Airport Experience® News - ACDBE Issue 2025

JUNE 2025 / V23 N263

ACDBE PROGRAM UNDER THREAT

OPERATORS ENVISION POST-PROGRAM ENVIRONMENT

AXN NAMES 2025 ACDBES OF DISTINCTION

AIRPORT SPAS MEET EXPERIENTIAL NEED

AXN ACDBE of Distinction 2025 @

Traci Walton and Brittney Matlock – Owners

Purpose. Passion. PLENTY. We believe the best partnerships are built on shared values—and our partnership with PLENTY Mercantile is an inspiring example. Founded by powerhouse mother-daughter duo Traci and Brittney, PLENTY Mercantile has created more than just a beloved OKC retail brand; they’ve built a business rooted in sustainability, community, and conscious commerce. This recognition is a well-deserved celebration of their impact, leadership, and the abundance of good they bring to the travel experience. We’re proud to call PLENTY Mercantile a partner at Will Rogers International Airport.

18 ACDBE Program Threat A court challenge to the DBE program is making its way through the courts. Observers believe the concessions-focused ACDBE program is also under threat, given recent court decisions and Trump Administration rhetoric on affirmative action issues. 20 Expert View Attorney Colette Holt weighs in with her assessment of threats to the DBE and ACDBE programs. 22 Operator Impact ACDBE-certified operators know the program that aids their pursuit of airport contracts may not last, but they remain optimistic that there’s a place for small businesses in airports. 27 ACDBE Of Distinction – Superior Hospitality Group Tyrone Nabbie has built Superior Hospitality Group into an ACDBE powerhouse with nearly 60 locations in five airports. 30 ACDBE Of Distinction – Concord Collective Gregory Plummer, CEO of Concord Collective Partners and Enjoy Repeat, has seen big success in the highly competitive Los Angeles International Airport. 32 ACDBE Of Distinction – Onsite Retailers Sandi and Terry Roberts, co-owners of Onsite Retailers, manage around 30 brands across 11 airports, with another airport to be added soon. 34 ACDBE Of Distinction – Plenty Mercantile Plenty Mercantile owners Traci Walton and Brittney Matlock have been operating in airports only 18 months, but they’ve made a big impact with their retail offerings focused on sustainable, local products. 36 The Spa Experience Demand for experiences in airport terminals is on the rise, and spas are eager to meet the need with innovative treatments for harried travelers.

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4 Letter From The Editor 6 Data Check A global study from Airport Dimensions suggests airport loyalty club members have a propensity to spend more than their non member counterparts. 8 Latest Buzz Phase 1 of San Diego International Airport’s $3.8 billion new Terminal 1 will offer expanded facilities, new concessions and some post-security outdoor space to enhance the airport experience.

41 Industry Insights Elisa Grey, chief revenue management officer for Ontario International Airport, highlights collaborations and an in house advertising initiative that enhance revenues and the passenger experience. 44 One on One Minneapolis-based architectural firm Alliiance has a new president, Mamie Harvey. She and past-president Eric Peterson, who runs the global aviation division, share their insights. 47 Advertising Index 48 Before You Take Off Indianapolis International Airport spotlights local clothing designers in an in-terminal fashion showcase highlighting upcycled garments.

12 Director’s Chair Daren Griffin, president and CEO of the Reno-Tahoe Airport Authority, is in the middle of a major capital

program for RNO, one that Griffin calls “a generational leap forward” for the city.

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AX NEWS JUNE 2025

Andrew Tellijohn Senior Reporter Sally Kral Contributing Writer Sarah Beling Contributing Writer

TEAM

Barbara McCarter Portfolio Manager Chad Wimmer Senior Editorial Art Director Rae Lynn Cooper Production Manager Amanda Gochee Vice President, Marketing Strategy Katy Welch Senior Marketing Manager Tristan Lueck Marketing Coordinator Emma Vail Marketing Coordinator AXN ADVISORY GROUP Kim Becker, San Diego International Airport Derryl Benton, Avolta Zenola Campbell, Dallas/Fort Worth International Airport Bryant Francis, Cleveland Hopkins International Airport Mark Gale, Fort Lauderdale-Hollywood International Airport Eric Johnson, Nashville International Airport Roddy McOwan, WH Smith North America Pat Murray, SSP America Gregg Paradies, Paradies Lagardère Kevin Westlye, High Flying Foods

Jeff Davis Executive Vice President, Retail and Specialty Melissa Montes Vice President/Publisher Carol Ward

Editor-in-Chief Nicole Watson Business Development Manager Sally Kral Contributing Writer Sarah Beling Contributing Writer John Quinnies Contributing Writer Barbara McCarter Senior Portfolio Manager Chad Wimmer Senior Editorial Art Director Rae Lynn Cooper Production Manager Amanda Gochee Vice President, Marketing Strategy Katy Welch Senior Marketing Manager Amanda Litwack Senior Digital Marketing Coordinator Samantha Tamberino Marketing Coordinator

