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2004 ANNUAL REPORT

Small & Emerging Business DepartmentDisadvantaged/Minority/Women-Owned Business Enterprise Program

TABLE OF CONTENTS

MISSION STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

LETTER FROM THE CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

M/WBE 2004 EXPENDITURES BY CATEGORY . . . . . . . . . . . . . . . . . . . . . . . . . .4

LETTER FROM THE VICE PRESIDENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

PROGRAM INITIATIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Facilities Maintenance Outreach Minority Bank Deposit Program Terminal D Concessions Outreach Program University of North Texas Study

2004 MAJOR PROGRAM HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8Construction and Professional Services Highlights Contractor Default Insurance Expedited Payment Process M/WBE Program Revised and Adopted Panduit Certification Quarterly Chamber/Contractor Briefings Small Contractors Development Program Small Contractors Training Workshop Surety Support Program

HONORS AND AWARDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

SMALL & EMERGING BUSINESS DEPARTMENT . . . . . . . . . . . . . . . . . . . . . . . .14DBE Policy OverviewDBE Program Overview M/WBE Policy OverviewM/WBE Program Overview

CORPORATE/COALITION PARTNERSHIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

MISSION STATEMENT

Dallas/Fort Worth International Airport shall be theAirport of choice by creating a positive, competitive andsafe environment, thereby expanding the economic ben-efits for Dallas, Fort Worth and the Region.

The Small & Emerging Business Department creates andsustains a business environment that enables minorityand women-owned business enterprises to competeequitably for business opportunities and achieve eco-nomic success, contributing to DFW’s overall mission ofbeing the Airport of choice.

SEBD ANNUAL REPORT 1

2 SEBD ANNUAL REPORT

2004 marked another milestone year of accomplishment for Dallas/FortWorth International Airport (DFW) in the support and success of minori-ty and women-owned businesses (M/WBE) and the men and womenwho are taking our Airport into a new era of our history.

As we rapidly come to the completion of the $2.7 billion CapitalDevelopment Program, which includes the Skylink people mover,International Terminal D and Grand Hyatt Hotel, the incredible successof the men and women who run small and emerging businesses andprovide valuable service to this Airport is evident. DFW has spent morethan $700 million with M/WBEs over the life of the project, which hasbecome a national model for success in nurturing and working withsmaller companies.

You make DFW proud, and we are indeed proud to work with you to finish the largest and most impor-tant expansion at our Airport since it opened 31 years ago. In turn, together we are creating morejobs and economic opportunity for our children and for the North Texas economy for decades to come.

I am particularly proud of the innovative programs our Small & Emerging Business Department initiatedthis year, led by DFW's multi-million dollar investments in minority-owned community banks. Thisincredible program is an industry first, a smart business move by the Airport, and another opportunityto partner with a vital sector of our region.

As we continue to look for more ways to improve and innovate our business excellence with M/WBEfirms, we felt it was important to benchmark what we have accomplished together. The University ofNorth Texas (UNT) Center for Economic Development and Research intensively studied the past sevenyears of the Airport's work in this area. It concluded DFW's M/WBE commitment to be among the bestin the nation, generating more than $1 billion in economic activity, creating more than 9,000 new jobsand paying more than $358 million in wages and salaries.

Renowned economist Bernard Weinstein summed it up: "As a public agency DFW is one of the mostreliable supporters of women and minority-owned businesses. It is indeed a model for the entire coun-try." While we are proud of that accomplishment, we are looking forward to creating even moreopportunity in the future.

As 2004 ended, DFW unveiled an unprecedented package of concessionaires to operate 49 restau-rants, retail and service shops in the new International Terminal D when it opens in 2005. More than 60percent of those businesses are M/WBEs and 93 percent of the approved vendors have more than 35percent minority participation. The percentages are great, but it is the people behind the numberswho truly count. DFW appreciates all of our strong businessmen and women who are writing a newsuccess story at this Airport every day.

Certainly, 2004 presented a multitude of new issues and challenges in the still ailing airline industry.Delta Air Lines drastically reduced its flight operations at DFW, and challenges to the WrightAmendment threatened to disrupt the economic engine of North Texas. Through it all, our commit-ment to M/WBE business remained strong and steady.

Thank you for your ongoing support and commitment to the success of DFW International Airport. Ilook forward to working with you in 2005.


