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Airport Management Guide for Providing Aircraft Fueling Services (2019)

Chapter: Part 5 - Implementation Tools

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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
×
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 5 - Implementation Tools." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Implementation Tools P A R T 5 189 Chapter 13 Tools to Measure Progress 189 13.1 Arriving at the Big Picture 190 13.2 Benefits of Keeping Track 191 13.3 Fuel Manager’s Monthly and Annual Reports 200 13.4 Fuel Manager’s Report to the Airport Sponsor 209 Chapter 14 Request for Proposals and Evaluation of Bids 209 14.1 Existing Fuel Supplier Situation 210 14.2 Levels of Service and Investment Desired 210 14.3 Procurement Preparation 215 14.4 Request for Proposals 218 14.5 Evaluation of Bids 221 Chapter 15 Action Checklists 221 15.1 Overview of the Checklists 222 15.2 Responsibilities Chart 222 15.3 Operations Checklist 222 15.4 Annual To-Do List 226 15.5 Fueling Operations Startup Checklist 226 15.6 Checklist for Planning, Design, and Construction 226 15.7 Sample Checklists Part 5 of the management guide provides useful tools to implement airport fueling services, including fuel manager reports, a process to recruit fuel suppliers, and action checklists to startup, improve, and maintain fueling services.

189 13.1 Arriving at the Big Picture 13.2 Benefits of Keeping Track 13.3 Fuel Manager’s Monthly and Annual Reports 13.4 Fuel Manager’s Report to the Airport Sponsor Throughout the management guide worksheets and checklists are provided to evaluate trends, set prices, and examine results of the airport fueling operation. Chapter 13 pulls the analysis together into three reports: (1) a fuel manager’s monthly report, (2) a fuel manager’s annual report, and (3) a fuel manager’s report to the airport sponsor. A data entry sheet (Worksheet 13-1), which is available as an Excel worksheet in Appendix B on the TRB website, can be downloaded and customized by airports to develop the fuel manager’s monthly report (Worksheet 13-2) and the fuel manager’s annual report (Worksheet 13-3). These reports examine in detail fuel revenues, costs, transactions, and net income (or loss). These reports are primarily for internal use, but they help to develop the fuel manager’s report to the airport sponsor (Worksheet 13-4). This report is designed as a high-level report integrating a wide range of data to provide an overview of airport fueling operations on an annual basis. Worksheet 13-4 is available as an Excel worksheet in Appendix B on the TRB website. Worksheet 13-4 is also converted into a PowerPoint presentation to summarize airport fueling operations for the airport sponsor (Airport Fueling Operations—Sample Fuel Manager’s Report to the Airport Sponsor.pptx). Both the Excel worksheet and the PowerPoint presentation are available on the TRB website and can be found by searching on “ACRP Research Report 192.” The slides of the PowerPoint presentation are included in this chapter as Exhibit 13-1. To facilitate the development of Wordsheet 13-4, users can provide their own data in the data entry sheet (Worksheet 13-1). When they do, the tables and graphics in Worksheet 13-4 will automatically be populated with this data. Users can then use their customized Worksheet 13-4 to develop their own PowerPoint presentation to be submitted to the airport sponsor. 13.1 Arriving at the Big Picture A fueling operation involves many different daily, weekly, and monthly activities. It is advantageous from a management perspective to step back and analyze the fueling operation. This would include an evaluation of aviation product costs and sales, operating expenses, and performance of retail and discounted pricing programs. In this way, airport management can address some key big-picture questions such as: • In terms of volumes, what is the balance between Avgas and Jet A fuel sales at the airport, and what is the trend? C H A P T E R 1 3 Tools to Measure Progress

190 Airport Management Guide for Providing Aircraft Fueling Services • What are the aviation fuel products that are in the greatest demand (full-service, self-service, contract fuel, or discounted fuel programs)? • Is seasonality a factor in fuel sales and staffing requirements? • Which discount programs appear to attract new customers? Do higher volumes of fuel sales offset discounted revenues? • Which customer segments purchase fuel at the airport (tenants, transient, business, personal flying, etc.)? Have there been recent changes in the customer mix? • Is the fueling operation generating sufficient revenue to cover both operating costs and capital investments? • Is the airport making money, breaking even, or sustaining losses from its fueling services? • What are the priorities for fuel facility investment and marketing in the coming years? Addressing these questions are central to developing the fuel manager’s monthly report, the fuel manager’s annual report, and the fuel manager’s report to the airport sponsor. 13.2 Benefits of Keeping Track Fuel managers will find many benefits of tracking monthly and annual financial statistics. As data is compiled over years of operation, the fuel manager can better understand the local and transient markets and begin to anticipate sales volumes, revenues, and costs associated with the fueling operation as well as needed improvements to the facility and equipment. Figure 13-1 lists advantages to tracking facility performance. Keeping track of the fueling business offers a powerful set of tools to forecast sales and market trends. The next section describes performance measures that go into the fuel manager report. Many airports use an inventory tracking system that can generate figures, tables, and statistics similar to the ones shown in this chapter. Source: Prepared by KRAMER aerotek, 2018. Fuel Sales • Increased understanding of product mix and customer segments • Sales volumes and trends can help to anticipate needs for future facility capacity increases • Fuel sales data can reveal changes in customer purchase patterns Daily, Weekly, Monthly Statistics • Assists with planning for next fuel deliveries • Helps to anticipate high- and low-revenue months and seasonal staffing needs Financial Analysis • Informs understanding of the revenue and expenditures for the fueling operation • Reveals trends for pricing, costs, and net revenues to the airport sponsor Self-Service and Contract Sales • Provides data on fuel sold at discounts to the retail price • Identifies trends in the use of self-service and contract fueling products Discount Programs • Makes it possible to evaluate how discount programs attract additional or existing customers • Reveals whether a particular discount program results in increased sales and revenues Figure 13-1. Benefits of keeping track of the fueling operation.

Tools to Measure Progress 191 13.3 Fuel Manager’s Monthly and Annual Reports The fuel manager’s reports involves a build of data that shows inventory activity, sales revenue and costs, and monthly statistics. The data is aggregated monthly and for each fiscal or calendar year. In addition, the fuel manager report examines the trends in different product sales, season- ality, and results from marketing initiatives to attract new customers and fuel sales. To develop these reports, the fuel manager would need to collect the information listed in Table 13-1. This table provides the sections of the management guide that specifically discusses this information; however, the fuel manager may already have some of this data that is automatically generated by the POS software and fuel supplier reports. Each element of the fuel manager’s report is described in the next sections followed by examples of consolidated reports—fuel manager’s monthly report (Worksheet 13.2) and fuel manager’s annual report (Worksheet 13-3). These worksheets and the data entry sheet (Worksheet 13-1) are static in this report, but they are also available in Appendix B and on the TRB website and can be downloaded and customized for specific airports. 13.3.1 Inventory Activity For each fuel type offered, the fuel manager’s report tracks inventory. For fuel facilities with high turnover rates, inventory can be tracked daily or weekly. For smaller fueling operations, inventory can be tracked weekly or monthly. Table 13-2 shows an example of a monthly inventory record for Avgas. A similar table could be completed for Jet A, Mogas, and any other aviation fuels sold. 13.3.2 Sales Revenue and Delivered Costs In this section of the fuel manager report, the sales revenue for each fuel product is tracked as well as the delivered cost (including taxes and fuel flowage).1 The sales revenue less the delivered cost provides an indication of the gross revenue to the airport before any operating costs are taken into account. Table 13-3 shows a monthly report of fuel revenues and delivered costs for Avgas. Again, a fueling manager would keep track of each fuel product separately, and if there was high turnover, it might be necessary to track revenue and costs daily or weekly. Sales Revenue Section 12.4 Gallons Sold Section 4.3.2 Section 12.1.1 Number of Transactions Cost of Delivered Fuel Section 12.2 See note for Table 13-3 Gallons Purchased Section 12.2 See note for Table 13-3 Operating Expenses per Gallon Section 12.3.2 Offsetting Revenue per Gallon Section 12.3.2 Gallons Sold by Full-Service, Self-Service Contract, and Discounted Section 12.4 Source: Prepared by KRAMER aerotek, 2018. Key Information to Collect Reference Section Table 13-1. Fuel data needed for reports. 1 See Section 12.3 for a full discussion of the components of delivered cost of fuel.

Fuel Type: Avgas Year: 2017 Last YTD Annual ChangeJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Beginning inventory 6,500 9,438 4,382 5,820 8,260 8,698 7,638 5,076 3,014 9,954 3,892 6,332 Gallons purchased 7,500 - 7,500 7,500 7,500 7,500 7,500 7,500 15,000 - 7,500 7,500 82,500 75,000 10% Adjustments (62) (56) (62) (60) (62) (60) (62) (62) (60) (62) (60) (60) (728) (750) -3% Gallons sold (4,500) (5,000) (6,000) (5,000) (7,000) (8,500) (10,000) (9,500) (8,000) (6,000) (5,000) (5,500) (80,000) (79,000) 1% Remaining inventory 9,438 4,382 5,820 8,260 8,698 7,638 5,076 3,014 9,954 3,892 6,332 8,272 Source: Prepared by KRAMER aerotek, 2018. Table 13-2. Inventory history—monthly Avgas example. Fuel Type: Avgas Year: 2017 Jan Feb Mar Apr May Jun Jul Aug Fuel sales $21,600 $24,000 $28,800 $24,000 $33,600 $40,800 $48,000 $45,600 Delivered cost of gallons sold* $(14,625) $(16,250) $(19,500) $(16,250) $(22,750) $(27,625) $(32,500) $(30,875) Gross revenue before operating costs $6,975 $7,750 $ 9,300 $7,750 $10,850 $13,175 $15,500 $14,725 Sep Oct Nov Dec YTD Previous YTD Annual Change Fuel sales $38,400 $28,800 $24,000 $26,400 $384,000 $390,000 -2% Delivered cost of gallons sold* $(26,000) $(19,500) $(16,250) $(17,875) $(260,000) $(262,000) -1% Gross revenue before operating costs $12,400 $9,300 $7,750 $8,525 $124,000 $126,000 -2% *For airports that receive infrequent fuel deliveries, this value equals the number of gallons sold in the month times cost per gallon of the most recent fuel delivery. For airports with multiple deliveries in a month, the cost per gallon should be the number of gallons sold in the month times the average cost per gallon of the month’s deliveries. Delivered cost includes taxes and fuel flowage fees. Source: Prepared by KRAMER aerotek, 2018. Table 13-3. Sales revenue and delivered costs—monthly Avgas example.

