example, of RDUâs 319 employees, 94 are Black Ameri- cans, 13 are Hispanic American, four are Asian or Pacific Islander, and three are American Indian or Alaskan Native. These employees represent nearly 36 percent of RDUâs workforce. The Airport Authority developed an overall DBE participation goal of 9.4 percent for FYs 2017â2019 for AIP-funded projects at the Airport. When the goal was established, the Authority expected to have approximately $116,425,000 in federally funded projects during
Case Studies A-15 that period, with approximately $10,943,950 being expended with DBEs. Though there were not any federally funded projects in 2017, RDU achieved 11.8 percent DBE participation in 2018. For FYs 2018â2020, the Authorityâs overall ACDBE goal is 26.4 percent for non-car rental concessions. The goal is based on gross revenues generated from retail (e.g., news and gifts, specialty retail), personal services (e.g., spa), food and beverage, and other non-car rental concessions. In 2018, RDU achieved 27.2 percent ACDBE participation in its non-car rental concessions. The MWSB program sets goals for the participation of minority-owned businesses (MB) and women-owned (WB) small businesses in every Authority procurement and contract. The Authorityâs overall goals for construction and construction-related contracts are 8 percent MB/5 percent WB, for goods they are 5 percent MB/5 percent WB, and for services they are 7 percent MB/4 percent WB. In the past fiscal year (April 2018âMarch 2019), the Authority achieved 7 percent MB par- ticipation and 13 percent WB participation in construction and construction-related contracts. In the same period, the Authority achieved 5 percent MB participation and 5.2 percent WB participation in the area of services, and 3.6 percent MB participation and 14.6 percent MB in the area of goods. Costs and Benefits Excluding staff salaries and benefits, RDUâs estimated costs related to its contracting diversity efforts include printed materials and some promotional items ($500), outreach events ($1,000), professional memberships including travel ($7,000), and sponsorships of other organizationsâ events ($2,000). The B2Gnow tracking software for the contracting program is approximately $10,000, but it will increase to approximately $26,000 annually when the concessions program and other modules are added. Honors and Recognition The Raleigh-Durham Airport Authority was honored with the 2015 Inclusion Champion Award for Medium-Hub Airports by ACIâNA for its long-standing commitment to business diversity and inclusion, which dates to the mid-1980s. Since then, the Authorityâs diversity and inclusion programs and policies have grown to include every aspect of the Authorityâs business relationships. As part of the airportâs commitment to workforce diversity, the Authority strives to provide a work environment that values multicultural, multi-ethnic, and gender diversity. This is reflected in significant minority representation in staff from the executive level down to the frontline worker (ACIâNA 2015). Richmond International Airport Airport Background Ownership/Governance Richmond International Airport (RIC or Airport) is a small hub airport located 6 miles east of Richmond, Virginia, in Henrico County. It is the third largest commercial service airport in the Commonwealth of Virginia. The activities of RIC and its tenants, which include concession businesses, and county, state, and federal government operations, create nearly 16,000 jobs and contribute $2.1 billion in economic activity to the region each year as estimated by the Virginia Department of Aviation in 2016. The Airportâs operations by itselfâincluding multiplier impactsâaccount for over 7,000 jobs, $400 million in earnings, and nearly $1.3 billion in total economic output.
A-16 Guidance for Diversity in Airport Business Contracting and Workforce Programs RIC is served by seven major airlines, Allegiant, American, Delta, JetBlue, Southwest, Spirit, and United, that offer nonstop flights to major domestic destinations and connecting options to points around the world. In 2018, more than 4 million passengers traveled through RIC. It is one of the most modern and efficient airports in the eastern United States. Richmond International Airport is owned and operated by the Capital Region Airport Commission (Commission). The 14 Commis- sioners who direct the growth, operation, and business activities of RIC are appointed by the City of Richmond, the County of Chesterfield, the County of Hanover and the County of Henrico. The Commissionâs mission is twofold: (1) to provide access to high- quality, safe air travel services for the citizens of Central Virginia, and (2) through its air travel and related facilities, to serve as the catalyst for economic development of the Central Virginia region. Contracting and Workforce Diversity Efforts The Commissionâs policies and practices for achieving diverse busi- ness participation in RIC contracts were first highlighted in a case study in ACRP Report 126: A Guidebook for Increasing Diverse and Small Busi- ness Participation in Airport Business Opportunities (Exstare 2015). This updated case study focuses on the state of practice and progress of the Airportâs Supplier Diversity Program. Contracting. The Commissionâs commitment to supplier diversity is a priority and shared responsibility, with the CEO driving diversity efforts and the Board fully supporting them. Five directors, nine managers who report to these directors, and a procurement officer are all part of RICâs procurement process. They are responsible for implementing contracting policies, prac- tices, and procedures that are open, fair, and inclusive. The CEO also takes a hands-on role in diversity awareness training for management staff and ensures that the Airport honors its poli- cies with every program. RIC encourages all businesses interested in the Airportâs contract opportunities to register with Electronic Virginia (eVA), the Commonwealthâs online procurement system. This free service can be accessed at eva.virginia.gov. The Commission utilizes eVA to advertise contract opportunities of $1,000 or more, including purchases of $30,000 or more that require a RFP process. These opportunities represent 84 percent of the Airportâs annual expenditures. eVA is also utilized for the Airportâs âquick quoteâ process, which seeks informal bids for purchases above $1,000 and below $30,000. The quick quote process enables RIC to reach out to the community with greater frequency, and it allows the community to see what RIC is purchasing. Through this process, the Airport can reach well over a thousand companies and identify new firms for smaller business opportunities. Utilization of eVA has allowed the Airport to maintain transparency, to reach a greater pool of businesses, and to have a better accounting of who those businesses are. For purchases below $1,000, RIC decision makers may select a company at their discretion. RIC staff is directed to purchase from small businesses at every opportunity. For example, when the Airport unbundled its contract for paper products and chemicals for the terminal building a few years ago, RIC staff identified small companies in immediate proximity of the Airport that could provide some of these products. Historically, the big paper or chemical Capital Region Airport Commission/ RIC Highlights â¢ The Commissionâs commitment from the top down, aggressive outreach, and inclusive policies have increased diverse business participation in Richmond International Airportâs (RIC) contracts. â¢ RICâs business diversity programs are perceived by the contracting commuÂ nity as programs that work. â¢ Through its quick quote process, the airport is averaging 30 percent to 40 percent participation from minorityÂ owned, womanÂowned, and small businesses. â¢ One of RICâs Supplier Diversity Programâs greatest benefits is the accessibility of airport personnel to the local community.
Case Studies A-17 companies would lowball the price of some of these items and increase the price for others. By unbundling this opportunity, RIC obtained more participation from small businesses and received better pricing. RIC publishes procurement, consulting, commercial development, and other services necessary to run the airport on its website (www.flyrichmond.com). The website also includes a presentation, How We Purchase Goods and Services, that describes how the Supplier Diversity Program is administered, illustrates the Commissionâs purchasing process, and includes contact information for the Airportâs buyers. A list of upcoming contract opportunities, currently for 2019 through 2022, is also published on the website. Workforce. The Airport looks beyond race and gender when hiring; it focuses on talent and qualifications. From the Commission down, RIC creates a good work environment that allows the Airport to attract and retain a diverse workforce. The Airport offers good benefits, tries to keep salaries current, advertises to veterans, and establishes leaders of various programs who are passionate about and strive to meet diversity goals. Many RIC employees live near the Airport and are drawn from a predominantly minority region. RIC has approximately 173 employees and rarely has attrition in its workforce. Business Diversity The Airport was not always among the best in the region in making business opportuni- ties widely known to minority-owned, woman-owned, and small companies. When the Commission hired now-retired CEO Jon E. Mathiasen, AAE, in 2000, improving minority busi- ness participation at the Airport was among the first goals and objectives the Commissioners established for him. Mr. Mathiasen set the tone and direction of RICâs Supplier Diversity Program for over 19 years. Under his leadership the value of the Airport in the community has grown significantly and is better perceived, specifically as it relates to services and purchasing. Mr. Mathiasen shared during his interview for this case study that the Airport is now viewed as a âshining bright star in the region and in the industry.â Program Implementation RICâs Supplier Diversity Program includes: 1. The DBE program, which applies to capital improvement projects at RIC that are funded in whole or in part by the U.S.DOT/FAA. The Commission encourages DBE-certified firms to participate as prime contractors and/or subcontractors on these federally funded contracts. 2. The Airport Concessions Disadvantaged Business Enterprise (ACDBE) program, which applies to airport concessions, including some management contracts. RICâs concessions include food/beverage, retail, rental cars, and advertising, parking management, and goods and services suppliers to concessionaires. The Commission encourages all eligible firms to seek concession opportunities. 3. The Airport does not have a formal local or small-business program. It seeks certified Small, Women-owned, and Minority-owned (SWaM) businesses to participate in procurements that support the Airportâs daily activities. RIC encourages firms that may be eligible for DBE and/or ACDBE certification to apply to the Virginia Unified Certification Program at www.sbsd.virginia.gov or mwaa.diversitycompliance. com. The Airport also encourages firms that may be eligible for the Commonwealthâs SWaM certification program to apply to the Virginia Department of Small Business and Supplier Diver- sity at www.sbsd.virginia.gov.
