Airport Operator Options for Delivery of FBO Services (2018)

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84 COMPLIANCE WITH FEDERAL RESPONSIBILITIES Fixed base operator (FBO) compliance with federal regulations should be addressed during the selection process in both the request for proposal and the sample FBO lease agreement. Aeronautical Services The scope of FBO activities may include a combination of aeronautical services including the following: • Aircraft sales • Airframe and power plant maintenance and repair services • Specialized aircraft repair service—radios, propellers, instruments, and accessories • Other aircraft repair and maintenance • Aircraft parts sales • Aircraft storage • Line services • Fueling (storage, handling, sale, and dispensing) • Aircraft charter and air taxi services • Aircraft rentals • Flight training • Commercial flying services • Aerial photography • Aerial specialty services (advertising and surveying) • Basic support services to pilots, flight crew, and passengers • Telecommunication services • Ground transportation • Flight planning • Weather information • Aviation supplies shop (selling navigation charts, manuals, etc.) • Access to in-flight catering The FAA and other government agencies are responsible for establishing the performance standards, practices, and require- ments to perform the various services listed in the previous paragraph. In addition, the FAA is responsible for monitoring FBO compliance in providing services that fall within FAA jurisdiction. For instance, regarding fuel, the FAA dictates standards and practices for aircraft fuel storage, handling, and dispensing on airports. FBO Security Requirements In addition, FBOs must comply with certain federal security requirements. Among these requirements are the following: • Fixed Base Operator Security Program—each FBO must adopt and carry out an FBO Security Program. • In addition, an FBO must – Perform screening and other duties – Have a security coordinator – Support the screening of persons and property – Support the search of aircraft – Restrict the distribution, disclosure, and availability of sensitive security information – Perform any other duties required under the FBO Security Program – Demonstrate compliance by ○ Permitting the TSA to conduct compliance inspections or tests ○ Providing evidence of compliance with the FBO Security Program APPENDIX A Federal and Airport Regulatory Responsibilities for FBOs

85 FBO Responsibilities The FBO lease agreement should require the FBO to comply with the requirements of all federal, state, or other agencies that have jurisdiction over the FBO’s business. AIRPORT SPONSOR RESPONSIBILITIES The airport sponsor must satisfy the following requirements in the operation and management of its airport: • FAA standards and practices in the FAA Airport Compliance Manual–Order 5190.6B • Airport sponsor’s grant assurances • Other laws, ordinances, and regulations These documents play a key role in the airport sponsor’s processes and procedures for handling the provision of aeronauti- cal services at its airport. Compliance with FAA Standards and Practices Federal statute mandates the federal obligations an airport sponsor assumes when accepting FAA-administered airport devel- opment assistance. The FAA Airport Compliance Manual–Order 5190.6B (ACM) presents a summary of applicable federal statutes, codes, and regulations that apply to the airport sponsor once it accepts federal funding. The ACM presents discus- sions and examples of what is and is not permissible under federal statutes and grant assurances. Airport sponsors can use the ACM to develop practices for the provision of aeronautical services provided by their FBOs. Additionally, the ACM establishes the policies and procedures for FAA personnel when exercising the FAA’s responsibil- ity to ensure airport compliance with federal statutes and grant assurances. The ACM also details the various obligations set forth in the airport sponsor assurances, addresses the application of those assurances in the operation of public-use airports, and facilitates interpretation of the assurances by FAA personnel. Most issues that arise between airport sponsors and FBOs (or potential FBOs) involve ACM chapter eight–Exclusive Rights, chapter nine–Unjust Discrimination between Aeronautical Users, and chapter ten–Reasonable Commercial Mini- mum Standards. Grant Assurances FAA policy states: “When airport owners or sponsors, planning agencies, or other organizations accept funds from FAA-administered airport financial assistance programs, they must agree to certain obligations (or assurances). These obligations require the recipients to maintain and operate their facilities safely and efficiently and in accordance with specified conditions. The assurances may be attached to the application or the grant for Federal assistance and become part of the final grant offer or in restrictive covenants to property deeds. The duration of these obligations depends on the type of recipient, the useful life of the facility being developed, and other conditions stipulated in the assurances” (https://www.faa.gov/airports/aip/grant_assurances). Most airports are federally obligated and therefore subject to the grant assurances. Grant assurance categories are as follows: 1. General Federal Requirements 2. Responsibility and Authority of the Sponsor 3. Sponsor Fund Availability 4. Good Title 5. Preserving Rights and Powers 6. Consistency with Local Plans

86 7. Consideration of Local Interest 8. Consultation with Users 9. Public Hearings 10. Metropolitan Planning Organization 11. Pavement Preventive Maintenance 12. Terminal Development Prerequisites 13. Accounting System, Audit, and Record Keeping Requirements 14. Minimum Wage Rates 15. Veteran’s Preference 16. Conformity to Plans and Specifications 17. Construction Inspection and Approval 18. Planning Projects 19. Operation and Maintenance 20. Hazard Removal and Mitigation 21. Compatible Land Use 22. Economic Nondiscrimination 23. Exclusive Rights 24. Fee and Rental Structure 25. Airport Revenues 26. Reports and Inspections 27. Use by Government Aircraft 28. Land for Federal Facilities 29. Airport Layout Plan 30. Civil Rights 31. Disposal of Land 32. Engineering and Design Services 33. Foreign Market Restrictions 34. Relocation and Real Property Acquisition 35. Access by Intercity Buses

87 36. Disadvantaged Business Enterprises 37. Hangar Construction 38. Competitive Access These assurances inform the airport sponsor-FBO relationship and decree what is permitted at federally funded airports. Some of the most common issues that arise between airport sponsors and FBOs (or potential FBOs) involve Grant Assurance No. 8 (Consultation with Users), No. 22 (Economic Nondiscrimination), No. 23 (Exclusive Rights), No. 24 (Fee and Rental Structure), and No. 29 (Airport Layout Plan).