Airport Advisory CommissionAug. 10, 2021

ACDBE Presentation — original pdf

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Program administered by the Small & Minority Business Resource Department Edward Campos Director/ ACDBE/DBE Liaison Officer Tamela Saldana Compliance Officer/ ACDBE/DBE Program Designee Jolene Cochran Program Compliance Coordinator/ ACDBE/DBE Program Designee PURPOSE • Overview of the U.S. DOT Disadvantaged Business Programs •Overview of the City of Austin’s ACDBE Program • Highlight ACDBE Program Requirements • Provide an ACDBE Goals and Methodology update • ACDBE Outreach Efforts U.S. Department of Transportation Disadvantaged Business Programs THE HISTORY In 1983, Congress enacted the first Disadvantaged Business Enterprise (DBE) statutory provision to ensure funds authorized for the highway and transit Federal financial assistance programs be expended with DBEs. In 1987, Congress re-authorized and amended the statutory DBE/ACDBE programs and added women to the groups presumed to be disadvantaged. Since 1987 DOT has established a single DBE/ACDBE goal, encompassing both firms owned by women and minority group members. The three major DOT Operating Administrations (OAs) in the DBE program are the Federal Highway Administration (FHWA), the Federal Aviation Administration (FAA) and the Federal Transit Administration (FTA). The DOT DBE program is administered by state and local transportation agencies under the rules and guidelines in the Code of Federal Regulations. (Title 49, Part 26). The FAA maintains a separate program for concessions in airports under (Title 49, Part 23) known as the Airport Concession Disadvantaged Business Enterprise (ACDBE) Program. HOW THE PROGRAM WORKS Regulations require recipients of DOT Federal financial assistance establish goals for the participation of disadvantaged entrepreneurs and certify the eligibility of DBE firms to participate in their DOT-assisted contracts. Recipients are state and local transportation agencies; FAA, FHWA & FTA. Each DOT-assisted State and local transportation agency are required to • Establish narrowly-tailored goals. • Evaluate DOT-assisted contracts throughout the year • Establish contract specific DBE/ACDBE subcontracting goals to ensure nondiscrimination in federally-assisted procurements. ABOUT THE ACDBE PROGRAM The U.S. DOT’s ACDBE program through the Department of Aviation provides a vehicle for increasing the participation of women and minorities in state and local procurement for airports. Federal Regulations require Departments of Aviation that receive USDOT financial assistance to establish a ACDBE Program and goals for the participation of ACDBE’s. Departments of Aviation are required to establish annual ACDBE goals and review contracts throughout the year to establish project-specific ACDBE subcontracting goals. ACDBE Program Participants All Large Hub, Medium Hub or General Aviation Airports with commercial service • Dallas/Fort Worth Airport (DFW) • George Bush Intercontinental Airport (IAH) • Dallas Love Field (DAL) • Austin-Bergstrom International Airport (AUS) • William P. Hobby (HOU) • San Antonio International Airport (SAN) • All other primary airports in Texas WHO ARE CONSIDERED ACDBE’S? Concession are defined as: A business, located on an airport that is engaged in the sale of consumer goods or services to the public under an agreement with the recipient, another concessionaire, or the owner or lessee of a terminal, if other than the recipient. A business conducting one or more of the following covered activities, even if it does not maintain an office, store, or other business location on an airport, as long as the activities take place on the airport: • Management contracts and subcontracts • Web-based or other electronic business in a terminal or of which passengers can access at the terminal • Advertising business that provides advertising displays or messages to the public on the airport • A business that provides goods and services to concessionaires. City of Austin’s ACDBE Program City of Austin Aviation Department (Austin Bergstrom International Airport) Program Procurement Areas • Airport Concession Disadvantaged Business Enterprise (ACDBE) • Concessions, Parking Management, Advertising, Vending, Marketing, Car Rental, etc. • Disadvantaged Business Enterprise (DBE) • Projects with federal grant funding • Minority-Owned & Women-Owned Business Enterprises (MBE/WBE) • Projects without federal grant funding • Small Business Enterprise (SBE) • Construction projects $50,000 & under Components of the Airport Disadvantaged Business Enterprise (ACDBE) Program • Certification • Compliance • Goal Setting • Reporting Certification ACDBE Certification Requirements Administered by the Small & Minority Business Resources Department Certification Division • 51 percent owned, managed and controlled by an economically and socially disadvantaged individual • Must be U.S. citizen or Legally Admitted Resident • Contributions, ownership, and daily management control clearly documented • Presumed Groups: Asian-American; African-American; Native American; Hispanic; Women • The primary economically disadvantaged owner(s) personal net worth not to exceed $1.32 million • Firm must be organized as a for-profit business • On-site visit required ACDBE/DBE Certification Texas Unified Certification Program (TUCP) City of Houston (HOUSTON) City of Austin-Hays, Travis, Williamson, Caldwell, Bastrop (AUSTIN) Corpus Christi Regional Transportation Authority (CCRTA) North Central Texas Regional Certification Agency (NCTRCA) South Central Texas Regional Certification Agency (SCTRCA) Texas Department of Transportation ( TXDOT) Compliance Compliance Requirement Administered by the Small & Minority Business Resources Department Compliance Division • Identify certified ACDBEs to meet ACDBE contract goal • Verify ACDBE contracts in compliance with federal program requirements • Monitor ACDBE participation on contracts • Submit annual reports on ACDBE participation to FAA (March) • Identify any corrective actions for compliance issues AUSTIN BERGSTROM INTERNATIONAL AIRPORT (ABIA) ACDBE PROCUREMENT AREAS Non-Car Rental Concessions & Car Rental Concessions NON-CAR RENTAL POTENTIAL CONCESSION OPPORTUNITY ACDBEs Certified by NAICS Categories Non-Car Rental CONCESSION OPPORTUNITY NAICS CODE 722410 722310 453220 448110 Food & Beverage Retail including News & Gifts; Newsstands 541810 Advertising 454210 Vending Machines (Kiosks) Note other potential concession opportunities not include but likely are personal services, management services, marketing, parking, etc. CAR RENTAL POTENTIAL CONCESSION OPPORTUNITY ACDBEs Certified by NAICS Categories Car Rental NAICS CODE CONCESSION OPPORTUNITY 811121 Auto Body Work 488410 Towing Services 811192 Car Wash & Auto Detailing 561720 Custodial Services 524126 Insurance Note other potential concession opportunities not include but likely are auto maintenance, locksmith services, CONRAC building maintenance services. ACDBE PROGRAM GOAL UPDATE Fiscal Year 2021 - 2023 Goal Methodology Race Conscious/Race Neutral (RN/RC) The overall goal including breakdown of Race Conscious and Race Neutral Goals are reported. ➢The Race Conscious Goal is based on measures that provide benefits only for ACDBEs. The use of contract goals is a primary example of a race conscious measure. ➢The Race Neutral Goal include measures for all firms while benefiting ACDBEs. ACDBE Goal Calculation It’s a Two Step Process! Step 1 Determine the base figure for the relative availability of ACDBEs. •Availability refers to ready, willing and able (RWA) businesses Step 2 Examine available evidence to determine adjusting base figure. City of Austin ACDBE Accomplishments for Non-Car Rental Overview Step 1 Base Figure Determination Concession Opportunity Food & Beverage Retail including News & Gift Newsstands Advertising Vending TOTAL No. ACDBE Firms Census Participants/ Concession Listing Participants ACDBE Availability 24 64 8 9 105 602 1486 632 209 2929 3.99% 4.31% 1.27% 4.31% 3.58% CALCULATION Base Figure = Ready, Willing & Able Non-Car Rental ACDBEs in the Market Area / All Non-Car Rental Companies Ready, Willing & Able in the Market Area City of Austin ACDBE Accomplishments for Non-Car Rental Overview Step 2 Examination of available evidence to determine adjusting base figure using past participation Fiscal Year Goal Accomplishment 2015 2016 2017 2018 2019 11.00% 11.00% 11.00% 11.06% 11.06% 10.80% 16.74% 11.51% 14.00% 8.91% The median accomplishment over past five years is 11.51% Non-Car Rental Calculation to Determine the New Goal Take the Step 1 Relative Availability % Add to Step 2 Median Past History % Take the Total Divided by 2 to get the new goal. 3.58% + 11.51% = 15.09% 15.09% / 2 = 7.55% Non-Car Rental NEW ACDBE GOAL 7.55% City of Austin ACDBE Accomplishments for Car Rental Overview Step 1: Base Figure Determination Concession Opportunity Auto Body Work Towing Services Car Wash & Auto Detailing Custodial Services Insurance TOTAL No. ACDBE Firms Census Participants/ Concession Listing Participants ACDBE Availability 2 1 1 14 1 19 206 423 152 1708 484 2973 0.97% 0.24% 0.66% 0.82% 0.21% 0.64% CALCULATION Base Figure = Ready, Willing & Able Car Rental ACDBEs in the Market Area / All Car Rental Companies Ready, Willing & Able in the Market Area City of Austin ACDBE Accomplishments for Car Rental Overview Step 2 Examination of available evidence to determine adjusting base figure using past participation Fiscal Year Goal Accomplishment 2015 2016 2017 2018 2019 2.41% 2.41% 2.41% 2.43% 2.43% 0.16% 0.09% 2.12% 0.00% 1.81% The median accomplishment over past five years is 2.12% Car Rental Calculation to Determine the New Goal Take the Step 1 Relative Availability % Add to Step 2 Median Past History % Take the Total Divided by 2 to get the new goal. 0.64% + 2.12% = 2.76% 2.76% / 2 = 1.38% Car Rental NEW ACDBE GOAL 1.38% RECAP Recommended ACDBE Goal Determination Triennial ACDBE goals are based on data collection and evidence currently available. WHAT WAS CONSIDERED? In determining the relative availability of ACDBEs, the City utilized 1.) TUCP Directory Information (ACDBEs) 2.) Census Bureau Data (All businesses) In determining any adjustments, the City considered 1.) Past Participation (Goal Accomplishment) 2.) Public Consultation (Stakeholder Input) FY 2021-2023 ACDBE Program Update Public Comments Presented to stakeholders and opened for public comment on December 4, 2020. Closed public comment for review and submittal on January 8, 2021. Program update is currently under review with FAA. ACDBE OUTREACH EFFORTS February 2020 Runway to Opportunities Outreach Event Sponsored by Aviation Department & SMBR May 2021 Annual National Airport Car Rental Supplier Diversity Outreach Event Sponsored by the Airport Business Group (ABG) Co-Sponsored by the Airport Minority Advisory Council (AMAC) Supporting Sponsors: Avis Budget Group Enterprise Holdings Dollar Fox Hertz Thrifty City of Austin Small & Minority Business Resources Website: http://www.austintexas.gov/smbr SMBR STAFF Jolene Cochran Program Compliance Coordinator Compliance Division Edward Campos Director Tamela Saldana Compliance Officer Compliance Division Elton Price Business Development Manager Certification Division Thomas Owens Business Development Manager Resources Division THANK YOU!