A-18 Guidance for Diversity in Airport Business Contracting and Workforce Programs Outreach. In addition to its website and eVA, RIC holds supplier diversity outreach meet- ings, pre-bid meetings, and pre-proposal meetings that are advertised in local newspapers. The Airport also enlists the help of local business organizations and national airport trade asso- ciations to share the information about these meetings and contract opportunities with their members. These meetings allow businesses to learn about upcoming contract opportunities, interact with Airport staff, and network with other businesses. There is also a forum for busi- nesses and the public at large to consult with RIC staff on proposed goals for DBE and ACDBE participation and the Commissionâs efforts to increase diverse business participation in its contract opportunities. By providing public forums to help current and potential suppliers better understand and participate in the bidding process, RIC has increased its pool of qualified SWaM and DBE bidders. Direct outreach to diverse businesses has allowed RIC to meet new businesses, develop new relationships, and maintain respect within the local community. It has also allowed the Airport to get different perspectives on potential opportunities. Through outreach, the Airport also educates the community about what works, what does not, and why. The Airportâs business diversity programs are perceived by the contracting community as programs that work. Monitoring and Enforcement. Majority contractors and concessionaires are required to uphold RIC and federal standards for diverse business participation. For example, the Commis- sionâs disadvantaged business enterprise liaison officer randomly calls DBEs that are performing subcontracts to ask if they are experiencing any issues and to find out whether they are being paid in a timely manner. When there is a proposed joint venture arrangement between a large concessionaire and an ACDBE, the Airport assesses the terms of the proposed joint venture agreement before awarding the concession agreement to ensure that parties will be executing their roles and responsibilities commensurate with federal standards. After award, the joint venture partners are required to provide quarterly reports to the Airport regarding the ventureâs activities and the ACDBEâs involvement in those activities. Periodic onsite and written audits of concessions and federally funded contracts that DBEs and ACDBEs are participating in are also conducted. Outcomes and Achievements DBEs, ACDBEs, and other diverse businesses participate in highly competitive business opportunities at RIC, ranging from runway lighting and paving to major concessions to ground transportation to master planning. They provide a wide range of goods and services to support the Airportâs daily activities. The Airportâs goal is to continue trying to get as much partici- pation as possible in its contracts from minority-owned, woman-owned, and small companies. Mr. Mathiasen described these efforts as âfun and not a burden.â The Airport has not established race-conscious DBE participation goals since 2011, and every year since then has exceeded its DBE participation targets through race-neutral means. For example, in FFY 2018, the Commission achieved 48.6 percent disadvantaged business partici- pation in federally assisted contract awards and commitments, against a race-neutral target of 15.86 percent for that year. Through the quick quote process, the Airport is averaging 30 percent to 40 percent parti- cipation from minority-owned, woman-owned, and small businesses. Twenty years ago, diverse businesses receiving those opportunities were nearly zero. The quick quote process gives the Airport the flexibility to offer companies business opportunities that they never received before. The Commission established a 17.19 percent overall goal for ACDBE participation in its con- cessions, which consisted of 15.17 percent race-conscious participation and 2.02 percent race- neutral participation. In FFY 2018, the Airport achieved 21.25 percent ACDBE participation in
Case Studies A-19 the concession program overall, with 19.28 percent race-conscious participation and 1.97 per- cent race-neutral participation, slightly below the 2.02 percent race-neutral target. Two minority- owned ACDBEs participate in the retail and food and beverage concessions joint ventures, and a woman-owned ACDBE is the prime concessionaire for the advertising concession. The Airport measures the success of its Supplier Diversity Program through consistent moni- toring of the level of DBE and ACDBE participation achieved in federally funded contracts and concession opportunities, and the level of SWaM participation in its procurements that support the Airportâs daily activities. Best Practices. RIC considers the accessibility of airport personnel to the local community as one of the greatest benefits of RICâs Supplier Diversity Program. When people call about opportunities, their calls are returned in a timely manner, they are invited to the Airport to learn about opportunities, and they are educated on how the Airport does business. RIC has unbundled certain contracts by breaking them up into sections where multiple companies can bid on them. RIC has shortened the contract term of these contracts, rather than having a contract term of 5 years or more. This allows for more opportunities, more frequently, for smaller firms. The Airport also has weekly staff meetings at which business diversity matters are always discussed. Each month, the Commissioners receive a report of DBE, ACDBE and other small businessesâ achievements. The CEO uses the Board report to determine if and why there are decreases in participation, and has his staff report back. The Airport pays its vendors promptly, usually within a few days, and calls smaller sub- contractors to ensure that prime contractors are paying them in a timely manner. Costs and Benefits RICâs annual budget for its Supplier Diversity Program is on average between $125,000 and $150,000. Excluding human resources, these costs include outreach events, external consultants, and promotional materials. The CEO recognizes that diversity programs do not all need to have such large budgets. His view is that the right mix of positivity, the ability to tap into othersâ strengths, and thinking outside the box have contributed to RICâs success. Honors and Recognition The Commission and its CEO have been recognized by national and local organizations for support, activity, and commitment to economic diversity, inclusion, and small business partici- pation. In 2018, Mr. Mathiasen received the AMAC Hall of Fame award. According to AMAC, the Hall of Fame award âhonors an individual who has demonstrated sustainable and profound contributions to the aviation industry and exhibited a positive impact on diversity inclusion within the industry. This individual has provided continuous support of AMACâs mission and goals, as well as the growth and development of airport diversity. This award recognizes an indi- vidual within the industry who has been an outstanding spokesperson, educator, innovator and advocate for diversity inclusion in the workforce or small-business participation in contracting.â In June 2013, the Commission was a recipient of the AMAC Award of the Organization, which recognized the Airport for initiatives that promoted the growth and development of DBEs. The award cited the Airportâs efforts to enable DBE and other small enterprises to participate in highly competitive business opportunities. In 2018, Russ Peaden, the Commissionâs DBELO and director of real estate and facilities, was recognized as Member of the Month by the Metropolitan Business League of Richmond (MBL)
A-20 Guidance for Diversity in Airport Business Contracting and Workforce Programs for his diversity and inclusion efforts at RIC. The MBL is a local, membership-based business association that aims to foster small business success and aid in business retention. As DBELO, Mr. Peaden implements all aspects of the Commissionâs Supplier Diversity Program and ensures Commission and contractor compliance with federal regulations and internal policies concern- ing local, minority-owned, small, and woman-owned business participation in Commission contracts. Through his day-to-day work and extensive outreach, he works with numerous busi- nesses, local community leaders, and other officials to promote a greater understanding of the Commissionâs diversity programs and policies. In 2012, the Commission received the Vision of Excellence Award from the MBL. The award recognized the Commission for its practices and conscious efforts to make disadvantaged, small, women-owned, and minority-owned businesses aware of opportunities at RIC and for its demonstration and promotion of economic diversity and small business development. San Diego International Airport Airport Background Ownership/Governance San Diego International Airport (SAN or Airport) is a large hub airport owned by the San Diego County Regional Airport Authority (Airport Authority), an independent agency that manages the day-to- day operations of the Airport. The Airport Authority is governed by an appointed board of nine members who represent all areas of San Diego County and three ex-officio members. SAN is a major transportation focal point for Southern California and the surrounding region. As such, it is one of the regionâs largest employers and centers of economic activity. SANâs 2018 Economic Impact Study indicates a dramatic increase in regional employment, payroll and economic impact as a result of the Airport, using base year data from 2017. The study quantifies the Airportâs total economic con- tributions to the region at nearly $12 billion annually (SAN 2018). Contracting and Workforce Diversity Efforts SAN is recognized as an innovator of initiatives and programs for small businesses. Airports across the country look to SAN as a model for engaging small and local businesses in contracting opportuni- ties. The Airport Authority ensures that local and small companies, including all women- and minority-owned and disabled veteran businesses in San Diego County, have every opportunity to do business with the Airport. Since the Airport Authority began operating SAN in 2003, the goal has been to create a level playing field that attracts busi- nesses of all sizes, and that provides opportunities for workers of all genders and ethnicities. That philosophy has grown into a firm commitment from the Board and a passionate belief by staff that everyone can benefit from being a part of the work SAN provides. For example, SAN offers its Bonding & Contract Financing Assistance Program (Bonding & Finance Program) to address the main barriers contractors face in increasing their businessesâ capacityâlack of access to bonding and financing. Another purpose of the Bonding & Finance Program is increasing the pool of contractors with whom the Airport can contract to help the Airport have access to more viable businesses in the community (i.e., creating jobs). San Diego International Airport Highlights â¢ San Diego International Airport (SAN) administers its ACDBE and DBE programs without the use of raceÂ and genderÂconscious goals. â¢ SANâs Bonding & Contract Financing Assistance Program has helped contractors bid on more than $500 million in public construction contracts. â¢ SAN has developed innovative proÂ grams that have helped businesses obtain goods and services opportuniÂ ties at SAN and other airports. â¢ SAN offers many outreach events for small businesses, such as Meet the Primes, Lunch and Learns, and podcasts.
Case Studies A-21 The Bonding & Finance Program offers bonding assistance in obtaining bid, performance, and payment bonds by providing a 40 percent bond guarantee up to $750,000, as well as financial assistance in obtaining working capital loans and lines of credit amounting to a 50 percent loan guarantee up to $750,000. A variety of training and counseling programs are also offered (e.g., How to Read a Financial Statement; Writing a Safety Plan; Marketing Your Business) (Merriwether and Williams n.d.). SANâs Bonding & Finance Program has assisted contractors in bidding on more than $500 million in public construction contracts. SANâs Small Business Development (SBD) team, headed by Regina Brown, manager of the Small Business Development Department, works closely with all the Airport Authority depart- ments and small businesses throughout the region. SANâs departments work together as a team to assure that small businesses have every opportunity to do business with the Airport. The SBD team certifies small businesses so they are able to work at the Airport and encourages small businesses to enroll in the Bonding & Finance Program prior to needing finance assistance, so when they do need help, it is available. The SBD team also produces a regular podcast to discuss SANâs Small Business Development Program. The podcast is useful not only for the general public, but also for small business owners who are otherwise unable to attend meetings to glean information on how to obtain work with larger companies, future opportunities at the Airport, and other helpful information. In addition, SAN holds regular Meet the Primes events, which give small businesses opportunities to network with large contractors. It also offers Lunch and Learns for new ACDBEs, to help them with challenges like paperwork and documentation so they can stay in compliance. SAN also sponsors other outreach events for small businesses that are held on an ongoing basis. The SBD team works closely with the SBA and acts as a direct liaison between small busi- nesses and other Airport departments. Their work with large contractors in the region supports efforts to engage small businesses in ongoing and future projects at the Airport. SANâs active community relations component includes regular speaking appearances at community events and meetings to talk about the SBD program, partnering with agencies such as San Diego Gas and Electric, the local utility, and the San Diego Procurement Technical Assistance Center, which assists small businesses with information, resources, and technical assistance. An annual Veterans Appreciation Lunch is also held to highlight the participation of veterans in Airport Authority programs. In 2017, over 100 students graduated from the Airportâs Turner School of Construction Management (a partnership between the Airport Authority and Turner Construction), which is designed to enhance the technical, administrative, and managerial skills of minority-, woman- owned, and other small business enterprises. To date, over 875 students have graduated from this program. Individuals enrolled in the program gain insights and meaningful tools that help them target their business for quality and growth and develop new, strategic business relationships (SAN n.d.b). SAN hosts the Turner School of Construction Management twice a year. In 2018, SAN initiated Innovation Lab, a program founded to develop concepts that can enhance the passenger experience, improve operational efficiency, increase revenues, and/or decrease costs. The program starts twice a year for four to five teams. In 16 weeks, the partici- pants are guided from prototype to presenting in front of the Airport Authority. Ultimately, innovators with successful projects could win a contract at SAN, allowing them potential access to test their idea with over 22 million annual passengers (SAN n.d.a). Innovators could also gain entrÃ©e to other airports and analogous industries such as transportation centers, convention centers, shopping malls, and larger venues such as ball parks, theme parks, and hotels. The first highly successful innovator concept, AtYourGate, which delivers food and other retail items to passengers at their gates, is currently in place at SAN and five other airports (SAN 2019a).
