Doing Business with the

Airports Authority

AMAC ACADEMY WEBINAR

SESSION 4

November 15, 2017

Agenda

• Introduction to MWAA

• Office of Supply Chain Management

• Procurement Process

• Department of Supplier Diversity/Small Business Programs

• Outreach Activities

• Sources of Information

• Concession Overview and Opportunities

• Upcoming Opportunities

2

Ronald Reagan Washington

National Airport Dulles Corridor Metrorail Dulles Toll Road Washington Dulles

International Airport

MWAA Created

• The Airports Authority was

created with consent of

U.S. Congress by Acts of

D.C. Council and the

Virginia General Assembly

1986 1987 2014

MWAA Operates

DCA & IAD

• MWAA assumed operating

responsibility for DCA and

IAD under a 50-year lease;

subsequently extended

through 2067

• MWAA could access bond

markets to finance capital

development at the airports

Metrorail

• Metrorail Phase 1 opened for

passenger service in July

2014

• Phase 2 will extend service

to Dulles Airport and

Loudoun County

2008

Control of DTR

• VDOT transferred

operational and financial

control of the Dulles Toll

Road to MWAA for a

term through 2058 to

facilitate funding of a 23-

mile Metrorail system

extension

Introduction to MWAA

3

Airports Authority

Procurement Policy

• MWAA is a public body politic and corporate, created by joint

legislation between the Commonwealth of Virginia and the District of

Columbia

• Metropolitan Washington Airports Act of 1986 authorized the lease of

Dulles and Reagan National to MWAA, which states that MWAA:

– “shall obtain, to the maximum extent practicable, full and open

competition through the use of published competitive procedures”

• The Board of Directors adopted the Airports Authority Contracting

Manual, which sets forth procurement policies and procedures

4

5

Office of Supply Chain Management

Business Integration & Optimization

Procurement

& Contracts Property

Supplier

Diversity

• Ensure integrity and

fairness in the MWAA

contracting process

• Oversee solicitations,

vendor selection,

negotiation, award,

contract management,

and reporting

Corporate Asset

Management

• Ensure maximum

utilization of small, local,

minority, and women-

owned businesses

• Conduct Small

Business outreach,

certification, pre- and

post-award compliance,

and report on Small

Business participation

MWAA FY2016 Fact Sheet

• Over 500 active contracts and

7,000 annual requisitions

• Average # of new

opportunities each year:

100 – 150

Contract Awards (#)

2016 Awards By Type

Goods

Construction

Architectural &

Engineering

Services

6

Contract Awards ($ M)

Contracting Opportunity Types

Goods &

Services

Design &

Construction

Simplified

Acquisitions

(Up to $150,000)

7

Solicitation Types

8

MWAA Solicitation

Types

Invitation for Bid

Request for Qualifications

Request for Proposals

Request for Quotations

Airports Authority’s Procurement Process

Oral Interviews*

Best & Final

Offers*

Contract Award

Solicitation

Advertised

Pre-Proposal or Pre-Bid

Conference

Amendments Issued*

Proposals or Bids

Received

Debriefings

* Optional; Depending on Solicitation

1 2 3 4

5 6 7

8

9

Major Requirements

Successful offerors must:

• Obtain appropriate insurance, in accordance with the solicitation

• Obtain bonding for construction and other contracts, as applicable

• Hold a contractor’s license in the state of Virginia (required for all

construction contracts*)

• Receive certification as LDBE, DBE and/or ACDBE prior to contract

award date, if applicable

10

* Details available at Department of Professional and Occupational Regulation

website: www.dpor.virginia.gov

Keys to an Effective Proposal

• Be Innovative

• Understand the Requirement

• Demonstrate Firm’s Capability to Perform

– Experience

– Resources

– Ability to Subcontract

• Provide Current and Relevant References

• Conduct Market Research (Know your Competition)

• Estimate Costs Realistically

• Follow the Submission Requirements & Perform Quality Control

11

Successful Performance

• Contract award is the first of many steps to profitable and successful

performance

• Know the players and their roles/responsibilities

• Owner is primarily interested in Capability and Stability

• Request a post-award conference to:

– Meet with the project owner and confirm understanding of

expectations

– Establish protocol – for communications, contract requirements,

billing, payments, etc.

