Guidance for Diversity in Airport Business Contracting and Workforce Programs (2020)

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A I R P O R T C O O P E R A T I V E R E S E A R C H P R O G R A M ACRP RESEARCH REPORT 217 2020 Research sponsored by the Federal Aviation Administration Subscriber Categories Administration and Management • Aviation Guidance for Diversity in Airport Business Contracting and Workforce Programs Richard A. Krop Jaime Rooke Elise Emil Oana Leahu-Aluas Jon McDonnell The Cadmus Group, LLC Waltham, MA Nancy K. West exsTare FederaL serviCes Group, LLC Alexandria, VA Mara Rosales rosaLes Law parTners, LLp San Francisco, CA

AIRPORT COOPERATIVE RESEARCH PROGRAM Airports are vital national resources. They serve a key role in trans- portation of people and goods and in regional, national, and interna- tional commerce. They are where the nation’s aviation system connects with other modes of transportation and where federal responsibility for managing and regulating air traffic operations intersects with the role of state and local governments that own and operate most airports. Research is necessary to solve common operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport Cooperative Research Program (ACRP) serves as one of the principal means by which the airport industry can develop innovative near-term solutions to meet demands placed on it. The need for ACRP was identified in TRB Special Report 272: Airport Research Needs: Cooperative Solutions in 2003, based on a study spon- sored by the Federal Aviation Administration (FAA). ACRP carries out applied research on problems that are shared by airport operating agen- cies and not being adequately addressed by existing federal research programs. ACRP is modeled after the successful National Cooperative Highway Research Program (NCHRP) and Transit Cooperative Research Program (TCRP). ACRP undertakes research and other technical activi- ties in various airport subject areas, including design, construction, legal, maintenance, operations, safety, policy, planning, human resources, and administration. ACRP provides a forum where airport operators can cooperatively address common operational problems. ACRP was authorized in December 2003 as part of the Vision 100— Century of Aviation Reauthorization Act. The primary participants in the ACRP are (1) an independent governing board, the ACRP Oversight Committee (AOC), appointed by the Secretary of the U.S. Department of Transportation with representation from airport operating agencies, other stakeholders, and relevant industry organizations such as the Airports Council International-North America (ACI-NA), the American Associa- tion of Airport Executives (AAAE), the National Association of State Aviation Officials (NASAO), Airlines for America (A4A), and the Airport Consultants Council (ACC) as vital links to the airport community; (2) TRB as program manager and secretariat for the governing board; and (3) the FAA as program sponsor. In October 2005, the FAA executed a contract with the National Academy of Sciences formally initiating the program. ACRP benefits from the cooperation and participation of airport professionals, air carriers, shippers, state and local government officials, equipment and service suppliers, other airport users, and research organi- zations. Each of these participants has different interests and responsibili- ties, and each is an integral part of this cooperative research effort. Research problem statements for ACRP are solicited periodically but may be submitted to TRB by anyone at any time. It is the responsibility of the AOC to formulate the research program by identifying the highest priority projects and defining funding levels and expected products. Once selected, each ACRP project is assigned to an expert panel appointed by TRB. Panels include experienced practitioners and research specialists; heavy emphasis is placed on including airport professionals, the intended users of the research products. The panels prepare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing coop- erative research programs since 1962. As in other TRB activities, ACRP project panels serve voluntarily without compensation. Primary emphasis is placed on disseminating ACRP results to the intended users of the research: airport operating agencies, service pro- viders, and academic institutions. ACRP produces a series of research reports for use by airport operators, local agencies, the FAA, and other interested parties; industry associations may arrange for workshops, training aids, field visits, webinars, and other activities to ensure that results are implemented by airport industry practitioners. ACRP RESEARCH REPORT 217 Project 06-05 ISSN 2572-3731 (Print) ISSN 2572-374X (Online) ISBN 978-0-309-48171-7 Library of Congress Control Number 2020941199 © 2020 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA, FTA, GHSA, NHTSA, or TDC endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The research report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the National Academies of Sciences, Engineering, and Medicine. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; or the program sponsors. The Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; and the sponsors of the Airport Cooperative Research Program do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of the report. Published research reports of the AIRPORT COOPERATIVE RESEARCH PROGRAM are available from Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet by going to https://www.nationalacademies.org and then searching for TRB Printed in the United States of America

The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non- governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. John L. Anderson is president. The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.nationalacademies.org. The Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. The mission of the Transportation Research Board is to provide leadership in transportation improvements and innovation through trusted, timely, impartial, and evidence-based information exchange, research, and advice regarding all modes of transportation. The Board’s varied activities annually engage about 8,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.