LETTER FROM THE CEO

New Horizons for DFW

Jeffrey P. FeganChief Executive Officer


$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

Hispanic American

White Female

African American

Asian American

Native American

Construction: FY04(Goal 30%, Achieved 30%)

In Millions with Percent

Total Amount Spent: $489.8M MWBE: $147.9M Non/MWBE: $342.0M (69.8%)

Achieved 30%

$4.9

$5.9

$27.9

$57.0

$51.3

1.0%

1.2%

5.7%

11.6%

10.5%

October 1, 2003 to September 30, 2004. Figures have been rounded for reporting purposes.

M/WBE EXPENDITURES BY CATEGORY

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

Asian American

African American

White Female

Hispanic American

Native American

y g yProcurement: FY04(Goal 25%, Achieved 19%)

Total Amount Spent: $68.0M MWBE: $13.2M Non/MWBE: $54.8M (80%)

10.5%

5.1%

2.1%1.4%

$7.1

$3.5

$1.4$1.0

0.2%$0.2

October 1, 2003 to September 30, 2004. Figures have been rounded for reporting purposes.

In Millions with PercentAchieved 19%

LETTER FROM THE VICE PRESIDENT

Major progress

Don T. O’BannonVice PresidentSmall & Emerging Business Department

Over the past years, DFW International Airport has experimented with a variety of new and innovative approaches to enhance Disadvantaged Business Enterprise (DBE) and Minority/Women’s Business Enterprise (M/WBE) participation on Airport projects and contracts.

In 2004, DFW Airport continued a Facilities Maintenance outreach program initiated in 2003 to outsource the facilities and custodial maintenance function at the Airport. The outsourcing of the Airport’s custodial and maintenance functions represented a major shift in the Airport’s business strategy.

As a component of the Airport’s business strategy, DFW wants to ensure that all businesses have the chance to participate in the new custodial and maintenance opportunities. The Small & Emerging Business Department (SEBD) worked with Energy & Asset Management and Risk Management to host a series of outreach conferences to inform the M/WBE community of the potential business opportunities.

Because of this business strategy and the Airport’s commitment to contracting diversity, DFW has out-sourced more than $70 million in maintenance and custodial contracts with 47.7 percent, representing$33.6 million, committed to M/WBE businesses.

Another major initiative launched by DFW Airport and coordinated by SEBD was to inform M/WBE andDisadvantaged businesses of the concession opportunities available in the new International Terminal D.SEBD hosted a series of targeted outreach events, with the Revenue Management, Procurement &Material Management Departments, designed to encourage M/WBE participation and local competitionfor the concession locations in the new terminal.

The Airport was able to achieve a significant level of DBE and M/WBE participation in the new terminalbecause of a targeted and coordinated outreach program. More than 60 percent of the businessesawarded concession contracts are owned by DBE and M/WBEs and 93 percent of the firms awardedconcession contracts achieved D/M/WBE participation of 35 percent or more.

The success of both of these contracting program initiatives are the direct result of the Airport’s com-mitment to inclusiveness and a coordinated allocation of resources and staff to implement DBE andM/WBE program objectives. The Airport continues to strive to create a level playing field and eliminateartificial barriers that prevent fair and open competition for the Airport’s business opportunities.

Finally, I would like to thank the Airport’s executive management team and the Board for their contin-ued support and willingness to implement new “out of the box” approaches to enhance participation.On behalf of my staff and I, we look forward to the future, confident that the Airport will continue tomake a positive impact upon the economic development of, the small, DBE and M/WBE business com-munity.


PROGRAM INITIATIVES

Facilities Maintenance Outreach

DFW’s Small & Emerging BusinessDepartment (SEBD) partnered with Energy &Asset Management, Procurement &Materials Management, and RiskManagement to host a series of facilitiesmaintenance conferences.

The Airport hosted three outreach confer-ences at the Hilton Lakes Hotel on the main-tenance and custodial opportunities TerminalD, Terminal B and non-public buildings.

FAC Services was awarded a $4.8 milliondollar maintenance contract for the non-pub-

lic buildings at DFW Airport. Meridian Management Corporation, the lowest responsible bidder forfacility maintenance services for Terminal D, was awarded a $20,206,887 million dollar contract. FMCAirport Services, Inc. was awarded a $17,739,579 million dollar maintenance contract for Terminal B.Finally, ERMC was awarded an indefinite delivery contract of $1,543,481 million dollars for custodialand maintenance contract services for the Skylink stations. The M/WBE participation in theses con-tracts ranged from 30 percent to 49 percent.