Tools to Measure Progress 193 13.3.3 Allocation of Airport Operating Costs For airports where the fueling operation is a separate department, cost center, or LLC, the allocation of resources and their costs associated with fueling is straightforward. For airports where the fueling operation is fully integrated with other airport functions, it is important to allocate a certain share of operating costs to fueling. Chapter 12 describes this calculation. It involves converting airport operating expenses into a per-gallon ratio and reassigning some of these operating costs to other revenue-producing activities on the airport. This provides a reasonable way to allocate a share of the operating costs to the fueling operation and obtain a more accurate estimate of the net revenues from fuel sales. 13.3.4 Operating Performance Analysis Inventory, sales, delivered cost, and an allocation of operating cost provide a basis to evaluate the performance of each fueling product and a combined evaluation of all fuel sales. Table 13-4 shows an example of a combined report for year-to-date results. This table would be built from individual tables for each aviation fuel product. 13.3.5 Annual Comparison of Performance Measures The fuel manager’s report also shows annual trends for each aviation fuel product. Table 13-5 presents an example of the performance measures of Jet A fuel sales for 5 years. A similar table can be constructed for Avgas or any other aviation products. Each of the data points in these Performance Metric Line # and Formulas Current Year-to-Date Total Fuel Avgas Jet A Total sales revenue a $384,000 $820,000 $1,204,000 Total gallons sold b 80,000 200,000 280,000 Total delivered cost of product (including taxes & fuel flowage) c $268,125 $467,775 735,900 Total gallons purchased d 82,500 202,500 285,000 Number of transactions e 400 400 800 Average price per gallon f=a/b $4.80 $4.10 $4.30 Average sale revenue per transaction g=a/e $960 $2,050 $1,505 Average gallons per transaction h=b/e 200 500 350 Average delivered cost of product per gallon (including taxes & fuel flowage) i=c/d $3.25 $2.31 Operating expenses per gallon j $1.71 $1.71 Offsetting revenue per gallon k $0.90 $0.90 Net product cost per gallon l=i+j-k $4.06 $3.12 Average net income (loss) per gallon m=f-l $0.74 $0.98 Total Year-to-Date net revenues from fuel sales n=b*m $59,200 $196,000 $255,200 Average profit margin rate o=n/a 15% 24% 21% Average profit margin per gallon p=n/b $0.74 $0.98 $0.91 Source: Prepared by KRAMER aerotek, 2018. Table 13-4. Example of operating results from fueling operations—combined Avgas and Jet A report.

194 Airport Management Guide for Providing Aircraft Fueling Services tables are developed from daily, weekly, or monthly inventory, sales, and cost reports. In this table, dollars are expressed as current dollars and are not adjusted for inflation. If a fuel manager wants to examine trends over a long period of time, it would be advantageous to adjust the current dollars for inflation. The Bureau of Labor Statistics offers an inflation calculator based on CPI that easily converts current dollars to inflation adjusted dollars. Figure 13-2 shows the CPI inflation calculator. 13.3.6 Tracking Product Trends In addition to financial results, the fuel manager’s reports also examines trends in product mix and transaction types. Table 13-6 shows an example of sales trends for Avgas and Jet A. Fuel sales by transaction type is more complex because fuel, particularly jet fuel, is sold at different prices. Table 13-7 reviews different transaction types and Table 13-8 breaks out fuel sales by transaction type in an example for Jet A fuel. The fuel manager’s reports would build a similar table for Avgas. Performance Metric Line # and Calculations 2013 2014 2015 2016 2017 2013- 2017 Change Sales revenue a $773,500 $717,500 $804,000 $796,950 $820,000 6% Gallons sold b 182,000 175,000 201,000 207,000 200,000 10% Average price per gallon c=a/b $4.25 $4.10 $4.00 $3.85 $4.10 -4% Delivered cost of gallons sold d=b*j $482,300 $446,250 $492,450 $434,700 $462,000 -4% Allocated operating expenses e=b*k $309,400 $283,500 $309,540 $335,340 $342,000 11% Offsetting revenue f=b*l $145,600 $161,000 $194,970 $204,930 $180,000 24% Average net revenue g=a-d-e+f $127,400 $148,750 $196,980 $231,840 $196,000 54% Average profit margin rate h=g/a 16% 21% 25% 29% 24% 45% Average profit margin per gallon i=g/b $0.70 $0.85 $0.98 $1.12 $0.98 40% Average delivered cost per gallon j $2.65 $2.55 $2.45 $2.10 $2.31 -13% Operating expenses per gallon k $1.70 $1.62 $1.54 $1.62 $1.71 1% Offsetting revenue per gallon l $0.80 $0.92 $0.97 $0.99 $0.90 13% Net product cost per gallon m=j+k-l $3.55 $3.25 $3.02 $2.73 $3.12 -12% Source: Prepared by KRAMER aerotek, 2018. Table 13-5. Example of annual summary of fuel product performance—Jet A Fuel. $ 100.00 In In January 2010 has the same buying power as $149.05 May-2018 Calculate Source: https://www.bls.gov/data/inflation_calculator.htm. Figure 13-2. CPI inflation calculator.

Tools to Measure Progress 195 Gallons Sold by Fuel Type 2013 2014 2015 2016 2017 Jet A 182,000 175,000 201,000 207,000 200,000 Avgas 80,000 75,000 81,000 82,000 80,000 Percent Jet A 69% 70% 71% 72% 71% Percent Avgas 31% 30% 29% 28% 29% Source: Prepared by KRAMER aerotek, 2018. Table 13-6. Example of aviation fuel sales by product type, 2013–2017. Source: Prepared by KRAMER aerotek, 2018. Transaction Distinguishing Characteristics Retail Retail fuel represents the highest price a customer will pay. Full-service Avgas is typically sold at retail prices. Jet fuel is rarely sold at retail price unless a customer purchases small quantities often in exchange for a ramp or parking fee. Self-Service Self-service fueling requires fewer employees and less operating expenses; however, the revenue generated is at a discount to the retail price. Trends in self-service fuel sales are good indicators of changes in price sensitive customers. Contract Contract fuel rates are available to high-volume jet fuel customers who have purchased contracts with a fuel supplier. Revenues from contract fuel are limited to the airport (or FBO) upload fee and flowage fees. Discount Some airports offer discount programs for tenants, seasonal events, large-volume purchases, or pre-purchasing fuel. Tracking fuel sales from specific promotions is important to evaluate the effectiveness of particular discount. Table 13-7. Types of fuel transactions. Transaction Type 2013 2014 2015 2016 2017 Full-Service 45,500 52,500 80,400 51,750 20,000 Self-Service N/A N/A N/A N/A 30,000 Contract 54,600 56,000 70,350 93,150 104,000 Volume Discount 81,900 66,500 50,250 62,100 46,000 Total Jet A 182,000 175,000 201,000 207,000 200,000 Product Mix Full-Service 25% 30% 40% 25% 10% Self-Service N/A N/A N/A N/A 15% Contract 30% 32% 35% 45% 52% Volume Discount 45% 38% 25% 30% 23% Source: Prepared by KRAMER aerotek, 2018. Table 13-8. Example of fuel gallons sold by transaction type, 2013–2017. Table 13-8, an example table, shows the growing importance of contract fuel for Jet A sales. For the fuel manager, this would be important information because the revenue from a contract fuel sale is limited to the upload fee (and possibly flowage fees) charged by the airport operator to the fuel supplier. Worksheets 13-2 and 13-3 present consolidated versions of the fuel manager’s monthly and annual reports, respectively. These reports compile the information found in the Worksheet 13-1 and also in Tables 13-2 through 13-6 and Table 13-8.

