Aviation Capital Works Means Opportunity For MWBEs

The Port Authority's five airports handle more than 107 million passengers and 2.3 million tons of cargo per year.

That's a lot of activity, and it translates to staggering economic benefits for the New York/New Jersey region.

The airports -- LaGuardia, Newark Liberty, John F. Kennedy International, Stewart, and Teterboro -- support nearly 500,000 jobs paying more than $20 billion in wages and generating more than $60 billion in annual economic activity. They function as vital economic engines for the region, but like all engines, they require maintenance.

"Our airports are some of the oldest in the nation," said Don Free, Program Director for the Port Authority's Aviation Department. "For the most part, they're located on postage-sized land parcels in comparison to other major airports. In some places, they are showing their age with a few creaks as well as a few leaks, but the Port Authority and our airline partners have, and continue to make, huge investments in our airports' future. These are focused, smart, and targeted investments."

Each of these investments spells opportunity for PA-certified MWBEs. Over the past 15 years, the Port Authority's $15 billion public-private aviation redevelopment program has remade all but a few remaining pieces of JFK, EWR, and LGA.

"We've built rail access, new terminals, and other infrastructure," said Mr. Free. "But that's just the tip of the iceberg."

Mr. Free pointed out the following ongoing projects:

  • JetBlue is investing $200 million to expand Terminal 5 and reconstruct runways.
  • Also at JFK: Delta's ongoing construction at JFK Terminals 3 and 4, a combined investment of $1.2 billion.
  • At LGA: redevelopment of the Central Terminal Building.
  • At EWR: redevelopment of Terminal A.
  • At Stewart: a new Federal Inspection Facility with substantial airside work.

JetBlue: a story of success

JetBlue began its international service from JFK in 2004. To facilitate its rapid growth, the airline built Terminal 5 in 2008. By 2011, Terminal 5 handled nearly 10.5 million passengers, a number representing nearly a quarter of JFK's overall traffic. Suddenly, Terminal 5 was the busiest terminal in an already busy airport.

The growth of JetBlue equates to growth for the region, the country, and participating MWBEs.

As noted above, JetBlue will spend a minimum of $170 million to expand Terminal 5 with an eye toward growing and consolidating its international service. The company has already demolished adjacent Terminal 6, an obsolete building, to make way for this expansion.

In Mr. Free's words: "[JetBlue's] expansion will allow them to better meet the needs of their international customers with their own terminal, while providing flexibility for further expansion to accommodate future growth."

The new international arrivals facility will consist of approximately 145,000 square feet on 3 levels. The project will also include:

  • the construction of a Federal Inspection Service facility within the expanded terminal to accommodate up to 1,200 international arriving customers per hour,
  • the associated Customs and Border Protection support spaces, and
  • two new international Baggage Claim units.

In addition, JetBlue will spend $35 million to improve the new terminal's ramp area. This includes:

  • the construction of three aircraft hardstand positions for JetBlue's international operations, and
  • two 747 hardstand positions.
An artist’s rendering of JetBlue’s proposed Terminal 5 expansion

An artist's rendering of JetBlue's proposed Terminal 5 expansion

JetBlue currently employs over 4,200 crewmembers at JFK. The company expects this expansion project to increase that number by 150.

Construction commenced in July and should finish by late 2014.

All this work presents massive opportunities for PA-certified MWBEs.

Delta pride: $100 million to MWBEs

Delta's business at JFK has grown rapidly. In 2002, Delta's Terminals 2 and 3 handled 5 million passengers. By 2007, that number nearly doubled to 9 million. In 2011, they hit over 11 million, representing approximately one quarter of JFK's current passenger market.

As a result, Delta has also planned a major slate of expansion and rebuilding at JFK.

The Delta project will demolish Terminal 3 and relocate the building's current operations to new, modern facilities in an expanded Terminal 4. Construction has already begun. Work on Terminal 4 is expected to be complete by the end of 2013.