Over the past two years, DFW Airport has awarded eight maintenance and custodial contracts valuedat up to $70 million with 47.7 percent of $33.6 million committed to M/WBE firms.

Minority Bank Deposit Program

The Minority Bank Deposit Program (MBDP) isan initiative designed to facilitate DFWInternational Airport and private sector con-tractors' use of minority banks and depositoriesand for other financial services.

DFW Airport's policy is to support the growthand development of local minority and womenowned businesses. Further, DFW Airport is arecipient of federal funds and under the applicable federal regulations should take reasonable steps to use minority-owned financialinstitutions.

DFW Airport committed to purchase certificates of deposits in the amount of $1 million each withthree local minority-owned financial institutions: First International Bank, Laredo National Bank, andState Bank of Texas. All have offices or branches in the Dallas-Fort Worth Metroplex. First International Bank and State Bank of Texas are both Asian-owned financial institutions based inPlano and Irving with a total of eleven branches in the Dallas-Fort Worth Metroplex. Laredo NationalBank is a Hispanic-owned financial institution based in Laredo, Texas with a branch in the Oak Cliffcommunity of Dallas.

The financial institutions listed above are commercial banks which are minority-owned or minority con-trolled and certified as a minority-owned institution by Financial Management Services in theDepartment of the Treasury.


L-R: Chan Patel, State Bank of Texas; Antonio Torres, Laredo National Bank;Carlos Coy, Laredo National Bank; Ken Mok, First International Bank;Michael Cotter, First International Bank

Terminal D Concessions Outreach Program

The SEBD initiated a coordinated outreach effort toinform minority and women-owned businesses enterpris-es and Disadvantaged Business Enterprises of the con-cession opportunities for DFW International Airport's newTerminal D.

Between April and July of 2004, the Airport participatedin twelve outreach events or meetings explaining thepotential opportunities for retail and food and beverageconcessionaires in the new terminal. The Airport alsoplaced advertisements in several local and national publi-cations including the Fort Worth Star-Telegram, AirportRevenue News and Eclipse Magazine.Informational meetings were also held with minority andwomen chambers in Dallas and Fort Worth as well as amorning segment on KKDA Radio.

The outreach events includ-ed participation from JohnW. White, Vice President ofProcurement & MaterialsManagement, and PatrickGleason, Vice President ofRevenue Management.

DFW received 117 bids in response to the concessions solicitation pack-ages with 50 percent of the firms submitting proposals from Dallas and 41percent from Tarrant County. More than 60 percent of the firms participat-ing as prime concessionaires, joint venture partners or subcontractors wereclassified as M/WBEs. In addition, 46 percent of the firms submitting pro-posals for Terminal D were classified as DBEs.DFW awarded 30 firms concession locations in the new terminal. TheAirport far exceeded its participation goal, with 93 percent of theapproved vendors having 35 percent or more M/WBE participation. DFWAirport projects that the DBE and M/WBE firms will generate 61 percentof the anticipated gross revenue for Terminal D concessions.


L-R: Sridhar Pady, Wintech; Unknown; Don O'Bannon, DFW-SEBD; Diane Waters, Concessions Unique

SUCCESS STORY

LANtek Communications, Inc.LANtek Communications, Inc. is aleader in telecommunications cablingsystems and audio/video solutions.Based in Grand Prairie, Texas, LANtekis founded on the belief that the pro-fessionalism and dedication of itsemployees, combined with theintegrity of relationships with cus-tomers, will continue to be the cor-nerstone of its success.

LANtek has had the opportunity to work at DFW InternationalAirport on several projects through the guidance and directionof the M/WBE program. "The experience that our company hasgained completing some of the largest, most widely publicizedTelecommunications Cabling projects over the last three yearshas been invaluable," states Domingo Mayorga, president ofLANtek.

Some of these projects include the new Skylink automated peo-ple mover system, the EDS Baggage Handling System and theupcoming Airport Operations Center. "This experience, coupledwith our diverse management team and staff has allowed us toextend our capabilities to clients all over the DFW Metroplexand beyond. And for this, we're grateful to DFW Airport.Thanks again to DFW Airport and we look forward to a long andequally beneficial relationship," says Mayorga.

