Public Forum City of Phoenix Equal Opportunity Department Welcome - - PowerPoint PPT Presentation

FFY 2018-2020

Airport Concession Disadvantaged Business Enterprise Triennial Goals For Phoenix Sky Harbor International Airport

Public Forum

City of Phoenix Equal Opportunity Department

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Welcome and Introductions Donald R. Logan

Equal Opportunity Director Equal Opportunity Department

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• ACDBE Program Definitions
• Goal Setting Methodology for Non-Car Rental

and Car Rental Triennial ACDBE goals

• Market Availability Analysis for both goals
• Specific Concessions Opportunities
• Questions/Comments

Overview

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What is an ACDBE?

• Airport Concession Disadvantaged Business Enterprise

(ACDBE) a concession that is a for-profit small business concern

• Owners must meet the requirements under 49 CFR Parts

23 and 26

– (1) That is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51 percent of the stock is owned by one or more such individuals; – (2) Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

• This program applies to contracts and concessions

administered by airports that receive financial assistance from the Federal Aviation Administration.

ACDBE Program Definitions

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Goal Setting Methodology for Triennial ACDBE goals

• The City is required to comply with the United States Department of

Transportation’s regulations, its Disadvantaged Business Enterprise Program and its Airport Concession Disadvantaged Business Enterprise Program.

• “To ensure nondiscrimination in the award and administration of
• pportunities for concessions by airports receiving DOT financial

assistance.”

• FAA recipients that expect to award more than $250,000 in FAA funds

in a Federal fiscal year are required to set three-year goals for DBE participation for this DOT-assisted work.

Why set Overall Goals?

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ACDBE Goal/Methodology Requirement

• Submission of triennial goal proposal due by

August 1

• What does the City of Phoenix need to submit?

– Letter stating the overall goal for the three Federal Fiscal years – Copy of the methodology used to develop the goal (ex. Worksheet, spreadsheet, charts, etc.) – Copy of the published notice informing the public of the ACDBE goal comment period – Consultation Process/Outreach Conducted

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Methodology & Calculations Trevor Bui

Deputy Equal Opportunity Director Equal Opportunity Department

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ACDBE Goal Setting Methodology

Overall Goals for PHX have been determined by:

• Evaluating the total estimated gross revenues and estimated

ACDBE gross revenues for continuing and new or anticipated concession agreements that will become effective during the goal period

• Analysis* of the opportunity, potential for ACDBE participation

and the relative availability of ACDBE firms “ready, willing and able” to perform under the agreement

*Goals for each new concession

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DBE Goal Setting Methodology- Two Step Process

Step 1 Develop a base figure Step 2 Adjust your base figure

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DBE Goal Setting Methodology- Two Step Process

Step 1- Develop a base figure

• Continuing Contracts Terminal 4 Food and Beverage and

Retail Contracts Table 1 - Concession Contracts Continuing Through FFY 2020

Terminal Concessionaire Concession Calendar 2016 Gross Revenues ACDBE Goal % ACDBE Goal $ T4 Host Food/Beverage $68,035,454 T4 SSP Food/Beverage $98,022,877 TOTAL FOOD $166,058,331 23.6% $39,189,766 T4 Various Retail Gift/News/Retail/ Duty Free $50,328,634 TOTAL RETAIL $50,328,634 26.7% $13,437,745 TOTAL AIRPORT $216,386,965 24.3% $52,627,511

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DBE Goal Setting Methodology- Two Step Process

Step 1- Develop a base figure con’t

• Expiring Contracts Terminal 2 and Terminal 3 Food and

Beverage and Retail Concessions

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DBE Goal Setting Methodology- Two Step Process

Step 1- Develop a base figure con’t

• Expiring Contracts Terminal 2 and Terminal 3 Food and

Beverage and Retail Concessions

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DBE Goal Setting Methodology- Two Step Process

Step 1- Develop a base figure con’t

• Expiring Contracts Terminal 2 and Terminal 3 Food and

Beverage and Retail Concessions

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DBE Goal Setting Methodology- Two Step Process

Step 1- Develop a base figure con’t Geographic Region

• There are currently twenty-eight (28) firms

participating in concessions at PHX.

• Twenty-two (22) of the twenty-eight(28) of the

participating firms (78.6%) are located in Arizona.