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JUNE 2025

Dear Readers,

JUNE 2025 / V23 N263

Welcome to the ACDBE- and small business-focused issue. AXN has covered ACDBE issues for more than two decades but never has the program felt as precarious as it does today. This issue of AXN examines the current legal landscape and how operators are preparing for whatever changes might be made. In the midst of a very serious, existential time for the program, AXN is also embracing the excellence in airport concessions offered by ACDBE operators. In its second year, the ACDBEs of Distinction honor is bestowed upon certified food and beverage and retail concessionaires who have exceled in their airport operators. This year, AXN named four ACDBEs of Distinction, and a profile on each is in the pages of this issue. Next up for AXN will be the annual food and beverage issue. Content will include features on healthy F&B options, athletes lending their star power to airport restaurants, the competitive dynamics between airport restaurants and lounges, and others. And finally, a call to action. It seems impossible, but the AX team is already gearing up for the 2026 Airport Experience Conference and the AX Awards. In July, we will again convene an Awards Committee – individuals who will judge submissions and select winners for the annual awards program. If you’d like to be a part of the committee, please contact me at carol@airportxnews.com.

ACDBE PROGRAM UNDER THREAT

OPERATORS ENVISION POST-PROGRAM ENVIRONMENT

AXN NAMES 2025 ACDBES OF DISTINCTION

AIRPORT SPAS MEET EXPERIENTIAL NEED

Happy Reading,

Carol Ward Editor-in-Chief

Airport Experience News carol@airportxnews.com

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AX NEWS JUNE 2025

ARRIVE EARLY. WE’RE THE REASON THEY We have the largest community of ACDBE partners, who are the best in the business — bringing operational expertise, exemplary service, and a passion for their community to our dining venues.

To learn about a partnership with HMSHost, contact PartnerRelations@hmshost.com.

DATA CHECK

HONING THE TRAVELER EXPERIENCE Airport Dimensions Survey Tracks Behaviors, Preferences, Priorities

BY CAROL WARD

51 % of all travelers would prefer additional seating in unused areas. 38 % favor the idea of pop-up lounges, blending privacy with accessibility. Airport Vacant Spaces

36 % want to see local, culturally relevant

pop-up retail introduced - pointing to a desire for destination-themed experiences over generic shops. 22 % support reinstating traditional retail units in their original form, suggesting limited nostalgia or attachment to outdated shopping formats. Just

The Af uent Leisure Traveler 42 % of travelers surveyed are ALT Responsible for 81 % of airport spend Travel 28 % more frequently than non-ALTs 6 x more spending globally thannon-ALTs

irport Dimensions has released the results of a global Airport Experience study designed to

categories and show a stronger interest in experiences and retail,” the study said. “Retail spend is a standout area for ALTs: in emerging markets such as Vietnam, ALTs spend up to 19 times more overall than their non-affluent counterparts, with retail accounting for a large portion of that difference.” ALTs also drive experience-related purchases, the study found. Airports are becoming more crowded, and with that passenger stress is rising. The Airport Dimensions study found that two-thirds of respondents perceive airports to be more congested. Nearly that many (62%) say they would consider paying for at least one crowd-mitigating or premium airport service.

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capture insights into traveler behavior, preferences and priorities throughout the airport journey. The AX25 research, conducted in late 2024, draws from more than 10,000 travelers across 16 key markets. The study notes the emergence of the affluent leisure traveler (ALT), and suggests they have “outsized influence and major purchasing power.” These travelers are frequent fliers who tend to spend, engage and expect more. “Unlike other travelers who spend primarily on food and transport, ALTs diversify their spending across

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DATA CHECK

Loyalty Reimagined

34 % of high spenders participate - offering an immediate opportunity to drive even more value from an already lucrative segment.

30 % of Af uent Leisure Travelers are program members, demonstrating their openness to structured engagement.

Among travelers identi ed as experience-focused, a substantial 43 % are engaged in loyalty programs, showing that emotional and experiential value is a key motivator for participation. Survey respondents also noted the existence of free space in airports. More than half (51%) would prefer additional seating in unused areas, while 38% favor the idea of pop-up lounges and 36% want to see local, culturally relevant pop-up retail introduced. Loyalty Reimagined Airline frequent flyer programs are “losing their shine due to inflated redemption rates, increasingly difficult elite tier thresholds, and fragmented reward value.” Airport have a opportunity to fill the gap, the Airport Experience report suggested. “Airports have a unique opportunity: to build direct, rewarding, and commercially meaningful relationships with travelers - particularly those already spending the most,” the report said. Currently, 25% of travelers are enrolled in an airport loyalty program. About 30% of ALTs are loyalty program members currently, and 34% of high spenders participate, the study found. One-third of airport loyalty

members say that their membership makes them spend “a lot more,” the study found, while a further 40% say they spend “a little more.” “These results suggest that while airports may be behind the curve in loyalty infrastructure, they are well positioned to leapfrog traditional models by offering simple, visible, and high- impact benefits: faster check-ins, curated rewards, access to exclusive spaces, or even bundled digital perks,” the study found. In the report’s conclusion, Mignon Buckingham, CEO of Airport Dimensions, said the data can serve as a call to action. “The findings in AX25 highlight both the extraordinary pace of change in traveler behavior and the growing expectations of airport users across the globe,” she said. “The traveler is telling us what they want, and the data shows us how they behave. This research is a call to action for the airport community: to evolve our spaces, services, and strategies to unlock new value that will benefit both travelers and airports alike.”