Domingo MayorgaPresident - LANtek

This is an example of an SEBD out-reach program flyer.

University of North Texas Study

DFW Airport commissioned a study with the University of North Texas Center for EconomicDevelopment and Research to determine the impact of the Airport's expenditures with minority andwomen-owned businesses. The UNT study examined DFW's construction, professional services, andprocurement expenditures from 1997 to 2003, a seven year period.

The UNT study divided its analysis into two separate categories: capital development constructionexpenditures and procurement expenditures. The capital development construction expenditures weresingle expenditures related to annual expenditures or reoccurring purchases of goods and services thatsupport the Airport's ongoing operations.

The UNT study (using the widely-respected IMPLAN model)measured changes in key areas of economic activity, supplychain operations, and salaries.

The UNT study found that the Airport averages $150 milliondollars per year in spending with M/WBEs in the categories ofprocurement and construction. Over the past seven years,DFW Airport has spent more than $603 million dollars withM/WBEs as part of the Airport's Capital Development Program.The UNT study estimated that these contracts generated morethan $1 billion dollars in regional economic activity and sup-ported 9,000 jobs. The UNT study's analysis also indicated thatthe economic activity generated $32 million dollars in state and local taxes.

The Airport's annual procurement expenditures generated $33.1 million in annual economic activityand provide in excess of $12.6 million in wages and salaries for the regions minority and women-owned businesses.

The UNT study estimated that the overall impact of DFW Airport's spending has increased the econo-my of Dallas County by over $416 million in construction spending and $21.9 million in annual econom-ic activity. Similarly, Tarrant County business profited from the $281 million in construction economicactivity and $14.8 million in annual economic activity.

2004 MAJOR PROGRAM HIGHLIGHTS

Construction and Professional Services Highlights

The contributions of minority andwomen-owned businesses to theAirport are spread across manydiverse fields. Minority-owned firmsplayed key roles in the $2.7 billionCapital Development Program to buildTerminal D and the Skylink automatedpeople mover project. MorningAssociates is playing a significant rolewith Paragon Resources in providingstaffing for DFW Airport's CapitalDevelopment Program. AlmondConstruction Services played a leadingrole in providing the electrical


L-R: Joe Newton, DFW Minority BusinessDevelopment Center; Monica Bailey, TEIConstruction; Gina Puente-Brancato, PuenteConcessions; Victor Puente, Puente Concessions; Michelle Ford, Ford International; Rupa Dutia, RegaliPromotional Products Agency; Don O'Bannon;William Ford, Ford International

infrastructure for the Airport's new Grand Hyatt Hotel.Benchmark Data Management was instrumental in the proj-ect management and the delivery of its services for theTerminal D system integration project.

Howard Construction Company, Lemco ConstructionServices, L.P. and Vortex Construction G.P. are all M/WBEfirms that received $1 million contracts for work on Airportconstruction projects in 2004. This short list of firms onlyscratches the surface of the large number of minority andwomen-owned businesses that have contributed to thedevelopment and operation of the third-busiest airport inthe world.

Contractor Default Insurance

The SEBD partnered with DFWIA Integrated Partners(DFWIA), Airport Development, Risk Management and Legaland Audit Departments to establish mechanisms to removethe barrier of bonding and improve cash flow for small con-tractors.

DFW implemented a Subguard Default Insurance (SDI)Program that eliminates bonding requirements for subcon-tractors.

The SDI program protects the general contractor from costsof subcontractor defaults. DFWIA implemented the program on the Airport's Aviation andTransportation Security Act Compliance (ATSAC) construction project, which includes building newinfrastructure and installing new explosive detection machines across four terminals.

More than 268 firms are participating in the SDI program on the ATSAC project; of the 268 firms, 98M/WBE firms are participating in the SDI program without the requirement of posting bond.

Expedited Payment Process

The Airport's Board of Directors approved the Expedited Payment Program at its September 2003meeting. In the past, it could take subcontractors almost 40 days to receive payment after the primecontractor filed an invoice with the Airport. The expedited system can cut 32 days off the elapsed time,with most payments arriving in just 20 days.

FMC also implemented an expedited payment process for the Terminal B facilities maintenance con-tract.

DFWIA Integrated Partners implemented the expedited payment process for G-MAX construction onthe Aviation and Transportation Security Act Compliance project.

