As recipients of Federal Transit Administration (FTA) and Federal Aviation Administration (FAA) grant funding, the Aviation Department is required to have an Airport Concession Disadvantaged Business Enterprise (ACDBE) Program in place.  A ACDBE is a for-profit small business concern that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged.  The ACDBE Program's intent is to provide a level playing field for ACDBE companies wanting to do business with the Airport, and other agencies receiving Federal funds from the U.S. Department of Transportation.  In addition to the requirement to submit an updated DBE Program every three years, on September 6, 2012, a notice in the Federal Register announced changes to the ACDBE Circular.  One of the new requirements of the Circular was that the ACDBE Programs must now be approved by the City Council and signed by the Mayor.  Copies of the ACDBE Program are available for review in the City Clerk's office.

City Council may:

• Approve the ACDBE Program Plan; or
• Not approve the ACDBE Program Plan and jeopardize any future FAA grant funding.

As recipients of Federal funding, the Airport is required to have an ACDBE in place. Failure to submit this Program may jeopardize or delay award of the annual FAA Airport Improvement Program (AIP) grants. The AIP grants are typically $3,000,000 annually, and up to $6,000,000 or more on larger projects.

Staff recommends that the City Council approve and the Mayor sign the Billings Logan International Airport's ACDBE Program.