Goal-Setting by pengxuebo

VIEWS: 2 PAGES: 40

									Airport Concession                   Federal Aviation
                                     Administration
DBE Rule

      Goal-Setting



 Presented to: So Reg Transp Civil
 Rights Trng
 By: External Program Manager
     FAA Office of Civil Rights
     Southern Region
 Date: August 3, 2005
Part 23 revises and updates the Department’s
regulation concerning participation by airport
concessionaire disadvantaged business
enterprises (ACDBEs) in the concessions
activities of primary airports.



Concessions Goal-Setting            Federal Aviation   2
August 3, 2005                      Administration
    • You are not required to submit goals if:

        (1) Average car rental revenue <$200k
        (2) Non-car rental average revenue<$200k




Concessions Goal-Setting             Federal Aviation   3
August 3, 2005                       Administration
   • If you have an existing ACDBE program,
     it must remain in effect and you must
     seek to continue to fulfill the objectives
     outlined in section 23.1




Concessions Goal-Setting              Federal Aviation   4
August 3, 2005                        Administration
       Part 23 is parallel in many important
        respects to the Department’s DBE
         regulation for Federally-assisted
                 contracts, Part 26.




Concessions Goal-Setting           Federal Aviation   5
August 3, 2005                     Administration
       • Courts have found that Part 26,
         including its goal-setting mechanism,
         meets the narrow tailoring
         requirements.



Concessions Goal-Setting              Federal Aviation   6
August 3, 2005                        Administration
  • Under Part 26, many airports have had to
    continue race-conscious methods to
    achieve their goals. There is no
    information to suggest that airport-
    concession programs are exempt from the
    effects of discrimination to which other
    public-sector business activities are
    subject.



Concessions Goal-Setting         Federal Aviation   7
August 3, 2005                   Administration
      DOT believes it essential to conform the
       Part 23 goal-setting provisions as
       closely as possible to those of Part 26.
      Both 23 and 26 require the maximum
       use of race-neutral measures; and,
      Race-conscious methods continue to be
       a necessary part of a narrowly tailored
       strategy to ensure nondiscrimination.




Concessions Goal-Setting             Federal Aviation   8
August 3, 2005                       Administration
      • You must establish two separate
        percentage overall ACDBE goals:

        1. Concessions (other than car rentals)
        2. Car Rentals.




Concessions Goal-Setting              Federal Aviation   9
August 3, 2005                        Administration
  • Each overall goal must cover a three-year
    period. You must review your goals
    annually to make sure they continue to fit
    your circumstances.
  • You must report to the FAA any significant
    adjustments that you make to your goal in
    the time before your next scheduled
    submission.




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August 3, 2005                     Administration
Base of Goal

• To calculate the base for the goal, project
  potential concession revenue three years
  into the future.
• Take into account preceding 3 years of
  gross concession receipts and upcoming
  new opportunities.
• Actual dollar amount will vary by airport and
  by year, and will be a “best estimate” of
  potential concession revenue.


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August 3, 2005                     Administration
EXAMPLE 1

• Average concession receipts over past
  three years is $1 million. Airport expects
  this level of revenue to continue through
  next three years.
• Airport estimates that revenues to existing
  concessions will grow by 5% over the next
  three years (e.g., inflation + increased
  passenger traffic).



Concessions Goal-Setting           Federal Aviation   12
August 3, 2005                     Administration
EXAMPLE 1 - Continued

• Airport does not anticipate any major
  changes that would markedly increase or
  decrease concession revenues over next
  three years.
• Base for goal is $1, 050, 000.




Concessions Goal-Setting        Federal Aviation   13
August 3, 2005                  Administration
EXAMPLE 2

• Preceding 3-year average concession
  revenues are $1m, as in Example 1. 5%
  growth estimate same as in Example 1.
• Airport is opening a new terminal, which is
  projected to bring in an additional $3m in
  concession revenues over the next 3 years.
• Apply growth percentage to total of
  projected continuing and new revenues.


Concessions Goal-Setting          Federal Aviation   14
August 3, 2005                    Administration
EXAMPLE 2 - continued

• So, $1m + $3m = $4m
• 5% of $4m = $200, 000
• Total base is $4,200,000




Concessions Goal-Setting     Federal Aviation   15
August 3, 2005               Administration
EXAMPLE 3

• Preceding 3-year average concession
  revenue is $3m.
• In Year 2 of the period to be covered by the
  goal, Useless Airlines plans to abandon its
  hub at the airport.
• This is projected to reduce concession
  revenues by $1m per year.



Concessions Goal-Setting           Federal Aviation   16
August 3, 2005                     Administration
EXAMPLE 3 - Continued

• So projected continuing revenues for Year 1
  are $3m; for Years 2 and 3 corresponding
  figure is $2m.
• Three-year total is $7m.
• Airport estimates a 3% increase in
  remaining revenues due to inflation
  (3% of $7m = $210,000)
• Total base is $7,210,000.


Concessions Goal-Setting         Federal Aviation   17
August 3, 2005                   Administration
    • You must submit your ACDBE goals to
      the FAA Regional Civil Rights Office for
      approval. The first goals are due on the
      following schedule:
    • Large or Medium Hub – January 1, 2006
      (next submission 10/1/2008);
      Small Hub – October 1, 2006;
      Non-hub Primary – October 1, 2007



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August 3, 2005                       Administration
  • You must then submit new goals every
    three years after the date that applies to
    your Airport. Timely submission of
    goals is a condition of eligibility for
    grants.




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August 3, 2005                       Administration
     • Your goals established under this part
       must provide for participation by all
       certified ACDBEs and may not be
       subdivided into group-specific goals.