M/WBE and DBE Program Revisions

The Airport's Small & Emerging Business Department is responsible for program administration, imple-mentation and monitoring of the Airport's M/WBE and DBE program.

In 2004, the SEBD made revisions to update its Disadvantages Business Enterprise program clauses.


SUCCESS STORY

LEMCO ConstructionServicesLEMCO Construction Servicesis a Dallas-based commercialconstruction company provid-ing construction management,general contracting, design-build and consulting services.In 2004, LEMCO completedtwo projects for DFWInternational Airport totalingmore than $1 million. Theprojects included general

construction of DFW's new Centralized MonitoringFacility, which supports the Transportation SecurityAdministration (TSA) Inline Baggage ScreeningOperations, and installation of TSA equipment, partitionsand baggage checking areas in Terminals B and E.

"Thanks to the quick pay program that DFW has put inplace, during the course of a project we were paidpromptly on the 15th of each month, which is a benefitto every member of our team," says Judy Lembke, presi-dent of LEMCO. "We also cannot say enough about theenergy and personal commitment we receive from theindividuals in SEBD. We credit much of our growth in2004 to DFW's approach and commitment to partneringand growing local companies."

Judy LembkePresident - LEMCO

The SEBD implemented a contract specificgoal setting process that sets contract-by-contract M/WBE goals for each construction,professional services and general procurementsolicitation. The contract specific goals areestablished so that M/WBE goals for specificsolicitations reflect actual subcontracting oppor-tunities. In Fiscal Year 2004, the SEBD set con-tract-specific goals on more than 130 projects.

Panduit Certification

The SEBD initiated a training program with Panduit Corporation (Panduit) to expand the pool ofPanduit certified M/WBE vendor to install copper and fiberglass conduit at DFW. DFW requires Panduitcertification as a pre-qualification requirement to bid on DFW information technology projects. ThePanduit certification program increased the pool of M/WBE Panduit-certified contractors available tobid on communication projects from 10 to 15 firms.

Quarterly Chamber/Contractor Briefings

The SEBD partnered with the Information Technology, Energy & Asset Management, RevenueManagement and Airport Development Departments to conduct quarterly joint briefings for the vari-ous Dallas and Fort Worth minority Chambers of Commerce and the Black and Hispanic ContractorsAssociations. These briefings were established in an effort to enhance communication between theAirport's Owner Cities and the minority and women-owned business community.

Small Contractor's Development Program

The Small Contractor's Development Program (SCDP) is a two-year training program in which two smallgeneral contractors compete for minor maintenance construction projects. Administered by the Energy& Asset Management Department, the program provides training and technical assistance in executionof the work. Energy & Asset Management also manages the project estimates, schedules, and adminis-trative processes to ensure compliance with internal DFW requirements.

The SCDP contractors are required to provide construction services includingbut not limited to coordination, planning, cost control and support services.Furthermore, the Airport could elect to negotiate or bid delivery orders forany type of general construction, heavy highway, paving, drainage, and/or util-ity construction.

The two small firms selected for the program, Vestal Builders and New WorldIndustries, performed more than $500 million in construction projects.


Gunnar JonesNew World Industries

Small Contractors Development Training Workshop

In FY04, the Small Contractors Development Training Workshop (SCDTW) graduated more than nineminority and women-owned businesses.

The SCDTW is an eight week coursedesigned to provide technical trainingfor minority and women-owned busi-nesses. SCDTW provides intense train-ing on all aspects of owning and operat-ing a small construction firm and doingbusiness with the Airport. Althoughsponsored by SEBD, the workshops area cooperative effort between SEBD andthe major contracting departments atthe Airport: Airport Development, RiskManagement, Energy & AssetManagement and Procurement &

Materials Management. In FY04, the workshop also received private sector support from AustinCommercial, Manuel Rosas of Paragon Project Resources, SSP Consulting, L.C. and Roland Castanada,Esq.

The SCDTW curriculum includes workshops on a variety of topics including business development,financial management, insurance, and bonding. The focus of the workshops is on providing technicaltraining, and to provide the participantsthe opportunity to interact in a smallgroup setting with members of DFWAirport staff and private sector compa-nies doing business with the Airport.