33 % of airport loyalty members say that their membership makes them spend “a lot more.” A further 40% say they spend “a little more.”

Just 3 % of global members say the program offers them no bene t at all - a resounding endorsement of loyalty's power when it’s done right.

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AX NEWS JUNE 2025

LATEST BUZZ

SAN DIEGO INSPIRATION Phase 1 Of SAN’s New Terminal 1 Will Debut Later This Year

BY SARAH BELING

“the need to replace the existing Terminal 1 has evolved over time as passenger volumes have grown beyond the 2.5 million people it comfortably accommodated in its first year of operation in 1967,” says Hall. “Once the Terminal 2 expansion (Green Build) was completed in 2013, the Airport Authority started planning for the replacement of Terminal 1,” at which point they decided to replace, rather than expand the current terminal to meet a projected 39 million travelers by 2035. The project – which broke ground in 2021, opened a new administration building in 2023 and a new parking plaza in 2024 – is scheduled to open the first phase of its approximately 1.16 million square foot terminal in September 2025 and the

an Diego International Airport (SAN)’s interiors will soon match the region’s serene exteriors, as

Above: The $3.8 billion T1 project at San Diego International Airport replaces a cramped, aging facility with a new terminal, the first phase of which will open in September.

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the airport prepares to complete the first phase of its wide-spanning New Terminal 1 project. SAN, located in San Diego’s downtown area, has a small footprint and limited options for expansion; nevertheless, the new facility will expand the number of gates and concessions offerings to accommodate growth. The $3.8 billion undertaking will create an entirely new Terminal 1 to replace SAN’s original facility, says Nicole Hall, senior communications specialist at San Diego County Regional Airport Authority. With the airport welcoming a recording breaking 25.24 million passengers in 2024,

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AX NEWS JUNE 2025

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List is below from left to right.

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A Global Leader in Hospitality and Entertainment DelawareNorth.com Contact Sunshine White at SWhite@delawarenorth.com

©2025 Delaware North

LATEST BUZZ

balance of its new facilities by early 2028. The program is funded by a combination of General Airport Revenue Bonds, as well as smaller contributions of airport cash and capital grants, with bonds repaid from airline revenue, parking, concessions, ground transportation fees and land rent, Hall says. The New Terminal 1, designed by Gensler and built by joint venture Turner-Flatiron , will not only feature 30 gates (11 more than currently offered in Terminal 1) and 90,000 square feet of concessions space, but also a 13-lane security checkpoint; expanded passenger seating; a designated children’s play area; two airline or common-use lounges and a post-security outdoor plaza with views of the San Diego Bay. The facility will also feature several works by local artists throughout the space, as well as a glass façade located in the ticketing hall known as the

“Luminous Wave”, which will combine form and function by reducing sun glare and heat build-up through its curved glass panels. The terminal’s design, says Gensler principal architect Terence Young, “takes inspiration from the community around San Diego: it’s a modern expression of the melting pot of cultures, foods, artistic expression, bold technology and the strong environmental stewardship of its people. From the new sculpture garden forecourt to the curated seating at the gates, the new T1 invites both customers and employees to customize their journey to be whatever they want it to be: invigorating, relaxing, exploratory, inspiring, or focused,” he says. The team at SAN has taken careful measures to ensure that the New Terminal 1 is built with sustainability in mind, adds Hall, noting that “sustainability is at the

heart of everything we do at SAN.” With goals to achieve LEED Gold certification, the new terminal is being built in accordance with the City of San Diego’s Climate Action Plan, including measures to reduce airfield emissions, an underground fuel-delivery system to eliminate the need for aircraft fueling trucks, an expanded stormwater capture and reuse system and resilient design to address future sea-level rise. The terminal will also be powered by 100 percent carbon-free electricity, will feature charging for more than 250 electric vehicles (with an additional 250 EV-ready spaces), will include an all-electric shuttle service to and from the nearby Old Town Transit Center as well as a multi-use bicycle and pedestrian path and bicycle parking spaces along North Harbor Drive. Outside the facility, travelers will be able to access the terminal via a new, three-lane on-airport entry roadway designed to reduce traffic from the busy North Harbor Drive as well as enjoy a state-of-the-art parking plaza and dual-level departures and arrivals roadway, adds Hall. Airport leaders are also planning ahead for the possibility of a future public transportation station, having set aside a walking-distance area suitable for regional transportation facilities. Concessions Upgrade Once travelers arrive at the New Terminal 1, they’ll have plenty of dining and shopping options to choose from, says Hall, noting that once complete, the facility will boast 21 food and beverage concepts as well as nine convenience and specialty retail stores from concessionaires High Flying Foods , Areas USA , Paradies Lagardère , WHSmith North America , Emerging Domestic Market Ventures Inc. , and McDonald’s USA, in concert with several joint venture partners. The terminal’s dining and retail options represent an assorted array of well-known national and local brands. High Flying Foods will operate Better Buzz coffee, Parfait Paris, Market Hall, and San Diego-based The Taco Stand, Ambrosio 15 pizza, Cutwater Bar and

Top Left: The new terminal at SAN will feature 30 gates (up from 19) and more spacious corridors and gate areas.