A-22 Guidance for Diversity in Airport Business Contracting and Workforce Programs DesignAHEAD, a SAN Arts Program (Arts Program) initiative launched in 2018 to engage the next generation of innovators, designers, and artists, invites high school and college students to tackle real-world design challenges faced in the airport environment. Participating classes visit the Airport for a public art and terminal tour and take part in design charrettes related to a specific project. The students ultimately develop a project for an airport site that will enhance the experience of the traveling public. The latest collaboration between the University of San Diego and SAN, Forces of Nature, was on display in Terminal 2 through the end of July 2019. The program offered beginning and advanced painting students an opportunity to create original artwork in varied media inspired by the Airport and broader San Diego region (SAN 2019a). Business Diversity SANâs policies and practices for achieving diverse business participation in its contracts were first highlighted in a case study in ACRP Report 126: A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities (Exstare 2015). This updated case study focuses on the state of practice and progress of SANâs small business programs. Program Implementation The manager of SANâs Small Business Development Department, Regina Brown, oversees administration of the program, which includes the federal DBE and ACDBE programs. She is the Airport Authorityâs DBELO. Her team includes two program managers who focus on the DBE program, the ACDBE program, and the Bonding & Finance Program. The Airport Authority works closely with contractors to split projects into small packages when possible, to allow small businesses the opportunity to bid on them. For example, a prime who needs landscaping, plumbing, or elevators installed would be encouraged to use a small business to do some of the work. The Airport Authority also encourages prime contractors who are self-performing a project to purchase supplies from small businesses. The San Diego County Regional Airport Authority has a preference program as outlined in Policy 5.12, Preference to Small Businesses, for small, local, and veteran-owned businesses. This policy may be applied on select business/bid opportunities that do not include federal funding. Outcomes and Achievements The Airport Authority is proud of the economic impact that the Small Business Develop- ment Program provides to the San Diego region. As one of the largest infrastructure builders in San Diego County, the Airport Authority takes its commitment to inclusion seriously. It has an established track record to support this claim. For example, in 2013, SAN awarded $415 million in Terminal 2 expansion (called The Green Build) contracts to local businesses, representing 90 percent of the contracts, and $118 million to small businesses. In 2016, for its rental car center, local businesses received more than $186.2 million in construction contracts, amounting to nearly 60 percent of the total project cost. Of the contracts that went to local businesses for the Car Rental Center project, $70.4 millionâor 38 percentâwent to small businesses. Also noteworthy is that $70.4 million represented nearly the entire amount ($73 million) that was available for small businesses. All told, over the past decade, the Airport Authority has committed $750 million in construction contracts to local businesses and $250 million in contracts to small businesses (SAN n.d.b). In addition, for SANâs 2018 Terminal 2 Parking Plaza project, $59 mil- lion have gone to local businesses and $32 million to small businesses. For the new international arrivals facility (2018), local businesses have received $100 million, and $32 million have gone
Case Studies A-23 to small businesses. In total, over the past decade, SAN has entered into construction contracts totaling $750 million with local businesses and $250 million with small businesses. The Airport Authorityâs Small Business Development Program is focused on principles, not numbers. However, at its heart, it is really about people like Marlon Blue. After serving 20 years in the U.S. Navy, Marlon returned to San Diego to find an extremely tough job market. He decided to start his own security company to help veterans and women attain jobs. Then he came across San Diego International Airportâs bid opportunity for security for the Terminal 2 Parking Plaza construction site. Marlon credits the Airport Authorityâs Small Business Development Depart- ment for helping him successfully complete the very detailed application and ultimately win a 2-year contract. With this experience under his belt, Marlon has been successful in competing for other public agency contracts. Through relationships like this, SAN hopes to inspire others like Marlon and continue to provide opportunities for the regionâs small and underrepresented businesses. Costs and Benefits Categories in the Small Business Development Program budget include outreach and work- shops; the Bonding & Finance Program; consultants; office supplies; telephones and commu- nication; safety equipment; temporary services; seminars and training; transportation; travel/ employee development; advertising; memberships and dues; postage and shipping; promotional materials; and computer license and agreement. The overall program budget for SANâs current fiscal year is $622,000. Honors and Recognition In 2018, the California State Senate (Senate) recognized the Airport Authority with an award for outstanding community service. SAN was also the recipient of the Business Builder Award that was presented by the Senate in 2017. For each of the past 3 years, the Airport Authority has also received the Certificate of Special Congressional Recognition for supporting San Diego region small businesses. In 2013, the Airport Authority was formally recognized by ACIâNA as a recipient of ACIâNAâs first-ever Inclusion Champion Award, recognizing the Airport Authorityâs âexceptional achieve- ment in promoting and sustaining diversity throughout the airport industryâs workforce.â Among the diversity and inclusion practices highlighted by ACIâNA were the Airport Authorityâs active recruiting of a diverse workforce and SANâs innovative contracting structure for The Green Build, which was focused on improving small and diverse business participation (Exstare Federal Services Group, Rosales Law Partners, and WHP Research 2015). This $1 billion airport improvement project created 1,000 jobs at peak construction. Charleston International Airport Airport Background Ownership/Governance Located in Charleston, South Carolina, the Charleston International Airport (CHS) serves over 3.9 million passengers per year and was projected at the time of the interview to have 5 million enplanements in 2019. It is owned and operated by the Charleston County Aviation Authority (Aviation Authority), which also manages two smaller, regional airports. In addition to the Avia- tion Authority board, an administrative team headed by the executive director oversees CHS. Over 2,100 airline, airport, and concessions employees work at CHS. Nine airlines serve CHS.
A-24 Guidance for Diversity in Airport Business Contracting and Workforce Programs Contracting and Workforce Diversity Efforts CHS has a local Minority and Women Business Enterprise (MWBE) program, as well as the federal DBE and Airport Concession Disadvan- taged Business Enterprise (ACDBE) programs. As part of its commitment to increasing business diversity, the airport has successfully implemented a Specialty Leasing Program that places local small business vendors at kiosks in the terminal. CHS has also partnered with other South Carolina airports, known as the South Carolina Airports Coalition, to host DBE Fly-Ins, a series of outreach events focused on connecting disadvantaged businesses with airport representatives and industry experts to teach them how to operate in an aviation environment. To improve workforce diversity and spur interest in the aviation field, CHS started an intern- ship program for disadvantaged college students. All of these efforts have increased contracting and workforce diversity at CHS. Business Diversity Program Implementation The federal DBE and ACDBE programs at CHS are housed in the Properties and Contracts Department, while the non-federal MWBE program is coordinated separately. Both program managers report to the director of procurement. Altogether, diversity initiatives at CHS are handled by a four-person staff. Leadership has played a strong role in driving the increased emphasis on diversity and inclu- sion at CHS. A South Carolina state senator whose district includes the airport approached mem- bers of the Aviation Authority board to point out that the airportâs staff was not representative of his constituency, who are primarily people of color. The board took up the cause, persistently and enthusiastically throwing their support behind the design of new programs for improving diversity. With the boardâs support, CHS engaged an outside consulting firm to help develop a Specialty Leasing Program, which gives small businesses the opportunity to sell their products at kiosks inside the airport. It was initially created for businesses that have items unique to Charleston. Launched in May 2015, the Specialty Leasing Program started with an outreach event for local small businesses interested in food or retail. After a 30-day application period, a judging panel consisting of airport employees and community partners selected four local small businesses based on their likelihood of success in the airport market. Kiosk leases are available for 6 months or 1 year, for up to 3 years. Aside from supporting small businesses through the kiosk program, CHS has also been focusing on outreach to minority- and woman-owned businesses. When the MWBE program at CHS was first created, Sharon McGhee, the coordinator for the program, reached out to other airports in South Carolina for their best practices. Together they speculated that small and disadvantaged businesses are not aware of the opportunities at airports, or else do not know how to access the right people for help. They created a series of outreach events called DBE Fly-Ins. Co-hosted by the Charleston, Columbia, Greenfield-Spartanburg, and Myrtle Beach airports, each Fly-In connects businesses with representatives from different airport departments, local community partners, and prime contractors. The purpose of these events is to show how to do business with airports, and to give DBEs the opportunity to speak directly with airport officials. They also address the benefits of getting DBE- or ACDBE-certified. Charleston International Airport Highlights â¢ A Specialty Leasing Program offers kiosk space to small local businesses that would otherwise be shut out of the airport market. â¢ DBE FlyÂIns outreach events, coÂhosted by Charleston International (CHS) and three other South Carolina airports, show DBEs how to do business with airports and give them a chance to network with airport representatives. â¢ An internship program for disadvanÂ taged college students works to build out a more diverse future workforce at CHS.
