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2009 National DBE Conference
Federal AviationAdministration
49 CFR Part 23Goal Setting
Part 23
2009 National DBE Conference 2Federal AviationAdministration
Goal-Setting – Subpart D
Two Separate Goals – 23.41– Car Rental Concessions – if gross receipts exceed $200,000– All other Concessions – if gross receipts exceed $200,000– Why two goals
• Separate goals prevent car rental participation skewing the picture for others since whole value of car may be counted – 23.53
– Why $200,000• Designed to reduce administrative burdens for small
airports with little concession activity
Part 23
2009 National DBE Conference 3Federal AviationAdministration
Goal-Setting Best Estimate of Concession Revenue
Best Estimate• Sponsor project potential concession revenue three years in
the future and take into account past three years• Consider upcoming new opportunities
– Sponsors must account for new concession opportunity arises • when an estimated average annual gross revenue of $200k
or greater• must submit an appropriate adjustment in advance of any
new concessions agreement.
Part 23
2009 National DBE Conference 4Federal AviationAdministration
Example of Best Estimate
• 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).
• Airport does not anticipate any major changes that would markedly increase or decrease concession revenues over next three years.
• $1, 050,000
Part 23
2009 National DBE Conference 5Federal AviationAdministration
Goal-Setting Non-Car Rental – 23.45 and 23.47
• Total gross receipts of concessions including goods and services– Does not include car rental receipts– Does not include management
contracts/subcontracts with non-ACDBEs
Numerator: Ready, willing and able ACDBE firms
Denominator: All ready, willing and able firms except non-ACDBE management firms
Part 23
2009 National DBE Conference 6Federal AviationAdministration
Goal-Setting - Car Rentals - 23.45 and 23.49
• Total gross receipts of car rental operations– Does not include gross receipts of other
concessions
Numerator: Ready, willing and able ACDBE car rental firms
Denominator: All ready, willing and able car rental firms
Part 23
2009 National DBE Conference 7Federal AviationAdministration
Ready, Willing and Able ACDBEs – 23.51(b)
• Demonstrable evidence of ready, willing and able ACDBEs
• Can’t just rely on 10% national aspirational goal
Part 23
2009 National DBE Conference 8Federal AviationAdministration
Market Area - 23.51(b)(3)
• Define Market Area– Geographical area where substantial majority of
firms that seek to concession business opportunities– Geographical area where substantial majority of
concession-related revenue is located
Part 23
2009 National DBE Conference 9Federal AviationAdministration
Goal-Setting
• Step 1 – Develop the base figure (same as Part 26)– Methods
• DBE Directories and Census Bureau Data• Active Participants List• Disparity Study• Goal of another Recipient• Alternative
Part 23
2009 National DBE Conference 10Federal AviationAdministration
Goal-Setting
• Step 2 – Adjust the Base Figure (Same as Part 26)– Examine evidence to determine if adjustment
needed• Current capacity of ACDBEs to perform work in
concessions program as measured by past participation• Disparity Study• Adjust for local market if use goal of another recipient• Other evidence
Part 23
2009 National DBE Conference 11Federal AviationAdministration
Goal-Setting
• Sponsors must show their work - 23.51– Description of method– Summary of evidence– Must consult with stakeholders before setting goal – 23.43
• When goal may be met through car purchases, sponsor must show good faith efforts to obtain ACDBE participation by other means
• Sponsors may set car rental goal entirely based on purchases of goods and services if goal would be met by car purchases
– Estimated dollar value of purchases from ACDBEs
over– Estimated dollar value of all purchases
Part 23
2009 National DBE Conference 12Federal AviationAdministration
Goal-Setting – 23.45
• Maximum use of Race-Neutral Measures• Race-Conscious measures continue to be
necessary– Sponsors must project the portions of their overall
goals they propose to meet through use of race-neutral and race-conscious means.
• No subdivision of group-specific goals
Part 23
2009 National DBE Conference 13Federal AviationAdministration
Sample Non-Car Rental Goal
• Best Estimate of Gross Receipts $1,050,000
• Step 1 – DBE Directory and Census Bureau
– 4 ACDBE firms (numerator)
– 65 All firms (denominator)
– .0615 times 100 = 6.15
– 6.15% Base figure
• Step 2
– Any grounds to adjust? No.
• Breakout – 0 R/N and 6.15% R/C
• Estimate that 6.15% of $1,050,000 should go to ACDBEs
Part 23
2009 National DBE Conference 14Federal AviationAdministration
Counting 23.53 and 23.55
• Counted in the same way as under Part 26
– Count ACDBE participation that results from a commercially-useful function
– Count only for work performed by ACDBE firms with their own forces
– Count the portion of the gross receipts earned by an ACDBE under a concession agreement or sub-agreement and the total dollar value of an ACDBE management contract or subcontract
– Count fees and commissions charged by an ACDBE firm
Part 23
2009 National DBE Conference 15Federal AviationAdministration
Counting Cont.
• Count value of purchases or leases from any ACDBE vendor• Count purchases from ACDBE providers of goods and
services• Count fees and commissions charged by an ACDBE to
manage a car rental concession.
Part 23
2009 National DBE Conference 16Federal AviationAdministration
Counting Cont.
– Joint Ventures - 23.55(d)– Count only the value of the distinct, separate element of the
work performed by the DBE participants with their own forces – Do not count DBE participation by equating it to the percentage
of the DBE participant’s ownership in the joint venture– Civil Rights has developed Joint Venture Guidance
– Regular Dealers – 23.55– Purchases of goods through ACDBE regular dealers are
counted at 100 percent of their value, as distinct from 60 percent under Part 26
Part 23
2009 National DBE Conference 17Federal AviationAdministration
Questions
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