– Seek clarification on anything that is

important to your ability to

successfully perform

12

Capability & Stability

These characteristics manifest as

soon as the job gets started, so:

– Have a solid project schedule and

budget – and monitor both closely

– Have quality and adequate

resources to perform the activities

– estimates should be taken into

consideration not only the cost but

manpower, equipment, and

materials

– Anticipate and remain adaptable

to contract changes and manage

budget accordingly – contractor

may have to fund the initial work

– Have a solid subcontract plan –

and manage those resources to

minimize risk

13

Capability:

Based on past performance & qualifications

and means that a firm is fully

able to conduct business as

represented in its proposal

Stability:

Speaks to reputation and

assesses whether a

contractor can effectively run its business while performing on a discrete contract

Department of Supplier Diversity

• Established in 1989 under Board Resolution No. 89-19

• Mission: Promote and ensure regional economic development through

the maximum utilization of small, local, minority and women-owned

businesses in MWAA Contracting Opportunities

• Implement three Small Business Programs:

– MWAA Local Disadvantaged Business Enterprise (LDBE)

– Federal Disadvantaged Business (DBE)

– Airport Concession Disadvantaged Business Enterprise (ACDBE)

• Responsible for strategic outreach, certification, pre- and post- award

contract compliance and reporting

14

http://www.mwaa.com/supplierdiversity

MWAA LDBE Program

• LDBE Program participation requirements apply to non-federally

funded contract opportunities:

– 25% participation on construction contracts

– 20% participation on goods and services contracts

• Certification available to: small businesses located within 100-mile

radius of Washington, DC’s Zero Mile Marker with an average of 3

years annual gross receipt under US small business size standard

• DSD reviews all solicitations with an estimated value > $25,000 to

assign LDBE participation requirements where:

– Scope of work provides viable prime or subcontracting

opportunities for LDBEs, and

– LDBE availability provides projected adequate competition

15

To improve chances of success, LDBEs should only list NAICS codes on their profile

that best reflect their company’s core capabilities and relevant work experience.

Federal DBE Program

• Implements the US Department of Transportation’s regulations in 49 CFR Parts 26

– Provide Socio-Economically Disadvantaged Business Enterprises a fair

opportunity to compete for federally funded contracts

– 23% for Reagan National Airport

– 22% Dulles International Airport

• DBE goals are set through a Triennial Goal Setting Process, which considers:

– Availability of DBE firms that are ready, willing, and able to work

– Past and estimated future DBE performance on MWAA’s federally funded

projects

• Airports Authority contracts that typically include DBE goals:

– Architectural and engineering services (Airside Projects)

– Construction and construction-related services (Airside Projects)

16

http://www.mwaa.com/business/federal-dbe-goal-2017-2019

Federal ACDBE Program

• Implements the US Department of Transportation’s regulations in 49 CFR Parts 23

– Provide Socio-Economically Disadvantaged Business Enterprises a fair

opportunity to compete fairly for Airports Concession opportunities

– 32% for Reagan National Airport

– 26% Dulles International Airport

• ACDBE goals are set through a Triennial Goal Setting Process, which considers:

– Availability of ACDBE firms that are ready, willing, and able to work

– Past and estimated future ACDBE performance on MWAA’s Concession

opportunities

• Airports Authority contracts that typically include ACDBE goals:

– Airports Concessions (Airports Advertising, ATM/Banking Services, Duty Free,

Retail/Food and Beverage Operators, Hotel, Public Parking and Rental Cars)

17

http://www.mwaa.com/business/federal-acdbe-goal-2018-2020

New Supplier Diversity Management System

• On-line certification application and

renewal

• Real-time monitoring of certification

applications in process

• Targeted outreach for contracting

opportunities

• Buyer visibility into MWAA-certified

firms

• Online contract compliance monitoring

• Weekly system training sessions with

live instructor

• Registration for MWAA events and

workshops

18

https://mwaa.diversitycompliance.com/

19

Outreach Activities

• Partner with organizations interested in promoting MWAA’s small

business programs and enhancing connectivity with qualified firms

through trade fairs, sponsorships, outreach events, and speaking

opportunities

• Provide educational opportunities to the LDBE community

• Participate in business opportunity and matchmaking events to help

increase LDBE program awareness and foster relationships among

prime and subcontractors

• Communicate opportunities through multiple channels, including the

new DSD Supplier Diversity Management System, Project eLERT, and

www.mwaa.com

20

http://www.mwaa.com/business/business-outreach-events-0

Sources of Procurement Information

• Overview of

Contracting

Programs

• Current & Upcoming

Contracting

Opportunities

• Project eLERT

• Link to Small

Business

Certification

Applications

• Updated Daily

21 www.mwaa.com/contracting

Project eLERT

• Contracting

Opportunities

Newsletter

• Register Once and

Receive Automatic

Updates

Electronically

22 www.mwaa.com/business/project-elert

Type of Concessions Agreements

1) Direct Leasing - Airport leases individual locations or small groups of locations (no more than 3)

directly to the operators. Dallas/Ft. Worth, Denver, Portland, and San Francisco

2) 3rd Party Developers/Fee Managers - Airport has agreement with a 3rd party to develop/lease

and manage the concessions without operating any directly. Developer invests in facilities

directly while Fee Managers do not. Baltimore, Pittsburgh, Boston, Reagan National and Dulles

3) Prime Operator - Airport leases packages of locations to two or more operators, each of which

has multiple locations (more than 3) within the airport. Detroit, San Antonio, Atlanta

4) Master Concessionaire - Airport leases all food service concessions to a single operator, who

may or may not also operate retail. The Master Concessionaire may sublease some of the

locations to other operators. Birmingham, Nashville, Minnesota, Tampa

35%

10% 29%

26%

1) Direct Leasing

2) 3rd Party Developers/Fee Managers

3) Prime Operators

4) Master Concessionaire

Source: ACI-NA, 2016 Concessions Benchmarking Survey, April 2017

Fee/Leasing Manager Approach

• Contract began 2013

– Leasing

– Construction

Management/Coordination

– Operations

– Accounting & Financial

– Marketing

24

Concessions Planning

The most common method of soliciting and awarding concessions contracts is by

Request for Proposals (RFPs). However, many airports often use a mixture of methods.