Originally built in 1960, Terminal 3 was the former Pan Am Worldport. Its warren of corridors was designed in the age before jumbo jets and can no longer accommodate the modern security requirements of a post-9/11 world.

To address these deficiencies, Delta will build nine new gates primarily for international use. The new builds will expand the number of overall gates from the current 16 to 25.

Delta intends to construct a three-level extension of Terminal 4's concourse B, adding nine new international gates, hold rooms, and retail facilities. Additionally, Delta will renovate seven existing gates in the concourse for its operations and modify the terminal's head house to expand the passenger and baggage processing capacity, including the installation of an in-line baggage screening system.

The estimated total cost of this project is approximately $1.2 billion. Approximately $950 million will be used on the Terminal 4 construction while another $252 million will go toward demolition work and associated construction on Terminal 3.

Terminal 4 expansion is expected to be completed in the spring of 2013.

Terminal 3 at JFK (shown here) was built in 1960 as the Pan Am Worldport

Terminal 3 at JFK (shown here) was built in 1960 as the Pan Am Worldport

Work on the Terminal 3 site, as well as other construction, is expected to be completed by the summer of 2015.

Delta is proud of its track record for minority, women-owned and local business enterprise involvement. Of the total contracts awarded for all services brokered thus far, almost 20 percent or $100 million have gone to MWBE firms. Delta encourages women and minorities to register their firms at its Regional Alliance website. Visit: www.regional-alliance.org.

An artist's rendering of Delta's proposed new Check-in and Sky Priority lobby

An artist's rendering of Delta's proposed new Check-in and Sky Priority lobby

Replacing the Central Terminal Building at LGA

Dedicated in 1964, the Central Terminal Building (CTB) at LaGuardia Airport has served the travelling public faithfully for nearly 50 years. This single structure contains over half of LGA's 72 aircraft gates. The Central Terminal Building was designed to handle an annual passenger capacity of 8 million, but peaked in 2006 by serving nearly 13 million. The latest forecasts call for even sharper rises; it is estimated that 17.5 million passengers will be served by 2030.

It is time for a change.

Conceptual plans to redevelop the CTB complex are substantially complete. The LaGuardia Redevelopment Program provides for in-kind replacement of the CTB, parking garage, and roadways, as well as several ancillary facilities at a cost of approximately $3.5 billion.

The Central Terminal Building at LaGuardia Airport is forecasted to handle 17.5 million passengers per year by 2030

The Central Terminal Building at LaGuardia Airport is forecasted to handle 17.5 million passengers per year by 2030

This artist's rendering of the proposed new CTB shows the facility's departures frontage looking West with the NYC skyline (in the background) and a view into the new check in hall (right)

This artist's rendering of the proposed new CTB shows the facility's departures frontage looking West with the NYC skyline (in the background) and a view into the new check in hall (right)

At Newark Liberty: Redevelopment of Terminal A

The Port Authority is also planning a new Terminal A at Newark International Airport. Built in 1973, Terminal A was designed for smaller aircrafts and now suffers from insufficient hold room, retail, security and restroom space to serve current passenger capacity. The facility features dated mechanical systems that will have to be replaced. It also occupies an area that will be impacted long-term if additional runways need to be constructed.

Terminal A is shown in red in this map of the southern side of Newark Airport.

Terminal A is shown in red in this map of the southern side of Newark Airport.

The proposed new 33 gate Domestic Terminal A features a 3-concourse layout with a central head house arranged in a "T" shape. The terminal proposed will be a 2-level building with a third mezzanine level for airline clubs situated above security checkpoints. The terminal footprint will occupy space outside a future Runway and Taxiway system without impacting the existing Terminal A while construction takes place. The new Terminal A will be a LEED Silver building that includes a 3,000 space parking garage with a pedestrian overpass connecting the existing AirTrain system to a new roadway network that serves the garage and terminal.

The anticipated total cost of the project is between $1.8 and $2.2 billion.

