Microsoft Word - LANOIA ACDBE Goal FYs 2018-2020 Rental Car

LOUIS ARMSTRONG NEW ORLEANS

INTERNATIONAL AIRPORT

CAR RENTAL AIRPORT CONCESSIONS

DISADVANTAGED BUSINESS ENTERPRISE (ACDBE) PROGRAM

GOAL SETTING METHODOLOGY

FEDERAL FISCAL YEARS

2018–2020

(March 2020 Update)

NEW ORLEANS AVIATION BOARD (NOAB)

CAR RENTAL AIRPORT CONCESSIONS

DISADVANTAGED BUSINESS ENTERPRISE (ACDBE) PROGRAM

Goal Setting Methodology & Calculations

Federal Fiscal Years 2018, 2019 and 2020

GOAL OVERVIEW

The New Orleans Aviation Board (NOAB) proposes an overall Car Rental Airport Concessions

Disadvantaged Business Enterprise (ACDBE) Goal applicable to Car Rental concession opportunities

anticipated for federal fiscal years beginning October 1, 2018, 2019, 2020, respectively. The goal was

developed in compliance with Federal Regulations set forth by 49 CFR Part 23, Subpart D. The proposed

adjusted overall ACDBE goal for FYs 2018, 2019 and 2020 is 3.45%.

CAR RENTAL AIRPORT CONCESSIONS OPPORTUNITIES

The airport’s non-rental car concession opportunities are projected in Table 1 below. NOAB’s historical

ACDBE participation for car rental concessions was obtained through the purchase of goods and services.

NOAB’s car rental goal is based on the purchase of goods and services by car rental companies as

outlined in Part 23.5 (c)(5)(ii). The total estimated purchases of goods and services by car rental

concessionaries for FFYs 2018-2020 were approximately $1 million annually, excluding fleet vehicles. The

typical car rental concession opportunities are detailed in the following table.

Table 1: OPPORTUNITY

NAICS

RETAIL CATEGORY

EST. ANNUAL VALUE

EST.

PERCENTAGE

811111

Auto Repair/Detailing

000

7.08%

561612

Security Guard Services

175,000

16.51%

561720

Janitorial Services

000

.94

Other Goods/Services*

$800,000

75.47%

$1,060,000

100

.00

LOCAL MARKET AREA

Upon becoming a Certifying Agency in Louisiana’s Unified Certification Program (UCP), all federal ACDBE

goals are set based on the state’s UCP registry as the overall source of ACDBE participation for car rental

airport concessions opportunities. While the airport may from time-to-time contract with concessionaires

headquartered outside of the primary target market of metropolitan New Orleans, most of the participating

ACDBEs are in fact headquartered in the local area, including the eight-parish region utilized by the US

Census Bureau which includes Orleans (coterminous with the city of New Orleans), Jefferson, St. John the

Baptist, St. James, St. Tammany, St. Bernard, St, Charles and Plaquemines parishes. The eight-parish

MSA is the coverage area for the New Orleans International Airport, which is owned by the City of New

Orleans and physically located in Jefferson and St. Charles Parishes. The New Orleans Metropolitan

Statistical Area (MSA) is the defined Market Area for DBE goal setting. Over 80% of all ACDBE joint

venture partners and sub-tenant vendors operating at the airport are based in the local area of metropolitan

New Orleans. It is noted that approximately half of the ACDBEs listed on the airport’s registry are

headquartered outside of the metropolitan New Orleans area. Furthermore, federal and state regulations

prohibit the use of local preferences in contracting opportunities.

READY, WILLING AND ABLE CAR RENTAL AIRPORT CONCESSIONS POOL

The Louisiana Unified Certification Program (LAUCP) is the basis of the airport’s concessions DBE pool.

The Louisiana Department of Transportation and Development (LADOTD) and the New Orleans

Metropolitan Certifying Agency (NOMCA) – including the Louis Armstrong New Orleans International

Airport – have been identified as agencies authorized to provide certification services in the State of

Louisiana. For the purposes of this analysis, only ACDBEs’ certified in Region 2 by the New Orleans

Metropolitan Certifying Agency, which includes the Louis Armstrong New Orleans International Airport, the

New Orleans Regional Transit Authority and the Orleans Levee District are considered as the vendor target

market. For the purposes of this analysis, only DBEs’ located in the eight-parish New Orleans MSA are

considered as the vendor target market.

The list of certified DBE contractors is compared to a more global list of businesses, segregated by NAICS

Code, to determine the general market population of ready, willing businesses.

