Airport executives discussed current industry trends like P3s at the Airport Minority Advisory Committee 2017 Airport Business Diversity Conference. Pictured from left-right; Row 1:Ricky Smith, CEO BWI Thurgood Marshall Airport; Scott Brockman, President/CEO, Memphis International Airport; Bryant L Francis, Director of Aviation, Oakland International Airport. Row 2: Mario Diaz, Director of Aviation, Houston Airport System; Krystal Brumfield, President/CEO, Airport Minority Advisory Council; Lamar Willis, Principal, Nathan Bacford Management
Some Disadvantaged Business Enterprises are concerned that the P3 project delivery method will decrease opportunities for diverse firms, fearing that private developers may demonstrate a lesser commitment to diversity in contracting opportunities. However, early signs have shown that public agencies owning an airport ultimately have control of diversity and inclusion requirements on a P3 project, and exercise their control by placing requirements for diverse business participation in the Request for Proposal, vendor selection, and contracting phase of the project. As a result, P3s can create greater opportunities for diverse firms to participate in airport development projects. One reason is because P3s allow projects to occur that might not have moved forward without a private developer to take on the project. Another reason is that public owners have the ability to place incentives in the selection process that favor developers presenting the best diversity plan and commitment to the participation
of diverse firms. “Municipal owners can be creative in having a plan to include DBEs,” said Miguel Southwell, President/CEO of Brakkam Aviation Management, an airport management consulting firm based in Atlanta, Ga. “They can include incentives in the RFP process to award additional points to the developer with the best strategy to include DBEs at the ownership level and in the development of the project. Once the commitments are made in the proposal, they would become a part of the contract,” he said. The DIA Great Hall Project is an example of the types of opportunities available to diverse firms on a P3 project. The winning developer, Great Hall Partners, includes a minority-owned investment management company named JLC; a business founded by Chicago’s Loop Capital and Magic Johnson Enterprises, two AfricanAmerican-owned investment firms. JLC is focused on making investments in the transportation, energy, utilities, communications, and social infrastructure sectors in the U.S.
Aviation expert Miguel Southwell, President/CEO, Brakkam Aviation Management, believes P3 projects should create opportunities for DBE firms, provided municipal owners create incentives for developers during the selection process.
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