Guidance

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FAA Guidance on Airport Concession Requirements

Background

Regulations of the U.S. Department of Transportation (DOT) require primary airports to implement and annually update a disadvantage business enterprise (DBE) concession plan (49 CFR Part 23, Subpart F, Section 23.93(b)(2)). Set forth below is guidance on updating your plan for Fiscal Year (FY) 02.

Each primary airport should submit the information in items 1 through 4 to the FAA Regional Civil Rights Office by February 1, 2002.

Required Reports

1. Accomplishment report. This report is authorized by 49 CFR Section 23.95(d) and should be submitted in the format of Appendix 4 to the Federal Aviation Administration's (FAA) "Sample DBE Concession Plan." Guidance to assist recipients in completing the report is found on page 7 of the "Sample DBE Concession Plan."

It refers to recipients who calculated goals as a percentage of the gross receipts from all concessions. Indicate the actual DBEparticipation achieved during the period October 1, 2000, through September 30, 2001, by making the calculation shown on the bottom of Appendix 4.

If your previous year overall goal was calculated as a percentage of the number of concession agreements, rather than as a percentage of gross receipts, please refer to Page 7 of the "Sample DBE Concession Plan" on how to determine actual DBEparticipation. In either case, the report should reflect businesses operating as concessionaires only.

2. Report of certified DBE concessionaires counted toward the goals (Attachment 2). Each recipient should complete this report in accordance with the instructions provided.

3. Explanation. If applicable, attach an explanation why the previous year goal was not met.

4. FY-01 overall DBE goal.

(a) Due to the pending changes to the DBE rule, FAA is not establishing a multi-year concession plan at this time.

As with FY-01, we are requesting that recipients submit an overall goal for one year only. It should cover FY-02 (October 1, 2001 through September 30, 2002) and be submitted by February 1. Do not submit goals for years beyond that date.

If a recipient previously received approval to calculate overall goals as a percentage of the number of concession agreements, the same procedure may be used for the FY-02 goal. A rationale as specified in 49 CFR Section 23.99 need not be resubmitted.

Only businesses meeting the definition of "concession" in Subpart F, 49 CFR Part 23, are included in the overall goal calculation. Do not include management contracts or subcontracts with DBEs, or the purchases or leases of goods or services from off-airport DBEs in the overall goal.

(b) DOT and FAA have advised airports that in order to operate a concession program that meets current constitutional standards, the goal-setting process must be narrowly tailored. As such, the goals must reflect the relative availability of ready, willing, and able DBEs. The overall goal-setting process of 49 CFR Part 26, to which Section 23.95 refers, has sufficient flexibility to cover situations in which procurements are made on a national, as well as on a local, basis. Additional guidance on setting overall goals is included in Attachment 1A. It is identical to the guidance we provided for developing the FY-01 goal and supersedes the guidelines in the FAA's "Sample DBE Concession Plan" (July 1992).

(c) The FAA has determined that recipients are not required to provide for public participation, as specified in 49 CFR Section 26.45(g), in setting their overall FY-02 concession goal. 

Updated: Tuesday, June 25, 2013