Worksheet 13-1. Data entry sheet. Airport Name December 2017 Current YTD 2013 2014 2015 2016 2017 Sales revenue $384,000 $376,200 $360,000 $380,700 $373,100 $384,000 Gallons sold 80,000 76,000 75,000 81,000 82,000 80,000 Delivered fuel costs $268,125 $285,000 $273,750 $288,750 $247,500 $268,125 Gallons purchased 82,500 75,000 75,000 82,500 82,500 82,500 Number of transactions 400 360 350 425 450 400 Current YTD 2013 2014 2015 2016 2017 Sales revenue $820,000 $773,500 $717,500 $804,000 $796,950 $820,000 Gallons sold 200,000 182,000 175,000 201,000 207,000 200,000 Delivered fuel costs $467,775 $477,000 $439,875 $496,125 $441,000 $467,775 Gallons purchased 202,500 180,000 172,500 202,500 210,000 202,500 Number of transactions 400 380 370 410 420 400 Current YTD 2013 2014 2015 2016 2017 Full-Service Jet A 20,000 45,500 52,500 80,400 51,750 20,000 Self-Service Jet A 30,000 0 0 0 0 30,000 Contract Jet A 104,000 54,600 56,000 70,350 93,150 104,000 Volume Discount Jet A 46,000 81,900 66,500 50,250 62,100 46,000 Full-Service Avgas 42,000 40,000 35,000 42,000 40,000 42,000 Self-Service Avgas 38,000 36,000 40,000 39,000 42,000 38,000 Annual Sales Data by Fuel Type (Gallons) Avgas Annual Fuel Sales and Costs Jet A Annual Fuel Sales and Costs Jan Feb Mar Apr May Jun Beginning inventory 6,500 9,438 4,382 5,820 8,260 8,698 Gallons purchased 7,500 0 7,500 7,500 7,500 7,500 Adjustments (62) (56) (62) (60) (62) (60) Gallons sold (4,500) (5,000) (6,000) (5,000) (7,000) (8,500) Remaining inventory 9,438 4,382 5,820 8,260 8,698 7,638 Fuel Sales $21,600 $24,000 $28,800 $24,000 $33,600 $40,800 Delivered cost of gallons sold $(14,625) $(16,250) $(19,500) $(16,250) $(22,750) $(27,625) Current Year Avgas Monthly Sales Jul Aug Sep Oct Nov Dec YTD Previous YTD 7,638 5,076 3,014 9,954 3,892 6,332 7,500 7,500 15,000 - 7,500 7,500 82,500 75,000 (62) (62) (60) (62) (60) (60) (728) (750) (10,000) (9,500) (8,000) (6,000) (5,000) (5,500) (80,000) (79,000) 5,076 3,014 9,954 3,892 6,332 8,272 $48,000 $45,600 $38,400 $28,800 $24,000 $26,400 $384,000 $373,100 $(32,500) $(30,875) $(26,000) $(19,500) $(16,250) $(17,875) $(260,000) $(246,000) Beginning inventory Gallons purchased Adjustments Gallons sold Remaining inventory Fuel Sales Delivered cost of gallons sold Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Beginning inventory 6,500 4,938 2,882 5,320 8,260 8,198 6,138 6,076 8,014 6,454 6,392 3,332 Gallons purchased 7,500 7,500 15,000 15,000 15,000 22,500 30,000 30,000 22,500 15,000 7,500 15,000 202,500 Adjustments (62) (56) (62) (60) (62) (60) (62) (62) (60) (62) (60) (60) (728) Gallons sold (9,000) (9,500) (12,500) (12,000) (15,000) (24,500) (30,000) (28,000) (24,000) (15,000) (10,500) (10,000) (200,000) Remaining Inventory 4,938 2,882 5,320 8,260 8,198 6,138 6,076 8,014 6,454 6,392 3,332 8,272 Fuel Sales $36,900 $38,950 $51,250 $49,200 $61,500 $100,450 $123,000 $114,800 $98,400 $61,500 $43,050 $41,000 $820,000 Delivered cost of gallons sold $(20,790) $(21,945) $(28,875) $(27,720) $(34,650) $(56,595) $(69,300) $(64,680) $(55,440) $(34,650) $(24,255) $(23,100) $(462,000) Previous YTD 210,000 (700) (207,000) $796,950 $(434,700) Current Year Jet A Monthly Sales Beginning inventory Gallons purchased Adjustments Gallons sold Remaining Inventory Fuel Sales Delivered cost of gallons sold

2013 2014 2015 2016 2017 Operating Expenses $1.70 $1.62 $1.54 $1.62 $1.71 Offsetting Revenue $0.80 $0.92 $0.97 $0.99 $0.90 Annual Offsetting Revenue and Expenses per Gallon Terminal Income $26,000 Airside Landing Fees $52,000 Land and Office Leases $18,000 Hangar/Tie-Down Fees $150,000 Supplies & Services $6,000 Fuel Sales $1,204,000 2017 Airport Revenue Employee Salaries & Benefits $230,000 Equipment Rental $45,800 Insurance $100,000 Maintenance & Utilities $25,000 Supplies, Licenses, Software $12,000 Administration $60,000 Marketing $6,000 2017 Airport Operating Expenses Current Year Last Year Operations Commercial 0 0 Air Taxi 10 10 General Aviation 17,000 16,800 Military 800 780 Based Aircraft Single Engine 64 60 Multi Engine 12 12 Jet 3 4 Aircraft Operations and Based Aircraft

Worksheet 13-2. Fuel manager’s monthly report.

Worksheet 13-3. Fuel manager’s annual report.

200 Airport Management Guide for Providing Aircraft Fueling Services 13.4 Fuel Manager’s Report to the Airport Sponsor Statistics associated with the fueling operations recorded every month and every year can be organized in graphics and tables for easy monthly and annual comparisons. This data and analysis forms a good basis to assemble a graphic presentation. This section presents the slides of a PowerPoint presentation that a fuel manager could use to summarize airport fueling operations (Exhibit 13-1). The fuel manager’s report to the airport sponsor is designed as a high-level report integrating a wide range of data to provide an overview of airport fueling operations on an annual basis (Worksheet 13-4), which is available as an Excel worksheet in Appendix B on the TRB website. Worksheet 13-4 is also converted into a Power- Point presentation (Airport Fueling Operations—Sample Fuel Manager’s Report to the Airport Sponsor.pptx) and is available in Appendix B on the TRB website. To facilitate the development of Worksheet 13-4, users can provide their own data in the data entry sheet (Worksheet 13-1). When they do, the tables and graphics in Worksheet 13-4 will automatically be populated with this data. Users can then use their customized Worksheet 13-4 to develop their own PowerPoint presentation to be submitted to the airport sponsor. Although all aspects of this Worksheet 13-4 are not applicable to every airport, the worksheet and the PowerPoint presentation can be used as a starting point to prepare a fuel manager’s report to the airport sponsor.

Worksheet 13-4. Fuel manager’s report to the airport sponsor. 2013 2014 2015 2016 2017 Jet A $2.65 $2.55 $2.45 $2.10 $2.31 Jet A Percent Change -4% -4% -14% 10% Avgas $3.80 $3.65 $3.50 $3.00 $3.25 Avgas Percent Change -4% -4% -14% 8% Average Cost per Gallon of Delivered Fuel 2016 2017 Change Commercial 0 0 0 Air Taxi 10 10 0 General Aviation 16,800 17,000 200 Military 780 800 20 Total Operations 17,590 17,810 220 2016 2017 Change Single Engine 60 64 4 Multi Engine 12 12 0 Jet 4 3 -1 Total Based 76 79 3 Aircraft Operations Based Aircraft 2013 2014 2015 2016 2017 Jet A 182,000 175,000 201,000 207,000 200,000 Avgas 76,000 75,000 81,000 82,000 80,000 Total 258,000 250,000 282,000 289,000 280,000 Percent Change -3% 13% 2% -3% Total Sales in Gallons Employee Salaries & Benefits, $230,000 Equipment Rental, $45,800 Insurance, $100,000 Maintenance & Utilities, $25,000 Supplies, Licenses, Software, $12,000 Administration, $60,000 Marketing, $6,000 2017 Airport Operating Expenses Terminal Income, $26,000 Airside Landing Fees, $52,000 Land and Office Leases, $18,000 Hangar/Tie-Down Fees, $150,000 Supplies & Services, $6,000 Fuel Sales, $1,204,000 2017 Airport Revenue 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2013 2014 2015 2016 2017 G al lo ns Total Annual Fuel Sales Jet A Avgas Total Jet A, 200,000, 71% Avgas, 80,000, 29% 2017 Fuel Sales by Type $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 2013 2014 2015 2016 2017 Co st p er G al lo n Cost of Delivered Fuel Jet A Avgas (continued on next page)

Worksheet 13-4. (Continued). 2013 2014 2015 2016 2017 Sales $376,200 $360,000 $380,700 $373,100 $384,000 Delivered Cost of Gallons Sold $288,800 $273,750 $283,500 $246,000 $260,000 Operating Expenses $129,200 $121,500 $124,740 $132,840 $136,800 Offsetting Revenue $60,800 $69,000 $78,570 $81,180 $72,000 Net Revenue $19,000 $33,750 $51,030 $75,440 $59,200 Transaction Type 2013 2014 2015 2016 2017 Full-Service 40,000 35,000 42,000 40,000 42,000 Self-Service 36,000 40,000 39,000 42,000 38,000 Percent Full-Service 47% 53% 48% 51% 48% Percent Self-Service 53% 47% 52% 49% 53% Avgas Gallons Sold Financial Summary - Avgas 2013 2014 2015 2016 2017 Sales $773,500 $717,500 $804,000 $796,950 $820,000 Delivered Cost of Gallons Sold $482,300 $446,250 $492,450 $434,700 $462,000 Operating Expenses $309,400 $283,500 $309,540 $335,340 $342,000 Offsetting Revenue $145,600 $161,000 $194,970 $204,930 $180,000 Net Revenue $127,400 $148,750 $196,980 $231,840 $196,000 Transaction Type 2013 2014 2015 2016 2017 Full-Service 45,500 52,500 80,400 51,750 20,000 Self-Service 0 0 0 0 30,000 Contract 54,600 56,000 70,350 93,150 104,000 Volume Discount 81,900 66,500 50,250 62,100 46,000 Percent Full-Service 25% 30% 40% 25% 10% Percent Self-Service 0% 0% 0% 0% 15% Percent Contract 30% 32% 35% 45% 52% Percent Volume Discount 45% 38% 25% 30% 23% Jet A Gallons Sold Financial Summary - Jet A 0 20,000 40,000 60,000 80,000 100,000 120,000 2013 2014 2015 2016 2017 G al lo ns Jet A Sales Full-Service Contract Volume Discount Self-Service $0 $50,000 $100,000 $150,000 $200,000 $250,000 2013 2014 2015 2016 2017 N et R ev en ue Jet A Net Revenue 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 2013 2014 2015 2016 2017 G al lo ns Avgas Sales Full-Service Self-Service $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 2013 2014 2015 2016 2017 N et R ev en ue Avgas Net Revenue