Case Studies A-25 Through the DBE Fly-Ins and other business expos, CHS is communicating to the small business community that they are interested in working with them and eager to help them succeed. Outcomes and Achievements Both the Specialty Leasing Program and the DBE Fly-Ins continue to grow and develop. CHS hopes to add more kiosks to the Specialty Leasing Program and expand them to more parts of the airport. One challenge that they encountered was deciding where to strategically place the kiosks to ensure business success, as one of their concourses sees less traffic than the other. The program has successfully allowed local vendors to sell travelers products that are unique to Charleston. All of these vendors are small businesses, and some are minority owned. The program also aids CHS by enabling them to fill in gaps in services left by larger businesses, e.g., a lack of food options on the land side. This supports local small businesses while improving the overall experience of travelers in the Airport. In the future, CHS hopes to set up a quarterly curriculum that will connect small busi- nesses with technical assistance providers and representatives from the Airportâs divisions. The curriculum would cover such topics as how best to do business with the Airport, bonding and insurance, capacity building, access to funding and capital, joint ventures, and DBE and ACDBE certification. The DBE Fly-In program, while still new, is already showing promising growth. In its first year, the airports hosted four Fly-Ins attended by around 350 businesses in total. There were around 80 attendees at Columbia Airportâs first Fly-In, but that number grew to 250 for its second event, which took place last year. More Fly-Ins are scheduled for the future, and other airports in the region have expressed interest in participating. Costs and Benefits The primary cost of the Specialty Leasing Program was its design (CHS hired a consulting firm to design the program), but now that it has launched, businesses pay to lease the kiosk space from CHS. The airport benefits from offering more products and improving the overall traveler experience. Local communities benefit from increasing the market for locally made goods, which also supports the tourism industry. The costs of the DBE Fly-Ins are shared among the four South Carolina airports that co-host them. These costs include renting a location, providing food, and producing marketing materials. The benefits of these outreach events are increasing participation and competition in the aviation marketplace and establishing relationships between airports and DBEs that will grow into successful long-term business partnerships. Both of those programs support Charleston County Aviation Authorityâs overall DBE partici- pation goal of 14.8 percent for FFYs 2018 through 2020. Workforce Diversity Program Implementation In 2015, CHS launched an internship program for college students deemed culturally, socially, or economically disadvantaged. Recruiting from colleges and universities throughout South Carolina, the program seeks to expose students from a variety of academic disciplines to what employment in the aviation industry is like. Depending on the requirements of their institution, interns are paid or can receive college credit. The purpose of the program is to build out a more
A-26 Guidance for Diversity in Airport Business Contracting and Workforce Programs diverse workforce for the future of CHS. In addition, CHS is engaging a consultant and plans to add a dedicated staff position to coordinate development of a full-scale diversity/inclusion effort within its workforce. Outcomes and Achievements To date, 19 students have come through the internship program. Of these, 74 percent have been people of color and about 50 percent have been female. They have worked in all parts of the airport; CHS strives to match students from any relevant major to a position in the Airport that will benefit their education. Two former interns have since been hired by CHS, and the Airport hopes to encourage more in the future. Costs and Benefits As the internship program grows over time, more students from diverse backgrounds will learn about the kinds of opportunities that the aviation industry offers. Drawing in new per- spectives will help CHS to innovate and prepare for the future, while ensuring that the Airport remains an inclusive and supportive place to work. Honors and Recognition The South Carolina Airports Coalition, which includes CHS, received the Outstanding Business Award as part of the 2016 Upstate Diversity Leadership Awards for their DBE Fly-In program. Given by the Greenville Chamber of Commerce and the Riley Institute at Furman University, the award recognizes the Coalition for their leadership in promoting diversity and inclusion and for setting an example that other airports can follow. Columbus Regional Airport Authority Airport Background Ownership/Governance Columbus Regional Airport Authority (CRAA) oversees three central Ohio airports: John Glenn Columbus International Airport (CMH), Rickenbacker International Airport (LCK), and the general aviation airport Bolton Field (TZR). CRAA is overseen by a board of directors and an executive leadership team who manage around 400 employees. The passenger-focused John Glenn International is served by nine airlines, including Air Canada, Alaska Airlines, American Airlines, Delta, Frontier, Southwest, Spirit, United, and Vacation Express. Allegiant operates passenger services out of Rickenbacker Inter national, which is primarily cargo-focused. Contracting and Workforce Diversity Efforts In addition to the federal DBE and ACDBE programs, the CRAA has a small business participation initiative through the Diversity Business Partner (DBP) program that focuses on small and/or minority-owned businesses. Through targeted outreach to vendors and careful tracking of engagement with diverse businesses, CRAA has increased the total number of contracts given to DBEs and DBPs, as well as its total diver- sity spend. CRAA has also implemented a Diversity Council, which meets regularly to discuss ongoing efforts to increase diversity in the Columbus Regional Airport Authority Highlights â¢ Data collection and reporting drive sustainable cultural change by affording departments a transparent view into their diversity spend against their capital and operating budgets. â¢ A Diversity Council strives to increase workforce diversity through expanded recruitment and retention efforts. â¢ Columbia Regional Airport Authority (CRAA) has expanded recruitment efforts by attending more diversified job and career fairs and using more online resources to focus on additional underrepresented groups and increase women and minorities in leadership.
Case Studies A-27 workforce. Through these programs, CRAA is working to make diversity a regular component of its business culture. Business Diversity Program Implementation Diversity initiatives at CRAA are an organizational effort managed by the program manager, business diversity, and the assistant, business diversity. The team reports directly to the general counsel and chief administrative officer, though it works closely with other airport departments, such as Procurement and Planning & Engineering. CRAAâs senior manager, procurement and business diversity, Karmin Bailey, also meets at least quarterly with the president and CEO of the Authority, Joseph Nardone. These meetings demonstrate the importance of leadership in developing, growing, and sustaining a culture of diversity at CRAA. The CEO is a strong advo- cate for diversity and regularly demonstrates his commitment to these efforts by listening to the concerns of the diversity team and working to remove any barriers to success it may be facing. The CEO has clearly articulated that the CRAA is willing to invest in small businesses. One indication of this commitment is through CRAAâs implementation of the B2Gnow soft- ware, a tracking system for managing diverse procurement. The acquisition of the software was approved and expedited by the CEO at the request of the diversity team. CRAA also looks for ways to remove barriers for small businesses. For example, it is currently developing an owner- controlled insurance program, which will allow more flexibility for small businesses to meet the necessary insurance requirements. Overall, the executive leadership at CRAA gives the diversity team its full support and the freedom to pursue a variety of avenues for enhancing the airportâs diversity efforts. An important component of CRAAâs strategy is early and targeted outreach. For upcoming projects, a stakeholder meeting is held sometimes up to 2 years in advance, and a kickoff meeting is held once funding and approval have been secured. The diversity team is involved from the start of this process and is able to alert potential vendors and also host an outreach or networking event as appropriate to notify and educate the vendor community on the upcoming opportuni- ties. Businesses register through the B2Gnow software, which tracks the types of products and services they offer, and vendors are also alerted when solicitations or outreach events are posted. There is also an RSS feed, which vendors can subscribe to, that sends out alerts whenever a new solicitation is posted. Annually, CRAA hosts an outreach event where vendors can sign up to meet directly with representatives from the Airport departments to potentially deliver the goods and services needed by each respective department. The outreach events are an opportunity for all businesses to form face-to-face relationships with CRAA. Adopting the philosophy that âwhat gets measured, gets managed,â CRAA has begun to track a number of metrics for business diversity, including the number and value of DBE and ACDBE contracts awarded, the diversity capital and operating spend, and the amount paid directly or as primes to diverse vendors. CRAA also breaks down these statistics by ethnicity and gender. The diversity team meets quarterly with each Airport department to discuss its diversity spend, how they can improve it, and what upcoming opportunities are available for small and/or minority- owned firms. CRAA also tracks the DBE attainment on completed contracts for FAA-funded projects and compares that with similarly sized peer airports. Outcomes and Achievements In 2018, 20.7 percent of total contracts went to DBEs (based on the value of contracts awarded), and 7.8 percent of total concessions went to ACDBEs (based on gross receipts). CRAAâs 2018 diversity capital spend was 15 percent. After focusing efforts on its operations side, CRAAâs
A-28 Guidance for Diversity in Airport Business Contracting and Workforce Programs diversity operating spend increased by 19 percent from 2017 to 2018. In that same time, the dollars paid directly or as primes to diverse vendors, from both the operating and capital budgets, increased by 72 percent. Aside from these statistics, CRAA is working to integrate diversity and inclusion into its culture. With the encouragement of CRAAâs executive leadership, the diversity team strives to bring everyone on board. The teamâs ultimate goal is to make diversity a part of how CRAA conducts everyday business, and for the Airport departments to form their own lasting relation- ships with a diverse group of vendors. Costs and Benefits The CRAA has found that diversity programs do not need to be expensive to have good results. Aside from the teamâs time, the primary costs are the B2Gnow software and the periodic outreach events. CRAA reduces costs by hosting events at its own facilities whenever possible. A large outreach event may cost between $2,000 and $3,000. Workforce Diversity Program Implementation CRAA recently started a Diversity Council, which includes team members from the Business Diversity, Human Resources, Procurement, and Legal departments. The Council meets monthly to discuss ways it can increase workforce diversity, training, and business diversity efforts at CRAA. Its current efforts are guided by the results of employee surveys, culture initiatives, and workforce diversity metrics. CRAAâs interim director, human resources, John Aldergate, meets regularly with the general counsel and chief administrative officer to discuss strategy and inno- vative ways to increase diversity across the organization as a whole, and evaluate new metrics to enhance awareness. CRAA human resources also tracks and reports information on its workforce demographics to the Board and local community leaders. Workforce demographics data include ethnicity, race, gender, veteran status, and self-disclosed disabilities, which are key to identifying areas where there are opportunities to improve diversity and inclusion efforts. CRAA has expanded its recruitment efforts to include more diversified job and career fairs, recruitment platforms, and community events. For example, CRAA partners with community groups such as AARP and veteran groups and has increased its utilization of more online resources for specific under- represented groups. Additionally, focusing on recruitment and retention, CRAA has increased posting and recruitment resources as well as redesigned hiring practices. These enhanced efforts include diverse candidate slates and diverse hiring panels, and providing unconscious bias training for hiring managers. CRAA has also increased efforts to retain top talent through compensation reviews, alternative career movement within the organization, providing stretch and interim assignments, and a focus on exit and stay interviews. These areas of focus have proven to keep the organization heading in the right direction as CRAA increases workforce diversity and continues to build its internal bench strength. Another way CRAA demonstrates commitment to recognizing its diverse workforce is by supporting programs for Black History Month and Veterans Day as well as through the support of cultural champions throughout the organization who model and influence CRAAâs culture. CRAAâs management team also receives training on implicit bias that provides tools to iden- tify and challenge their own implicit bias, as well as how to attract, engage, and retain a multi- cultural, diverse, and gender-inclusive workforce.