A slate of investments at Stewart

"At SWF, the Port Authority intends to construct a Federal Inspection Station (FIS) for arriving international passengers," said Mr. Free. "We currently have an interim FIS with four positions for Customs and Border Projection staff, but if we want to attract carriers, perhaps a low-cost international carrier for example, we need something larger and more permanent."

An aerial photo of the Stewart Airport runway

An aerial photo of the Stewart Airport runway

To this end, the agency plans to build a permanent FIS at a cost of about $20 million with an expected completion date sometime in mid-2014. The new FIS should process more than 250 passengers per hour.

"We are also expecting to put out bids for major taxiway and runway rehab work with an estimated cost of about $143 million," said Mr. Free.

He anticipated the release of those bids near the end of 2012.

Get ready, get involved

This is an exciting time to be a Port Authority-certified MWBE. There are many contract and sub-contract opportunities in the pipeline. Is your firm ready to secure a bid? Read on to find out if the services offered by your firm matches upcoming opportunities.

The next article (AVIATION OPPORTUNITIES FOR MWBEs) lists potential areas of need, as well as ways to get your firm up to speed and ready to participate.

Aviation Opportunities For MWBEs

Massive renovations are scheduled to take place at five Port Authority aviation facilities (See: AVIATION CAPITAL WORKS MEANS OPPORTUNITY FOR MWBEs). The agency and its airline partners will turn to certified MWBEs for contracting and subcontracting opportunities in many areas including:

Consulting Opportunities

  • Engineers - structural, civil, mechanical, electrical, electronics, IT, HVAC, geotechnical
  • Architects / Planners
  • Schedulers
  • Commissioning Agents
  • Historic Preservation
  • Graphic Design
  • Financial
  • Insurance / Legal

Construction Opportunities

  • General Contractors
  • Sub-contractors – demo, geotech, environmental, sustainability, security, IT, utility relocation & placement, civil (roads), site grading, masons, steel workers, framing, floors, plumbing, lighting, HVAC installation & equipment, vertical transportation, landscaping
  • Cost Estimating
  • Risk Assessment
  • Surveying
  • Construction Management
  • Site Safety
  • Maintenance
  • Training and Education
  • Materials Suppliers & Fabricators – glazing, curtain walls, all interior finishes & equipment, concrete, asphalt, steel, aluminum, misc metals, pre-fabricated exterior wall panels, interior and exterior doors, common use ticketing/baggage processing kiosks
  • Construction & Demolition debris recycling and hauling
  • Operations – All airport personnel, concessions fit-out and operations

Be prepared

How can your business participate in these upcoming offerings? Simple. Follow the three steps below:

  1. If you have not already done so, register with www.paprocure.com and create a vendor profile. Already registered? When was the last time you checked your vendor registration? Ensure that not only the bid class codes reflect the commodities or services your firm provides, but also that email, mailing address, and other contact information is current. Do not miss an opportunity because of an inaccurate email address!
  2. Visit www.panynj.gov/supplierdiversity to find more information on our MWSDBE programs and to download certification applications. If you are already certified and are a construction contractor, be sure you are qualified in the category that currently reflects the level of work you are currently capable of performing. Construction firms are qualified in either Range A, Range B and Range C. Ranges are determined based on the Construction References you supplied with your certification application.
  3. Contact us: email certhelp@panynj.gov or call 212.435.7837 for answers to your certification questions.

MWBEs Play Pivotal Role In Sandy Cleanup

Hurricane Sandy ripped up the northeast coast in late October, inflicting close to $65 billion in damages on New York and New Jersey.

During her short but terrible rampage, Sandy flooded key areas of lower Manhattan, devoured the Jersey coast, blasted Long Island, and pounded all points in between. She picked up cars and shipping containers waiting on the docks of the Port of New York and New Jersey and flung them into the water. Her strong waves snapped a barge in half. Hundreds of thousands of people were left homeless or without power.

