Procuring and Managing Professional Services for Airports (2013)

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A I R P O R T C O O P E R A T I V E R E S E A R C H P R O G R A M ACRP REPORT 87 TRANSPORTAT ION RESEARCH BOARD WASHINGTON, D.C. 2013 www.TRB.org Research sponsored by the Federal Aviation Administration Subscriber Categories Aviation • Materials Procuring and Managing Professional Services for Airports Thomas A. Defant, Jr. Nancy LaFarge Peter Denitz Glenn W. Ridsdale HNTB CorporaTioN Boston, MA

AIRPORT COOPERATIVE RESEARCH PROGRAM Airports are vital national resources. They serve a key role in trans­ portation of people and goods and in regional, national, and inter­ national commerce. They are where the nation’s aviation system connects with other modes of transportation and where federal respon­ sibility for managing and regulating air traffic operations intersects with the role of state and local governments that own and operate most airports. Research is necessary to solve common operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport Coopera­ tive Research Program (ACRP) serves as one of the principal means by which the airport industry can develop innovative near­term solutions to meet demands placed on it. The need for ACRP was identified in TRB Special Report 272: Airport Research Needs: Cooperative Solutions in 2003, based on a study spon­ sored by the Federal Aviation Administration (FAA). The ACRP carries out applied research on problems that are shared by airport operating agencies and are not being adequately addressed by existing federal research programs. It is modeled after the successful National Coopera­ tive Highway Research Program and Transit Cooperative Research Pro­ gram. The ACRP undertakes research and other technical activities in a variety of airport subject areas, including design, construction, mainte­ nance, operations, safety, security, policy, planning, human resources, and administration. The ACRP provides a forum where airport opera­ tors can cooperatively address common operational problems. The ACRP was authorized in December 2003 as part of the Vision 100­Century of Aviation Reauthorization Act. The primary participants in the ACRP are (1) an independent governing board, the ACRP Oversight Committee (AOC), appointed by the Secretary of the U.S. Department of Transportation with representation from airport operating agencies, other stakeholders, and relevant industry organizations such as the Airports Council International­North America (ACI­NA), the American Associa­ tion of Airport Executives (AAAE), the National Association of State Aviation Officials (NASAO), Airlines for America (A4A), and the Airport Consultants Council (ACC) as vital links to the airport community; (2) the TRB as program manager and secretariat for the governing board; and (3) the FAA as program sponsor. In October 2005, the FAA executed a contract with the National Academies formally initiating the program. The ACRP benefits from the cooperation and participation of airport professionals, air carriers, shippers, state and local government officials, equipment and service suppliers, other airport users, and research orga­ nizations. Each of these participants has different interests and respon­ sibilities, and each is an integral part of this cooperative research effort. Research problem statements for the ACRP are solicited periodically but may be submitted to the TRB by anyone at any time. It is the responsibility of the AOC to formulate the research program by iden­ tifying the highest priority projects and defining funding levels and expected products. Once selected, each ACRP project is assigned to an expert panel, appointed by the TRB. Panels include experienced practitioners and research specialists; heavy emphasis is placed on including airport pro­ fessionals, the intended users of the research products. The panels pre­ pare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing cooper­ ative research programs since 1962. As in other TRB activities, ACRP project panels serve voluntarily without compensation. Primary emphasis is placed on disseminating ACRP results to the intended end­users of the research: airport operating agencies, service providers, and suppliers. The ACRP produces a series of research reports for use by airport operators, local agencies, the FAA, and other interested parties, and industry associations may arrange for work­ shops, training aids, field visits, and other activities to ensure that results are implemented by airport­industry practitioners. ACRP REPORT 87 Project 01­20 ISSN 1935­9802 ISBN 978­0­309­25915­6 Library of Congress Control Number 2013940437 © 2013 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not­for­profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB or FAA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not­for­profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The project that is the subject of this report was a part of the Airport Cooperative Research Program, conducted by the Transportation Research Board with the approval of the Governing Board of the National Research Council. The members of the technical panel selected to monitor this project and to review this report were chosen for their special competencies and with regard for appropriate balance. The report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the Governing Board of the National Research Council. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board, the National Research Council, or the program sponsors. The Transportation Research Board of the National Academies, the National Research Council, and the sponsors of the Airport Cooperative Research Program do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of the report. Published reports of the AIRPORT COOPERATIVE RESEARCH PROGRAM are available from: Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet at http://www.national­academies.org/trb/bookstore Printed in the United States of America