C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR ACRP RESEARCH REPORT 217 Christopher J. Hedges, Director, Cooperative Research Programs Lori L. Sundstrom, Deputy Director, Cooperative Research Programs Marci A. Greenberger, Manager, Airport Cooperative Research Programs Theresia H. Schatz, Senior Program Officer Tyler Smith, Senior Program Assistant Eileen P. Delaney, Director of Publications Natalie Barnes, Associate Director of Publications ACRP PROJECT 06-05 PANEL Field of Human Resources Sharon M. Stone, St. Louis Lambert International Airport, St Louis, MO (Chair) ReGina Armstrong, Memphis International Airport, Memphis, TN Lorena de Rodriguez, SSi, Inc., Phoenix, AZ Tara L. Harl, North Memorial Health, Robbinsdale, MN Benjamin J. Mello, Kaplan & Mello Planning, LLC, Bainbridge Island, WA Kate Webb, Tampa International Airport, Clearwater, FL Neil Kumar, FAA Liaison Deborah C. McElroy, Airports Council International - North America Liaison Christine Gerencher, TRB Liaison

ACRP Research Report 217: Guidance for Diversity in Airport Business Contracting and Workforce Programs provides guidelines to assist airport operators and various stake- holders at airports of all types and sizes to identify and quantify the benefits, costs, and regional economic impact of diversity contracting for airport businesses. The report also describes the challenges facing airports’ diversity and inclusion initiatives and identifies best practices airports can use to mitigate those challenges in airport workforce programs. The accompanying spreadsheet tool can help airports measure the benefits and costs of their contracting and workforce programs. The challenges of running inclusive and diverse organizations apply to airports of all types and sizes. As recipients of federal funds, airports are required to administer a federal program that seeks to provide equal access for participation in airport-related business opportunities. Likewise, many airports are also obligated to do so under state and local programs. There are indicators that many airports are already taking active steps to address these issues and are unlocking the benefits of a diverse and inclusive workforce. These programs provide benefits to the airport and surrounding communities, but there has not been a comprehensive benefit-cost analysis for diversity contracting programs and their impact on the workforce. This airport-specific research provides guidelines for identifying and calculating benefits and costs of business and workforce diversity programs. Understanding and communi- cating the economic impact on airports and surrounding communities can benefit both airport operators and stakeholders. Research for the guidebook, which was performed under ACRP Project 06-05, included surveys, interviews, focus groups, and case studies. The Cadmus Group, LLC, led the research in association with Exstare Federal Services Group and Rosales Law Partners, LLP. The summary, in addition to conveying the purpose of the guidebook, includes the method and data collection efforts along with information on navigating the guidebook. Twelve case studies provide information about a broad array of types and sizes of airports and include information about the airport backgrounds and their business diversity programs along with honors and recognition. The guidebook also provides details on the costs and benefits of diverse contracting and workforce programs and demonstrates how to measure these using an excel-based Airport Diversity Contracting Benefit-Cost Tool, which can be accessed by searching the TRB website for “ACRP Research Report 217”. The appendices provide a glossary and additional references. F O R E W O R D By Theresia H. Schatz Staff Officer Transportation Research Board