Case Studies A-29 Outcomes and Achievements The Diversity Council is still new, so results are limited thus far. The Council is working to build a diverse and successful team of employees at each of the three Columbus airports. Through its expanded recruitment efforts, CRAA has increased the number of women and minorities in upper management, as well as throughout CRAA. Costs and Benefits At the time of writing, predicted costs of the Diversity Council include paying for outside consultants to present trainings at CRAA. The primary cost of its recruitment efforts is time, as well as promotional materials for job fairs and other events. Honors and Recognition The CRAA received the Medium-Hub Inclusion Champion Award from the ACIâNA at the 2019 ACIâNA Business of Airports Conference. The award recognizes CRAA for its successful leadership and achievement in the inclusion of new diverse business, workforce diversity, outreach, and advocacy. Houston Airports System Airport Background Ownership/Governance The Houston Airports System (HAS) includes three airports that served almost 55 million passengers in 2017. These three airports are the George Bush Intercontinental Airport (IAH), William P. Hobby Airport (HOU), and the Ellington Airport (EFD)/Houston Space- port. The City of Houston governs the HAS. The IAH is the primary long-haul international airport facility in the greater Houston, Texas, region, served by 29 passenger airlines. HOU is served by four passen- ger airlines. EFD is operated by the U.S. military, National Aeronau- tics and Space Administration (NASA), and several general aviation tenants (Tiner 2018). The airport system functions as an enterprise fund and is not supported using tax dollars to pay for operations, maintenance, or capital improvements. Income from the airports is derived from fees, rentals, and bond retirement (HAS n.d.c). Houston Airports contributed more than $27.5 billion to the regional economy in 2016. Contracting and Workforce Diversity Efforts HASâs Office of Business Opportunity is working to increase utiliza- tion of DBEs in FAA financially assisted contracts. It is also working to include utilization of Minority (MBE) and Women (WBE), Small (SBE), and Persons with Disabilities Business Enterprises (PDBE) busi- nesses in City-funded contracts, as well as improve access to Houston Airports contract and procurement opportunities. The City of Houston also has a âGrow Your Own Workforceâ program that exposes the future workforce to a wide variety of career opportunities in municipal government. City departments participate by offer- ing internships and co-op opportunities, guest speakers, tours, Adopt-a-School programs, and the Find Your Path Career Day Expo. Houston Airports System Highlights â¢ The Office of Business Opportunity hosts several Industry Days throughout the year to highlight upcoming contracting opportunities. â¢ Houston Airports System (HAS) coÂhosted a 2018 Day of the Construction Worker to express support for contractors in the construction industry. â¢ The City of Houston has a Hire Houston First program to support the local economy. â¢ The City of Houston implements Liftoff Houston, an annual business plan competition, to empower local businesses with literacy education and mentorship.
A-30 Guidance for Diversity in Airport Business Contracting and Workforce Programs Business Diversity Program Implementation The HAS Office of Minority Business diverse business program provides contracting oppor- tunity information to SBEs, MWBEs, DBEs, PDBEs, and Airport Concessions Disadvantaged Business Enterprises (ACDBEs) and educates them about how best to access those oppor- tunities; serves as an advocate for those businesses and promotes policies and activities to increase their airport contract participation; connects prime contractors to subcontractors and concessionaires; monitors diverse business utilization based on participation goals; ensures that fair wage standards are met; hosts forums for networking; and provides referral services for diverse businesses. HASâs Office of Business Opportunity hosts several Industry Days throughout the year. These Industry Days highlight upcoming contracting opportunities and outline project scope, timeline and MWBE requirements, and offer subcontractors and prime contractors the opportunity to meet each other and other key stakeholders. The Office of Business Oppor- tunity posts flyers and presentations from past Industry Days on its website which can serve as a useful tool to interested businesses (HAS n.d.b.). The office hosts a Runway to Business program which highlights the capital improvement projects and other project-specific items, intended to facilitate networking. This event hosts up to 300 people, including contractors for concessions, construction, professional services, and supplies and maintenance, as well as the mayor and the City Council. The Office of Business Opportunity also certifies businesses and provides a free pre- certification workshop every Thursday afternoon. The City of Houston has a Hire Houston First program that grants the City the ability to give preference to hire local contractors as long as their pricing is competitive with the lowest bidder. Program criteria for awards are further detailed on the Cityâs website (Office of Business Opportunity n.d.b). The Office of Business Opportunity administers this program, which is intended to support the local economy and job creation. The deputy assistant director of the Office of Minority Business for HAS is Jason McLemore, who works for the City of Houston Aviation Department. He is responsible for oversight of the local MBE, WBE, SBE, and PDBE programs. Four staff members report to the deputy assistant director of the Office of Minority Business. One staff member solely handles ACDBE and DBE reporting to the FAA. Two contract compliance officers are focused on commercially useful functions for the DBE and local program. One office administrator handles the Pay or Play Program, established by a City ordinance to promote a work environment that supports a quality workforce for employees working on City contracts, and to improve fairness in the Cityâs bidding process for contracts. He also works with several City directors to increase minority business participation in City and airport contracts. The Office of Minority Business oversees contract compliance for the prevailing wage program and for reporting minority participation at Houstonâs three airports. It also hosts a variety of helpful informational material on its website: http://www.houstontx.gov/obo/. A citywide disparity study of the Cityâs local and federal contracting programs is nearing completion. The disparity study is required by Chapter 15 of the City of Houstonâs Code of Ordinances. This directs the City to review its MWBE program at least every 5 years (Office of Business Opportunity n.d.a). In September 2018, HAS partnered with the National Association of Minority Contractors (NAMC) to host the Day of the Construction Worker to âhonor and recognize the hard work
Case Studies A-31 and enormous contributions of the men and women that build the world around usâ (HAS 2018b). This event included a soccer match; safety, health, and education exhibits; and food and entertainment for construction workers and their families. Outcomes and Achievements The City of Houston implements Liftoff Houston, an annual business plan competition to empower local businesses with literacy education and mentorship. Success stories include local businesses that make allergy friendly and health-conscious treats, that focus on health and wellness trainings, a woman-owned/minority business that provides advertising support to the airports, MBE, DBE, WBE, SBE, and PDBE construction companies, and more (Office of Business Opportunity n.d.c). ACDBE goals for FFYs 2018 through 2020 at IAH are 32 percent for nonâcar-rental conces- sions, including 6 percent race-neutral ACDBE participation, and 1 percent for rental cars. At HOU, the goals are 30 percent for nonâcar-rental concessions, including 11 percent race-neutral ACDBE participation, and 1 percent for rental cars (City of Houston 2017). FFY 2017â2019 overall DBE goals for HOU and IAH are 29 percent, 2.5 percent of which can be achieved by race/gender-neutral means. DBE goals for FFY 2017â2019 at EFD are 26 percent, 2.5 percent of which can be achieved by race/gender-neutral means (HAS n.d.b). The Houston Airport Systemâs Office of Business Opportunity is committed to creating a level playing field on which MBEs, DBEs, WBEs, SBEs, PDBEs, and ACDBEs can participate in an environment that removes barriers. The office provides the tools necessary to compete successfully within the Houston Airport System; hosts small business and minority forums for networking; provides information and referral services to MBEs, DBEs, WBEs, SBEs, and PDBEs; and educates small businesses on how to access HAS contracting opportunities. In 2018, over 600 people attended the various outreach/networking events the office hosted and coordinated. Additionally, over 700,000 emails were sent advertising the various outreach/ networking events the office hosted and conducted. The Houston Airport System awarded $79,113,975 in total contracts during FY 2018 (July 2017 through June 2018). Of the total contracts awarded, $24,437,378 worth went to MBEs, DBEs, WBEs, and SBEs firms. This equals 31 percent M/W/D/SBE participation on HAS contracts. Concessions at George Bush Intercontinental Airport (IAH) generated $305,401,608. Of the total, $105,342,689 was generated by ACDBE firms. ACDBE participation at IAH was 34 percent. Concessions at William P. Hobby Airport (HOU) generated $84,147,040. Of the total, $21,759,859 was generated by ACDBE firms. ACDBE participation at HOU was 26 percent. Costs and Benefits A large portion of the Office of Business Opportunityâs budget is devoted to staffing. The second largest cost for the Office of Business Opportunity is its outreach program. Costs for the Runway to Business program include renting out locations, equipment, and food. Part of the Office of Business Opportunity budget also includes employee and vendor training, disparity studies, and B2Gnow diversity management software. Contract awarding, monitoring, and FAA compliance costs are included in staff costs. The most recent economic impact study demonstrated that the three airports collectively contributed over $27 billion to the local economy and contributed to more than 230,000 jobs, generating $8.7 billion in employment earnings.
