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Presented By: AMAC/Car Rental Work Group 2013 AMAC Economic Opportunity & Policy Forum – Orlando, FL December 9 PowerPoint Presentation
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A WINNING APPROACH: SUMMARY OF RECOMMENDATIONS TO REALIZE GREATER ACDBE AND DBE GOODS AND SERVICES SUPPLIER OPPORTUNITIES AND PARTICIPATION WITHIN THE CAR RENTAL INDUSTRY. Presented By: AMAC/Car Rental Work Group 2013 AMAC Economic Opportunity & Policy Forum – Orlando, FL

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A WINNING APPROACH: SUMMARY OF RECOMMENDATIONS TOREALIZE GREATER ACDBE AND DBE GOODS AND SERVICESSUPPLIER OPPORTUNITIES AND PARTICIPATION WITHIN THE CAR RENTAL INDUSTRY

Presented By:

AMAC/Car Rental Work Group

2013 AMAC Economic Opportunity & Policy Forum – Orlando, FL

December 9, 2013

car rental work group project recap
Car Rental Work Group – Project Recap
  • Spring - Summer 2012 – 
    • AMAC and the car rental industry reunited to discuss ideas for increasing ACDBE and DBE participation within the car rental industry. There was consensus that new thinking was needed to achieve this objective and that it is important for AMAC to be the “thought-leader” when it comes to the Airport ACDBE/DBE program on matters that affect the organization’s membership. 
    • AMAC created a “Car Rental Working Group” comprised of AMAC Airport and car rental company representatives, including AMAC Board members -- initially Corey Wilson and Sean Fitzgerald, and recently Farad Ali. 
    • AMAC retained Genelle Allen, former Interim CEO and Deputy CEO/DBELO for Detroit Metropolitan Airport, to facilitate the Work Group’s efforts and to compile its work product into a set of recommendations to be presented in a “White Paper” report. 
  • June 2012–
    • The Car Rental Work Group first met during AMAC’s 2012 Business Diversity Conference in St. Louis, MO. 
  • August 2012–
    • Following the conference, the car rental industry representatives prepared a "Concept Paper" memorializing the group's conference discussion primarily about the need to include a “regional” component within the ACDBE car rental program.
  • September 2012 - April 2013 –
    • The Car Rental Work Group convened numerous times in person and via conference calls to develop recommendations based upon the group's consensus.
car rental work group project recap con t
Car Rental Work Group – Project Recap (con’t)
  • May 2013 – 
    • The Car Rental Work Group presented to AMAC’s Board the culmination of their work in the form of a Car Rental White Paper. Webinars were held with AMAC's Government Affairs Committee and full Board to discuss the recommendations.
  • June 2013 – 
    • AMAC's Board approved presenting the Car Rental White Paper to AMAC's full membership. 
    • At AMAC’s 2013 Business Diversity Conference, a public forum was held during which the Work Group’s recommendations were discussed and public remarks were received -- approximately 75 people attended. During the forum, the Work Group announced a 30-day public comment period and encouraged AMAC members to submit written comments about the recommendations.
    • Following the conference, the White Paper and PowerPoint presentation used during the forum were electronically circulated to AMAC’s membership and posted on AMAC’s website.
  • July 2013 –
    • Several AMAC members, including AMAC Board members, submitted written comments about the car rental recommendations.
  • August-September2013 –
    • The Car Rental Work Group considered all of the submissions and posted written responses to the substantive comments on AMAC’s website.
  • October - November 2013 –
    • The Car Rental White Paper was edited to address some of the public comments and the final Paper was submitted to AMAC’s Board for review and discussion.
car rental work group members
Car Rental Work Group Members

Airports

  • Houston Airport System Carlecia Wright, Director

Office of Business Opportunity

  • Indianapolis Airport AuthorityCorey Wilson,Former

Supplier Diversity/Former AMAC Board Member

  • Maryland Aviation Administration Angela Martin, Director

Office of Fair Practices

  • Miami Dade Aviation Department Milton Collins /Rosa Delgado

Minority Affairs Division

  • Raleigh Durham Airport Authority Farad Ali, Trustee & Secretary/

AMAC Board Member

  • San Francisco International Airport Sandra Crumpler, Manager

Small Business Affairs Office

car rental work group members1
Car Rental Work Group Members

AMAC

  • Airport Minority Advisory Council Shelby Scales, President/CEO
  • Diverse Resources Amber Gooding, President
  • G M Allen Consulting Group Genelle Allen, President / Car Rental Work Group Facilitator
car rental work group members2
Car Rental Work Group Members