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avgas 4,500 5,000 6,000 5,000 7,000 8,500 10,000 9,500 8,000 6,000 5,000 5,500 Jet A 9,000 9,500 12,500 12,000 15,000 24,500 30,000 28,000 24,000 15,000 10,500 10,000 Avgas Jet A Q1: Jan-Mar 15,500 31,000 Q2: Apr-June 20,500 51,500 Q3: July-Sept 27,500 82,000 Q4: Oct-Dec 16,500 35,500 2017 Fuel Sales (Gal) by Quarter 2017 Monthly Sales 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec G al lo ns 2017 Monthly Fuel Sales Jet A Avgas Q1: Jan-Mar, 15,500 , 19% Q2: Apr-June, 20,500 , 26% Q3: July-Sept, 27,500 , 34% Q4: Oct-Dec, 16,500 , 21% Avgas Quarterly Sales (Gal) Q1: Jan-Mar, 31,000 , 15% Q2: Apr-June, 51,500 , 26% Q3: July-Sept, 82,000 , 41% Q4: Oct-Dec, 35,500 , 18% Jet A Quarterly Sales (Gal)

204 Airport Management Guide for Providing Aircraft Fueling Services The title page introduces the presentation and date. Exhibit 13-1. Airport Fueling Operations—Sample Fuel Manager’s Report to the Airport Sponsor. Airport Fueling Operations Sample Fuel Manager’s Report to the Airport Sponsor Date of Report Overview of Airport Activity Aircraft Operations 2016 2017 Change Commercial 0 0 0 Air Taxi 10 10 0 General Aviation 16,800 17,000 200 Military 780 800 20 Total Operations 17,590 17,810 220 Based Aircraft 2016 2017 Change Single Engine 60 64 4 Multi Engine 12 12 0 Jet 4 3 -1 Total Based 76 79 3 This slide shows annual operations and the number of based aircraft. An overview of operations sets the context for a fueling operation. Terminal Income, $26,000 Airside Landing Fees, $52,000 Land and Office Leases, $18,000 Hangar/Tie-Down Fees, $150,000 Supplies & Services, $6,000 Fuel Sales, $1,204,000 2017 Airport Revenue 2017 Airport Revenue A summary of airport revenue compares all income generators at the airport. It provides helpful background information to give perspective on the significance of fuel sales.

Tools to Measure Progress 205 Employee Salaries & Benefits, $230,000 Equipment Rental, $45,800 Insurance, $100,000 Maintenance & Utilities, $25,000 Supplies, Licenses, Software, $12,000 Administration, $60,000Marketing, $6,000 2017 Airport Operating Expenses Overview of Fueling Facilities Full-Service OnlyJet A • 12,000 Gallon Fuel Farm • 3,000 Gallon Primary Fuel Truck • 1,500 Gallon Backup Fuel Truck • Recent Additions: Web-Based Inventory Control • Planned Improvements: Valve Replacements, Maintenance Full-Service & Self-ServiceAvgas • 12,000 Gallon Fuel Farm • 1,000 Gallon Primary Fuel Truck • 750 Gallon Backup Fuel Truck • Recent Additions: Web-Based Inventory Control • Planned Improvements: Upgrade Self-Service Pump Control Terminal (Card Reader) Fueling Facts This Year vs Last • Total Gallons Sold (Avgas & Jet A) • 2016: 289,000 • 2017: 280,000 • Total Sales (Avgas & Jet A) • 2016: $1,170,050 • 2017: $1,204,000 • Total Delivered Cost (Avgas & Jet A) • 2016: $680,700 • 2017: $722,200 • Net Revenue (Avgas & Jet A) • 2016: $307,280 • 2017: $255,200 A summary of airport operating expenses is included as an allocation of operating expenses is assigned to the fueling operation if airport functions are integrated. A review of the current facilities, recent upgrades, and planned improvements is useful for an audience that is unfamiliar with the airport’s fueling system. A quick comparison between the sales, costs, and net revenue from the previous year and the current year can relay the most important information before reviewing more detailed results. Net revenue reflects the deduction for operating costs for the fuel facility. Exhibit 13-1. (Continued) (continued on next page)

206 Airport Management Guide for Providing Aircraft Fueling Services Jet A, 200,000, 71% Avgas, 80,000, 29% 2017 Fuel Sales by Type Aviation Fuel Sold 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2013 2014 2015 2016 2017 G al lo ns Total Annual Fuel Sales Jet A Avgas Total Total Sales in Gallons 2013 2014 2015 2016 2017 Jet A 182,000 175,000 201,000 207,000 200,000 Avgas 76,000 75,000 81,000 82,000 80,000 Total 258,000 250,000 282,000 289,000 280,000 Percent Change -3% 13% 2% -3% Fuel Sales $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 2013 2014 2015 2016 2017 Co st p er G al lo n Cost of Delivered Fuel Jet A Avgas Delivered Costs Average Cost of Delivered Fuel per Gallon 2013 2014 2015 2016 2017 Jet A $2.65 $2.55 $2.45 $2.10 $2.31 Percent Change -4% -4% -14% 10% Avgas $3.80 $3.65 $3.50 $3.00 $3.25 Percent Change -4% -4% -14% 8% Sales by fuel type indicates the dominant fuel type sold and the primary driver of income from fuel sales. Over several years, Jet A, Avgas, and total gallons sold indicate trends in aircraft use in general aviation. The percent change is calculated for total gallons and measures the percent increase or decrease in sales compared to the previous year’s sales. Percent change could also be applied to specific fuel type. Average cost of delivered fuel drives prices over the year. Trends are shown in the graphic and through the percent change values in the table. Exhibit 13-1. (Continued)

Tools to Measure Progress 207 $0 $50,000 $100,000 $150,000 $200,000 $250,000 2013 2014 2015 2016 2017 N et R ev en ue Jet A Net Revenue Jet A Financial Summary Financial Summary - Jet A 2013 2014 2015 2016 2017 Sales $773,500 $717,500 $804,000 $796,950 $820,000 Delivered Cost of Gallons Sold $482,300 $446,250 $492,450 $434,700 $462,000 Operating Expenses $309,400 $283,500 $309,540 $335,340 $342,000 Offsetting Revenue $145,600 $161,000 $194,970 $204,930 $180,000 Net Revenue $127,400 $148,750 $196,980 $231,840 $196,000 0 20,000 40,000 60,000 80,000 100,000 120,000 2013 2014 2015 2016 2017 G al lo ns Jet A Sales Full-Service Contract Volume Discount Self-Service Jet A Sales by Transaction Type Jet A Gallons Sold Transaction Type 2013 2014 2015 2016 2017 Full-Service 45,500 52,500 80,400 51,750 20,000 Self-Service 0 0 0 0 30,000 Contract 54,600 56,000 70,350 93,150 104,000 Volume Discount 81,900 66,500 50,250 62,100 46,000 Percent Full-Service 25% 30% 40% 25% 10% Percent Self-Service 0% 0% 0% 0% 15% Percent Contract 30% 32% 35% 45% 52% Percent Volume Discount 45% 38% 25% 30% 23% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 2013 2014 2015 2016 2017 N et R ev en ue Avgas Net Revenue Avgas Financial Summary Financial Summary - Avgas 2013 2014 2015 2016 2017 Sales $376,200 $360,000 $380,700 $373,100 $384,000 Delivered Cost of Gallons Sold $288,800 $273,750 $283,500 $246,000 $260,000 Operating Expenses $129,200 $121,500 $124,740 $132,840 $136,800 Offsetting Revenue $60,800 $69,000 $78,570 $81,180 $72,000 Net Revenue $19,000 $33,750 $51,030 $75,440 $59,200 This slide shows estimated net revenue for Jet A fuel sales when an airport’s fueling operation is integrated with other airport operations. This slide shows the breakdown of jet fuel sales by transaction type. This slide shows net revenues for Avgas when fuel operations are integrated into other airport operations. Exhibit 13-1. (Continued) (continued on next page)

208 Airport Management Guide for Providing Aircraft Fueling Services 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 2013 2014 2015 2016 2017 G al lo ns Avgas Sales Full-Service Self-Service Avgas Sales by Transaction Type Avgas Gallons Sold Transaction Type 2013 2014 2015 2016 2017 Self-Service 40,000 35,000 42,000 40,000 42,000 Full-Service 36,000 40,000 39,000 42,000 38,000 Percent Self- Service 47% 53% 48% 51% 48% Percent Full- Service 53% 47% 52% 49% 53% 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec G al lo ns 2017 Monthly Fuel Sales Avgas Jet A Q1: Jan-Mar, 31,000 , 15% Q2: Apr-June, 51,500 , 26% Q3: July-Sept, 82,000 , 41% Q4: Oct-Dec, 35,500 , 18% Jet A Quarterly Sales (Gal) Q1: Jan-Mar, 15,500 , 19% Q2: Apr-June, 20,500 , 26% Q3: July-Sept, 27,500 , 34% Q4: Oct-Dec, 16,500 , 21% Avgas Quarterly Sales (Gal) Seasonal Trends Outlook for Next Year and Priorities/Improvements Outlook • New T-Hangars Available for Tenants • New Hangar Construction Priorities/Improvements • Continue to Attract Based Customers • Monitor Weekly Fuel Prices • Upgrade Self-Service Pump Terminals This slide tracks self-service and full-service sales of Avgas. For some airports, fuel sales are highly seasonal. These charts show both a monthly and quarterly charts of fuel sales. A closing informational slide on future priorities and improvements is a good transition for further discussions with the audience. Exhibit 13-1. (Continued)