The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. On the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Charles M. Vest is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, on its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. Charles M. Vest are chair and vice chair, respectively, of the National Research Council. The Transportation Research Board is one of six major divisions of the National Research Council. The mission of the Transporta- tion Research Board is to provide leadership in transportation innovation and progress through research and information exchange, conducted within a setting that is objective, interdisciplinary, and multimodal. The Board’s varied activities annually engage about 7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individu- als interested in the development of transportation. www.TRB.org www.national-academies.org

C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR ACRP REPORT 87 Christopher W. Jenks, Director, Cooperative Research Programs Crawford F. Jencks, Deputy Director, Cooperative Research Programs Michael R. Salamone, ACRP Manager Theresia H. Schatz, Senior Program Officer Terri Baker, Senior Program Assistant Eileen P. Delaney, Director of Publications Hilary Freer, Senior Editor ACRP PROJECT 01-20 PANEL Field of Administration Catherine W. Wetherell, Northeastern University, Boston, MA (Chair) James E. Boucher, Delta Air Lines, Inc., Atlanta, GA Michael A. Covalt, Arizona Airports Association, Green Valley, AZ Tony Curatolo, Reno-Tahoe Airport Authority, Reno, NV Pamela S. Keidel-Adams, Landrum & Brown, Gilbert, AZ Lynn Leibowitz, Leibowitz & Horton AMC, Inc., Greenwood Village, CO Nick Goodly, FAA Liaison James I. Briggs, Jr., Airports Council International - North America Liaison T.J. Schulz, Airport Consultants Council Liaison Christine Gerencher, TRB Liaison AUTHOR ACKNOWLEDGMENTS The research reported herein was performed under ACRP Project 1­20 by HNTB Corporation (HNTB) in Boston, Massachusetts. Spy Pond Partners, in Arlington, Massachusetts, assisted in the outreach effort. Thomas A. Defant, Jr., served as the Principal Investigator and co­authored this report with Nancy LaFarge, Peter Denitz, and Glenn W. Ridsdale. Interview Participants The research team acknowledges the following individuals from agencies that participated in detailed interviews. The research team thanks these participants for the time and effort they dedicated to provid­ ing information, documents, and details of their own experience in procuring and managing professional services: • Rebecca Cronkhite and Sharon Frascati, Alaska Department of Transportation and Public Facilities (AKDOT), Anchorage, AK • David Hensley, City of Phoenix Aviation Department (PAD), Phoenix, AZ • Diane Hirsch and Fred Seitz, Metropolitan Washington Airports Authority (MWAA),Washington, DC (continued on page v)