Car Rental Companies

  • Avis Budget Group, Inc. Robert Bouta, Senior Vice President

Properties & Facilities

  • Dollar Thrifty Automotive Group, Inc. Tammy Branham, Executive Director

Properties & Concessions

  • Enterprise Holdings, Inc. Sean Fitzgerald, Vice President

Airport Properties & Relations /

AMAC Board Member

  • The Hertz Corporation John Torres, Director

Supplier Diversity

  • K & L Gates LLP William Kirk, Esq., Partner
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1. Maintain National and Local ACDBE Goals, Implement New Regional ACDBE Goals SINCE NATIONAL AND REGIONAL SUPPLIERS ARE AN INTEGRAL PART OF CAR RENTAL OPERATIONS andMandate a Uniform ACDBE Goal-Setting Methodology THAT IS PRACTICAL AND EFFICIENT

The Problems

Recommended Solutions

  • It is virtually impossible for car rental concessionaries to meet ACDBE goals established by Airports based solely on vendors in local markets
  • Lack of uniformity in methodology used by Airports for calculating ACDBE goals for car rental concessions can cause undue administrative burdens for car rental concessionaires
  • Implement new “regional” ACDBE goals for Airports grouped in regions that mirror FAA regions across the country to complement existing national goal
  • Establish “Airport Regional Goal Setting Task Force” for each Airport region to monitor regional ACDBE participation and to set regional ACDBE goals
  • Mandate Airports to uniformly use “gross receipts” methodology for calculating ACDBE car rental goals
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2. Modify ACDBE Certification Standardsto Increase Pool of Qualified ACDBE and DBE Firms to Provide Goods and Services for Car Rental Concessions and Remove Barriers that Discourage Qualified Minority- and Women-Owned Firms from Applying for ACDBE and DBE Certification

The Problems

Recommended Solutions

  • Current ACDBE and DBE program regulations encourage but do not require Interstate Certification Reciprocity
  • National and regional suppliers are customarily used in the car rental industry but are not fully recognized in current ACDBE and DBE program regulations
  • Current size standards for ACDBE and DBE firms do not consider unique characteristics of the car rental business
  • Mandate Interstate Certification Reciprocity
  • Establish “National Supply and Supplier” and “Regional Supply and Supplier” categories for certain goods and services supplies and suppliers within the car rental industry
  • Establish ACDBE and DBE firm size standards commensurate with national and regional supplier categories within the car rental industry
slide10

2. Modify ACDBE Certification Standards (CON’T)to Increase Pool of Qualified ACDBE and DBE Firms to Provide Goods and Services for Car Rental Concessions and Remove Barriers that Discourage Qualified Minority- and Women-Owned Firms from Applying for ACDBE and DBE Certification

The Problems

Recommended Solutions

  • Current PNW standard does not reflect current market conditions within the car rental industry
  • Current PNW standard unfairly excludes certain personal financial guarantees of ACDBE and DBE owners when determining ACDBE and DBE owners’ financial liabilities
  • Requirement that DBE-certified firms also obtain ACDBE certification creates a barrier to, and thus excludes, the participation of qualified DBES from Airport car rental concessions
  • Adjust PNW limits for national and regional suppliers within the car rental industry
  • Characterize certain personal financial guarantees of ACDBE and DBE owners as liabilities for PNW calculations
  • Eliminate requirement for qualified DBE-certified firms to also obtain ACDBE certification
3 modify acdbe counting rules to align with recommended changes to acdbe certification standards
3. Modify ACDBE Counting Rules to Align with Recommended Changes to ACDBE Certification Standards

The Problems

Recommended Solutions

  • Participation of national and regional ACDBE goods and services suppliers are not counted if the ACDBEs are not certified in each state where the ACDBEs provide goods and/or services
  • Automobile Dealer Development Programs meet the spirit of the ACDBE and DBE Programs but are not counted toward ACDBE participation goals
  • Count the total value of goods and/or services provided by national and regional suppliers toward the national or respective ACDBE regional car rental goals
  • Count Automobile Dealer Development Programs toward meeting national, regional or local ACDBE car rental goals, as appropriate
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4. Establish Uniform Reporting Format and Schedule for Car Rental Concessionaires to eliminate undue administrative burdensAND Maintain Airports’ Obligations to Report Accomplishments to FAA and Monitor and Ensure Compliance with ACDBE and DBE Program Rules

The Problems

Recommended Solutions

  • Inconsistencies in Airports’ requirements for car rental concessionaires’ ACDBE participation reports cause undue administrative burdens for car rental concessionaires
  • Inconsistencies and lack of completeness in ACDBE participation information reported by car rental concessionaires make it difficult for Airports to accurately report to the FAA
  • Car rental companies will submit to Airports “Regional Reports” of purchases made within each Airport’s market at least quarterly in a standardized format
  • Airports’ obligation to report annually to the FAA will not change
  • Airports’ obligations to monitor and ensure ACDBE and DBE program compliance will not change
next steps
NEXT STEPS
  • December 8, 2013 –
    • Car Rental White Paper presented to AMAC Board of Directors for approval to submit to the USDOT and FAA (at AMAC's 2013 Economic Forum in Orlando, FL)
  • January - March 2014 –
    • Execute Outreach Advocacy Plan, including formal submission of Car Rental White Paper to USDOT/FAA