White Paper
Airport Owners’ Guide to Project Delivery Systems - 2nd Edition - 2012
Airport managers want projects done timely, economically and with high quality.
As airport markets have matured, the redevelopment of facilities has become
more complex and costly, with projects more likely to generate high impact on
operations and the need to work around passengers, aircraft or ground vehicles. We started the Airport Owners’ Guide to Project Delivery Systems to introduce
aviation management and development professionals to techniques for procuring
and conducting design and construction projects that other industries had found
to be useful. It arose from a level of frustration by all of the stakeholders
in airport development, the airport owners and operators, the design
professionals and the construction companies, all of whom were tending to focus
more time and attention in protecting their interests in the event of project
failure and less time and attention positioning the project for success.
The Guide is designed for use by the airport executive who must make
the decision on the appropriate delivery method, and convince the governing
authority that it is indeed appropriate; for the development professional who
must make the recommendation to the executive and carry out the owner’s role in
the project’s delivery; and for the procurement practitioner who must undertake
the proper contracting processes and documentation for selection of the
contracting parties and administration of the project contracts in accordance
with the laws, regulations and obligations of the owner, and, often, state and
federal governments.
The Guide contains sufficient detail for each of these role players to
understand the characteristics and potential suitability of various project
delivery systems and contracting approaches. The airport executive may want to
particularly focus attention on the sections describing considerations for
selecting a project delivery method, specifically Section III A-D, Selecting the
Appropriate Project Delivery System, Appendix C, Alternative PDS Selection: An
Owner’s Example, and Appendix F, FAA Grant Program/Airport Improvement Program
(AIP) which outlines the constraints and prospects for alternative delivery of
FAA grant eligible projects.
Among other things, the Guide identifies for the airport executive the kind
of management support that is necessary under various project delivery
approaches since the level of staff expertise and time demands on staff vary
with the different methods. As well, the airport executive must consider any
local political implications of different methods.
The Guide is a reflection of industry trends and opportunities not a promoter
of any particular project delivery approach or contracting method. It will
always be a work in progress as those trends evolve and additional opportunities
for delivering airport projects are explored. We hope it will be used as
intended: to open airport owners and operators to the range of possibilities to
deliver timely, high quality, cost-efficient facilities to their customers,
employees and community.
Preparation of this document included research into the actions currently
being taken by airport owners to research, analyze and select the best project
delivery system for their particular project, within their airport’s operating
environment. Operating environment in this context is meant to represent the
governing legislation, policies and procedures by which the airport implements
capital improvement projects.
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White Paper
ACRP Guidebook of Practices for Improving
Environmental Performance at Small Airports
Gresham, Smith and Partners, a leading multi-disciplinary design and
consulting firm for the built environment, is pleased to announce the
Guidebook of Practices for Improving Environmental Performance at Small Airports
has been published. Developed by GS&P for the
Airport
Cooperative Research Program (ACRP), a research program managed by the
Transportation Research Board (TRB) of the National Academies, the Guidebook
provides managers of small airports with a resource that promotes environmental
awareness, identifies federal environmental compliance requirements, outlines
practices that proactively enhance environmental stewardship and identifies
resources/tools that airports can use to be proactive. The Guidebook is
available for
free download from the TRB website and a hard copy version is available for
purchase.
"We are glad this Guidebook is now available to the aviation community,
providing a much needed resource that can raise environmental awareness and
promote environmental stewardship," commented Robert W. McGormley, division vice
president and senior environmental consultant for GS&P, who served as the
project director and principal investigator. "Many small airports have limited
environmental expertise and financial resources. Through use of this Guidebook,
airports of any size can better understand their environmental regulatory
obligations and the considerations for and benefits of implementing proactive
environmental stewardship practices, many of which do not require capital
costs."
Regulatory summaries presented in the Guidebook are grouped by similar
subject matter and consist of high-level overviews of federal environmental
compliance requirements including laws, regulations, and other directives.
Web-based links to internet sites and documents are provided throughout the
Guidebook to further describe the subject matter or provide supporting
information. Case studies of environmental programs implemented by other
airports offer readers greater insight into the real life experiences of
implementing proactive environmental stewardship practices.
The development of this Guidebook was led by GS&P with support from
Vanasse Hangen Brustlin, Inc. and KB Environmental Sciences, Inc.
GS&P is currently working with the ACRP on three additional projects to
benefit the aviation industry. First, GS&P is developing wayfinding and signage
guidelines for airport terminal and landside use aimed at providing a
methodology that can be implemented at airports nationwide and provide
passengers with consistent, safe and efficient wayfinding systems. Second, GS&P
is finalizing an ACRP handbook for the aviation industry entitled
"Water Resource Issues Affecting Airport Capacity Enhancement Planning."
This handbook aims to provide airport operators and planners with guidance in
recognizing potential impacts that capacity enhancement activities may have on
water resources while balancing business concerns and environmental protection
and is anticipated to be available this Spring. Third, GS&P is in the midst of
research to develop the "Guidebook for Selecting Methods to Monitor Airport and
Aircraft Deicing Materials." This Guidebook will enable airports to identify,
compare, and select practical on-site methods (i.e., instruments, technologies,
techniques, etc.) for monitoring deicing materials in airport storm water
runoff. Being able to make informed decisions on monitoring technologies will be
extremely important to airports subject to pending federal environmental
regulations affecting airport deicing operations.
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cover image above to access a PDF version of the complete guidebook.
White Paper
Credit Ratings and Cash Reserves: How They Influence the Borrowing Costs of Airports
Ricondo & Associates, Inc. (R&A) prepared the Industry White Paper titled "Credit Rating and Cash Reserves: How They Influence the Borrowing Costs of Airports" recently released by Airports Council International - North America (ACI-NA). The paper discusses the influence of credit ratings and cash reserves on the borrowing costs of airports.
The request for the White Paper stemmed from an airport - airline roundtable discussion at ACI-NA's 2009 Economic and Finance
Conference regarding ways in which the two industries could work together to control airport costs. As part of the discussion a representative of Alaska
Airlines introduced six "red flags" that, in the carrier's opinion, indicate an airport's interests may not be aligned with those of the airline. One of the
elements the Alaska Airline representative cited was the difference between airport and airline credit ratings, which spurred a debate with audience members
regarding the importance of high credit ratings to airports in order to reduce borrowing costs and maintain access to the municipal bond market. Central to
this debate is the different viewpoints of airports and airlines regarding the level of cash reserves and debt service coverage required to maintain an
airport's credit rating, and whether achieving such high ratings places costs on the airlines that outweigh the benefits.
The goal of both the Finance Committee and R&A in developing the White Paper is to present information to the industry
regarding the difference in credit ratings between U.S. airports and airlines, review the relative importance of credit ratings to the two industries, and
examine how lower interest costs achieved through higher credit ratings and the application of airport cash to a capital program influence the borrowing
costs of airports. The paper is designed to promote discussion between airport sponsors and their airline tenants regarding these issues, and thus presents
observations regarding the
findings rather than drawing conclusions and recommending any particular actions.
This paper was prepared at the request of the ACI-NA Finance Committee, which provided oversight of the project, to promote discussion within in the industry, and with their airline partners, regarding how cash reserves support the sound credit ratings of Airports and thus help reduce borrowing costs for critical infrastructure projects.
Click here or on the
cover image above to access a PDF version of the complete report.
