1 / 18

Airport Business Diversity Conference Year in Review/Preview Legal Issues

Airport Business Diversity Conference Year in Review/Preview Legal Issues. Airport Improvement Program (AIP). Federal Grant Program Focuses on Developing and Maintaining the Nation’s Public Use Airports In FY 2007, awarded about $3.5 Billion in grant dollars for more than 2,500 projects

mandar
Download Presentation

Airport Business Diversity Conference Year in Review/Preview Legal Issues

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Airport BusinessDiversity ConferenceYear in Review/PreviewLegal Issues

  2. Airport Improvement Program (AIP) Federal Grant Program • Focuses on Developing and Maintaining the Nation’s Public Use Airports • In FY 2007, awarded about $3.5 Billion in grant dollars for more than 2,500 projects • 3,300 airports are eligible for AIP grants for airport planning & development • FAA has a policy of ensuring that socially and economically disadvantaged businesses are able to participate in contracting opportunities created by AIP grants.

  3. AIP and DBE DBE Requirements • Accept federal grant funds - airport sponsor must comply with Civil Rights statutes, Executive Orders and other federal regulations • See 49 USC 47123, 47107(e), and 47113 • Sponsors must have DBE program if awarding $250,000 or more in AIP funds. 49 CFR 26.21

  4. FAA Reauthorization and AIP • FAA Released NextGen Reauthorization Bill in Feb 2007 • House version of Reauthorization (HR2881) passed September 20 • Bill hasn’t gotten out of the Senate. Other non-FAA provisions (highway funding, rail tax credit bonds, doubling tax on oil spills) added in substitute. • Substitute bill failed cloture vote in May (which limits time that a bill can be debated) – this basically stalls the bill in the Senate.

  5. FAA Reauthorization and AIP • For the AIP program to be in the “grant business” FAA must have three things – AIP Contract Authority, Trust Fund Expenditure Authority and Trust Fund Revenue Authority • FAA Contract Authority comes from the actual authorizing statute itself. • Has not been passed yet. • FAA can continue issuing AIP grants through June 30, 2008 – the current extension.

  6. FAA Reauthorization and AIP • Our current authorization extension takes us through June 30, 2008. • Before that time, there will need to be a statutory remedy that allows the AIP program to continue. • After June 30, 2008 – construction and design for grants that have already been issued can continue, but no new grants can be issued.

  7. FAA Reauthorization and AIP • Both House and Senate versions include AIP increases for each of the 4 years of the authorization • $3.8 Billion in FY2008, increasing to $4.1 Billion in FY2011. • House bill includes PFC increase to $7.00 • Senate did not include a PFC increase. • Both the House Bill and the Senate Bill included provisions for an Airport Concessions Training Program.

  8. FAA Reauthorization and AIP • Senate Bill 1300 Section 703 Requires FAA to establish a formal certification training program for airport concessions DBE program. • House Bill 2881 requires the Secretary of Transportation to establish a mandatory training program on DBE certification within 1 year after a passage of reauthorization with a report to Congress within 24 months of enactment. • Both House and Senate proposal include new initiatives on the environment, including research and proof of concept programs.

  9. FAA Reauthorization and AIP • Environmental issues key over next few years at airports. • Environmental issues are strongly supported by both the House and the Senate. • FAA has also strongly supported environmental initiatives. • Focus on the environment could lead to expanded opportunities for DBE participation at airports.

  10. Recent Court Challenges • South Florida Chapter of Association of General Contractors v. Broward County • Challenges County’s Part 26 program • Pacific Legal Foundation v. Port of Oakland • Challenges Port’s non-car rental Part 23 program • Claim under Proposition 209

  11. Part 26 – Cases • Adarand, Western States Paving, Sherbrooke and Northern Contracting • USDOT’s DBE Program has been upheld and found constitutional

  12. Business Size §§ 23.33 and 26.65 • Race and Gender based programs must be narrowly tailored to meet a compelling governmental interest. • One element of a narrowly tailored DBE program - DBE business must be small • measured by gross receipts or number of employees. • Existing business size standards have not been adjusted for inflation since 1992. • DOT final rule issued April 2, 2007 (effective May 2, 2007), makes inflationary adjustments for ACDBE and DBE size standards. • Similar inflationary adjustments to ACDBE size standard every two years and to DBE size standard every year.

  13. Specifics on Business Size – Parts 23 and 26 Revisions • Most ACDBE businesses - $47.78 million gross receipts averaged over previous 3 fiscal years (previously $30 million) • ACDBE Banks and Financial Institutions - $750 million in assets (previously $275 million) • Car rental ACDBE businesses - $63.71 million gross receipts averaged over previous 3 fiscal years (previously $40 million) • Pay Telephone ACDBE businesses - 1,500 employees (no change from previous standard) • ACDBE Automobile Dealers - 200 employees (no previous standard) • DBE Businesses: $20.41 million gross receipts averaged over previous 3 fiscal years (previously $19.57 million)

  14. New Questions and Answers • New Q & A’s under review in DOT • UCP Issues • Joint Check Issues • Subrecipients • Assistance by Prime Contractor • Certification • Confidentiality • Consultation

  15. Enforcement • Airport Sponsor subject to compliance reviews by Office of Civil Rights • 14 CFR Part 16 Airport Enforcement Proceeding • Withhold grant funds • Terminate grant eligibility • DOJ referral for DBE/ACDBE Program Fraud • Jail • Fines • Suspension and Debarment • Listed on the Federal Government’s Excluded Parties List System; not eligible to participate in Federal contracts • http://epls.arnet.gov • DOT directive to UCP to initiate proceeding to remove DBE/ACDBE certification

  16. Upcoming Regulatory Activity • Sunset provision in 49 CFR Part 23 • Provisions of this rule will become inoperative on April 21, 2010 unless extended by DOT • Begin review in 2009 on whether to extend program • Process offers opportunity for modifications to program

  17. LINKS TO USDOT INFORMATION • Secretary’s Briefings and Speeches • http://www.dot.gov/affairs/briefing.htm • OIG’s Investigation Reading Room • http://www.oig.dot.gov/Room?type=2 • USDOT Order 4200.5D Governmentwide Debarment, Suspension, and Ineligibility • http://www.dot.gov/ost/m60/grant/DOT_Order_4200.5D.pdf • Excluded Parties List System • http://www.epls.gov/ • Questions and Answers Concerning Response to Western States Paving Company v. Washington State Department of Transportation • http://www.fhwa.dot.gov/civilrights/dbe_memo_a5.htm • Office of Small and Disadvantaged Business Utilization for DBE Program Issues includes Links to 49 CFR Parts 23 and 26 • http://osdbuweb.dot.gov/business/dbe/dbe_program.cfm

  18. Questions

More Related