Consent 1.C.
Regular City Council Meeting
- Meeting Date:
- 05/14/2018
- TITLE
- Approval of Revisions to the Airport's Disadvantaged Business Enterprise Program (DBE)
- PRESENTED BY:
- Kevin Ploehn
- Department:
- Airport
Presentation:
No
PROBLEM/ISSUE STATEMENT
As recipients of Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grant funding, the Aviation and Transit Department is required to have a Disadvantaged Business Enterprise (DBE) Program per 49 CFR Part 26. A DBE is a for profit small business that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged. The DBE Program's intent is to provide a level playing field for DBE companies interested in doing business with the Airport. This DBE Program is tailored towards the annual construction projects completed each year at the Airport that are being funded with an AIP grant.
Billings Logan International Airport's DBE Program was selected for a compliance review conducted by FAA Civil Rights Compliance Officers on June 26 and 27, 2017. As a result of those meetings, the FAA proposed several modifications to the Airport's DBE Program including minor procedural changes for the Airport's outreach efforts and DBE contract monitoring. The most significant change had to do with the methodology used to calculate the Airport's annual DBE goals. Staff reviewed those suggestions and incorporated them into the Airport's DBE Program. The revised Program document was subsequently submitted to and approved by the FAA Civil Rights Office. Consequently, the Billings Logan International Airport's revised DBE Program must now be approved by the City Council and signed by the Mayor.
Billings Logan International Airport's DBE Program was selected for a compliance review conducted by FAA Civil Rights Compliance Officers on June 26 and 27, 2017. As a result of those meetings, the FAA proposed several modifications to the Airport's DBE Program including minor procedural changes for the Airport's outreach efforts and DBE contract monitoring. The most significant change had to do with the methodology used to calculate the Airport's annual DBE goals. Staff reviewed those suggestions and incorporated them into the Airport's DBE Program. The revised Program document was subsequently submitted to and approved by the FAA Civil Rights Office. Consequently, the Billings Logan International Airport's revised DBE Program must now be approved by the City Council and signed by the Mayor.
ALTERNATIVES ANALYZED
City Council may:
- Approve the Airport's revised DBE Program; or
- Decline to approve the revised DBE Program and jeopardize future AIP grant funding.
FINANCIAL IMPACT
As a recipient of Federal AIP grant funding, the Airport is required to have a DBE Program in place. Failure to submit an updated Program may jeopardize or delay award of the Airport's annual FAA AIP grants. The Airport's AIP entitlement grant totals approximately $3 million annually, but can be significantly larger for high priority projects that exceed the annual entitlement amount.
RECOMMENDATION
Staff recommends that the City Council approve and the Mayor sign the Billings Logan International Airport's revised DBE Program.