For example, John W. White, VicePresident of Procurement & MaterialManagement, and Mitch Holmes,Assistant Vice President of Energy &Asset Management, both participated ina workshop on Airport related procure-

ment and construction topics. The SCDTW also afforded theparticipants the opportunity to receive guidance and insightsfrom Eugene Walker, Director of Diversity Affairs, and TomNeil, Sr. Planner/Scheduler both with Austin Commercial, onthe dos and don'ts of construction estimating and schedul-ing.


L-R: William Johnson, DFW-SEBD; Jim Crites, EVP of Operations; Don O'Bannon

Terminal D Concessions Outreach

John Wesley White, VP of Procurement & MaterialsManagement

Surety Support Program

DFW Airport's Small Contractors Surety SupportProgram (DFW-SSP) was established to assist small,minority and women-owned businesses in obtainingthe necessary bonding and insurance to bid on DFWprojects. DFW has contracted with SSP Consulting,L.C. (SSP) a professional management consultingcompany, to administer a no-fee based programdesigned to provide technical support to assistminority and women-owned business firms in obtain-ing bonding and insurance for the CapitalDevelopment Program, and selected projects out-side of the Capital Development Program.

In FY04, DFW-SSP assisted M/WBE firms in obtain-ing more than three million dollars in bonding.

SUCCESS STORY

Jet Electrical ContractorsEricka and Ray Thomas have successful-ly moved their minority-owned JetElectrical Contractors business from itshumble beginnings four years ago toone that, today, is capable of compet-ing with larger, more established com-panies.

Located in Duncanville, Texas, JetElectrical Contractors employs 14 dedi-cated and hardworking individuals whoshare the company's vision to always

strive toward excellence. This commitment, coupled with aproven track record, has afforded the company opportunities towork on projects with DFW International Airport. Currently, JetElectrical is working as a subcontractor to FMC Services, Inc. on athree-year, two-terminal maintenance project.

"It is truly a pleasure to have the opportunity to work with ourprime contractor FMC on the maintenance contract with DFWInternational Airport Terminal B and Terminal E," states ErickaThomas, principal, Jet Electrical Contractors. "I can sincerely saythat the experience has been challenging as well as rewarding forJet. It has been a chance for us to utilize new skills and increaseour scope of services."

Thomas adds. "As a small and emerging business enterprise wehave truly been blessed with growth in our business and havebeen able to employ many skilled electricians within the DFWarea. I encourage all small and emerging business enterprises toparticipate in these procurement endeavors. We anticipate andwelcome all future bid opportunities with DFW InternationalAirport."

Ericka ThomasPrincipal - JetElectrical Contractors


HONORS AND AWARDS

Recognized nationally and regionally for its commitment to disadvantaged, minority and women-owned businesses, DFW International Airport received five prestigious awards in 2004.

Corporate Social Responsibility Award

Public Relations News awarded DFW Airport a 2004 corporate social responsibility "Honorable Mention" for the Airport's M/WBE communications.

FAA Award

The FAA's Southwest Region awarded DFW Airport the FAA award forexceptional efforts in promoting equal opportunity for DisadvantagedBusiness Enterprises. DFW was one of two airports recognized in thenation for its commitment to the Department of TransportationDisadvantaged Business Program.

Government Entity of the Year Award

The Plano Chamber of Commerce honored DFW Airport as the "Government Entity of theYear" for DFW's commitment to contracting with minority and women owned businesses.

Million Dollar Roundtable Award

The United States Department ofCommerce awarded DFW Airportthe 2004 "Million DollarRoundtable Award for nine ofProcurement and MaterialsManagement buyers and/or con-tract administrators spending onemillion dollars or more withminority and women-owned busi-nesses during the year.

Momentum Award

DFW was recognized by the Greater Dallas Chamber of Commerce as aCommunity Investor, for DFW's overall economic and community impact.The Dallas Chamber of Commerce selected DFW to receive its Award ofMerit in 2004 honoring DFW for the second consecutive year for its pro-grams encouraging and facilitating M/WBE participation in DFW contracts,subcontracts, and concessions.

Regional Corporation of the Year

The United States Department of Commerce named DFW"Regional Corporation of the Year" at the 2004 Minority EnterpriseDevelopment Week for its commitment to the participation ofminority and women-owned Businesses in the Airport's contractingopportunities.


