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From page 187... ... 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. Read the entire page →
From page 189... ... 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) Read the entire page →
From page 190... ... 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) Read the entire page →
From page 191... ... 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. Read the entire page →
From page 192... ... 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) Read the entire page →
From page 193... ... 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. Read the entire page →
From page 194... ... 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. Read the entire page →
From page 195... ... 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. Read the entire page →
From page 196... ... Worksheet 13-1. Data entry sheet. Read the entire page →
From page 197... ... 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 Read the entire page →
From page 198... ... Worksheet 13-2. Fuel manager's monthly report. Read the entire page →
From page 199... ... Worksheet 13-3. Fuel manager's annual report. Read the entire page →
From page 200... ... 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. Read the entire page →
From page 201... ... Worksheet 13-4. Fuel manager's report to the airport sponsor. Read the entire page →
From page 202... ... Worksheet 13-4. (Continued) Read the entire page →
From page 203... ... 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) Read the entire page →
From page 204... ... 204 Airport Management Guide for Providing Aircraft Fueling Services The title page introduces the presentation and date. Exhibit 13-1. Read the entire page →
From page 205... ... 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) Read the entire page →
From page 206... ... 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. Read the entire page →
From page 207... ... 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. Read the entire page →
From page 208... ... 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 SelfService 47% 53% 48% 51% 48% Percent FullService 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) Read the entire page →
From page 209... ... 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. Read the entire page →
From page 210... ... 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? Read the entire page →
From page 211... ... 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. Read the entire page →
From page 212... ... 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) Read the entire page →
From page 213... ... 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. Read the entire page →
From page 214... ... 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) Read the entire page →
From page 215... ... 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. Read the entire page →
From page 216... ... 216 Airport Management Guide for Providing Aircraft Fueling Services E Instructions for Proposal Submission a. Read the entire page →
From page 217... ... Request for Proposals and Evaluation of Bids 217 iii. Delivery plan including traceability and guaranteed supply 1. Read the entire page →
From page 218... ... 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. Read the entire page →
From page 219... ... 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) Read the entire page →
From page 220... ... 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 * Read the entire page →
From page 221... ... 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 responsibilities 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) Read the entire page →
From page 222... ... 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. Read the entire page →
From page 223... ... * Available as an Excel worksheet in Appendix B Read the entire page →
From page 224... ... Item Task Person(s) or Department Responsible* Read the entire page →
From page 225... ... 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 Read the entire page →
From page 226... ... 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. Read the entire page →
From page 227... ... 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) Read the entire page →
From page 228... ... 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* Read the entire page →

From page 187...

... 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.