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
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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
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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
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* 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
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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
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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
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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
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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)
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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)
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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
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https://mwaa.diversitycompliance.com/
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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
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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
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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
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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)
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*Information is subject to change at the sole discretion of MWAA
To be placed on the notification list, send an email to [email protected]
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
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*Information is subject to change at the sole discretion of MWAA
To be placed on the notification list, send an email to [email protected]
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
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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
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http://www.mwaa.com/business/upcoming-contracting-opportunities