• Arizona is the relevant geographic region for

purposes of determining the ACDBE goal.

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DBE Goal Setting Methodology- Two Step Process

Step 1- Develop a base figure con’t

Availability

• Active Participants List (Dollar Value)

Table 5 – Active Participants List Non-ACDBE Retail Participants 7 50.0% $39,469,526 63.6% ACDBE Retail Participants 7 50.0% $22,598,511 36.4% Total Retail Participants 14 100.0% $62,068,037 100.0% Non-ACDBE Food/Beverage Participants 2 12.5% $136,233,329 72.9% ACDBE Food/Beverage Participants 14 87.5% $50,666,384 27.1% Total Food Participants 16 100.0% $186,899,713 100.0%

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DBE Goal Setting Methodology- Two Step Process

Step 1- Develop a base figure con’t

Availability

• AZUCP Directory/Census

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DBE Goal Setting Methodology- Two Step Process

Step 1- Develop a base figure con’t

Availability

• AZUCP Directory/Census

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DBE Goal Setting Methodology- Two Step Process

Step 1- Develop a base figure con’t

Availability

• AZUCP Directory/Census

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DBE Goal Setting Methodology- Two Step Process

• Weighting of Base Goal for Continuing/Upcoming

Opportunities The base goal proposed is 24.0%.

Concession Gross Revenues ACDBE Goal % ACDBE Goal $ Ongoing Food/Beverage $166,058,331 23.6% $39,189,766 Ongoing Gift/News/Retail $50,328,634 26.7% $13,437,745 New Food/Beverage $20,841,382 18.3% $20,841,382 New Gift/News/Retail $11,739,403 13.7% $11,739,403 ATM $320,916 0.0% $320,916 Advertising $5,601,414 0.0% $5,601,414 Foreign Currency Exchange $674,194 0.0% $674,194 Shoeshine $224,581 0.0% $224,581 Broadcast Television $10,043,211 0.0% $10,043,211 Wi-Fi $1,027,433 0.0% $1,027,433 $266,859,499 24.0% $63,910,280

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DBE Goal Setting Methodology- Two Step Process

Table 14 – Past History of ACDBE Participation*

YEAR TOTAL GROSS REVENUES ACDBE GROSS REVENUES ACDBE %

2016 $213,145,206 $72,966,226 34.2% 2015 $169,768,858 $70,406,385 41.5% 2014 $151,134,508 $56,168,686 37.2%

24.0% (Base goal) + 37.2% (Median Past ACDBE Participation) 61.2% 61.2% ÷ 2 = 30.6% Goal (averaged based on FAA guidance)

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DBE Goal Setting Methodology- Amount of Non-Car Rental Goal

Amount of Goal

• Federal Fiscal Years 2018, 2019, and 2020
• The City of Phoenix overall goal for ACDBE

participation in non-car rental is 30.6%

• Overall Goal will be achieved entirely through

Race- and Gender-Neutral Measures

• Continuation of Small Business Outreach

Requirements

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DBE Goal Setting Methodology- Car Rental Goal

Car Rental Background

• Phoenix Sky Harbor International Airport currently has eleven

(11) car rental firms based in its consolidated car rental facility at the airport.

• The current agreements will expire on December 31, 2017.
• Current car rental concession revenues are approximately

$394 million annually.

• Annual purchases of goods/services by car rental firms are

approximately $45 million.

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DBE Goal Setting Methodology- Car Rental Goal

Evaluating ACDBE Participation in Car Rentals

• There are no ACDBE car rental companies

currently operating at the airport

• No ACDBE car rental concession operators based

in Arizona

• Car Rental ACDBE goal is based on the purchase
• f goods and services from ACDBE or

potential/ACDBE firms

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DBE Goal Setting Methodology- Car Rental Goal

Methodology

• 49 CFR Part 23 provides the guidance for

establishing rental car concession goals.

• We have conducted research to determine an

appropriate ACDBE goal for car rental concessions at the airport.

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DBE Goal Setting Methodology- Car Rental Goal

Relevant Market Area

• Based on the types of goods/services purchased

by the firms (e.g. auto repair, insurance, fuel, etc.)