Concessions Goal-Setting             Federal Aviation   20
August 3, 2005                       Administration
    • §23.51 talks about how to calculate and
      express the goals.
    • It applies to both the overall goal for car
      rentals and the overall goal for
      concession activities.
    • It is designed to parallel the goal-setting
      mechanism of Part 26.




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August 3, 2005                         Administration
      • You must complete the goal-setting
        process separately for concessions
        and car rentals.
      • Each overall concessions goal must
        be based on demonstrable evidence
        of ready, willing, and able ACDBEs.
      • You cannot simply rely on the 10%
        national aspirational goal.




Concessions Goal-Setting            Federal Aviation   22
August 3, 2005                      Administration
 • Your market area is defined by the
   geographical area in which the substantial
   majority of firms that seek to do
   concessions business with the Airport are
   located, and,
 • The geographical area in which the firms
   which receive the substantial majority of
   concession-related revenue are located.




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August 3, 2005                     Administration
Part 23 – Goal Setting


• Subpart D applies to the goal-setting
  process.




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August 3, 2005                     Administration
   • If you need additional time to collect data
     or take other steps to develop an
     approach to setting overall goals, you
     may request approval for an interim goal
     and/or goal-setting mechanism.
   • Such steps must reflect the relative
     availability of ready, willing, and able
     ACDBEs.
   • Must avoid imposing burdens on non-
     ACDBEs.



Concessions Goal-Setting              Federal Aviation   25
August 3, 2005                        Administration
   Goal-Setting – Non-Car Rental
   • The base of your goal includes the total gross
     receipts of concessions including goods and
     services.
   • This base does not include the gross receipts of
     car rental operations or management
     contracts/subcontracts with non-ACDBE firms




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August 3, 2005                           Administration
Goal-Setting-Car Rentals


• The base for this goal is the total gross
  receipts of car rental operations at your
  airport.
• Do not include gross receipts of other
  concessions in this base.




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August 3, 2005                     Administration
Goal Setting-Procedure

• Your submission must include a description
  of the method used to calculate your goals
  and the data you relied on.
• Show your work - provide FAA the data,
  calculations, assumptions, and reasoning
  used.




Concessions Goal-Setting         Federal Aviation   28
August 3, 2005                   Administration
Goal Setting-Procedure


     Your submission must include your
     projection of the portions of your overall
     goals you propose to meet through use of
     race-neutral and race-conscious means.




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August 3, 2005                       Administration
Public Participation

• 23.43 – You must provide for public
  participation by taking at least the steps
  listed in (b):
• These steps are identical to the public
  participation section at 26.45(g)(1) regarding
  consultation.
• Publication of the goal is not required.



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August 3, 2005                      Administration
New Opportunities

• If a new concession opportunity arises that
  offers an estimated average annual gross
  revenue of $200k or greater, even at a time
  between normal submission dates, you
  must submit an appropriate adjustment to
  your overall goal at least six months in
  advance of ratifying any new concessions
  agreement.



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August 3, 2005                    Administration
Exemptions

• You may apply for an exemptions from any
  provision of this part by writing to the Office
  of the Secretary or the FAA. The Secretary
  will make final decision.
• You must document special or exceptional
  circumstances not likely to be generally
  applicable;
• You must agree steps specified by the DOT
  or FAA.


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August 3, 2005                      Administration
Waivers

• You can apply for a waiver of any provision
  of subpart B or D.
• The FAA Administrator has the authority to
  approve your application.
• Program waivers are for the purpose of
  operating an ACDBE program that achieves
  the objectives of Part 23.
• See 23.13 (d) (1).


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August 3, 2005                    Administration
Counting ACDBE Car Rentals

• You may count the value of purchases or
  leases from any ACDBE vendor.
• You may count the purchases from ACDBE
  providers of goods and services.
• You may count fees and commissions
  charged by an ACDBE to manage a car
  rental concession.



Concessions Goal-Setting       Federal Aviation   34
August 3, 2005                 Administration
Counting ACDBE Non-Car Rental
Participation
• You may count ACDBE participation that
  results from a commercially-useful function.
• Count the total dollar value of gross
  receipts an ACDBE earns under a
  concession agreement or sub-agreement
  and count the total dollar value of an
  ACDBE management contract or
  subcontract.



Concessions Goal-Setting          Federal Aviation   35
August 3, 2005                    Administration
Counting ACDBE Non-Car Rental
Participation
• Count the portion of the gross receipts
  earned by an ACDBE under a sub-
  agreement.
• Count the portion of the gross receipts
  equal to the distinct, clearly defined portion
  of the work an ACDBE performs with its
  own forces under a joint venture agreement.
• You may count fees and commissions
  charged by an ACDBE firm.


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August 3, 2005                      Administration
Terminal Leases

• You must pass through applicable
  requirements of this part to the private
  terminal operator or lessee via your
  agreement with the owner or lessee.
• You must ensure that the terminal owner or
  lessee complies with the requirements of
  this part.




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August 3, 2005                   Administration
Terminal Leases

• Primary airports must obtain from the
  terminal owner or lessee the goals and
  other elements of the ACDBE program
  required under Part 23.
• If the terminal building is at a non-primary
  commercial service airport or general
  aviation or reliever airport, you must ensure
  that the owner complies with 23.21(e)



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August 3, 2005                     Administration
Long-Term Exclusive Agreements

• A long-term, exclusive agreement is one
  having a term of longer than five years.
• Is a five year lease with a five year
  extension controlled solely by the airport
  long-term exclusive? It depends…
• FAA’s Regional Offices can grant approval
  for a long-term lease if deemed acceptable.



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August 3, 2005                    Administration
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