209 14.1 Existing Fuel Supplier Situation 14.2 Levels of Service and Investment Desired 14.3 Procurement Preparation 14.4 Request for Proposals 14.5 Evaluation of Bids For those airports that decide to enter into a contract with a fuel supplier, this chapter discusses the basics of the procurement process, what is typically included in a request for proposal (RFP), and how airports can evaluate fuel supplier responses to an RFP. Tables 14-1, 14-2, and 14-3 can be downloaded as Excel worksheets from Appendix B, available on the TRB website and customized for specific airports. Appendix B can be found by searching on “ACRP Research Report 192.” 14.1 Existing Fuel Supplier Situation Airport fueling operators engage with fuel suppliers in three basic relationships. • A contract relationship that binds the operator to a specific fuel supplier for the provision of fuel and other services such as marketing, training, and lease of equipment or software. • An informal, non-binding relationship between an operator and a specific fuel supplier primarily for the purpose of purchasing fuel. • Procurement of fuel on the spot market as needed using multiple fuel suppliers. Fuel suppliers can offer branded or unbranded products available for purchase under contract or on the spot market. Chapter 10 discussed the pros and cons of branded versus unbranded fuel and whether a contract with a particular fuel supplier makes sense. This chapter is directed at the procurement of a fuel supplier. To begin, it is useful to evaluate the existing fuel supplier situation by addressing the following questions: • Historically, has the airport offered branded or unbranded fuel? What are the reasons to change or continue with branded or unbranded fuel? • Does the airport require partial load deliveries? – Which fuel suppliers in the area offer partial load deliveries? – Are there other airports in the area that also order partial loads? – What fuel supplier do these airports use? C H A P T E R 1 4 Request for Proposals and Evaluation of Bids

210 Airport Management Guide for Providing Aircraft Fueling Services • Has the airport had a previous fuel supplier contract? – If not, what are the compelling arguments to now engage a fuel supplier? – If so, what has been the experience with respect to the following: � Delivered cost of fuel, � Supplier lines of credit, � Customer service, � Participation in marketing and training programs, � Quality control inspections, � Equipment and software leasing, and � Availability of insurance. Answers to these questions will put past experiences with fuel suppliers in context and help to identify priorities for a new solicitation. 14.2 Levels of Service and Investment Desired Fuel suppliers offer branded and unbranded products to suit customer requirements and different services. In preparation for a solicitation, it is useful to clarify which services and products the airport needs and what level of investment (if any) is expected or desired of the fuel supplier. The following is a list of aspects of a contract to consider: • Ability to deliver and supply requested fuels, aviation oils, and other fluids in full or partial loads, 24-hour ordering capability, delivery fulfillment within a specified timeframe, and avail- ability of alternate supply locations in the event of interrupted fuel delivery from primary supply location. • A responsive customer service representative with dedication and knowledge of fueling, quality control, marketing, and relevant FAA regulations pertaining to fueling operations. • Availability of a professional line service training program. • A quality control program, including updated quality control manuals and regular inspections that meet or exceed regulatory and industry standards. • Equipment lease or purchase options for fuel trucks, test equipment, quality control equip- ment, fuel delivery supplies (e.g., ladders, platforms, hoses and nozzles, and fuel pumps), and ground service equipment. • Interface with the existing POS software, inventory management software, FBO manage- ment system, or the provision of a new electronic system to manage sales and fuel product inventories. • Credit card processing of a specific list of credit cards at the self-service station or through other remote devices such as phones or tablets. • Participation in a contract rate fuel program and sales volume incentives programs. • Availability (and proof) of lines of credit and discount payment periods. • Options for branding and marketing including signage, regulatory labels and placards, promotional materials, and regional and national joint marketing. • Insurance requirements and coverage opportunities for equipment. 14.3 Procurement Preparation Procurement preparation involves the following steps: • Confirm local procurement rules; • Prepare statement of airport history, facilities, and fuel demand; • Specify products, services, and equipment required from the fuel supplier; and • Determine any additional information from bidders.

Request for Proposals and Evaluation of Bids 211 Most airports that self-operate their fuel facility and decide to enter into a contract with a fuel supplier will work with the airport sponsor’s procurement or purchasing department. This could be a municipality, county, or airport authority. Because procurement policy is established at the local level, the first step in preparing a solicitation is to notify the procurement department of the upcoming RFP and confirm bidding procedures; recommended timetables; and required contract duration, terms, and renewal options. There are multiple sections of an RFP, but initial preparations focus on a background state- ment about the airport, aviation activity, and fuel demand; a description of the required services and equipment desired from a fuel supplier; minimum qualifications and experience of bidders; and an initial list of evaluation criteria. Airport staff typically prepare these elements of an RFP. Sometimes a special committee will draft these elements. When the RFP is completed, it will be reviewed and approved by the airport’s governing group (e.g., airport or county commission, board, or city council). 14.3.1 Statement about the Airport As background, one section of the solicitation will describe the airport, its governance, level of activity, and history of fuel services. The airport is likely to have this information on hand from a master plan or business plan or previous solicitations. This introductory information will include: • Location of the airport; • Owner and operator of the airport; • History about when the airport was built and any recent expansions or improvements; • FAA classification of the airport; • Current airport layout plan, highlighting the locations of the fuel facilities and access roads; • Runway lengths, lighting, and navigational approaches; • Types of activity such as commercial service, general aviation, cargo, military, flight training; • Number of based aircraft and types of aircraft, hangars, and occupancy rates; • Aircraft operations (5-year history); • Fuel products and services offered at the airport; • Previous and current FBOs; • Fuel sales (5-year history) for Avgas and jet fuel; • Fuel storage facilities and capacity, refueler trucks, self-service units, fuel inventory, and POS software; • Recent or anticipated upgrades to the fuel system and equipment; and • Airport capital improvement plan. 14.3.2 Products, Services, and Equipment Required from the Fuel Supplier A key part of the solicitation is a description of the products, services, and equipment that the airport seeks from a fuel supplier. Proposers will have to demonstrate the capability to meet or exceed certain minimum qualifications and specifications. The list below represents typical speci- fications listed in an RFP, but may not be 100% inclusive. For example, Greenville-Spartanburg International Airport asked for proposals that included an option for the proposer to provide a turnkey (or DB) fuel farm solution. Product Specifications 1. Avgas fuel that conforms to ASTM D-910 specifications (or latest revision) and shall be of the aviation gasoline type 100LL (Avgas) or its future replacement.

212 Airport Management Guide for Providing Aircraft Fueling Services 2. Jet fuel, aviation kerosene type Jet A fuel that conforms to ASTM D-1655 specifications (or latest version). Fuel suppliers that provide Jet A preblended with anti-icing additives will confirm to MIL-DTL-85408 specifications. Delivery and Inspections 1. Fuel supplier will provide traceability of fuel product shipments from the refinery to the airport fuel farm. 2. Tankers supplying fuel to the airport must be dedicated to like types of aviation fuels only to prevent fuel contamination. Fuel suppliers or transport companies will provide documentation of predelivery testing that details what was previously contained in the delivery vehicle and what methods of cleaning were used. 3. Fuel supplier shall test the fuel shipments before arrival at the airport and provide certification that the fuel meets the applicable specification. 4. The airport fuel operator may perform additional tests as necessary and reserves the right to reject any delivery, operatory, or truck it deems unsuitable. Fuel Supply Schedule and Contingency Plan 1. Fuel supplier must be able to supply the airport with its requirements for aviation fuels for at least 1, 3, or 5 years (per procurement policy). 2. Fuel supplier must provide ordering capability and delivery, 24 hours a day, 7 days a week. 3. Fuel supplier must be able to deliver fuel within 24, 48, or 72 hours of the order being placed. 4. Fuel supplier will indicate the primary location of aviation fuel supplies and describe its contingency plan in case fuel supply is not available or delivery is interrupted. A minimum of one alternate supply location and delivery plan is required. Service and Technical Support 1. Fuel storage, handling, refuelers, and related training shall meet or exceed requirements in FAA AC 150-5230-4B. 2. Fuel supplier must have in place a quality control program that meets or exceeds regulatory and industry standards. 3. Fuel supplier will conduct annual and emergency inspections of the airport’s fuel farm(s) and refueler(s). 4. Fuel supplier must offer an account manager whose experience includes full-service general aviation fueling and who can answer fueling and quality control questions in a timely manner. The account manager should be identified in the proposal with contact information and a summary of qualifications. 5. If the airport is certified as an FAR Part 139 airport, the fuel supplier shall demonstrate expe- rience with FAA regulations required to support fueling operations. 6. Fuel supplier should be able to process credit cards through standard point of sale equipment or an FBO management system with instant verification of cardholders through an Internet- based system. Proposer should describe its preferred computer management system and any other payment support systems and indicate options for remote processing of credit cards from the refuelers and self-service units through phone, tablet, remote fuel meters, or other means. Branding and Marketing Fuel supplier will submit a marketing plan that includes: 1. An outdoor signage plan for airside, landside, and terminal locations at no additional cost to the airport;