• Relevant Market Area for the purchase of goods

and services (exception of vehicle purchases) is the State of Arizona

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DBE Goal Setting Methodology- Car Rental Goal

Goal-Setting Step 1

• Utilize DBE Directories and Census Bureau Data for

determining availability

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DBE Goal Setting Methodology- Car Rental Goal

Goal-Setting Step 1

• Utilize DBE Directories and Census Bureau Data for

determining availability

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DBE Goal Setting Methodology- Car Rental Goal

Goal-Setting Step 1

• Utilize DBE Directories and Census Bureau Data for

determining availability

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DBE Goal Setting Methodology- Car Rental Goal

• Goal-Setting Step 1

We have weighted the availability calculations based on information

• btained from car rental companies as shown below.

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DBE Goal Setting Methodology- Car Rental Goal

• Goal-Setting Step 1

We have weighted the availability calculations based on information

• btained from car rental companies as shown below.

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DBE Goal Setting Methodology- Car Rental Goal

• Goal-Setting Step 1

We have weighted the availability calculations based on information

• btained from car rental companies as shown below.

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DBE Goal Setting Methodology- Car Rental Goal

• Goal-Setting Step 1

We have weighted the availability calculations based on information

• btained from car rental companies as shown below.

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DBE Goal Setting Methodology- Car Rental Goal

Goal-Setting Step 1

• Based on current market availability, City calculated

the base goal to be 0.16% Goal Setting Step 2

• Examined data and made adjustments to the Base

Figure

• Adjusted the base goal for past history in the

Base Goal (0.16%) + Past History (6.24%) = 6.40% 6.40% ÷ 2 = 3.2% (averaged based on FAA guidance)

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Amount of Goal

• Fiscal Years 2018, 2019, and 2020
• Triennial Goal for ACDBE participation in car

rental is 3.2%

• Overall goal will be achieved entirely through

Race- and Gender-Neutral measures

• Small Business Participation Plans customized by

Car Rental operators will be used to achieve ACDBE participation

ACDBE Goal Setting Methodology- Car Rental Amount of Goal

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Upcoming Bid Opportunities

Phoenix Sky Harbor International Airport

• Project Title: Terminal 3 Food and Beverage

Concessions

• Projected Award Date: TBD

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Upcoming Bid Opportunities

Phoenix Sky Harbor International Airport

• Project Title: Terminal 3 Retail Concessions
• Projected Award Date: TBD

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Upcoming Bid Opportunities

Phoenix Sky Harbor International Airport

• Terminal 4-Retail Phase II (un-bid packages)
• Projected Award Date: TBD

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Upcoming Bid Opportunities

Phoenix Sky Harbor International Airport

• Project Title: Small Operator Car Rental

Concessions

• Projected Award Date: 12/31/17

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Upcoming Bid Opportunities

Phoenix Sky Harbor International Airport

• Project Title: Rental Car - Food & Beverage

Concession

• Projected Award Date: 12/31/2017

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We need you!

• As recipients of U.S. Department of Transportation (DOT)

funding, airports are required to establish ACDBE and DBE Programs in accordance with regulations of the DOT, Code of Federal Regulations (CFR) 49, Parts 26 and 23.

• The purpose is to provide ACDBEs and DBEs maximum
• pportunity to participate in the performance of the following

types of contracts*: – Construction – Concession – Management services – Professional services – Car rental contracts

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?

Questions

Official Public Notice The goal and rationale for the City’s Triennial ACDBE Goal proposal are available for public review and inspection during normal business hours for 30 days following the date of this notice. Public comments will be accepted for a period of 45 days from the date of this notice. The City of Phoenix, pursuant to 49 Code of Federal Regulations Parts 23 and 26, hereby announces its Triennial Airport Concession Disadvantaged Business Enterprise (ACDBE) Goals for Federal Fiscal Years (FFY) 2018-20 for ACDBE participation in contracts as follows: Non-Car Rental: 30.6% Car Rental: 3.2%

(To be achieved entirely through Race- and Gender-Neutral Measures)

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Contact

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Valerie Churchwell Small Business Engagement Manager City of Phoenix Aviation Department valerie.churchwell@phoenix.gov 602-273-2024 Brenda E. Dominguez EOD Compliance Specialist City of Phoenix Equal Opportunity Department brenda.dominguez@phoenix.gov 602-262-6410