L-R: Ronald Langston, U.S. Dept. of Commerce, MBDA; Gary Fletcher, Kevin Sewell, KayFoster, Jack Dale, John Wesley White, Edward Dunagan, Bill Ellis, Hollis Trotter, all from DFW-P&MM; John Iglehart, U.S. Dept. of Commerce, MBDA

L-R: John Iglehart, U.S. Dept. of Commerce, MBDA; Linda Valdez Thompson, EVP ofAdministration & Diversity; Don O'Bannon, DFW-SEBD; Enrique Javier Loya, CHOICE! Energy

SMALL & EMERGING BUSINESS DEPARTMENT

The Small & Emerging Business Departmentis responsible for the implementation of theAirport’s M/WBE policies and programs.The SEBD develops programs and proce-dures to achieve the stated purpose of theM/WBE policies adopted by the Airport.The SEBD is also responsible for administer-ing, monitoring and reporting on the imple-mentation and accomplishments of theM/WBE program.

Don T. O'Bannon, Vice President of SEBD,reports to the Executive Vice President ofAdministration & Diversity, Linda ValdezThompson. SEBD operations are staffed with an assistant vice president, manager, twoM/WBE liaisons and administrative personnelthat support the mission of the program.SEBD’s organizational chart below reflects thedepartment's FY04 staffing and the staff'sduties and responsibilities.

DBE Policy OverviewIt is the policy of the Airport Board to ensure that DBEs, as defined in Part 26, have an equal opportunityto receive and participate in Department of Transportation (DOT) assisted contracts. It is also the AirportBoard’s policy:

1. To ensure nondiscrimination in the award and administration of DOT-assisted contracts;2. To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts;3. To ensure the DBE Program is narrowly tailored in accordance with applicable law; 4. To ensure only firms that meet 49 CFR Part 26 eligibility standards are permitted to participate as DBEs;5. To help remove barriers to the participation of DBEs in DOT-assisted contracts; and,6. To assist the development of firms that can compete successfully in the market place outside the DBE 6. Program.

DBE Program Overview

The Airport has also established a DisadvantagedBusiness Enterprise (DBE) contracting program forDepartment of Transportation (DOT) assisted con-tracts. The DBE program is intended to ensurenondiscrimination in the award and administrationof DOT-assisted contracts and to create a levelplaying field on which DBEs can compete for DOT-assisted contracts.

Firms certified as a DBE are determined to besocially and economically disadvantaged and tomeet certain personal net worth and size


L-R: Reginald Cleveland; Suzanne Cruz-Sewell; William Johnson; Don O’Bannon;Felix Galan; Tina Johnson; Melissa Woolridge

William F. JohnsonManager

Melissa WoolridgeAdministrative

Assistant III

Don T. O’BannonVice President

Reginald ClevelandM/WBE Liaison

Felix GalanM/WBE Liaison

Suzanne Cruz-SewellAssistant

Vice President

Tina JohnsonCompliance

Analyst

FY04 DBE ExpendituresPayments

Percentage

Non-DBE 81.6%

DBE18.4%

DBE Non-DBE

Total DBE Dollars Paid $29.8M

$5.5M

24.3M

DBE Non-DBE

Non-DBE

DBE

April 1, 2004 to September 30, 2004. Actual payments on contracts completed this reporting period.

In Millions with Percent

standards. The Airport participates in the Uniform Certification Process and recognizes the DBE certifi-cation of participating members. The DBE program utilizes race conscious and race neutral measuressuch as contract-specific goals, targeted outreach, advertising and technical assistance to increase theaccess of socially and economically disadvantaged businesses to DOT-assisted contracts.

Don T. O’Bannon, Vice President of the Small & Emerging Business Department has been designated asthe Airport Board’s Liaison Officer for the DBE Program.

The Airport annually sets a proposed DBE aspirational goal based upon a review of the fiscal year’supcoming concessions’ opportunities, federally funded construction and professional services projects.The Airport establishes a DBE aspirational participation goal that is submitted to the Federal AviationAdministration (FAA) in the form of a detailed goal setting methodology for approval. The Airportís twostep goal setting process breaks out the participation to be achieved on projects using race consciousand race neutral measures.

The Airport is mandated by federal regulations to provide an opportunity for community input on theproposed annual aspirational goal. Other key elements of the DBE program include non-discriminationassurances, mandatory provisions requiring prompt payment, and return of retainage and aggressiveoutreach to potential DBE firms.

The Airport submits annual reports to the FAA detailing the Airport’s DBE participation on DOT-assist-ed contracts and concessions.