A-32 Guidance for Diversity in Airport Business Contracting and Workforce Programs Workforce Diversity Program Implementation The City of Houston offers a Hire Houston Youth internship program which is a mayoral initiative hosted by the Office of Education to prepare youth for careers through internship expe- rience. The City also brings in guest speakers, provides tours, hosts Adopt-a-School programs, and offers the Find Your Path Career Day Expo. HAS offers interns Job Readiness Training. Houston Airports also pay the costs associated with employeeâs professional licenses, certifica- tions, or professional organization memberships as a workforce development benefit. The Office of Business Opportunity serves as the Cityâs workforce development lead and has been forging a workforce collaborative with the mayorâs office of Education, Economic Develop- ment, and Complete Communities. This collaborative is internally referred to as Opportunity Houston, or OHTX. Currently, the Office of Business Opportunity is mobilizing to create a workforce division to better provide workforce development leadership and programming for the City. The aim is to equip the City with a substantive and cohesive workforce development branch, recognizing the national trend of creating workforce development departments to approach unemployment, employability, and labor demands. Outcomes and Achievements The Office of Business Opportunity partnered with Home Builders Institute (HBI) to design the HBI Acres Homes program (Acres Home Construction Program n.d.). This program was carefully designed to serve young men and women (ages 18â24) in the Acres Homes commu- nity, one of Houstonâs underserved communities and Complete Communities neighborhoods. This program was made possible by a grant from Norbord, a global wood-panel manufacturing company, and will be leveraged to provide almost 2 years of programming. This program is free for the students and includes introductory construction skills, exposure to the industry and its opportunities, mentorship, financial literacy, and professional skills develop- ment. The underlying aim is to support alternative and vocational training and career paths, recog- nizing that different people have different skill sets that can serve them in economic opportunities. The Office of Business Opportunity has forged strong community partnerships to enrich this program. The Greater Houston Builders Association and the Chesmar Foundation bought the tools and supplies needed to teach the students, a total contribution worth over $13,000 (Greater Houston Builders Association n.d.). Bread of Life provided the majority of the training siteâs furniture and office supplies (Bread of Life n.d.). Acres Homes community partners such as Johnny Hollins, CEO of J.G. Hollins Builders, assisted with instruction by providing students the opportunity to tour real residential and commercial building sites, and serving as an industry mentor to students (J.G. Hollins Builders n.d.). Recently the Office of Business Opportunity has implemented a strong entrepreneurship component to this program, recognizing that the students can leverage their construction skills to create their own businesses. Leveraging partners such as SCORE and the Office of Business Opportunity Solutions Center and Certification Divisions, students are now exposed to business design and implementation, marketing, MWBE certification with the City, and the professional skills needed to operate and develop a business. Costs and Benefits The program costs are based on the time it takes the management analyst/program manager, who is one of two people responsible for workforce development in the Cityâs Office of Business Development, to execute the Cityâs workforce development programs: workforce development
Case Studies A-33 program design, launch, and operations. To design and launch the program, the management analyst/program manager needed to find a program location; develop a community support coalition, establish partnerships and relationships with other City agencies, industry networks, and organizations; launch marketing campaigns; promote awareness of the program; and design and launch a kickoff event. All of these responsibilities took time, which can be considered a cost. Time spent on program operations included assisting students with bills and City permit- ting; hosting weekly Lunch and Learns for students covering health, community awareness, and career elements; working with studentsâ community service initiatives; organizing Lunch and Learns with program builder partners, financial literacy partners, and business owner part- ners; offering trainings; promoting the program via social media and at the U.S. Conference of Mayors annual meeting; organizing student tours to partner buildersâ building sites, including airport tours; conducting program impact assessments; organizing student graduation ceremonies; and creating advisory meeting agendas. Program costs for the HBI Program are $340,000 per year. Sub-costs included in this are: â¢ Program costs for 60 students yearly (instruction, certification, management, etc.): $276,000 â¢ Lease: approx. $3,625 per month ($49,300 annual total) â¢ Security deposit: approximately $5,800 â¢ Food: $2,700 ($675 per cohort, 4 per year) â¢ Stipends: $12,000 (â¼$200 per student for 60 students). Honors and Recognition HAS received the 2018 ACI-NA Airport Concessions Award, including first place in two categories, one of which was the Best Food & Beverage Program in the Large Airport divi- sion for IAH. HOU earned second place in its Medium Airport category of the Best Food & Beverage Program awards. IAH was awarded for its approach to representing local brands such as the Breakfast Klub and Cadillac Bar, both of which serve Texas-style cuisine (HAS 2018a). HAS was honored in 2016 by the Airport Minority Advisory Council (AMAC) at the 2016 National Business Diversity Conference (HAS 2016a). In 2015, HAS won the Diversity Champion of the Year award and the Pinnacle Award given by the Houston Black Chamber of Commerce (HAS 2016a). This award was given for the airport systemâs minority- and woman-owned business participation in concessions, construc- tion projects, and professional services agreements that year. Metropolitan Washington Airports Authority Airport Background Ownership/Governance The MWAA (the Authority) is a public body politic and corporate, created by interstate com- pact between the Commonwealth of Virginia and the District of Columbia with the consent of the United States Congress. MWAA is responsible for operating and maintaining Ronald Reagan National Airport (Reagan National), Washington Dulles International Airport (Dulles International), and the Dulles Toll Road. MWAA is also managing the Dulles Corridor Metrorail Silver Line construction project that is expected to extend public transit rail service to Dulles International Airport and parts of Loudoun County, Virginia. MWAA is governed by a 17-member board of directors with seven members appointed by the governor of Virginia, four by the mayor of the District of Columbia, three by the governor of Maryland, and three by the president of the United States.
A-34 Guidance for Diversity in Airport Business Contracting and Workforce Programs Contracting and Workforce Diversity Efforts It is the policy of the Authority to seek significant participation in its contracts by local small businesses and by small businesses owned by minorities and women. The Authority has two supplier diversity programs for achieving this policy objective: (1) a Local DBE program for contracts funded in whole or in part by the U.S.DOT and concessions contracts; and (2) a LDBE program for contracts that do not include federal funding. The Authorityâs Department of Supplier Diversity (DSD) within the Office of Supply Chain Management is responsible for DBE and LDBE program administration. MWAA also strives to be an employer of choice, targeting and devel- oping a diverse workforce through community outreach, job fairs, professional development, trades apprenticeships, and supervisory, management, and leadership development programs. Business Diversity Program Implementation DSDâs mission is to âpromote regional economic development through the maximum utilization of small, local, minority and woman- owned businesses in MWAA contracting opportunities,â which it executes through outreach, certification, and compliance activities. The Authority has an extensive outreach strategy to increase awareness of contracting and educational opportunities with local and small businesses. DSD works with over 60 strategic partners consisting of minority- and small-business organizations as well as chambers of commerce, to help identify and connect with potential LDBE and DBE firms. MWAA publicly publishes a Quarterly Procurement Forecast which details upcoming contracting opportunities. This forecast, along with current contracting opportunities is available at: www.mwaa.com/ business/contracting-opportunities. The Office of Supply Chain Management also hosts or participates in over 25 outreach events annually. These events include Procurement and Supplier Diversity professionals, as well as subject matter experts from procuring offices, which allows for targeted networking and detailed information sharing about specific contract opportunities with potential offerors. MWAA encourages large prime contractors to conduct outreach and assists in matchmaking to help qualified small businesses partner on MWAA and other entitiesâ contracts. MWAA may in its determination create a sheltered market for procurement competition only among LDBE firms or set DBE or LDBE subcontracting requirements on contract solicitations. As such, a key objective in its outreach strategy is getting qualified and capable small businesses certified in the Authorityâs supplier diversity programs. DSD staff conducts periodic certification workshops to educate small businesses on becoming DBEs or LDBEs. As of December 31, 2018, MWAA had over 2,800 certified small businesses in its DBE or LDBE programs. In addition to its race- and gender-neutral LDBE program, MWAA encourages minority-owned and woman- owned business enterprise participation in Authority contracts. Once firms are awarded contracts through a competitive procurement process, MWAA conducts compliance reviews to monitor small business performance and timely receipt of payment. The Authority currently uses B2Gnow, a supplier diversity management system, to enhance the administration of outreach, certification, and contract compliance efforts. Metropolitan Washington Airports Authority Highlights â¢ Metropolitan Washington Airports Authority (MWAA) certified over 2,800 small businesses in its supplier diversity programs and spent $100 million with local disadvantaged business enterprises in 2018. â¢ MWAA has established an equal employment opportunity policy to ensure that qualified female and minority applicants are encouraged and rightfully considered at every step of the employee application process. â¢ In 2018 MWAA launched Airports Authority Small Business University, which includes a nonÂcredit executive certificate program in partnership with Georgetown University.
Case Studies A-35 Outcomes and Achievements MWAA tracks the impact of its airports on the local economy and the effects of their contracts on employment and on small and minority-owned businesses in the area. In 2018, MWAA spent $100 million with LDBE firms. The community benefits requirement of MWAAâs Project Journey contract with Turner Construction to redevelop Reagan National includes 25 percent LDBE participation (with $140 million in contract awards through December 2018), as well as training and apprenticeship programs, internship opportunities, veteransâ programs, and community service events. In 2018, MWAA also launched the Airports Authority Small Business University (SBU). This DSD initiative includes three components: a small business educational workshop series, a jurisdictional impact workshops series, and a noncredit executive certificate program. As part of its inaugural programming, SBU offered workshops on proposal writing, branding, and financing business growth and hosted an Airports Business and Employment Opportunity Expo with topics such as access to capital, construction cost estimation, and bonding. The noncredit executive certificate program was conducted in partnership with Georgetown University and 1863 Ventures for 28 LDBE firms seeking to further their development, and provided courses including Entrepreneurship 101, Financing Models, and Human Capital. Since July 2018, SBU graduates have successfully competed for and been awarded eight Authority contracts worth $749,000 as of 2019. Those interested in more information about this program may contact Julia Hodge, vice president, Supply Chain Management, MWAA. Federal DBE goals for MWAA for fiscal years 2017 through 2019 were 22.8 percent for Reagan National and 21.7 percent for Dulles International (MWAA 2017). DBE attainment at Reagan National was 25.0 percent and 26.7 percent in 2017 and 2018, respectively. DBE attainment at Dulles International was 25.1 percent and 29.7 percent in 2017 and 2018, respectively. MWAA has also established a 25 percent DBE participation goal for the construction of Phase 2 of the Dulles Corridor Metrorail Project (MWAA 2013). Costs and Benefits MWAA is committed to supplier diversity and invests in outreach initiatives, including conferences and industry events to maximize participation of qualified and capable firms in its contracting opportunities. Supply Chain Management annually budgets approximately $10,000 in conference registrations and $50,000 in sponsorships for industry events hosted by NIGP: The Institute for Public Procurement, AMAC, Conference of Minority Transporta- tion Officials, Capital Region Minority Supplier Development Council, Maryland Washington Minority Companies Association, Womenâs Business Enterprise National Council, and various local and national chambers of commerce. Workforce Diversity MWAA recognizes that strength comes from diverse experiences and perspectives, and that a diverse workforce is a stronger, more agile and creative workforce. To better serve its diverse, global customers, MWAA strives for diversity throughout its organization. The process for recruiting and advertising for MWAAâs workforce is a public process conducted by its Employment Resources and Personnel Management Department (ERPM), a part of the HR Department. Job opportunities are posted to the MWAA website and updated on a weekly basis at: https://www.mwaa.com/about/careers. Additionally, MWAA is positioned to build a diverse workforce by implementing public outreach through career fairs and events that encom- pass a wide range of experiences, ethnicities and educational backgrounds. In addition to these events, ERPM reaches out to employment websites that promote diversity to publicize MWAA
A-36 Guidance for Diversity in Airport Business Contracting and Workforce Programs job opportunities, casting a wider net to capture a diverse pool of candidates. A diverse work- force that reflects the global customer base is better equipped to serve the 47 million travelers who flow through MWAAâs airports each year. MWAA continues to attract and retain diverse, qualified talent by promoting career oppor- tunities, fostering relationships with education institutions, maintaining competitive salaries and benefits, and expanding development programs. MWAA is developing talent for future success as it conducts outreach efforts within its jurisdiction for a variety of training programs. The Professional Development Intern Program is designed to attract talented workers from both inside and outside MWAA for a rigorous 18-month training program. Participants who successfully complete all program assignments, including OTJ training, lectures, classroom assignments, and a final group project, will be recommended for full-time permanent placement in their functional areas. In addition, the Leadership Development Program and the Supervisory Training Program cultivate strategic thinking and cross-functional team-building skills, foster effective habits for management, and promote inclusivity and diversity in the workplace. For trades positions, the search for diverse talent begins early, focusing on high school students and teachers as well as candidates who are already in the workforce. As part of the Onsite Education Series, high school students are invited to tour the airportsâ shops, watch work in progress, and learn from the employees who are engaged in trade careers. On Teacher Work- days, teachers and counselors learn about the skills their students will need to pursue aviation and airports careers. In the Chantilly and Pulley Programs, students are employed at the airports as interns, working 20â30 hours per week. Typical tasks for these interns include fabricating replacement parts of the mobile lounges at Washington Dulles International Airport. Attracting workers from across the region, the Skilled Trades Apprentice Program has a wide focus that includes jobs such as maintenance, facilities, and plumbing, which are not typically associated with working at an airport. The Skilled Trades Apprentice Program is a full-time, paid employee development program designed to hire, train, and retain the next generation of MWAA trade professionals. Outcomes and Achievements As a result of hiring and development programs, MWAA has improved and continues to improve its workforce profile. In addition, MWAA is focused on succession planning and ensuring that employees can grow and progress within the organization. Understanding the importance of retaining and developing talent, the organization encourages individual advance- ment to ensure leadership continuity and to expand leadership diversity. Costs and Benefits In the 2019 budget for MWAA, the total operating expenses of human resources, including travel, lease/rental payments, services, supplies, materials, fuels, insurance and risk manage- ment, and equipment was equal to $18,500,000. The Authority offers employees competitive compensation and a generous benefit plan that includes: defined benefit and defined contri- bution retirement plans and health, dental, and life insurance. Personnel compensation and employee benefits totaled $6,965,000 in 2019, according to MWAAâs budget (MWAA 2018a). On average, employees of the Authority earn $78,148, and the employer benefit spend averages $33,000 per employee for a total compensation of $111,148 annually. MWAA acknowledges and emphasizes the need for continuous learning to promote the orga- nizationâs mission, values, goals, and human resource requirements. In 2018, the Authority spent $1.9 million dollars on individual development including training and tuition assistance.