Left: Taking advantage of San Diego’s typically stellar weather, the new Terminal 1 will offer a post-security outdoor plaza with views of the San Diego Bay.

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AX NEWS JUNE 2025

LATEST BUZZ

Top Left: Novecientos Grados by Tony Hawk, a new restaurant operated by Areas USA, will be a focal point in the concessions program at SAN’s new Terminal 1. Left: WHSmith North America will operate The Arts District Market as well as its proprietary InMotion tech store, along with two other retail concessions.

Above: Local brands Cutwater Bar and Restaurant and Lofty Coffee Co. are two of five F&B offerings to be operated by High Flying Foods in the first phase of the new terminal.

Restaurant and Lofty Coffee. Areas USA, in a joint venture with local restaurateur Elvin Lei, will operate Mediterranean restaurant Luna Grill, SIP Wine & Beer and Mexican restaurant Novecientos Grados by Tony Hawk. Other F&B concessions in the first phase include a new McDonald’s in a franchise agreement as well as Arizona founded JT Bros. Handcrafted Sandwiches, operated by small business Emerging Domestic Market Ventures, Inc. Concepts slated to open in the project’s second phase include Chick-fil-A, Kettner Exchange, Puesto, Mostra Coffee, El Pez, NOVO Brewing and Understory Bar (operated by High Flying Foods); as well as Mr. Moto Pizza and Carnitas Snack Shack (operated by Areas USA). For concessionaires like Areas USA, the chance to contribute to the New Terminal 1 was a chance to showcase the region’s well-regarded culinary scene, says director of brands Sal Mendola. “San

Diego boasts one of the most dynamic food and beverage scenes in the country, so we set out to create a culinary program that truly brings the spirit of the city into the airport,” says Mendola, highlighting Luna Grill’s award-winning Mediterranean cuisine as well as SIP Wine + Beer’s menu, which was developed with Emmy Award winning PBS Fresh Glass host Cassandra Schaeg to showcase women and BIPOC entrepreneurs in the alcohol industry. “Our showstopper, Novecientos Grados, created in collaboration with skateboarding legend Tony Hawk, pays tribute to the rich Mexican influence on San Diego’s food and culture,” adds Mendola. “Tony wanted to share the foods he and other San Diegans ate growing up and what better chef to develop the menu than Celebrity Chef Claudette Zepeda? Chef Claudette, who grew up between Tijuana, Guadalajara and San Diego, is immensely talented and the perfect culinary storyteller.”

Convenience and specialty retail concepts set to open over the two phases include the SAN Supply Co., Univision Travel Store, Gaslamp Marketplace, Hip & Humble boutique and No Boundaries clothing store, all operated by Paradies Lagardère with multiple local small business joint partners. WHSmith and its partners will operate Liberty Station Gifts, The Arts District Market, a WHSmith branded store and The Commissary. “Our portfolio of concepts and merchandise selection have been curated thoughtfully to appeal to the diverse demographic of the SAN passenger,” says Toby Keir, CEO of WHSmith North America. As airport officials and concessionaires gear up to unveil the first phase of the long-awaited terminal later this year, Hall says they all look forward to “creating an exceptional airport customer experience for San Diego and the world.”

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DIRECTOR’S CHAIR

RNO REVITALIZATION With Passenger Traffic Surging, RNO Is Prepping For The Future

BY CAROL WARD

ditor’s Note: Reno-Tahoe International Airport (RNO) is in the midst of a $1 billion capital program called MoreRNO. The multi-year infrastructure program has multiple facets, including construction of two new concourses. Airport Director Daren Griffin says the new facilities will represent “a generational leap forward” from what is in place today. In early May, Griffin shared an update on the latest developments with AXN’s Carol Ward. E

WARD: Can we start by setting the stage with a passenger traffic update for RNO? GRIFFIN: We are sitting in a good spot right now. Business has been strong – 2024 was our busiest year from a passenger perspective in 18 years. Our growth out of Covid has been extraordinary and really unanticipated. We were on a nice trajectory, like a lot of airports were leading up to Covid. So far in 2025, we are 4% above 2024. It really started taking off last summer. We had a tremendous amount of additional seats coming to the market – 90,000 additional seats in the summer of ‘24. There’s a lot of growth in our region, a lot of tourism and a lot of business activity in the airports. WARD: It depends on the airport obviously, but those airports that are more reliant on international travel are concerned about the environment for those visitors. GRIFFIN: We benefit sometimes from things that are hard to wrap your head around. When there’s a dip in international vacations, fewer Americans going abroad, we tend to see even more activity here because it’s a great tourism destination. Northern Nevada is where the great outdoors meets the great indoors. We don’t have direct service to Canada. My friends

in Las Vegas, they’re suffering right now because the drop off in Canadian traffic has been significant, but that’s not our situation. WARD: RNO is in the middle of the MoreRNO capital program. Can you give me an update on how things are progressing? GRIFFIN: We started this program in the 2022-2023 time frame. We expanded the ticketing hall – we had too many people trying to check skis and snowboards and golf clubs and bags. Tourism drives checked baggage, and we just needed more space to improve the customer experience. We completed that on schedule and on budget. Then last fall we completed a revamp of the roadway in front of the terminal building. We reconstructed 100% of it, improved it for safety and visibility and added canopies to improve the customer experience. We are now under construction for a new ground transportation center. This is an incredibly strong rental car market. The ground transportation center is our first-ever public-private partnership – it’s a $300 million project. The facility will be a two- to three-minute walk from our baggage claim. It’s also where Uber and Lyft and others will operate.