Request for Proposals and Evaluation of Bids 213 2. Provision of required regulatory labeling and placards, including product identification labels and no-smoking, flammable, and hazardous signs; 3. Options to participate in fuel supplier marketing programs for promotion of fuel and services at the airport; 4. Promotional materials available to the airport for special events and promotions; and 5. Available uniform or branded apparel programs that would be available at startup and annually thereafter. Additional Programs and Options (as applicable) 1. Professional line service training programs available through the fuel supplier on ground services, quality control inspections, safety, refueling piston, turboprop, jet aircraft, towing aircraft, fuel facility management, customer service, and fire safety. Frequency of training to be requested by the airport. Cost of training to be covered by the airport. 2. Availability of updated quality control manuals that are current and adhere to ATA Specifica- tion 103 standards. 3. Fuel supplier lease and purchase programs for refuelers: a. Current lease rate for mobile Jet A refueler, minimum capacity 3,000 gallons b. Current lease rate for mobile Avgas refueler, 750–1,000 gallons c. Description of the leasing program and available vehicles d. Copy of a sample lease e. Maintenance agreement f. Annual replacement options g. Lease to purchase plans 4. Options for test equipment and quality control equipment such as hydrometers, test buckets, Millipore testing supplies, water detection supplies, fuel filters, separators, and coalescers. 5. Options for equipment necessary to deliver fuel such as ladders, platforms, and upgrades to equipment (e.g., hoses, fuel pumps, nozzles). 6. Options for ground service equipment such as tow bars, tugs, wheel chocks, tie-down rope, start carts, ground power unit, deicing equipment, lavatory carts, and anti-icing fuel-additive. 7. Requested improvements to the fuel facilities. 14.3.3 Additional Responses Requested In addition to products, services, and equipment needed from a fuel supplier, the solicitation may include requests for a fuel supplier to respond to specific provisions. Aviation Fuel Pricing Many airports want to receive the best prices for Jet A and Avgas. To facilitate comparisons, a solicitation can request that the fuel supplier provide an index-adjusted delivered price. Tables 14-1 and 14-2 show forms that can be included in a solicitation to provide a basis to compare pricing proposals. There would be a separate calculation for Jet A and Avgas. For Jet A, as shown in Table 14-1, the price would be based on a Platt index,1 specified by the airport, that would be used throughout the contract period to establish a per-gallon base fuel cost. Added to the base price would be all applicable local, state, and federal taxes plus freight charges from the local terminal to the airport and a fixed margin. The fixed margin would include all costs and expenses associated with meeting the requirements specified in the RFP 1 S&P Global Platts is a provider of energy and commodities information and a source of benchmark price assessments in the physical energy markets. Depending on the airport’s location, a specific Platt index would be identified in the pricing sheet instructions. Spot prices are published by Platts for gasoline, heating oil, jet fuel, residual fuel, and naphtha products and are listed for the Atlantic Coast, Gulf Coast, Chicago, and West Coast markets.

214 Airport Management Guide for Providing Aircraft Fueling Services and providing the services and support included in the supplier’s proposal, with the exception of the cost of fuel trucks, cooperative advertising, and training, which would be priced separately. For Avgas (100LL), the supplier would identify its primary supply location and the marketplace base price per gallon on a specific price date and separately itemize all transportation costs and taxes per gallon (based on a full-delivery load) plus a fixed margin. As with Jet A, the fixed margin would include all costs and expenses associated with meeting the requirements specified in the RFP and providing the services and support included in the supplier’s proposal, with the exception of the cost of fuel trucks, cooperative advertising, and training, which would be priced separately. Table 14-2. Avgas (100LL) fuel pricing sheet.* *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Adapted from San Bernardino International Airport Fuel Supplier RFP, November 17, 2016. Price Effective ________________, Year Avgas (100LL) Unit Source/Terminal Location Base Price on ________________ (Date) for Full Load per gallon Supplier's offered price exclusive of all other costs per gallon Transportation Costs per gallon Tax_____________________ per gallon Tax_____________________ per gallon Tax_____________________ per gallon Tax_____________________ per gallon Fixed margin cost set for contract period per gallon List any additional fees or costs not listed Partial load surcharge_____________________ Other fees_____________________ Other fees_____________________ Total delivered fuel price per gallon Price Effective ________________, Year Jet A Unit Designated Platt Index___________________ per gallon Previous week's Platt price per gallon Source/Terminal Location Supplier's offered price exclusive of all other costs per gallon Transportation Costs per gallon Tax_____________________ per gallon Tax_____________________ per gallon Tax_____________________ per gallon Tax_____________________ per gallon Fixed margin cost set for contract period per gallon List any additional fees or costs not listed Other fees_____________________ Other fees_____________________ Other fees_____________________ Total delivered fuel price per gallon *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Adapted from San Bernardino International Airport Fuel Supplier RFP, November 17, 2016. Table 14-1. Jet A fuel pricing sheet.*

Request for Proposals and Evaluation of Bids 215 To support a transparent approach to fuel pricing, the airport can require the supplier to email pricing sheets each week that use the agreed Platt index and provides a complete breakdown of cost components as shown in Tables 14-1 and 14-2. As part of the pricing proposal, the supplier would also explain: • The method of determining fuel prices, • Timing of price changes, and • A detailed explanation of how the fixed margin was calculated. Startup Plan If the fuel supplier is a new provider, it is important to require a detailed startup plan that assures a smooth transition from the current fuel supplier with no interruption of services at the airport. This plan would include training, certification, fuel delivery, fuel truck delivery, and installation of any branded signs, and provision of uniforms (if requested). The RFP may also invite proposers to offer other items at no cost to the airport and describe how these “value-added” items will benefit the airport and airport tenants and users.2 14.4 Request for Proposals This section provides an outline of an RFP for a fuel supplier. The RFP tends to be a lengthy document as it contains general procurement provisions and requirements of the local jurisdic- tion, background information about the airport, and specific requirements for aviation fuel products and services. When getting ready to prepare an RFP, there are examples of solicitations for aviation fuel suppliers prepared by other airports that are available on the Internet as examples. Several issued in 2015–2016 are listed in the reference section of this chapter. The outline that follows provides an overview of a fuel supplier RFP. A. RFP Cover Page a. Airport logo b. Airport sponsor name c. Airport name d. RFP solicitation for a fuel supplier e. RFP number f. RFP schedule i. Published date ii. Pre-proposal walk through iii. Submittal of written questions iv. Responses to questions v. Response due date vi. RFP evaluation completed vii. Contract award B. Table of Contents C. Public Notice (Advertisement) for RFP D. Introduction a. Purpose of the RFP b. Overview of the airport c. Contract term and renewal 2 Greenville-Spartanburg Airport District, GSP International Airport Roger Milliken Field, Request for Proposals for an Aviation Fuel Supplier, February 3, 2016.

216 Airport Management Guide for Providing Aircraft Fueling Services E. Instructions for Proposal Submission a. General conditions (local procurement requirements) i. Availability of the solicitation ii. Addenda iii. Familiarization with requirements iv. Cost of proposal preparation v. Inquiries (contact person, how to submit, schedule, and responses) vi. Public record and ownership of submitted proposals and correspondence vii. Communication of results viii. Rejection/disqualification ix. Offer and acceptance period x. Outstanding claims and litigation xi. Conflicts of interest xii. Assignment xiii. Substitutions/exceptions xiv. Termination/non-performance xv. Attorney fees xvi. Governing law and venue xvii. Equal opportunity b. How to prepare proposals i. Forms ii. No facsimiles or electronic submittals iii. Signatures in ink iv. Business references (specify number) c. How to submit proposals i. Mailing instructions ii. Bid time iii. Late submission iv. Withdrawing bids/proposals/quotes F. Selection Process a. Selection committee b. Evaluation of proposals c. Interviews, if needed d. Preliminary negotiations e. Final negotiations f. Contract award G. Scope of Work a. Vendor experience and qualifications i. Company narrative of experience, clients, and performance ii. Client references b. Detailed information about fuel facilities and fuel sales information c. Product specifications i. Branded or unbranded options ii. Avgas iii. Jet A iv. Deicing Products v. Any equipment/software requested (refuelers, fuel farms, POS) d. Delivery and supply i. 24-7 ordering capability ii. Fuel delivery window

Request for Proposals and Evaluation of Bids 217 iii. Delivery plan including traceability and guaranteed supply 1. Primary supply locations 2. Secondary supply locations (additional supply costs) 3. Deicing supply chain iv. Fuel delivery trucks dedicated to Avgas or Jet A v. Fuel testing prior to delivery and documentation vi. Annual inspection services of fuel facilities and refueler trucks vii. Equipment support for deicing e. Fuel costs i. Lowest possible cost ii. Price proposal based on identified index and fixed margins (see Tables 14-1 and 14-2) iii. Payment requirements and lines of credit iv. Availability of contract rate program and sales volume incentive programs f. Reporting and electronic access i. Contents of monthly and annual reports ii. Internet access to transaction reports, training materials, quality control forms, parts and supplies, and download capabilities iii. Provide invoice sample g. Services and technical support i. Account manager ii. Credit card processing iii. Professional line service training program iv. Quality control program v. Updated quality control manuals (ATA Specification 103 standards) h. Equipment lease program i. Lease program terms ii. Insurance certificates iii. Warranty information iv. Maintenance requirements and costs v. Renewal options i. Branding and marketing i. Outdoor signage proposal ii. Regulatory labeling and placards iii. Available uniforms and other branded apparel programs iv. Participation in national sales promotions and advertising v. Participation in trade shows j. Implementation and startup plan k. Value-added services and incentive programs l. Sample fuel supplier services agreement H. Proposal Organization and Format3 a. Tab 1 – Table of Contents b. Tab 2 – Introductory letter with primary contact c. Tab 3 – Company history, number of employees, company headquarters location, operating locations, and past projects d. Tab 4 – Experience, past performance, and capacity to deliver requested services e. Tab 5 – Aviation fuel price and supply, fuel specifications, cost information, product ordering, and product delivery f. Tab 6 – Leasing options and program for equipment requested 3 City of Hondo, Texas, South Texas Regional Airport, RFP for Aviation Fuel Supplier, January 28, 2016.