AUTHOR ACKNOWLEDGMENTS The research on which this report is based was performed under ACRP Project 06-05 by the Cadmus Group, LLC. Cadmus was supported by Exstare Federal Services Group, LLC, and Rosales Law Partners, LLP. Richard A. Krop was the principal investigator. Nancy K. West of Exstare Federal Services Group was the deputy principal investigator. Damon Fordham was the principal in charge of the project. The other authors of and contributors to the report are Elise Emil, Oana Leahu-Aluas, Jon McDonnell, Toral Patel, Jaime Rooke, Mia Stephens, Angana Roy, and Martha Walters of Cadmus, and Ariana Mohit and Mara Rosales of Rosales Law Partners, LLP. The research team would like to thank the airports and organizations that participated in the study: AAAE, Alexandria, Virginia ACC Consulting LLC, Woodland Hills, California ACI–NA, Washington, D.C. Airport Management Program, Kansas State Polytechnic, Salina, Kansas Airport Minority Advisory Council, Washington, D.C. Charleston International Airport, Charleston, South Carolina Charlotte-Douglas International Airport, Charlotte, North Carolina Clark Construction, Western Region, San Francisco, California Columbia Metropolitan Airport, Columbia, South Carolina Columbus Regional Airport Authority, Columbus, Ohio Delaware North Companies, Inc., Buffalo, New York Emerald Cities Collaborative, Washington, D.C. Faith Group, LLC, Gaithersburg, Maryland Houston Airports System, Houston, Texas Indianapolis Airport Authority, Indianapolis, Indiana Ken Weeden & Associates, Inc., Raleigh, North Carolina Lee County Port Authority, Fort Myers, Florida Los Angeles World Airports, Los Angeles, California Maryland Department of Transportation, Maryland Aviation Administration, Hanover, Maryland Mayor’s Office, City and County of San Francisco, San Francisco, California McCarran International Airport, Las Vegas, Nevada Memphis International Airport, Memphis, Tennessee Metropolitan Nashville Airport Authority, Nashville, Tennessee Metropolitan Washington Airports Authority, Washington, D.C. Oakland International Airport, Oakland, California Orange County Airport, Orange, Virginia Phoenix Sky Harbor International Airport, Phoenix, Arizona Port of Portland/Portland International Airport, Portland, Oregon Raleigh-Durham International Airport, Morrisville, North Carolina Richmond International Airport, Richmond, Virginia Roanoke–Blacksburg Regional Airport, Roanoke, Virginia San Diego International Airport, San Diego, California San Francisco Mayor’s Office of Economic and Workforce Development Santa Monica Municipal Airport, Santa Monica, California Shawnee Regional Airport, Shawnee, Oklahoma Spirit of St. Louis Airport, Chesterfield, Missouri St. Louis Lambert International Airport, St. Louis, Missouri Tampa International Airport, Tampa, Florida Turner Construction Company, Oakland, California Warrenton-Fauquier Airport, Midland, Virginia

1 Chapter 1 Introduction to the Guidebook 1 Purpose of the Guidebook 4 Methodology and Data Collection 5 Benefits of the Guidebook 6 Navigating the Guidebook 8 Chapter 2 Approaches and Techniques for Understanding the Parameters of Laws and Regulations 8 Federal Regulations 11 Local Business Participation Programs 12 Workforce Diversity 15 Notes 17 Chapter 3 Benefits of Business and Workforce Diversity 17 Benefits of Diversity to the Airport 21 Benefits of Airport Workforce and Contracting Diversity to the Community 23 Social Benefits 25 Chapter 4 Proactive Practices: Diverse Business Participation in Airport Contracting 25 Importance of Diversity in Contracting 28 Importance of Leadership Commitment to Diversity and Inclusion 30 Contracting Policies and Practices 48 Chapter 5 Proactive Practices: Workforce Diversity 49 Benefits of a Diverse Airport Workforce 50 How Airports Can Increase and Maintain a Diverse Workforce 54 Recruitment and Hiring Practices 58 Talent Development and Retention 60 Diversity Best Practices from Other Industries 65 Chapter 6 Measuring Costs and Benefits of Contracting and Workforce Initiatives 65 Costs Associated with Diversity Programs at Airports 71 Techniques for Measuring Benefits 77 Chapter 7 Analysis and Communication Strategies for Airports 77 Planning the Analysis 77 Collecting Data 78 Interpreting Results 81 Communicating Results 86 Abbreviations C O N T E N T S

A-1 Appendix A Case Studies B-1 Appendix B Industry Resources C-1 Appendix C Glossary D-1 Appendix D References Note: Photographs, figures, and tables in this report may have been converted from color to grayscale for printing. The electronic version of the report (posted on the web at www.trb.org) retains the color versions.