Above: Daren Griffin, president and CEO, Reno-Tahoe Airport Authority

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airportdimensions.com

Championing Inclusion, Delivering Results At Airport Dimensions, we proudly lead with purpose — partnering with minority-owned and women-owned businesses through strong commitments to ACDBE, MWBE, and DBE programs. Across our U.S. lounge network, we don’t just meet goals — we exceed them.

Celebrating our ACDBE partners.

DIRECTOR’S CHAIR

We are also breaking ground on our first enabling project for our new concourses, which is a ramp expansion that will begin in June, and in August we will break ground on a new utility plant, which will power two new concourses, which are the main focal point of our MoreRNO program. It’s 100% gate replacement. We will build two new concourses, largely at the same time on the outboard of our existing two concourses. We will ultimately tear down all of our existing gates. They are old, undersized, antiquated and just do not fit the region’s growth. This is a big project for an airport of our size, [costing] $650 million. We will have three years of construction and 100% displacement of all airlines here at some point. It’s going to be a very challenging project, but it’s also the right project.

This is a really big program that is challenging us to our absolute limits of resources and financial reserves. But we’ve got a plan and we believe in our plan. This is not a build it and hope they will come situation. I hope when we get to 2030 we have built enough, but if we haven’t, we’ve built as much as we can afford. WARD: Have the tariffs or threatened tariffs changed the scope of the project, or changed the projected cost? GRIFFIN: There probably will be an impact, it’s just a question of how do we manage through that, and how much impact are we talking about? Can we buy early and secure some of these products, just to try and have price certainty? We’re in an active conversation and analysis with industry partners. We’re getting ready to hire the builder for the concourses, and I think they will really help inform [the process]. Some strategies might help

Top: RNO’s $1 billion infrastructure project includes two new concourses that will provide more space, particularly in gate-hold areas, to accommodate larger passenger volumes. Above: While plans for the new concessions program aren’t finalized, Griffin hopes to incorporate concessions and gaming into or adjacent to the gatehold areas to maximize exposure.

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AX NEWS JUNE 2025

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DIRECTOR’S CHAIR

mitigate any impacts from tariffs that we might see, but none of that changes our thinking on the need for the project, the importance of it and the schedule at which we’re moving forward. WARD: Can you share a big picture plan on what you’ll do for concessions in the new concourses? GRIFFIN: I would say 90% of our post-security concessions program is being replaced. We

are working through with industry partners, including outside consultants and then experts on the design team to reimagine the entire concessions experience. Concessions for us is the usual – food, beverage and retail – but it’s also gaming. We’re working to design concessions where they’re not cannibalizing each other and that we’re maximizing the revenue and the customer experience. [We’re looking at] what local, iconic restaurants or retailers must be in a basically new airport, and how do the national brands that we all know and love fit in. What’s the right balance and blend? How do you co-locate and embed a concession almost into a hold room? The master concessionaires are driving a lot of the innovation. We’re talking to all of them – it’s actually easier to have those conversations when you’re not in the selection phase yet. Beginning late this year, we will start the contracting phase, and it will take about two years to bid out the entire program. For gaming specifically, only two airports in America really get to have gaming like we do. It’s us and Las Vegas – what should that look like? We’d like to evolve [our approach] – that’s going to be one of the more innovative and unique aspects of the new concourses. We realize we’re going to disrupt the existing operations as we being building the new concourses. We’ve been focused on beautifying the existing concourses because they need to continue to serve our passengers until we are out of them. We will ask for patience from our customers and our tenants and try and be a great partner to keep them all doing well through this program. Then in 2029, hopefully we can enjoy the fruits of these labors and relax for a bit. WARD: Are there other innovations or changes you’d like to highlight? GRIFFIN: There have been a lot of incidents in aviation this year and that adds to people’s anxiety levels around flying. We’re thinking about … innovative ways that we can reduce stress, whether it’s music or food or beverages or the type of seating. We’re building in adult changing rooms, places for parents to take care of their kids, we have the therapy dogs for stress relief… We’re trying to make a generational leap forward compared with what we have today. When we finish with this in 2029, we’re going to be on par with other airports and hopefully leading the pack. It’s all about the customer at the end of the day, and that is where we’re focusing our innovation and thinking on making the airport as great as it can be.

Below: RNO’s current concessions are performing well but will be put to the test when construction starts on the airport’s two new concourses.

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THE DBE PROGRAM CHALLENGE Legal Case May Have Repercussions For ACDBE Program

BY ANDREW TELLIJOHN

A spate of lawsuits filed in recent years that aims to eliminate programs aimed at providing minority- and women owned businesses with the opportunity to compete for federally funded contracts has brushed up against airports, with the U.S. Department of Transportation’s Disadvantaged Business Enterprise Program being one of the latest targets. The lawsuit, filed in October 2023 by Mid-America Milling Co. LLC and Bagshaw Trucking , pits those firms against the USDOT as they argue that DBE goals amount to discriminatory barriers against firms not certified for those programs. The lawsuit contends that the DBE goals prevent them from competing for contracts on an equal footing.

