Philadelphia International Airport (PHL) has completed its initial process of setting three-year Airport Concession Disadvantaged Business Enterprise (ACDBE) goals for car rental concessions. The FY 2006 - FY2008 goals are based on PHL's assessment of the availability of ready, willing and able DBEs in the local market area relative to all ready, willing and able businesses in the local market area, available to participate on PHL's car rental concession opportunities. PHL has implemented the ACDBE goal setting methodology in compliance with the U.S. Department of Transportation ("DOT") regulations 49 CFR Part 23, issued March 22, 2005, and effective April 21, 2005.

I. THREE-YEAR GOAL FOR CAR RENTAL CONCESSIONS
Philadelphia International Airport's overall goal is 14.07% for car rental concession contracting opportunities. PHL estimates that the gross receipts from car rental opportunities will total $478,399,959 over the three-year goal period.

II. METHODOLOGY
PHL has calculated the overall ACDBE goal for car rental concession contracting opportunities in compliance with the two-step process outlined in Part 23 § 51.

Historical data indicates that PHL's past DBE participation for car rental concessions was obtained through the purchase of goods and services. PHL's car rental goal is based on the purchase of goods and services by car rental companies as outlined in Part 23 § 51(c)(5)(ii). The estimated purchases by car rental concessionaires of goods and services for FY2005 were $345,727,430. Of the estimated total, $48,643,509 was attributed to purchases from DBE firms. PHL divided the total estimated purchase of goods and services from DBE firms by the total estimated purchase of good and services to arrive at a base figure of 14.07%.

Total Purchases From DBE's
48,643,509 = 14.07%
Total Purchases 345,727,403

PHL proposes an overall ACDBE goal for car rental concessions of 14.07% for Fiscal Years 2006-2008.

PHL has not conducted a disparity study to examine any contracting anomalies with ACDBE concession firm.

III. UTILIZATION OF RACE-NEUTRAL AND RACE-CONSCIOUS METHODS

A. Race-Neutral Methods
Our projection of race-neutral participation is based upon various factors and data. For example, based on our analysis of current car rental concession contracts for fiscal year 2005, we recorded approximately 14.07% participation by disadvantaged business enterprises for that period. PHL has determined that given the current market conditions and future car rental concession opportunities, it can expect to maintain 14.07% participation through race-neutral measures.

B. Race-Conscious Measures
PHL estimates that it will obtain 14.07% from race-neutral participation and 0.00% through race-conscious measures. If there is a change in market conditions or PHL projects that race-neutral measures, standing alone, are no longer sufficient to meet the overall goal; race-conscious measures will be implemented to accomplish to the remaining goal balance.

IV. INTERIM REPORTING
If a new car rental concession opportunity with estimated annual gross receipts of $200,000 or greater arises at a time that falls between normal submission dates for overall goals, PHL will submit an appropriate adjustment to its overall goal to the FAA for approval at least six months before executing the concession agreement for the new opportunity.

Additionally, PHL will review the goals annually to ensure that the goals continue to fit its circumstances appropriately. PHL will report to the FAA any significant adjustments that it makes to its goal in the time before its next scheduled submission.