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.
FY 2018 - FY 2020
Airport Concession Disadvantaged Business Enterprise (ACDBE)
                       Car Rental Goals
                       With assistance from

                   Ken Weeden & Associates, Inc.
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
FY 2018 - FY 2020 Airport Concession Disadvantaged Business Enterprise (ACDBE) Car Rental Goals - With assistance from Ken Weeden & Associates, Inc.
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
FY 2018 - FY 2020 Airport Concession Disadvantaged Business Enterprise (ACDBE) Car Rental Goals - With assistance from Ken Weeden & Associates, Inc.
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%
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QUESTIONS/     Ken Weeden & Associates, Inc.

COMMENTS
              http://www.kwaplanning.com

                     (888) 762-6296

             wilfred-nixon@kwaplanning.com

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