Table 2: CAR RENTAL AIRPORT CONCESSIONS POOL

NAICS RETAIL CATEGORY ADJUSTED

PERCENTAGE

LAUCP US CENSUS CBP BASE

ACDBE

GOAL

811111 Auto Repair/ Detailing 7% 3 219 .10%

561612 Security Guard Services 16% 8 70 1.83

561720 Janitorial Services 2% 30 225 .27%

524210 Other Goods/Services* 75% 10 598 1.25%

100% 42 1112 3.45%

*Includes insurance services

The Base Figure calculation weighs the relative availability of ACDBE concessionaires to the relative

amount of concessions businesses available for the total pool of businesses located in the metropolitan

New Orleans area. Based on raw data, ACDBE-certified businesses represent 3.45% of the total available

businesses in the metropolitan New Orleans area

BASE FIGURE ADJUSTMENTS

After calculating the Base Figure of 3.45%, it was determined that this rate of participation would not be

adjusted, based on past performance; historical data showed marginal attainment of ACDBE goals. Over

the past three fiscal years, only three car rental companies have posted ACDBE participation relative to

goods and services at an average rate of less than 2% annually. Due to changes including the opening of

the new MSY North Terminal, confirmed historical data for Fiscal Year 2018 and 2019 data are pending at

the time of this update (noted as NR in Table 3).

Table 3: HISTORICAL ACDBE PARTICIPATION

FISCAL YEAR GOAL ACCOMPLISHMENT RACE NEUTRAL

Fiscal Year 2011

2012 (FY 2012)

1% 1.14% 0.14%

Fiscal Year 2012

2013 (FY 2013)

1% 0.55% -0.45%

Fiscal Year 2013

2014 (FY 2014)

1% 0.63% -0.37%

Fiscal Year 2014

2015 (FY 2015)

1% 2.55% 1.55%

Fiscal Year 2015

2016 (FY 2016)

1% 0.50% -0.50%

Fiscal Year 2016

2017 (FY 2017)

1% 1.14% 0.14%

Fiscal Year 2017

2018 (FY 2018)

Average

1.07%

.07%

Median

0.63%

0.37%

OTHER ADJUSTMENT FACTORS CONSIDERED

Disparity Studies

The airport has inquired about the availability of disparity study data for the New Orleans area and the state

of Louisiana from other like-funded agencies such as the Louisiana Department of Transportation and

Development (LaDOTD) as well as from other local and regional airports. There are no studies currently

available and none conducted within the last seven (7) years for any LADOT or US Department of

Transportation (USDOT) assisted agencies in the state. The City of New Orleans recently completed a

disparity study, which looks at City funded procurement activity and also at the broader public and private

sector marketplace. The study does not look at FAA funded activity or any USDOT funded programs.

Use of Race Neutral Means

Historically, the NOAB achieved ACDBE participation through the use of race-conscious means – contract

goals. Establishing contract goals will continue to be used to meet any portion of the overall goal the NOAB

does not project being able to meet using race-neutral means. Given the past three (3) year history of

ACDBE participation, contract goals will likely continue as a means of encouraging concessionaire

opportunities. However, contract goals need not be established on every such contract, the size of contract

goals will be adapted to the circumstances of each such contract (e.g., type of product or service and the

availability of ACDBEs to provide the particular type of product or service). The NOAB will endeavor to

create a contracting environment that facilitates the ACDBE goal through race-neutral means. The following

race-neutral measures will be taken to increase ACDBE participation:

1. Encourage master concessionaires to structure concession opportunities to foster and facilitate the participation of

ACDBEs when practical.

2. Identify opportunities for technical assistance to ACDBE firms; including assisting with back-office, financial and

marketing services.

3. Identify education and training programs to encourage an expansion of services, which are offered to ACDBEs and

small businesses.

4. Ensure that the ACDBE website is updated with available opportunities for ACDBE-owned and other small business

firms in the community.

5. Utilize emerging technology to include the ACDBE directory in the DBE office’s web site.

6. Identify opportunities for business development assistance through financing and loan guarantee programs with local

banks and lending organizations.

In order to ensure that the ACDBE program is narrowly tailored to overcome the effects of discrimination,

the airport will continue to track and report race-neutral and race-conscious ACDBE participation.

PUBLIC PARTICIPATION AND CONSULTATION

The involvement of interested community and business stakeholders is the ultimate measure to gauge the

fairness and effectiveness of ACDBE participation goals. LANOIA is currently and will continue to consult

with relevant stakeholders including, but not limited to the following: the New Orleans Regional Black

Chamber of Commerce, the New Orleans Hispanic and Asian Chambers of Commerce, the New Orleans

Chamber of Commerce, minority and women’s business groups, community organizations, trade

associations, as well as currently certified disadvantaged businesses, and other officials or organizations

which could be expected to have information concerning the availability of disadvantaged businesses, the

effects of discrimination on opportunities for ACDBEs, and LANOIA’s efforts to increase participation of

ACDBEs.

A notice of the proposed overall goal will be available to the public for 30 days following the date of the

notice and comments regarding these documents will be accepted for 45 days after the date the notice is

published. The public notice will indicate the location(s) where the proposal can be reviewed and where

comments can be transmitted. The notice will be published in the following publications:

1. The Louisiana Weekly

2. The Times Picayune

3. The New Orleans Advocate

4. Data News Weekly

5. LANOIA Website: www.flymsy.com

ESTABLISHMENT OF THE FFYS 2018 - 2020 ACDBE CAR RENTAL GOAL

The proposed ACDBE goal for car rental (goods & services only) calculated for FFYs 2018 - 2020 is 3.45%.

Moreover, continued use of Race Conscious (contract goals) means is recommended through FY 2020.