Case Studies A-37 Honors and Recognition MWAA has received multiple awards and recognitions from key minority and small business organizations and elected officials for its demonstrated commitment to supplier diversity and economic impact in the region: â¢ MWAA was honored as the Best Public Transportation Authority for Minority Business Enterprises by Governor Hogan on behalf of the Maryland Washington Minority Companies Association (2018). â¢ MWAA received Women Presidentsâ Educational Organization Awards for MWAAâs dedi- cated efforts in the WBE community (2017 and 2018). â¢ MWAA was named a Diversity Inclusive Organization by American DBE Magazine (2018). â¢ MWAA was recognized as a Catalyst of Minority Business Inclusion by AMAC (2018). Port of Portland/Portland International Airport Airport Background Ownership/Governance Portland International Airport (PDX or Airport) is governed by a nine-member Port of Port- land Commission. PDX is a large airport owned and operated by the Port of Portland. Kimberly Sutton is the Airportâs small business program manager, overseeing DBE/ACDBE programs as well as local small business and apprenticeship programs. The office has one full-time staff member and one part-time staff member. The DBE program at the Airport has been in place since 1992. Contracting and Workforce Diversity Efforts The Port of Portland and PDXâs diverse business contracting programsâincluding the DBE, ACDBE, small business, and appren- ticeship programsâare intended to encourage and support small or disadvantaged businesses to bid for contracts, help them expand their operations, and connect them with mentors. Small businesses in Oregon and Washington are encouraged to bid for Airport projects. The Port of Portland/PDX also offers OTJ training programs as well as apprenticeships to develop and cultivate diversity in its workforce. Business Diversity Program Implementation PDX has a mentor-protÃ©gÃ© program which pairs DBEs with larger businesses that can provide mentorship and help the DBE grow over a 3-year period into a more stable enterprise. This program has been in place since 1995. The mentor-protÃ©gÃ© program entails matching each protÃ©gÃ© with two industry mentors, who provide business plan and marketing strategy development assistance, support understanding financial statements, and goal-setting mentorship. The Airport also encourages small, minority-owned, and woman-owned businesses to apply for any certification for which they are eligible. Port of Portland uses federal financial assistance from the FAA prima- rily for airport improvement projects to support its DBE program. The Port of Portland/PDX Highlights â¢ The Port of Portland and Portland International Airport (PDX) prioritize workforce diversity through apprenÂ ticeships and onÂtheÂjob training programs. â¢ Some essential aspects of their diverse business programs include a mentorÂprotÃ©gÃ© program, setting and achieving goals for diverse business participation, and breaking larger contracts into smaller awards. â¢ The Port has a âculture teamâ that aims to create a welcoming workplace by continually improving the focus on diversity, equity, and inclusion. â¢ Involvement in the community is a key benefit of the business diversity programs.
A-38 Guidance for Diversity in Airport Business Contracting and Workforce Programs Port uses the federal grant assurance to establish DBE plans and set annual participation goals for its three airports for projects and concessions. For FY 2017â2019, the PDX overall goal was 11.95 percent. Of this, 9.84 percent had to be achieved by race-conscious contract measures and 2.11 percent by race-neutral measures. The ACDBE program at PDX focuses on automobile dealers, pay telephone companies, concessionaires, goods or service providers, banks and financial institutions, and car rental companies. The Port has two separate ACDBE goals: one for car rentals and one for all other types of concessions. Between 2015 and 2017, the Portâs overall goal for nonâcar-rental concessions was 12.9 percent, to be accomplished through 7.5 percent race-conscious measures and 5.4 percent race-neutral measures. The overall 3-year goal for car rental concessions was 1.3 percent, to be attained completely through race-neutral measures. The Portâs SBE Program has a 20 percent certified small business participation goal. The Port uses a specific contract type (construction manager general contractor or CMGC) that is generally for very large projects. These mega-projects allow the small business program manager to work with prime contractors from the start of their contract to find ways of breaking up work into tiers that can best include diverse businesses. The Portâs Minority, Women, Service-Disabled-Veteran, and Emerging Small Business (SBE) Program is administered by the Office of Small Business Development. The Port awards at least 20 percent of all of its contracting dollars to certified small businesses. Small businesses are encouraged by the Airport to compete for work at the Airport as contractors, subcontractors, suppliers, and service providers. The Port of Portland manages its concessions program with specific aim at reflecting the local community. It incorporates local food and beverage and retail concepts into its concessions program. The design of the concessions area is coordinated with the outlay of the terminal areas to optimize cohesion and appearance. Outcomes and Achievements At the time that Ms. Sutton joined the Airport, PDX was averaging 8 percent participation in the DBE program and has since increased to 26 percent participation. The Airport director is very supportive of the program and believes that support is critical to the programâs success. The Airport completed a disparity study in November 2018. It summarized 5 years of contracting history to determine which racial/ethnic groups are underrepresented based on the availability of small businesses in the community. The study helps the Airport target recruit- ment and outreach efforts. One finding is that PDX is underutilizing Hispanic-owned small businesses. This can be attributed to both language barriers and the current political climate, which has caused some in the Hispanic community to be wary of government projects that have requirements like finger- printing or FBI background checks. (Even legitimate businesses that would pass those checks find it daunting.) Gaining buy-in from the business community was also identified as a challenge, as levels of receptiveness to the program vary. Navigating attitudes and both explicit and implicit biases about racism and sexism requires tailoring the programâs approach. The mentor-protÃ©gÃ© program was identified as a significant driver of success. For example, one business graduated the program and is a prime contractor on several projects with the Port of Portland. The Port recently started collecting data and monitoring program reporting using the B2Gnow tracking software.
Case Studies A-39 Costs and Benefits The mentor-protÃ©gÃ© program has an annual budget of $250,000, and costs $15,000 per protÃ©gÃ© firm to administer. It was started in 1995 and has seen over 120 firms graduate. The Port receives funding support from partner agencies such as Oregon Department of Trans- portation and Multnomah County. The Airportâs disparity study completed in November 2018 cost $500,000. The B2Gnow tracking software costs approximately $30,000, and the Airportâs Certified Payroll software costs approximately $60,000. Staff costs for the program are approximately $350,000 annually. The Airport has found a benefit of its business diversity programs to be its involvement in the community. This involvement is an important aspect of recruiting diverse businesses. Building relationships helps those businesses feel comfortable in seeking help and âknowing they have an advocate on the inside.â Workforce Diversity Program Implementation As a part of its construction workforce diversity program known as the Workforce Train- ing and Hiring Program, the Port offers apprenticeships as well as on-the-job training to support skill building, particularly for the construction industry. For construction projects, the Port of Portland requires that contractors have this training. This program applies to all construction projects that are at least $500,000 and to all subcontracts that are at least $100,000 on the same project. The Port uses an electronic reporting system to assemble data from contractors, including subcontractor payment utilization reports, workforce utilization reports, and certified payroll reports. The Port has designated the following goals: a minimum of 20 percent of total work hours in each apprenticeship trade be performed by apprentices; a minimum of 14 percent of total work hours be performed by women in journey and apprenticeships; and a minimum of 25 percent of total work hours be performed by people of color in journey and apprenticeships. In addition to the construction workforce diversity program offered by the Port, another workforce diversity program targets hiring practices to increase diversity overall. On its website, the Port emphasizes the importance of strengthening diversity, equity, and inclusion; fostering a fair and equitable environment; and promoting a culture of collaboration and respect. It defines social equity as âfair and equitable inclusion and creating the conditions in which all people can participate, prosper, and achieve equitable outcomes with respect to the Portâs employment, business, and services.â The Port of Portland provides employee training focusing on challenging bias and exploring inclusion. PDX has a recognition program called Make the Connection, Our Customers and You, which equips its managers and employees with tools necessary to enhance its own workplace culture passenger experiences. As a part of this recognition program, there is an annual banquet, a quarterly award program, a monthly passenger recognition program, and a Scratch and Win program (PDX n.d.). The annual banquet celebrates and recognizes excellence in the companies that do business at PDX. The quarterly award program presents awards to the top employees at PDX every 3 months and provides these employees with gifts and an invitation to a quarterly luncheon. The monthly passenger recognition program is a unique opportunity for 600 passen- gers to recognize any employee who âimpresses them with outstanding customer serviceâ (PDX n.d.). Every employee recommended is publicly recognized and of those, 10 winners are selected in a raffle drawing for a gift bag and a gift card of their choice. The Scratch and Win program at PDX involves taking the prizes that their concessions partners donate each year and having
A-40 Guidance for Diversity in Airport Business Contracting and Workforce Programs PDX managers distribute tickets to employees who are âcaught in the actâ of providing excellent service. These tickets each win the recipient employees one prize (PDX n.d.). Outcomes and Achievements To follow through on its commitment to social equity, the Port requires that each department develop an equity action plan. This ensures that the Airport and Port focus on lifting the voices of and removing the barriers for historically underrepresented groups. The Port of Portland outlines on its website that it embraces being a diverse and inclusive workplace. One outcome of the Portâs work has been to develop a Port of Portland âculture team.â This team aims to create a welcoming workplace by continually improving the Portâs focus on diversity, equity, and inclusion. The team is composed of employee volunteers who coordinate with departments and colleagues to target areas for improvement. The Port of Portland also advances social equity within its organization and community through partnerships with other agencies, non-governmental organizations, and nonprofits, and by consulting with local groups. Another achievement is the Portâs focus on increasing diversity in the workplace with targeted recruitment strategies and through efforts to ensure equal opportunity for employee promo- tion. This has resulted in the Port exceeding its target goals of 33 percent female and 15 percent minority participation. Costs and Benefits The workforce diversity efforts at Port of Portland are separated into three primary cost categories: software, staff, and outreach/training. The Port designates about $60,000 for software costs, $100,000 for costs associated with staffing, and $10,000 for outreach and trainings. Port of Portland considers its workforce diversity program to have several benefits. These include ensuring adequate skilled labor needed for Port construction projects; providing living wage jobs to women and people of color living in underserved communities; and feeding the pipeline for minority- and woman-owned small business owners. The workforce diversity program is consistent with the Portâs social equity goals. Honors and Recognition The Port of Portland has received the following awards: â¢ 2015âHispanic Chamber of Commerce Oregon Bravo! Award for Outstanding Small Busi- ness Program in Support of Hispanic-owned Businesses â¢ 2017âACIâNA Richard Griesbach Award of Excellence â¢ 2018âBusiness Diversity Institute Champion of the Year Award for the Mentor-ProtÃ©gÃ© Program. St. Louis Lambert International Airport Airport Background Ownership/Governance The St. Louis Lambert International Airport (STL) is located in St. Louis, Missouri. The airport is owned and operated by the City of St. Louis. The St. Louis Airport Authority is the municipal department that manages the daily operations of the airport. The St. Louis Airport Authority is comprised of the Airport Commission, airport director, and over 500 employees. Thirteen airlines serve STL.
