FY 2018 - FY 2020 Airport Concession Disadvantaged Business Enterprise (ACDBE) Car Rental Goals - With assistance from Ken Weeden & Associates, Inc.
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FY 2018 - FY 2020 Airport Concession Disadvantaged Business Enterprise (ACDBE) Car Rental Goals With assistance from Ken Weeden & Associates, Inc.
Introductions Kenneth Weeden, Wilfred Nixon, President Vice President Ken Weeden & Ken Weeden & Associates, Inc. Associates, Inc. Full service DBE/ACDBE program consultant for KWA in business airports, transit for 28 years agencies and highway departments 2
Description • ACDBE – Airport Concessions Disadvantaged Business Enterprise, 49 CFR Part 23. • Business located on Airport engaged in sale of consumer goods and/or services What is • ACDBE – must be at least 51% owned and an controlled by one or more presumed socially and/or economically disadvantaged ACDBE? individuals • Owner(s) must control the firm’s management and daily operations • Must share in the risks and profits commensurate with their ownership interest 3
Presumed “Socially Disadvantaged Groups” • Black Americans • Hispanic Americans • Native Americans/Alaska What is Natives an • Asian-Pacific Americans ACDBE? • Subcontinent Asian Americans • Women • Any other group classified as disadvantaged by the SBA in the future 4
“Economically Disadvantaged” • Be a “Small” Business Concern, according to SBA size criteria, approved by FAA; presently $56.42 million for non-car rentals and What is $75.23 million for car rentals an • Size criteria varies by type of ACDBE? business • ACDBE must meet the Personal Net Worth (PNW) criteria, not counting exclusions, that does not exceed $1.32 million 5
To create a level To ensure the playing field on ACDBE program is which ACDBEs can narrowly tailored compete fairly for What is opportunities for in accordance with applicable law. the concessions. purpose of the To ensure that To help remove ACDBE only firms that fully meet barriers to the program? eligibility participation of ACDBEs in standards are opportunities for permitted to concessions at participate as airports. ACDBEs. 6
ACDBE Goal Setting Certification Overview of ACDBE Program Administration Monitoring Reporting and Requirements Enforcement 7
CAR RENTAL CONCESSIONS: Calculating the Base Goal – Step 1 8
Washington Dulles International Airport ACDBE REPORT PERIOD EXPENDITURES FY 2018 $114,523,950 FY 2019 $114,523,950 FY 2020 $114,523,950 TOTAL $343,571,850 Ronald Reagan Washington National Airport ACDBE CAR RENTAL REPORT PERIOD EXPENDITURES CONCESSIONS: Calculating the FY 2018 $76,423,307 Base Goal – FY 2019 $76,423,307 Step 1 FY 2020 $76,423,307 TOTAL $229,269,921 The overall goal will apply to the purchases each year, and will be reported as a percentage of total value of goods and services purchased by rental car agencies. 9
Calculating the Base Goal – Step 1 For Car Rental concessions, the NMA is the The normal Washington-Arlington- market area Alexandria MSA • Geographical area where most (NMA) of the current concessionaires are located • Interested Vendor lists 10
Calculating the Base Goal – Step 1 Concession Type NAICS Code Potential All Firms % of ACDBE ACDBE Firms Firms Available Motor Vehicle Supplies 423120 Service Establishment Equipment 423850 and Supplies Merchant Wholesalers Stationery and Office Supplies 424120 Merchant Wholesalers Other Chemical and Allied Products 424690 Merchant Wholesalers New Car Dealers 441110 Tire Dealers 441320 538 5823 9.2% Gas stations 447110 Automobile carrier trucking 484230 Insurance 524126 Janitorial 561720 Auto Repair 811111 Auto Body Repair 811121 Auto Glass Repair 811122 Auto Oil Change 811191 Car Washes 811192 11
Adjust the Goal – Step 2 (IAD) • Evidence from Disparity Studies • Historic Accomplishment – current capacity of ACDBEs at the airport Report Period ACDBE Goal ACDBE % Achieved Achieved Over/Under FY 2014 10.00% 5.79% -4.21% FY 2015 10.00% 7.72% -2.28% FY 2016 10.00% 10.96% 0.96% MEDIAN 7.72% -2.28% Overall Goal: 9.2% Race-Neutral: 0.0% Race-Conscious: 9.2% 12
Adjust the Goal – Step 2 (DCA) • Evidence from Disparity Studies • Historic Accomplishment – current capacity of ACDBEs at the airport Report Period ACDBE Goal ACDBE % Achieved Achieved Over/Under FY 2014 10.00% 7.66% -2.34% FY 2015 10.00% 3.94% -6.06% FY 2016 10.00% 8.92% -1.08% MEDIAN 7.66% -2.34% Overall Goal: 9.2% Race-Neutral: 0.0% Race-Conscious: 9.2% 13
QUESTIONS/ Ken Weeden & Associates, Inc. COMMENTS http://www.kwaplanning.com (888) 762-6296 wilfred-nixon@kwaplanning.com 14
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