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“It’s time for discrimination to end,” according to Dan Lennington, deputy counsel with the Wisconsin Institute for Law & Liberty, which has filed several lawsuits arguing against affirmative action and diversity, equity and inclusion policies, in a statement announcing the lawsuit. “Our clients are hardworking small business owners who just want to build roads and make America a great place for everyone. But time and time again, they lose out on business because of their race and gender.” The Status While Mid-America and Bagshaw are highway contractors and the case currently affects only the construction portion of the regulation, which was enacted in 1983 to remedy the ongoing effects of past discrimination, the DOT also oversees the DBE program as it relates to airport projects. So, industry observers say, it’s a matter of time before these cases hit airports, including the DBE program’s cousin, the Airport Concessions Disadvantaged Business Enterprise (ACDBE) program. The lawsuits, coupled with the Trump Administration’s distaste for diversity and affirmative action programs, has airport industry stakeholders concerned for the future of these affirmative action programs. The case has already had an impact on bidding for federally funded infrastructure projects since it was filed. A preliminary injunction has been issued against the use of DBE contract goals on contracts in which the two subcontractor plaintiffs are “interested in bidding.” As of mid-May, there has been a voluntary stay to allow the parties time to resolve the case. As those discussions continue, program supporters are bracing themselves for the likelihood the DBE program may be facing its biggest changes since implementation nearly 40 years ago. This case – and others – are still at the state court level, but there’s an expectation they’ll move up the system toward the U.S.

Supreme Court, which has a conservative make-up and has not been friendly in its own right to affirmative action in recent years, says Warner Session, founder of Session Law Firm and former member of the Metropolitan Washington Airport Authority Board . “The first salvo were the Harvard [University] and North Carolina education cases where they said race could no longer be used in evaluating admission,” he says. “That’s really the hook these plaintiffs are now citing.” The Federal District Court in this case in October issued a narrow preliminary injunction suspending the use of race and gender-based presumptions in the case with respect to bids involving Mid-America and Bagshaw. In November, the court extended and clarified its injunction to include all states in which the plaintiffs bid for contracts. In The Meantime While waiting for the current stay to play out, several organizations have joined the USDOT with the goal of defending the DBE programs. Those include the Airport Minority Advisory Council , which, in a statement, cited US DOT data in saying DBE certified operators have earned $34 billion over the past five years. “The DBE program is designed to remedy ongoing discrimination and the continuing effects of past discrimination against minorities and women,” the organization wrote in the October statement. “As we know, our airport members serve as dynamic hubs that provide essential transportation services, stimulate economic growth, create employment opportunities and contribute significantly to the prosperity of local communities and the broader national economy. A critical part of the ecosystem is minority and women-owned businesses that support infrastructure growth and accelerate local economic development and American global competitiveness.”

Other supporters include the National Association of Minority Contractors (NAMC), Women First National Legislative Committee, Women Construction Owners & Executives, Illinois Chapter (WCOE Illinois), Atlantic Meridian Contracting Corp and Upstate Steel. The groups are being represented by Democracy Forward, the Minority Business Enterprise Legal Defense and Education Fund and Wyatt, Tarrant & Combs LLP. “This case is an attempt to devastate businesses owned by people of color and women across the nation and it is absolutely essential that the businesses that will be most harmed by the result of the case should be heard,” said Sarah von der Lippe, pro-bono counsel for MBELDEF, in a statement at Democracy Forward’s website. “Minority- and women-owned businesses have been burdened by discrimination for centuries. It is both legally right and morally necessary for the government and the private sector to take action to remedy that discrimination.” “Given the extent of virulent discrimination against minority-owned businesses, the federal government’s response has generally been far too tepid,” adds Wendell Stemley, national president for NAMC, in the same statement. “The DBE program provides important opportunities for minority-owned businesses and it should be expanded to meet the demand of rebuilding our infrastructure, not gutted.” The Caveat That said, there are significant challenges to the program beyond just the court cases. While Trump cannot unilaterally “Minority- and women-owned businesses have been burdened by discrimination for centuries. It is both legally right and morally necessary for the government and the private sector to take action to remedy that discrimination.”

Program supporters are bracing themselves for the likelihood the DBE program may be facing its biggest changes since implementation nearly 40 years ago.