0

20

40

60

80

100

Request forProposals

(RFP)

DirectNegotiation by

Airport

Invitation forBid (IFB)

Letter ofInterest (LOI)

Request forQualifications

(RFQ)

DirectNegotiation by

Third Party

Nu

mb

er

of A

irp

ort

s

Methods of soliciting & awarding concessions contracts

Source: ACI-NA, 2016 Concessions Benchmarking Survey, April 2017

26

Solicitation Process

•Program Analysis

•Space Allocation

•Enplanements

•ACDBE Plan

•Historical Activity

Annual Master Plan

•RFP for specific category

• Invitation to Propose

•Direct Negotiations

Solicitation Methods

Evaluation of Proposals

SHOW ME

THE

MONEY??

Rules of the Road (What evaluators generally look

for when evaluating at proposals?) • Past history in doing business (providing solutions to

challenges, operating in tough environments, turning a

business around, what steps have you taken to get to

where you are now?)

• Financial capability (do you pay your bills? do you have

enough access to funds for buildout, are your projections

reasonable? achievable, and sustainable?)

• Corporate and management structure (what are the

strengths, weaknesses of the company and operations

on the ground, is there customer service program in

place? how do they attract and retain employees?)

• Have all ACDBE Certification rules been complied with?

• Do you have airport experience? (While not necessary in

some cases, try not to make your first experience in

business at an airport)

• What is the concept? (does it meet the criteria set forth in

solicitation? local, regional, national…international?

What is special and sets it a part from the rest)

• What is the proposed rent? (too high, too low,

competitive based on history of concepts at a location,

enplanements, appropriately sized if it’s a new location)

• What is the capital investment?

• What is the schedule?

2018-2020 Concessions Opportunities

Dulles Washington International Airport (IAD)

• 2018

– 1 Food & Beverage (International Brand on Concourse A)

– 1 Retail (Kiosk Location on Concourse B)

• 2019

– 1 Food & Beverage (Quick-Serve Restaurant on Concourse B)

– 1 Retail or F&B (Concourse B)

– 1 Retail or F&B (Concourse C)

– 1 Retail or F&B (Concourse D)

– 3 Coffee locations (Concourse D and South Finger prior to getting on train or

mobile lounge)

• 2020

– 1 Retail (Concourse A)

– 1 Retail (Concourse B)

– 1 Retail or F&B (Concourse C)

27

*Information is subject to change at the sole discretion of MWAA

To be placed on the notification list, send an email to dcleasing@marketplacedev.com

2018-2020 Concessions Opportunities

Ronald Reagan Washington National Airport (DCA)

• Project Journey – Secure National Hall

• Anticipate opportunities for a handful of existing and new locations in National Hall

– New Commuter Concourse • 10-14 Retail and F&B opportunities in New Commuter Concourse

• Master Plan Stage – Program Analysis

– Space Allocation

– Enplanements

– ACDBE Plan

– Historical Activity

28

*Information is subject to change at the sole discretion of MWAA

To be placed on the notification list, send an email to dcleasing@marketplacedev.com

DCA Terminal B/C Long-Term

Redevelopment Contract

• Awarded Not to Exceed $500M contract to Turner Construction in June 2016

- Scope includes new construction and renovation of existing facilities

- Contract Duration: 7 years

- LDBE participation requirement of 25%

• Subcontractors must be licensed in Virginia and pre-qualified with Turner

• Frequent pre-bid and site visit opportunities

29

http://www.turner-dcaprojects.com

Procurement Planning & Upcoming Opportunities

• MWAA publishes a Quarterly Acquisition Forecast, which:

- Lists upcoming solicitations

- Facilitates strategic outreach efforts

- Provides small businesses the opportunity to plan and compete

• Near-term opportunities (through June 2017) are expected to include:

- Legal Services-Employment-related litigation and non litigation services (Aviation

Enterprise)

- Airside Rubber and Paint Removal Services at Reagan National

- Glass and Aluminum Curtain Wall Cleaning Services at Reagan

- Chillers Maintenance and Preventive Maintenance Contract at Reagan National and

Dulles International

- LED Lamp Replacement at Dulles International

- Pavement Marking at Dulles Toll Road

- Concession Opportunities

30

http://www.mwaa.com/business/upcoming-contracting-opportunities