218 Airport Management Guide for Providing Aircraft Fueling Services g. Tab 7 – Invoicing and reports, description of invoicing/billing process, including credit card processing, line of credit, and interface with outside software sources for migration of data h. Tab 8 – Support services, description of training program, quality control, insurance programs, branding, sales and advertising, overall administrative support services, and startup plan i. Tab 9 – Litigation, description of any current or pending litigation and any litigation settles or disposed within the last 5 years against the proposer, including parent, sister, or subsidiary companies and any sub-contractors j. Tab 10 – Three to six references from similar sized airports or entities that the Proposer has provided with similar services k. Tab 11 – Required Forms such as company information declaration, conflict of interest questionnaire, non-collusion affidavit, licenses, permits, and/or certifications I. Insurance Requirements a. Type and amount of insurance i. Statutory workers compensation as required by state law ii. Automobile liability with a minimum of __ $ million combined single limit iii. Commercial general liability insurance including a contractual liability endorsement in an amount not less than __$ million combined single limit for bodily injury and property damage for each claimant for general liability iv. Umbrella coverage or excess liability coverage of __ $ million v. Fuel quality insurance vi. Pollution control insurance vii. Other insurances required by federal or state government b. Certificates of insurance i. Airport sponsor named as additional insured as to all applicable coverage with the exception of workers compensation insurance. (Provide name of airport sponsor and address in RFP.) ii. At least 30-day notice prior to any cancellations, non-renewal, or material changes in insurance iii. Certificate of insurance evidencing the required insurance submitted with the proposal c. Insurance company i. All insurance companies providing the required insurance shall be authorized to transact business in the state of ______ and rated __ by AM Best or other equivalent rating service ii. Check with the airport sponsor and procurement office for any other insurance requirements needed for the fuel supplier 14.5 Evaluation of Bids As part of the evaluation process, the management guide offers a worksheet that can be used to evaluate different fuel supplier proposals. It is useful to prepare the evaluation sheet prior to issuing an RFP to make certain that if there are important qualifications for a fuel supplier, these are stated explicitly in the response requirements of the RFP. The evaluation would cover all the key aspects of the solicitation. Some airports assign relative importance to each category of evaluation; others use a point system. Table 14-3 presents an example of evaluation categories and specific items associated with each category. The table also suggests points that might be assigned to each category. However, users can customize the evaluation sheet by finding the table in Appendix B on the TRB website by searching on “ACRP Research Report 192.”

Reviewer: ________________________________ Notes Max Points Awarded Points Compliance with RFP Requirements and Scope 5 Completeness of proposal General requirements Proposal organization Required insurance Signed certifications & affidavits Supplier Experience and Qualifications 25 Years in business Financial capacity Business plan for airport Contingency plans for fuel supplies Startup plan Assigned account executive Employee or contractor Location of account executive Proposed account services Number of other fueling operation accounts Total aviation fuel customers in region Fuel customers of similar size in region Delivery of partial loads (if applicable)? Currently licensed in the state Proposer’s reputation Proposer’s references Proposed Fuel Brand Jet Avgas 3 Length of time supplier has carried this brand Unbranded option? Premium program? Volume requirements Benefits Cost Proposal Jet Avgas 25 Offered price exclusive of other costs/taxes Transportation costs Partial load surcharge (if applicable) Fixed margin rate Additional fees/charges Availability of special pricing Alternative supply costs premium Supply Jet Avgas 5 Primary Secondary How many days advance notice for delivery 3rd-party transportation? Holiday delivery lead times Alternative supply delivery costs Deicing Products and Support Type 1 Type IV 2 Products Drums Totes Bulk Support Equipment Advance notice for delivery Holiday delivery lead times Training Table 14-3. Example of RFP evaluation factors.* (continued on next page)

220 Airport Management Guide for Providing Aircraft Fueling Services Reviewer: ________________________________ Notes Max Points Awarded Points Refueling Trucks Jet Avgas 5 Grade Size Years in operation Lease rate Purchase price Maintenance Program Equipment support Back-up/Special event truck availability Who pays inbound/outbound Branding/Marketing Jet Avgas 10 Loyalty programs Conventions and trade show support Signage Signage maintenance Digital advertising Uniform assistance Local event support Cooperative advertising Other marketing support Credit Card Programs/Payment Options 5 Supported credit cards Credit card fees Payment terms (days to reimbursement) Data exchange methods Internet Manual Contract fuel acceptance Software Monthly costs Technical supports Settlement reports Other fees Quality Control 5 Support staff Training Inspections Supply of quality control equipment Interview Results 10 Other Comments Total Points 100 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Sources: Adapted from Petroleum Product Marketing and Consulting by KRAMER aerotek, 2018. Table 14-3. (Continued).

221 15.1 Overview of the Checklists 15.2 Responsibilities Chart 15.3 Operations Checklist 15.4 Annual To-Do List 15.5 Fueling Operations Startup Checklist 15.6 Checklist for Planning, Design, and Construction 15.7 Sample Checklists Chapter 15 presents five action checklists for airports to customize and use to assign respon- sibilities for the functions of a fueling operation, to address day-to-day and weekly duties, to plan for new projects or services, and to analyze results. These checklists (Figure 5-1 and Tables 5-2, 5-3, 5-4, and 5-5) can be downloaded as Excel worksheets from Appendix B on the TRB website and customized for specific airports. Appendix B can be found by searching on “ACRP Research Report 192.” 15.1 Overview of the Checklists To recap, this management guide was written for airports that are initiating fueling services for the first time; taking over operations from a failed FBO; or making significant changes to their fueling infrastructure or to their business practices such as changing pricing strategy, improving margins, or competing more effectively. Because of diversity of interests and focus, the management guide highlights issues and methodologies and makes it possible for individual airports to customize worksheets to better address local concerns. Chapter 15 presents five basic checklists for airports to customize and use the following: 1. The functional responsibilities of an airport’s fueling service; 2. Daily, weekly, and as-needed tasks that support the fueling operation; 3. An annual to-do list that analyzes the previous year and sets the agenda for the upcoming year; 4. An action checklist for an airport starting a fueling operation; and 5. A checklist to use when a fueling project or improvement requires engineering services, site preparation, and construction. Each of these checklists are high level; however, in-depth discussions of line items are available in different chapters of the management guide. To make this connection, Table 15-1 summarizes the checklists and identifies relevant chapters. In addition, specific sections of the management guide are referenced in each checklist. Each checklist is described briefly and then presented at the end of the chapter. C H A P T E R 1 5 Action Checklists

222 Airport Management Guide for Providing Aircraft Fueling Services 15.2 Responsibilities Chart The responsibilities chart, as shown in Figure 15-1, offers a way for airport management to track responsibilities for the most important functions in a fueling operation. These include responsibilities of the airport sponsor, manager of fuel operations, line service personnel, customer service, and maintenance. Supporting these individuals are three usually external groups: the fuel supplier, local emergency response teams, and the sponsor’s administrative and payroll departments. This organizational chart identifies people with tasks, but it can also include contract phone numbers and email addresses. 15.3 Operations Checklist The operations checklist, as shown in Table 15-2, provides a list of actions required at most fuel facilities. The checklist includes tasks that should be completed for every full-service fueling transaction and for every fuel order and delivery. Daily, weekly, biweekly, and as-needed facility operating tasks are also listed. The as-needed tasks are divided into two categories: 1. Inspection, maintenance, emergency, and environmental tasks 2. Fuel facility management and administrative tasks On the checklist is a column showing who might hold responsibility for a particular task. Airports can enter the responsible parties at their airports. The last column includes references in the management guide for more information and detailed tables. 15.4 Annual To-Do List The annual to-do list, as shown in Table 15-3, is intended to provide a framework for a review of last year’s fueling operation and to set priorities and an action plan for the upcoming year. The annual to-do list essentially offers a short version of a business plan that will help to evalu- ate and organize: • What happened in the previous year in terms of fuel sales, levels of airport activity, and operat- ing budget versus actual revenues and expenses? • How is this year developing? What are the catalysts for change? Which leases and contracts are expiring and require attention? Which capital projects are coming up? How will the airport retain or increase its customer base? • What are the priorities, goals, and objectives for the coming year, and how will the airport or fuel manager achieve these objectives? In addition to this management guide, ACRP Report 28: Marketing Guidebook for Small Airports and ACRP Report 77: Guidebook to Airport Business Planning offers additional information about how to put together an action plan for the next 12 to 24 months. Action Checklist Intended Use Relevant Chapters Responsibilities Chart Associates tasks with resources Chapters 10 and 11 Operations Checklist Daily, weekly, or as needed Chapters 11, 12, and 13 Annual To-Do List Annual Chapters 4, 7, and 13 Fueling Operations Startup Checklist New fueling operation Chapters 5, 7, 10, and 12 Fuel Projects and Improvements Checklist New fueling projects Chapters 7, 8, and 9 Source: Prepared by KRAMER aerotek, 2018. Table 15-1. Summary of action checklists.

*Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Prepared by KRAMER aerotek, 2018. Figure 15-1. Responsibilities chart.*

Item Task Person(s) or Department Responsible** Reference Section Fuel Transaction Tasks 1 Communicate with incoming pilots to determine fueling and additional service needs Customer Service 2 Relay customer’s requests to line service representatives Customer Service 3 Provide fueling services and any additional requested services Line Service 4 Ensure proper safety measures are followed during aircraft fueling Line Service 5 Record fuel sale information: customer name, aircraft type, registration number, gallons sold, additional services provided, total sale, payment method, and technician’s initials Line Service Appendix B.11 6 If applicable, record customer number, contract fuel, and discounts Line Service Appendix B.11 7 Relay sales information to customer service representative(s) Line Service 8 Collect payment and offer additional airport services Customer Service 9 Record sales information in accounting software or on spreadsheets*** Customer Service Appendix B.11 Fuel Delivery Tasks 1 Place order for fuel delivery Management Section 12.2 2 Coordinate partial load sharing (if applicable) Management Section 12.1.3 3 Conduct fuel quality checks during delivery Line Service Section 11.4 4 Perform safety and spill prevention checks during fuel transfer Line Service Section 11.4 5 Record product receipt information and quality checks conducted Line Service Section 11.4 6 Record cost of delivered fuel and add to accounting software Management Minimum Once-per-Day Tasks 1 Measure and record initial inventory for all storage tanks and mobile fuelers Line Service Appendix B.11 2 Conduct a general safety inspection of fuel facilities and equipment Line Service Section 11.4 3 Conduct fuel quality control testing Line Service Section 11.4 4 Record safety and quality control results Line Service Section 11.4 Weekly Tasks 1 Conduct staff meeting to address safety concerns and any procedure updates Management Section 11.2 2 Ensure posted prices are updated on all websites Management Section 12.6 3 Review fuel supplier price sheets and fuel market general trends Management Section 12.2 4 Track changes in retail prices of competing airports Management Sections 5.3 & 12.5 Table 15-2. Operations checklist.*

Biweekly Tasks 1 Adjust retail prices based on current cost of delivered fuel, airport margins, and pricing of competitors Management Sections 12.3 & 12.4 As-Needed Inspection, Maintenance, Emergency, and Environmental Tasks 1 Conduct routine facility maintenance, coordinate gauge calibrations, and equipment replacement Line Service and Management Section 11.4 2 Conduct monthly, quarterly, annual, and any additional periodic inspections Line Service Section 11.4 3 Document all facility maintenance, inspections, calibrations, and equipment replacement activity Line Service and Management Section 11.4 4 Conduct emergency response drills—internal drills and occasional drills involving third-party emergency response officials All Section 11.2 5 Update emergency call list Management Section 11.2 6 Complete annual inventory reports of hazardous materials Management Section 3.5 As-Needed Fuel Facility Administrative Tasks 1 Manage fuel inventory, coordinate fuel deliveries, coordinate cash availability for fuel purchases Management Section 12.1 & 10.7 2 Conduct monthly inventory reconciliation Line Service or Management Appendix B.11 3 Submit tax documentation Administrative or Management 4 Coordinate line service and supervisor training, ensuring employee training is current Management Section 10.6 5 Set line service and customer service staff shift schedule Management 6 Solicit feedback from based and transient customers on available services, reasons for frequenting the airport, and suggested improvements All Section 7.1.1 & Appendix B.11 7 Conduct monthly or annual progress meetings for airport authority decision-making body Management Chapter 13 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. **Responsible party is dependent on airport staff structure. In addition, these tasks may be automated at some facilities. ***Some airports may elect to record their sales in both an accounting software and in a spreadsheet to use as verification. Source: Prepared by KRAMER aerotek, 2018.

226 Airport Management Guide for Providing Aircraft Fueling Services 15.5 Fueling Operations Startup Checklist If an airport is providing fuel for the first time or taking over from an FBO, the fueling operations startup checklist, as shown in Table 15-4, lists a set of tasks to address. This action checklist draws on discussions from Chapters 7, 10, and 12, which explain facility planning, operating decisions, and fuel pricing. 15.6 Checklist for Planning, Design, and Construction The fuel projects and improvements checklist, as shown in Table 15-5, walks through the steps in project development. The checklist is divided into three sections and can be easily modified depending on the scope of a fuel system improvement: • Project feasibility, • Design, and • Construction. 15.7 Sample Checklists Sample checklists were developed to encompass a range of tasks and responsibilities that may or may not apply to all airports. These checklists are presented as Figure 15-1 and Tables 15-2, 15-3, 15-4, and 15-5, which can be downloaded as Excel worksheets from Appendix B on the TRB website and customized for specific airports. Item Task Completed Reference Section 1 Update 5010 report and analyze changes Sections 4.2.1 & 4.2.2 2 Review facility assets and update condition report Section 4.4 3 Prepare annual fuel sales report from previous year’s sales Chapter 13 & Section 4.3.2 4 Compare previous year’s budget forecast against actual expenses and revenue Section 10.6 5 Prepare current year's budget Sections 8.3 & 10.6 6 Estimate operating costs per gallon for fuel operation Section 12.3.2 7 Identify leases and contracts set to expire or renew in the next 2 years Section 4.5 8 Assess potential catalysts for change in fueling operations Section 7.1.1 9 Develop fuel sales forecast for the next 5 years Sections 7.1.2 & 4.6 10 List maintenance projects and needs for the upcoming year Section 10.6 11 List capital improvements for the upcoming year Sections 7.3 & 7.4 12 List capital improvements within the next 5 years Sections 7.3 & 7.4 13 Establish upcoming year’s objectives (examples below) ACRP Reports 28 and 77 Meet specific fuel sales targets Develop prospective customers list Survey based tenants Update fuel prices on biweekly schedule Address lease or contract expirations or renewals 14 What are next year’s goals and objectives for the fueling operation ACRP Reports 28 and 77 15 What actions with the airport take to achieve next year’s goals and objectives ACRP Reports 28 and 77 16 Prepare annual report to airport sponsor Chapter 13 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Prepared by KRAMER aerotek, 2018. Table 15-3. Annual to-do list.*

Action Checklists 227 Item Task Completed Reference Section 1 Identify market for fuel services Chapters 5 & 7 2 Determine if fueling services will be self-operated, by contract, or by FBO Section 10.1 3 Establish fuel types to offer (Avgas, jet fuel, Mogas) Section 7.2.1 4 Establish services offered (SS, FS, AS) for each fuel type Section 7.2.2 5 Identify project improvements, upgrades, or equipment needs** Section 7.3 6 Determine fuel facility branded or if selling unbranded fuel Section 10.4 7 Identify prospective fuel suppliers & prepare RFPs if using a contract Sections 4.5 & 14.2–14.5 8 Review pricing strategies at competing airports Sections 5.3 & 12.5 9 Establish pricing strategy Sections 10.2 & 12.3.1 10 Determine staffing requirements and schedules Set hours of operation Section 10.5.1 Optimize staff requirements Section 10.5.1 Adjust operating hours and staffing for seasonal variation & demand surges Section 10.5.1 11 Review risk mitigation strategies Review insurance policies Section 10.8 Implement a regular training program for existing staff & new hires Section 10.5.2 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. **While some airports may be establishing fueling services for the first time, most airports offer fueling services of some capacity. This step will vary depending on the airport and the magnitude of the change management would like to see in their facility. Source: Prepared by KRAMER aerotek, 2018. Table 15-4. Fueling operations startup checklist.*

228 Airport Management Guide for Providing Aircraft Fueling Services Item Task Completed Reference Section Project Feasibility 1 Conduct market feasibility study √ Chapters 4 & 5 2 Ensure technical feasibility of proposed project Chapters 7, 8, 9 3 Calculate financial feasibility with amortization and return on investment Sections 8.3–8.6 4 Understand airport's organizational capacity for proposed project Chapter 8.7 5 Apply for AIP funding if applicable; coordinate additional funding sources Section 7.4 6 Establish project scope and description Section 9.3 7 Select project delivery method Section 9.2.2 Design 1 Sign contract agreement with engineer or contractor 2 Provide stakeholder input in site selection and coordinate airfield access for site surveyor Section 9.3.1 3 Provide record drawings of project area if available 4 Coordinate closeout environmental condition study** Section 10.8 5 Review design alternatives if necessary Section 9.3.2 6 Coordinate with engineer to select design Section 9.3.3 7 Ensure environmental compliance through the NEPA process is completed** Section 9.4.2 8 Update Spill Prevention Countermeasure and Control Plan*** Sections 9.4.2, 10.8, & 3.5 9 Update Airport Emergency Plan*** Sections 3.5, 10.8, & 11.2 10 Update Airport Layout Plan*** Sections 9.6.2 & 7.3.3 11 Fill out form 7460-1 to for Part 77 Surface compliance*** Section 9.6.2 12 Coordinate with utility companies Section 9.8 13 Apply for applicable permits*** Section 9.6.3 14 Coordinate with engineer to release bid advertisement Section 9.6.1 15 Confirm agreement in awarding of construction project Construction 1 Confirm agreement in awarding of construction project 2 Review construction schedule, provide input, understand impacts to airfield operations Section 9.8 3 Participate in construction inspections with onsite project representative Section 9.8 4 Attend construction meetings and provide input Section 9.8 5 Reimburse contractor pay applications and engineering invoices Section 9.8 6 Coordinate drawdowns on grants if applicable 7 Complete final project inspection and acceptance Section 9.8 8 Inspect construction before warranty expiration and notify engineer/contractor of work to be completed or fixed Section 9.8 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. **Only applicable if airport is assuming fueling responsibilities from a third party. ***These task may or may not be applicable to the project. The management should ensure these tasks are incorporated in the scope of engineering services for the project. Source: Prepared by KRAMER aerotek, 2018. Table 15-5. Fuel projects and improvements checklist.*

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TRB’s Airport Cooperative Research Program has released ACRP Research Report 192: Airport Management Guide for Providing Aircraft Fueling Services designed to assist airports that are considering or are currently self-providing fueling services directly to their customers.

The management guide includes a methodology to help evaluate whether an airport should or should not provide fuel service, a checklist of action items required for providing fuel service, and a sample request for proposal to solicit bids from fuel suppliers.

The management guide also addresses a wide range of topics including feasibility evaluations for new or improved fueling facilities, fuel pricing and marketing strategies, and organizational considerations when starting or expanding a fueling service. In addition, there are introductions to how aviation fuels are produced and to the components of an airport fueling system, which can be used to brief municipal decision-makers or airport employees.

The management guide offers useful information about branded and unbranded fuel products, setting price, inventory controls, customer service, staffing levels, regulatory requirements, capital investment, and operating and maintenance costs associated with the fueling services.

There are three online appendices related to the guide.

Appendix A contains case studies of the fueling operations of 16 airports;

Appendix B contains Microsoft Excel worksheets (that can be downloaded and customized by airports to keep track of inventories, sales, operating expenses, and profit and loss) and a Microsoft PowerPoint presentation (to help airports produce their own PowerPoint presentations for their sponsors); and

Appendix C contains a detailed bibliography.

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