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FAA Civil Rights National Airports Civil Rights Policy and Compliance

FAA Civil Rights National Airports Civil Rights Policy and Compliance. Long-term and Exclusive Agreements Guidance Update. FAA DBELO Training Airport Diversity Conference Dallas-Ft. Worth, TX Presented by: Marcus H England

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FAA Civil Rights National Airports Civil Rights Policy and Compliance

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  1. FAA Civil RightsNational Airports Civil Rights Policy and Compliance Long-term and Exclusive Agreements Guidance Update FAA DBELO Training Airport Diversity Conference Dallas-Ft. Worth, TX Presented by: Marcus H England FAA Office of Civil Rights National Airports Civil Rights Policy and Compliance Washington, DC June 6, 2011

  2. Long-term and Exclusive Agreements Guidance (Draft) • Background • 49 CFR Section 23.75 Adopted • Concerns regarding long-term and exclusive arrangements with non-ACDBEs operating concession activities at federally funded airports without providing opportunities for minorities and women • Enforce Title VI of the Civil Rights Act of 1964 -nondiscrimination because of race, color, or national origin • Exclusion of ACDBE businesses led to a prohibition against long-term and exclusive lease agreements unless approved by FAA

  3. Long-term and Exclusive Agreements Guidance (Draft) • Purpose • Provide information and guidance • Explain the prohibition against long-term and exclusive lease agreements • Explain the process to request FAA approval • Assist airports in structuring lease agreements to allow full participation • Will not create new legal mandates

  4. Long-term and Exclusive Agreements Guidance (Draft) • Definitions • Exclusive • An entire category i.e., (lodging, retail, food service, dining services, transportation, parking, advertising, etc.) • Relates to the entire airport or individual terminal (depending on airport size) • Long-term • 49 CFR section 23.75 • More than 5 years • Combination of base term and options

  5. Long-term and Exclusive Agreements Guidance (Draft) • Approval Process • Written request to FAA (DBE/ACDBE Compliance Program Staff) • Special local circumstances • Draft lease, sublease, and other pertinent documents • Lease agreement should contain • ACDBE participation reflecting market availability • Sponsor reviews ACDBE participation before the exercise of renewal options • ACDBE replacement if necessary or good faith efforts

  6. Long-term and Exclusive Agreements Guidance (Draft) • Approval Process • Acceptable lease structure • Subcontract, JV, partnership, etc. • Meets federal and state legal requirements • ACDBEs are certified • Type of business operation • Estimated ACDBE investment and management/financial arrangements

  7. Long-term and Exclusive Agreements Guidance (Draft) • Approval Process • Estimated gross receipts and net profit • Joint venture agreements (consistent with July 2008 Guidance) • Final lease and sublease agreements submitted to the DBE/ACDBE Program Staff within 30 days of signing or 60 days before the term begins

  8. Long-term and Exclusive Agreements Guidance (Draft) • Current Lease Agreements • Review in the context of this guidance • Long-term and exclusive by default should be reviewed but are not automatically non-compliant • Sponsors should review with the prime • Seek ways to include ACDBEs

  9. Long-term and Exclusive Agreements Guidance (Draft) • Expectations • Airports are prohibited from entering into long-term and exclusive agreements except under very limited conditions (with FAA approval) • Airports including those with multiple and large terminals are expected to demonstrate good faith efforts in providing opportunities for ACDBE participation regardless of whether an overall goal has been met (for example in one terminal) • FAA will monitor compliance through periodic DBE Compliance Reviews

  10. Questions

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