Airport Operator Options for Delivery of FBO Services (2018) / Chapter Skim
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Pages 22-32
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From page 22... ...
22 CHAPTER THREE FBO OR CONTRACT MANAGER PROCUREMENT PROCESS If the fixed base operator decision team chooses to pursue a third-party FBO or contract manager, the procurement process will involve multiple steps prior to the expiration of an FBO lease or existing management contract. The timing of the procurement process is wholly dependent on available airport and consultant resources, municipal procurement requirements, and the level of complexity of the offering.
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23 TABLE 11 CHECKLIST FOR FBO OR CONTRACT MANAGER PROCUREMENT Planning Convene the FBO procurement team. Specify the FBO/contract manager scope of responsibilities.
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24 Specify the Scope of FBO/Contract Manager Services The statement of FBO or contract management responsibilities is one of the key documents that will become part of the RFI and the RFP. In the days of 10,000 FBOs, a single location could support a substantial venue of services; not so today.
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From page 25... ...
25 • Preparing an annual operating budget (approved by the airport) • Preparing an annual marketing plan and annual progress report • Hiring, supervising, and training all FBO personnel in accordance with applicable laws and regulations • Implementing a staff training program • Executing the FBO brand, including advertising, signs, and uniforms • Communicating expectations for a professional level of customer service • Collecting fees and charges from customers • Handling revenue and processing requirements • Safekeeping records and reports • Attending to other duties as required by the airport sponsor: – Audit and detailed financial transaction and operational reports as approved by the airport – Environmental requirements – Waste management and recycling requirements – Periodic facility inspections by airport sponsor and by contractor – Maintenance and repair responsibilities – Emergency response requirements Establish FBO or Contract Management Qualifications As part of the initial planning, the procurement team may make a preliminary list of required FBO qualifications.
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26 from leasing land and setting up an operation. For qualified new entrants, minimum standards also provide a justification to allow market access and increase competition at the airport.
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27 – Fuel farm – Current development plans • Required FBO or management services • Submittal Information – Letter of interest (LOI) – Respondent recommendations for ° Operations plan ° New construction ° Suggested term and language for the lease ° Additional services proposed ° Hangar management options ° Performance goals – Demonstration of relevant experience and qualifications to develop and/or operate FBO facilities Respond to RFI Questions and Issue Addendums Given a fast turnaround for RFIs, airport sponsors can set a deadline for interested groups to submit questions in writing within 10 to 14 days after an RFI is issued.
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From page 28... ...
28 Prepare an FBO Site Survey and Appraisal (Private FBO Only) A site survey and appraisal are also part of the procurement process.
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29 For a management contract, these may include the following: • Monthly fee for managing and operating airport sponsor-owned facilities • Bonus schedule for meeting certain revenue targets Identify the FBO Insurance Requirement In preparing for the FBO procurement, the airport sponsor would consult with its risk manager or insurance to determine required insurance and coverage levels and to spell out provisions for adjustments to insurance and coverage during the lease term. Determine the Proposal Bond The procurement team will determine the amount and the nature of the proposal bond that will accompany proposals.
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30 • Statement of compliance with minimum standards, any development standards for the airport, and FAA regulations • Proposal requirements for FBO or management services – Aeronautical services ○ Provided by proposer ○ Provided by third parties – Proposed development plan (if required) ○ Facilities (hangars, repair shops, tie-down areas, terminal and office space, fuel farm)
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31 Estimated Timeline Figure 8 describes an estimated timeline of 6 months from the day the airport sponsor issues the RFP to the day the governing body approves the lease or management contract. FIGURE 8 Estimated timeline for FBO/contract manager solicitation, selection, and approval.
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From page 32... ...
32 ○ Financial capability and commitment ○ Financial return to the airport sponsor ○ Business references ○ Proposal bond – RFP schedule and award • Tour of the GA area that includes the proposed lease premises Interviews Interviews are a key aspect of the selection process. The procurement team will have reviewed proposals and decided on a group of bidders to interview.
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