A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities (2015) / Chapter Skim
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Pages 38-47
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38 This chapter discusses certification, proposal requirements, sizes of contracts, politics, and other issues that impede the success of diverse businesses. The chapter also illustrates ways to alleviate these impediments.
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Addressing Impediments to the Success of Diverse Businesses 39 An airport CEO explained that "the DBE Program is somewhat cumbersome in terms of certification," and "it's hard convincing small firms that probably qualify for DBE certification to get certified because it takes forever and they don't want to tell their whole life story to get a certification that may not get them a business opportunity." Practice Tip: Requirements for obtaining MBE, SBE, LBE, and WBE certification that differ from the requirements for DBE certification are sometimes confusing to majority-owned firms and diverse businesses. Airports, trade associations, and businesses can do more through outreach, training sessions, and providing a direct contact for diverse businesses that want to discuss certification requirements.
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40 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities • Do the provisions of contractual agreements vary by the solicitation, or are there standard provisions? • Are contract provisions reviewed for relevancy?
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Addressing Impediments to the Success of Diverse Businesses 41 to the AIP and many state, city, county, and/or airport authorities have enacted legislation requiring the award of airport opportunities on a competitive basis. For example, the City and County of San Francisco has adopted an ordinance that requires its Airport Commission to conduct a competitive process and award its contracts to the best responsible proposer.
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42 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities 6.3 Size of Contracts When the Programs first started decades ago, one of the first questions posed to contract administration managers was whether the business opportunity could be "unbundled" or assembled in smaller contract scopes for multiple contract opportunities which could be undertaken by small and disadvantaged firms. Airport operators recognize that most diverse businesses do not have the comparable capacity or credit as larger, well-established firms to compete for larger contract opportunities.
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Addressing Impediments to the Success of Diverse Businesses 43 on how the bond companies predict the risk that a small business represents. The premium can be anywhere from 1 percent to 15 percent of the bond amount, and a small business, with limited opportunities given its size, generally will be assessed a higher premium.
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44 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities Examples of bonding assistance programs include: • The U.S. DOT Bonding Education Program (BEP)
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Addressing Impediments to the Success of Diverse Businesses 45 • Has your organization's Risk Management Department actively tried to directly engage a small business, etc. to work on its own internal insurance program and insurance related services, in whole or in part?
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46 A Guidebook for Increasing Diverse and Small Business Participation in Airport Business Opportunities bills. Many small and diverse businesses lack the resources of larger companies to supplement needed cash from savings or lines of credit.
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Addressing Impediments to the Success of Diverse Businesses 47 Airport managers, DBELOs, and other personnel need to proceed with caution when approached by lobbyists representing a business with an interest in obtaining airport contracts and concessions. Public officials are bound by ethical rules when conducting official business and are required to avoid conflicts of interest when conducting the public's business.
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