Car Rental Panel PowerPoint

Report
Presented By:
AMAC/Car Rental Work Group
2013 AMAC Economic Opportunity & Policy Forum – Orlando, FL
December 9, 2013
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.
2
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-September 2013 –
 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.
3
Car Rental Work Group Members
Airports
 Houston Airport System
Carlecia Wright, Director
Office of Business Opportunity
 Indianapolis Airport Authority
Corey 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
4
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
5
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
6
SPECIFIC RECOMMENDATIONS
4 KEY COMPONENTS
MODIFY ACDBE CAR RENTAL GOALS
MODIFY ACDBE CERTIFICATION STANDARDS
MODIFY ACDBE COUNTING RULES
ESTABLISH UNIFORM REQUIREMENTS FOR REPORTING
ACDBE CAR RENTAL PARTICIPATION
7
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
AND
MANDATE A UNIFORM ACDBE GOAL-SETTING METHODOLOGY
THAT IS PRACTICAL AND EFFICIENT
The Problems
 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
Recommended Solutions
 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
8
2. MODIFY ACDBE CERTIFICATION STANDARDS
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
 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
Recommended Solutions
 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
9
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
 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
Recommended Solutions
 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 DBEcertified firms to also obtain ACDBE
certification
10
3. MODIFY ACDBE COUNTING RULES
TO ALIGN WITH RECOMMENDED CHANGES TO ACDBE CERTIFICATION STANDARDS
The Problems
 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
Recommended Solutions
 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
11
4. ESTABLISH UNIFORM REPORTING FORMAT AND SCHEDULE
FOR CAR RENTAL CONCESSIONAIRES
TO ELIMINATE UNDUE ADMINISTRATIVE BURDENS
AND
MAINTAIN AIRPORTS’ OBLIGATIONS TO REPORT ACCOMPLISHMENTS TO FAA AND
MONITOR AND ENSURE COMPLIANCE WITH ACDBE AND DBE PROGRAM RULES
The Problems
 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
Recommended Solutions
 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
12
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
14
THANK YOU!
15

similar documents