"If you live in this region, you know that Sandy was one of a kind," said Lash Green, director of the Port Authority's Office of Business Diversity and Civil Rights. "We grieve that so many of our local people and businesses suffered losses. But we celebrate that our Port Authority-certified MWBEs played key roles in the recovery."

All told, the agency contracted with more than 20 MWDBEs to provide goods and services related to Sandy's cleanup.

The list of firms reads like an alphabet soup of helping hands.

ABCO Maintenance, Inc. swept roadways and removed debris at The Teleport Business Park on Staten Island.

Angel Electrical Construction, Inc. provided emergency lighting and associated materials for leased properties.

Atlantic Subsea, Inc. performed priority marine repairs and restored the damage east of the Toyota leasehold at Port Newark.

And on and on.

"Many protégés from our agency's MWBE Mentor-Protégé program stepped up to the plate in astonishing ways," said Mr. Green. "It reminds me of that old adage that crisis breeds opportunity. No one wanted Sandy to hit, but she did, and we all had to deal with her. Port Authority certified firms were ready for the challenge."

Port Authority MWBEs distinguished themselves throughout the region

A longtime associate of the United States Army Corp of Engineers, MZM Construction Co. Inc. mobilized to replenish sand raked away by crashing waves on Long Beach Island, NJ.

"[The effort involved] 1,000 trucks and 30,000 tons of sand to be placed within two days," said Marjorie Perry, President & CEO of MZM. "We successfully completed that task during the height of the Sandy Super Storm."

MZM is no stranger to this kind of work. Last year, the company worked on a similar beach replenishment project involving 128,000 tons of sand used to reconstruct parts of Brigantine Island off the coast by Atlantic City. Coincidentally, Atlantic City is where Sandy made landfall on October 29 at about 8 p.m. with winds slashing up to 90 mph.

"What we took away from this," says Ms. Perry, "Is that your relationships with vendors and your own team has to be flexible if you want to move quickly. It was a win/win for the residents of Long Beach Island, the USACE, MZM, and the 400 employees we work with around the clock."

Donna Jabbour, owner of TNT Industries reports that her firm handled several jobs as part of the Sandy cleanup.

"We repaired and replaced a wind-damaged trailer skirt for JetBlue," said Ms. Jabbour, "Pumped out a loading dock and removed damaged sheetrock and floors on a couple of levels at warehouse offices in Long Island City. We furnished and installed a new natural gas standby generator for a bank branch. In all, it was a busy time."

Ashnu International Inc. reported that it was teaming with URS Corporation to clean up storm-damaged houses, as well as to provide heat and light in Far Rockaway and Staten Island, two areas devastated by Sandy.

"Several PA-certified MWBEs set themselves up for success by registering with the Federal Emergency Management Agency (FEMA) to provide assistance if needed," said Mr. Green. "We're most proud to see that spirit of willingness and an attitude of wanting to help."

New York State Can Help You Secure Surety Bonding

The Port Authority of New York and New Jersey is committed to helping you grow your business.

We are proud to inform you that, through our relationship with New York State Empire State Development, Port Authority New York based certified M/WBEs are eligible to apply for the New York State Surety Bond Assistance Program (NYSBAP).

The NYSBAP provides technical and financial assistance to help contractors secure surety bonding.

Contractors may be eligible to receive a guarantee of up to 30% to secure a surety bond line, bid bond, or a performance and payment bond on State projects.

Training is also available for contractors requiring technical support on how to become bond-ready.

For more information and to fill out a NYSBAP application, visit:
http://esd.ny.gov/BusinessPrograms/BondingAssistance.html
or contact Ms. Huey-Min Chuang at Empire State Development
at 212-803-3238 or BAP@esd.ny.gov.

The Opportunity Report is published by The Port Authority of New York and New Jersey.

225 Park Avenue South
New York, NY 10003
www.panynj.gov

For news and article ideas:
Damon DiMarco
Phone: (212) 435-6401
ddimarco@panynj.gov

To check the status of your certification please email: certhelp@panynj.gov



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