• Angela R. Newland, Broward County Aviation Department (BCAD), Fort Lauderdale, FL • Sandra Kennedy and Adam Nguyen, Lee County Port Authority (LCPA), Ft. Myers, FL • Miriam Singer, Miami­Dade County, Miami, FL • Doreen Cherry, Greta J. Hawvermale, Robert Thomson, and Jennifer Thuma, Indianapolis Airport Authority (IAA), Indianapolis, IN • Jennifer Eve, Paul Showstead, and Catherine Walsh, Massachusetts Port Authority (Massport), Bos­ ton, MA • Carol Rademacher, Michigan Department of Transportation (MDOT), Lansing, MI • William Radinson and Tim Volonakis, Port Authority of New York and New Jersey (PANYNJ), New York, NY • Tracy Borda and Rochelle Cameron, City of Philadelphia, Division of Aviation (PHL), Philadel­ phia, PA • James Hay, Memphis­Shelby County Airport Authority (MSCAA), Memphis, TN • Joanne Garcia, Perfecto Solis, and Greg Spoon, Dallas­Fort Worth International Airport (DFW), Dallas, TX • Randy Knoche, Wisconsin Department of Transportation (WisDOT), Madison, WI • John Milton, Washington State Department of Transportation (WSDOT), Olympia, WA Thanks also to Jack Zill, Dallas­Fort Worth International Airport (DFW) and Richard Myrah, Metro­ politan Washington Airports Authority (MWAA) for their cooperation and coordination in obtaining approvals to use quotes and materials from their respective agencies. Webinar Participants The research team acknowledges the following individuals who participated in a Webinar presented on November 19, 2012, to elicit feedback on the processes outlined in the draft Handbook. The research team thanks these participants for their time and for sharing their knowledge and expertise to benefit other airports: • Angela R. Newland, Broward County Aviation Department • Doreen Cherry, Courtney Kasper, and Susan J.H. Zellers, Indianapolis Airport Authority • Gary Schmidt, Minneapolis­St. Paul Metropolitan Airports Commission • Gregg Hornsby, Columbia Metropolitan Airport • Joseph Huber, Kenton County Airport Board • Kimberly Coleman, City of San Antonio Aviation Department • Mark J. Day, Lexington­Fayette Urban County Airport Board • Phil Burke, Minneapolis­St. Paul Metropolitan Airports Commission • Teresa Foster Eckard, Spokane International Airport • Thomas Nolan, Palm Springs International Airport • Tom Middleton, Louisville Regional Airport Authority Special Acknowledgments Special thanks to Laurie Cullen for laying the groundwork for this project and shaping the direction of the research. Special thanks to Andrea d’Amato for her dedicated work on the interim report, which became the basis for this Handbook.

ACRP Report 87 is a handbook that provides guidance for procuring and managing pro­ fessional services at airports for use by airport owners and operators. For this research, professional services include planning, environmental, architectural and engineering, infor­ mation technology, financial, legal, and other key professional services provided to airports. The handbook covers (1) the procurement process, including scoping, pre­selection pro­ cess, selection criteria, evaluation, and contract negotiations; and (2) processes for manag­ ing professional services contracts. The handbook considers all sizes and types of airports. Most U.S. airport owners engage professional services firms to assist them with the plan­ ning, design, and management of capital development projects and other professional ser­ vices at their facilities. Such firms bring resources, specialized technical capabilities, and subject matter expertise needed that may not be available within the airport owners’ orga­ nization. Resources exist that include best practices for certain elements of procuring pro­ fessional services, although no comprehensive resource provides recommended practices that can guide an airport from the initial stages of procuring services through to comple­ tion. This resource provides well­documented and practical steps that will improve the consultant selection process and engagement of the firm through completion, resulting in successful and high­quality services. This research was conducted under ACRP Project 01­20 by HNTB. To accomplish the research objectives, the research team conducted a literature review and comprehensive interviews at eleven airports and four non­airport agencies to gather more information on best practices and lessons learned regarding procurement and management of professional services. A separate final report, which provides background to the research conducted in support of the handbook, has been posted on the ACRP Project 01­20 web page that can be found by searching the TRB website for ACRP Report 87. F O R E W O R D By Theresia H. Schatz Staff Officer Transportation Research Board

1 Chapter 1 Introduction 1 How to Use This Handbook 2 Diversity of Professional Services 3 Current Trends and Practices in Procurement and Management 3 Common Denominators and Divergent Practices 7 Chapter 2 Organization and Approach 7 Organizational Structure 18 Strategic Approaches 21 Integrity, Ethics, and Conflict of Interest 21 Tools and Technology 22 Resources 23 Chapter 3 Procurement Process 23 Introduction to Procurement 30 Pre­Procurement Strategies 31 Selection Process 33 Notification of Selection 34 Tools and Technology 36 Resources 39 Chapter 4 Negotiating and Contracting for Professional Services 39 Negotiations 43 Contracting 49 Tools and Technology 49 Resources 50 Chapter 5 Managing Professional Services 50 Administration 52 Scope­Schedule­Cost Management 56 Tools and Technology 56 Resources 57 Appendix A Bibliography 63 Appendix B Glossary 77 Appendix C Model Documents 82 Appendix D Sample Forms C O N T E N T S Note: Many of the photographs, figures, and tables in this report have been converted from color to grayscale for printing. The electronic version of the report (posted on the Web at www.trb.org) retains the color versions.