M/WBE Policy Overview

Dallas/Fort Worth International Airport Board has adopted a policy of non-discrimination in Airport con-tracting. The Airport's policy is that the Airport, its contractors, subcontractors and concessionaires,shall not discriminate on the basis of race, color, religion, national origin or sex in the award and per-formance of contracts, subcontracts and concessions. DFW also requires a critical review of theAirport's procurement policies and practices to remove barriers for M/WBEs to compete for contracts,subcontracts and concessions awarded by the Airport.

The Airport’s policy recognizes the importance of supporting the growth and development of minorityand women-owned businesses that can successfully compete for prime and subcontracting opportuni-ties. In the implementation of this policy, the priority of DFW is to foster the growth and developmentof local minority and women-owned businesses in the Owner Cities of Dallas and Fort Worth.

Finally, the Airport’s policy authorizes the useof race-conscious and race-neutral measures toenhance the participation of minority andwomen-owned businesses in Airport contracts,subcontracts and concessions. DFW has alsoadopted a policy authorizing the use of con-tract specific goal setting to ensure thatopportunities are considered in light of thepool of available M/WBE firms in the DFWmarketplace.

Detailed information on DFW Airport’s M/WBEpolicy can be found atwww.dfwairport.com/seb.


M/WBE Program Overview

The Airport has implemented a Minority and Women-Owned Business affirmative action contractingprogram using race-neutral and race-conscious measures for procurements in the areas of construction,professional services and general procurements. The M/WBE program utilizes race-neutral measuressuch as general outreach, targeted outreach and technical assistance to increase the access of smalland emerging businesses to the Airport's public contracts.

The Board has established annual race-conscious contracting goals for M/WBE participation for eachcategory: construction, professional services and general procurements. SEBD establishes contract spe-cific subcontracting goals for M/WBE participation on each solicitation based upon the subcontractingopportunities and the relative availability of potential M/WBE subcontractors in the relevant industries.In addition, the scope of the M/WBE program includes M/WBE participation goals on revenue generat-ing concession contracts.

In calculating M/WBE participation, SEBD counts only the participation of M/WBE firms certified by theNorth Central Texas Regional Certification Agency (NCTRCA). The contractors' M/WBE participationcommitment is stated on the Official Board Action prior to award as a percentage of total contract dol-lars awarded.

Key elements of the DFW M/WBE program include the requirements that a contractor not discriminate,make prompt payments and return retainage upon satisfactory completion of the subcontractors work.Each contractor is contractually required to appoint a high level official that is responsible for acting asa liaison with SEBD staff regarding M/WBE participation matters.

During the performance of the contract, contractors submit monthly Pay Period Activity Reports thatdetail the payments to M/WBE firms. SEBD collects the payment data and issues a MonthlyExpenditures Report that is disseminated to the Board and other M/WBE program stakeholders.


CORPORATE/COALITION PARTNERSHIPS

American Indian Chamber of Commerce

Black Contractors Association, Inc.

Dallas Black Chamber of Commerce

Fort Worth Hispanic Chamber of Commerce

Fort Worth Metropolitan Black Chamber of Commerce

Greater Dallas Asian American Chamber of Commerce

Greater Dallas Hispanic Chamber of Commerce

Greater Dallas Indo-American Chamber of Commerce

Hispanic Contractors Association of DFW

Tarrant County Asian American Chamber of Commerce

PRODUCED BY DFW INTERNATIONAL AIRPORT PUBLIC AFFAIRS, IN PARTNERSHIP WITH THE SMALL & EMERG-ING BUSINESS DEPARTMENT.

L-R, Back Row: Suzanne Cruz Sewell, Scott Atwood, Melinda Atwood, Joe Newton, James Earl Estes, Calvin Stephens,Matthew Harden, Don O'BannonFront Row: Shirley Carlisle, Bill Hunter, Yolanda Crosley, Teresita DeLeon, Shelia Nemanti, Elizabeth Arias, Linda Morgan

For further information about doing business with DFW International Airport, contact theSmall & Emerging Business Department at 972 574 8008.


DALLAS/FORT WORTH INTERNATIONAL AIRPORT3200 EAST AIRFIELD DRIVE, P.O. BOX 619428

DFW AIRPORT, TX 75261-9428

www.dfwairport.com

2004 annual report - dfwairport.com · minority bank deposit program the minority bank deposit...

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