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eliminate the program, he ultimately oversees the agencies that would be responsible for implementing any changes demanded by the courts. Furthering the problem, Session says, is that it’s up in the air whether the Department of Transportation, under President Trump’s lead, intends to defend itself in the case. Leadership of the agency serves at the pleasure of President Trump, who has expressed disdain for diversity, equity and inclusion programs and for affirmative action. “That’s problematic to say the least,” Session says. “AMAC actually filed a petition to intervene as an interested party in the lawsuit. I’m not aware that they’ve ruled yet on that petition. But, again, if your defendant is not defending, if the Department of Transportation would essentially concede to the plaintiff, there’s the ballgame.” Additionally, the Federal Aviation Administration’s staff has been cut significantly since Trump took office in January, creating further questions about the level to which any program rules will be enforced. “I can assure you, as it relates to enforcement and compliance in the Trump administration, nobody is at home,” Session says. “There’s nobody at all.” What Does The Future Look Like? It’s important to note, Session says, that while President Trump has issued a number of executive orders – including one dating back to the Nixon era that prohibited discrimination in government contracting -- those executive orders are not law, Session says. So, theoretically anyway, the program is still operational under its last reauthorization. That said, with a federal program facing lawsuits that its oversight agency has limited motivation to defend, a potentially unfriendly Supreme Court and an anti-affirmative action president overseeing any changes required to the program through legal decisions, what does the DBE program’s future look like? The DBE program was enacted by Congress, so Trump does not have the authority to end the program himself, but if the lawsuit in question requires changes to the program, they would be enacted by a DOT and Federal Aviation Administration overseen by Trump. “The question,” Session says, “is will the program, as time goes on, be so decimated or diluted that, effectively, there is no program, even in the absence of the law being eliminated.”

ASSESSING THE IMPACT Attorney Colette Holt Shares Insights On Legal Implications

BY ANDREW TELLIJOHN

Mid-America Milling Co. vs U.S. Department of Transportation is the most direct case challenging the legitimacy of the federal Disadvantaged Business Enterprise program and its sidekick, the Airport Concessions Disadvantaged Business Enterprirse Program. Currently, the court has issued a preliminary injunction preventing the DOT from mandating the use of race- and gender-based presumptions for contracts on which Mid-America and its co-plaintiff, Bagshaw Trucking Inc., wish to bid. Colette Holt represents public agencies and private firms on issues related to civil right, public contracting and affirmative action. She has experience conducting defensible disparity studies, providing expert witness commentary, drafting policy and legislation and defending such programs, counseling private firms on compliance with diversity requirements. Holt isn’t personally involved in Mid-America Milling Co. v U.S. Department of Transportation but she’s been watching that case and others that have challenged the legitimacy of

Above: Colette Holt represents public agencies and private firms on issues related to civil right, public contracting and affirmative action

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diversity in airport projects and what’s your sense for how that would look nationwide? HOLT: We will certainly see more “race neutral” programs and program elements. While remedies directed at the problem of discrimination on the basis of race or gender were severely curtained in the wake of Western States v. Washington State Department of Transportation, many agencies commissioned “disparity studies” and adopted race-conscious program elements, leading to a mix of program elements. I have been counseling for many years that we need to focus more on awards to DBE prime firms (these are NOT subcontracting only programs), so those approaches would all be race-neutral anyway. It will also force agencies that do not want to see a reversion to the days when almost all the work went to larger firms and firms owned by White men to examine their own behavior and operations. Who cares about the DBE program if the agency doesn’t pay on time? Can contracts be “unbundled” into smaller or less complex scopes to allow smaller firms to successfully bid on them? Are experience standards overly restrictive? What about insurance requirements (do you really need $3M of commercial general liability coverage for a $150,000 contract?)? Is the owner ensuring non-discrimination by examining the prime contractors’ bidding processes? What about setting aside contracts for bidding only by small firms, or providing extra evaluation points for small prime proposers? I’m not pretending that losing the direct remedy for race and sex discrimination isn’t going to hurt minority- and woman owned businesses; it will, as we saw in the wake of Western States and the outlawing of civil rights remedies in California and Washington State. But the federal courts were moving in this direction before Trump, and after the Students for Fair Admission v. Harvard decision, the trend is clear. My advice to DBEs is to take a hard look at your business and focus on upgrading your skills and working your networks. Prime contractors and owners must beef up their outreach efforts and reduce internally created barriers to small firms. These will not be a panacea, but it will be better than nothing.

affirmative action programs in recent years. She shared some of her observations with Freelance Reporter Andrew Tellijohn on what has happened and on what might be to come. TELLIJOHN: How has this case changed the DBE/ACDBE programs so far and what do you see as the implications going forward? HOLT: The plaintiffs have asserted they seek to work in 23 states (which is highly questionable, but the court took this at face value!). This has resulted in solicitations being readvertised or amended to delete a DBE contract goal. TELLIJOHN: Several organizations have jumped in to support the DOT, including the Airport Minority Advisory Council. But Trump oversees the DOT – what does that mean for defense of the program and for what changes might result from this litigation? HOLT: My expectation is that the Trump administration will somehow seek to contain, or even eliminate, at a minimum, DBE contract goals. It will be interesting to see if the court will allow outside parties to intervene to keep the litigation alive when the defendant seeks to end it. TELLIJOHN: President Trump can’t unilaterally eliminate the program, but Trump’s DOT/FAA oversees it – and staffing at the FAA has been reduced significantly – how does that affect compliance, oversight, etc. now and into the future?