Case Studies A-41 Contracting and Workforce Diversity Efforts The City of St. Louis (City) has a local MWBE program and the federal ACDBE and DBE programs. The Airportâs outreach efforts and implementation of a new certification system have increased efficiency and improved turnaround time for the overall certification process. In 2018, STL received 176 MBE and WBE certification applications, an increase of 17 percent over the previous year. The Airportâs work- force diversity efforts have resulted in more than 40 percent of depart- mental leadership staff being female and/or minorities. Business Diversity Program Implementation STLâs Business Diversity Development Department is engaged in establishing all of the business diversity programâs policies for the Airportâs federal DBE, MWBE, and ACDBE programs, as well as for the local MWBE program. This department is also the certifying body for these programs and has a staff of 13 people. The certification team is composed of a program manager and four certification officers who handle DBE, ACDBE, and MWBE certification matters. The compliance team is made up of a program manager and three contract compliance officers who are responsible for monitoring federal and local projects at the airport. The Airportâs Business Diversity Department also oversees the Title VI program, the ADA program, and the City of St. Louis Living Wage Program. The Cityâs Living Wage Program requires that entities that receive City contracts and financial assistance pay their employees a living wage rate that is equal to 130 percent of the federal poverty guidelines for a family of three plus a fringe benefit rate. The Airport requires that bid submissions demonstrate good faith efforts to include disadvan- taged businesses or they will not be considered. Businesses must prove they are considering and reaching out to all qualified partners when they submit bids, regardless of who the businesses have partnered with in the past. The Airport presents to audiences on what is entailed in a good faith effort to include diverse businesses. Federally funded projects that had previously fueled a business growth have recently decreased at the Airport. Similar to several other airports, STL has seen a decline in federal funding and has relied more on local or Airport-generated revenues. Construction and design projects that are funded by nonfederal monies are subject to the City of St. Louis MWBE program. STL is the only airport that bids concessions and does not use a RFP process. Concession solicitations are handled through a Solicitation for Bids (SFB) because of City ordinance require- ments. Concessions contracts are often awarded based on which business comes up with the highest minimum annual guarantee (MAG). When the food and beverage contract expires in 2020, the Airport wants to solicit using an RFP process. Because the SFB process and criteria are not weighted, prime bidders do not have a sense of what standards such as customer service or diversity are more important than others. It also disenfranchises smaller companies from bidding as a prime. These smaller companies cannot compete with large international companies, and the food and beverage opportunities have not been bid out since 1960. STLâs assistant director of community programs and business diversity development has suggested the creation of single lease concepts to provide more opportunities for local and small minority business participation in the concessions program. St. Louis Lambert International Airport Highlights â¢ As a municipally owned airport, St. Louis Lambert (STL) emphasizes contracting to local businesses, including having at least 30 percent of contracts go to local MBEs or WBEs. â¢ More than 40 percent of STLâs departmental leadership are female or minorities. â¢ STLâs Living Wage Program ensures a living wage pay rate for its staff. The program includes offering vendor training, outreach, and technical assistance. â¢ STL has a Business Diversity Team that conducts outreach and direct communication with businesses, including hosting an annual Business Diversity Forum to engage continuÂ ously with disadvantaged businesses.
A-42 Guidance for Diversity in Airport Business Contracting and Workforce Programs The City of St. Louis conducted a disparity study of the local MBE/WBE program a few years ago. Before the study, MBE goals of 25 percent and WBE goals of 5 percent had been in place since 1998. As a result of the study, goals for WBE participation will increase from 5 percent to 11 percent as of January 2019, and MBE goals will be broken out by ethnicity. STL incorporated the B2Gnow software 2â3 years ago. When selecting businesses to award contracts, STL has the ability to look into a businessâs track record of valuing and prioritizing diversity and give more credit to businesses that reflect those values. B2Gnow allows for STL to track payment compliance between primes and subs. STL now assembles information for annual reports using B2Gnow. The Business Diversity team conducts outreach and direct communication with businesses. The airport identifies DBEs and MWBEs by their NAICS codes and sends invites specifically tailored to businesses for open projects, which is not a practice being done everywhere. The team also meets with businesses individually, as well as hosts several workshops. STL hosts an annual business diversity forum which continuously engages with disadvantaged businesses and encourages them to bid on projects as primes. This free event draws approximately 400 attendees, including the SBA, Missouri DOT, and other strategic partners. At the forum, the airport honors individuals who have demonstrated a commitment to diversity in their business and community. This category is known as Diversity Champions. The airport also hosts several certification workshops and provides technical assistance, such as vendor training, to diverse businesses. The airport posts business opportunities on its website on the Doing Business at STL page. STL has also streamlined its certification process using an online portal, which has resulted in an increase in the number of companies completing the certification process and a shorter application processing timeline. Outcomes and Achievements STLâs achievements in 2018 included reaching a 37 percent level of general service contracts at the airport going to MBEs and WBEs, and 22 percent of federally funded construction and professional service agreements going to DBEs. Of locally funded construction and professional service agreements, 46 percent went to MBEs and WBEs. Of concessions, 38 percent in 2018 went to ACDBEs. The City of St. Louis has diversity requirements for all redevelopment projects that are funded with financial incentives/tax incentives such as tax abatement, and this has helped to grow diverse business inclusion. Any project for the City that has received tax incentives, such as building a stadium, is subject to the diversity program. City leadership has always encouraged private companies to adopt the same diversity commitments, which has ultimately helped those companies succeed and expand. The airport has found the procurement policy framework used by the City government to be challenging in an airport environment because, as a municipal entity, it must follow those procedures in procurement. Costs and Benefits About 75 percent of STLâs diversity budget is spent on staffing and salaries. The airport also spends about $100,000 annually on its business diversity activities, including the annual diver- sity fair, of which the bulk of the costs are for marketing the event. Costs include advertising in local minority newspapers, diversity awards, and participating in and hosting workshops, trade shows, and sponsorships with other entities, such as the Minority Supplier Development Council, Hispanic Chamber of Commerce, Asian Chamber of Commerce, MOKAN, and AMAC ($25,000). An additional cost includes the maintenance contract with B2Gnow ($50,000). Other costs
Case Studies A-43 include hiring consultants for training and professional services for certification reviews and related services, which total about $15,000â$20,000. Attendance at conferences such as AMAC, ACI, or the American Contract Compliance Association are about $15,000, but the cost to attend conferences does not come from the Business Diversity Departmentâs budget. Workforce Diversity Program Implementation The City of St. Louis also has a Building Union Diversity (BUD) pre-apprenticeship pro- gram that introduces St. Louis residents, particularly minorities and women, to the construc- tion trades. The training program is operated by the Construction Trades Council of St. Louis and the St. Louis Agency on Training and Employment (SLATE). By connecting job seekers to training programs and employment opportunities, SLATE assists employers with their workforce diversity and assists youth by providing them with valuable career skills. The program has more than 100 graduates. SLATE monitors most projects over $1 million, and projects of that size are required to adhere to workforce diversity standards. SLATE monitors indirectly any capital programs with a workforce diversity component, for successfully bidding projects. The Airport also has an internship program and emphasizes the importance of workforce diversity overall. Outcomes and Achievements More than 40 percent of STLâs departmental leadership staff are female or minorities. Costs and Benefits The airportâs Human Resources Department engages in employee recruitment by participating in various job fairs, some of which are aimed at communicating with diverse communities. The Cityâs Department of Personnel is responsible for offering personnel trainings. City resources are deployed at the Airport, so those trainings are City costs. One airport representative expressed that benefits of having a diverse workforce include the increased exposure to different cultures and an enriched knowledge. She found that when the airport has recruited employees from other regions, it has brought a new perspective that makes the culture at the airport richer. Honors and Recognition In 2017, STL received the ACI-NA Industry Diversity Award for a Medium-Hub Airport. In 2017, STL also received the Organizational Excellence Inclusion Award by the St. Louis Council of Construction Consumers.