HOLT: It is difficult to administer a program that is federally mandated if the federal agency chooses not to adequately staff or resource it. There is a rumor that the DOT’s Civil Rights Offices (and other federal departments) will be disbanded. This will obviously negatively impact enforcement and compliance. That said, recipients and contractors that believe in civil rights and want to continue to break down barriers caused by historic discrimination against racial and ethnic minorities and women in the transportation industry can continue effective efforts to do so. TELLIJOHN: How are or how should airports respond with respect to the demands of the executive branch versus the existing requirement for them to achieve diversity goals on federally funded projects? HOLT: It is important to remember that Executive Orders are not statutes or laws. The President can only order those under his direct control to take, or refrain from taking, specific actions. The DBE and ACDBE programs are still the law, and the regulations at 49 CFR Part 26 and Part 23 remain fully in effect and binding on recipients. TELLIJOHN: What’s the future – is it a race/gender neutral future? The Western States Paving case of 2006 has guided the 9th Circuit for nearly 20 years now – how has that worked with respect to retaining

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GEARING

FOR A FIGHT Certified Operators Expect Challenges To Diversity Programs

BY ANDREW TELLIJOHN

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In the 1970s, Bill Swift worked for then Atlanta Mayor Maynard Jackson when Jackson promised to scuttle a terminal project at Hartsfield-Jackson Atlanta International Airport (ATL) unless contractors doled out a significant portion of the work to minority-owned companies. Through to the 1980s, Swift watched as both a government employee and as owner of his own companies – as Swift approaches 80, Business Traveler Services still has several contracts at ATL – as Congress established the Disadvantaged Business Enterprise (DBE) program in 1983 and then, the Airport Concessions Disadvantaged Business Enterprise (ACDBE) program in 1987. And he’s watched as various court challenges and other discussions have caused those programs to evolve – and as companies owned by minorities and women earned the opportunity to participate in more projects. So, it’s hard for him to watch as a conservative U.S. Supreme Court, the re-established Trump presidency and several empowered opponents of affirmative action programs work to end the programs he’s dedicated much of his career to promoting. “This is probably the most aggressive attack without foundation I’ve ever heard of in my 80 years of being on this planet,” he says, adding that the importance of the programs is more than anecdotal – it has been validated by disparity studies conducted in several cities around the U.S. “That documentation affirmed that over many years in many cities that there was an exclusion, intentionally or unintentionally, of women and minorities. It’s not just wishful thinking – we have evidence.” Keeping People Involved Not only have minority- and women owned companies benefited from being able to compete for projects at airports, they’ve done a great job of expanding competition and giving the traveling public a broader range of variety, Swift says. “Why toss that all out because of someone with a limited understanding of how well the program has worked when it is applied properly?” he adds.

Swift says it’s important for program supporters to get involved, not just by educating lawmakers, but folks who are new to the program, as well. Many long-time program advocates have felt frustration in recent years because younger generations entering the airport industry haven’t had the same spirit or fire for maintaining the DBE and ACDBE programs – it’s time to fight back. “Double down on your local politicians, state politicians and leaders to help them stay alert and aggressive in their efforts to maintain the programs because these programs have had an economic impact wherever they exist,” he says. “The other side is just continuing to educate the newbies and affirm with those who’ve been around.” Kimberly Griffin, owner of DBE Consulting LLC , agrees. She’s disappointed to see several decades of progress rolled back and the leveling of the playing field, again, going in the wrong direction. Griffin consults with ACDBEs on certification issues and she’s a joint venture partner in seven food and beverage outlets at ATL. She’s also involved with the Airport Minority Advisory Council. Her family was involved in the push for civil rights and she’s a member of the same church where Sen. Rev. Raphael Warnock preaches. Watching them and the likes of civic, community and political leaders like Andrew Young, she says it feels like a responsibility – one she feels thoroughly drawn to – to be involved on Capitol Hill and in writing letters to Congress. “I live in Atlanta where I walk among giants every day,” she says. “There are always these amazing people who fought, not to take over, but just for equality and, to me, where we are, it’s just sad.” She thinks it’s important that all stakeholders – businesses, partners and advocates – get unified to fight in defense of the program. “Given the current legal and political climate, it’s more important than ever,” she says. “AMAC has been at the forefront of this advocacy, coordinating direct engagement with lawmakers. … These initiatives help educate Congress on

Above: Kimberly Griffin, owner of DBE Consulting, is ready to fight like those who fought for civil rights in the past.

the real-world economic impact of the ACDBE program – from entrepreneurship and job creation to supplier diversity and generational wealth-building.” What Can You Do? Further, she emphasizes: The program is still alive. Programs are still in place. “So are the opportunities,” she adds, suggesting that companies still get certified. “Certification gets you in the room. Certification isn’t just paperwork. It’s a signal to airports and primes that you’re qualified. It opens doors to opportunities that often are not available to non-certified firms. And opportunities move fast. Finally, she says, get involved. “Your voice strengthens the program,” she says. “Every certified business adds weight to the program’s value and legitimacy. By joining the ACDBE/DBE ecosystem, you help protect it. The more diverse businesses that participate the stronger our collective voice becomes, especially in conversations with lawmakers and regulators.” Getting certified also gives you a voice at the table as the program inevitably evolves. “What’s happening now is a pivotal moment,” Griffin says. “Federal programs evolve, but equity in procurement is not going away. Certification positions you not just for today’s contracts but for tomorrow’s structure.”

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