ACRP PROJECT 07–07 EVALUATING TERMINAL RENEWAL VERSUS REPLACEMENT OPTIONS DRAFT FINAL REPORT Prepared for Airport Cooperative Research Program Transportation Research Board of The National Academies TRANSPORTATION RESEARCH BOARD OF THE NATIONAL ACADEMIES PRIVILEGED DOCUMENT The report, not released for publication, is furnished only for review to members of or participants in the work of the CRP. This report is to be regarded as fully privileged, and dissemination of the information included herein must be approved by the CRP. Ricondo & Associates, Inc. Chicago, Illinois Faith Group, LLC. St. Louis, Missouri Kohnen - Starkey, Inc. Marshall, Virginia January 2012 i ACKNOWLEDGEMENT OF SPONSORSHIP This work was sponsored by the Federal Aviation Administration and was conducted in the Airports Cooperative Research Program, which is administered by the Transportation Research Board of the National Academies. DISCLAIMER This is an uncorrected draft as submitted by the research agency. The opinions and conclusions expressed or implied in the report are those of the research agency. They are not necessarily those of the Transportation Research Board, the National Academies, or the program sponsors. ii ACRP PROJECT 07–07 EVALUATING TERMINAL RENEWAL VERSUS REPLACEMENT OPTIONS DRAFT FINAL REPORT Prepared for Airport Cooperative Research Program Transportation Research Board of The National Academies TRANSPORTATION RESEARCH BOARD OF THE NATIONAL ACADEMIES PRIVILEGED DOCUMENT The report, not released for publication, is furnished only for review to members of or participants in the work of the CRP. This report is to be regarded as fully privileged, and dissemination of the information included herein must be approved by the CRP. Ricondo & Associates, Inc. Chicago, Illinois Faith Group, LLC. St. Louis, Missouri Kohnen-Starkey, Inc. Marshall, Virginia January 2012 iii CONTENTS EXECUTIVE SUMMARY ................................................................................................ 1 PROJECT OBJECTIVES AND SCOPE ..................................................................................... 1 KEY RESEARCH FINDINGS ..................................................................................................... 1 RECOMMENDATIONS ............................................................................................................... 1 PRODUCTS ................................................................................................................................... 2 CONCLUSIONS ............................................................................................................................ 2 CHAPTER 1 BACKGROUND ...................................................................................... 3 PROBLEM LEADING TO THE STUDY ................................................................................... 3 DATA SOURCES .......................................................................................................................... 3 Literature Review ....................................................................................................................................... 4 Airport Operator Interviews ........................................................................................................................ 4 CURRENT KNOWLEDGE ON TERMINAL REDEVELOPMENT DECISIONS ............... 4 OBJECTIVES AND SCOPE OF THE RESEARCH PROJECT.............................................. 5 DEVELOPMENT OF THE GUIDEBOOK ................................................................................ 5 CHAPTER 2 RESEARCH APPROACH....................................................................... 6 LITERATURE REVIEW ............................................................................................................. 6 CASE STUDIES ............................................................................................................................. 7 DEVELOPMENT OF THE GUIDEBOOK ................................................................................ 7 CHAPTER 3 FINDINGS AND APPLICATIONS ........................................................... 8 STEP 1: Determine Need For Terminal Redevelopment ........................................................... 8 STEP 2: REFINE TERMINAL REDEVELOPMENT OBJECTIVES AND GENERATE OPTIONS .................................................................................................... 10 STEP 3: EVALUATE OPTIONS ............................................................................................... 12 STEP 4: Document Results From the Analyses ........................................................................ 14 CHAPTER 4 CONCLUSIONS AND RECOMMENDATIONS ..................................... 16 CONCLUSIONS .......................................................................................................................... 16 RECOMMENDATIONS ............................................................................................................. 17 Plan for Implementing the Research Products .......................................................................................... 18 REFERENCES ............................................................................................................................. 18 APPENDIX A ANNOTATED BIBLIOGRAPHY ............................................................. 1 APPENDIX B SUMMARY OF CASE STUDY INTERVIEWS ........................................ 1 LIST OF FIGURES Figure 1 Step 1 Process Diagram ...................................................................................................... 9 Figure 2 Step 2 Process Diagram .................................................................................................... 11 Figure 3 Step 3 Process Diagram .................................................................................................... 13 Figure 4 Step 4 Process Diagram .................................................................................................... 15 iv ACRP PROJECT 07-07 PANEL Ms. Angela R. Newland, Broward County (FL) Aviation Department, Ft. Lauderdale, FL (Chair) Mr. Roddy L. Boggus, Parsons Brinckerhoff, Dallas, TX Mr. Kenneth A. Bower, American Airlines, Fort Worth, TX Mr. Jon A. Cimperman, Port of Oakland, Oakland, CA Mr. Kiran Merchant, Port Authority of New York & New Jersey, Chatham, NJ Mr. Gregory Wellman, HNTB Corporation, Chicago, IL Dr. Elisha Novak, FAA Liaison Mr. Matthew J. Griffin, Airports Council International, Other Liaison Ms. Christine Gerencher, TRB Liaison AUTHOR ACKNOWLEDGEMENTS The research reported herein was performed under ACRP 07-07 by the Ricondo & Associates, Inc. Team. Ricondo & Associates, Inc. served as the prime contractor, and the team includes two subcontractors, Faith Group, LLC and Kohnen-Starkey Inc. Mr. Joe Chang, Vice President of Ricondo & Associates, Inc. (Alexandria, Virginia), served as the Principal Investigator. The other authors and those providing research and technical support are Mr. Jeff Schulthess, Vice President at Ricondo & Associates, Inc.; Mr. Thomas H. Brown, Associate Vice President at Ricondo & Associates, Inc.; Mr. Taras M. Sanow, Managing Consultant at Ricondo & Associates, Inc., Mr. Matt W. Ruffra, Senior Consultant at Ricondo & Associates, Inc.; Mr. Tom Simanivanh, Senior Consultant at Ricondo & Associates, Inc.; Ms. Pilar Moffitt, Technical Specialist at Ricondo & Associates, Inc.; Ms. Faith Varwig, Principal at Faith Group, LLC; Mr. Hunter S. Fulghum, Senior Security and Technology Consultant at Faith Group, LLC; Mr. Mark Starkey, Vice President at Kohnen-Starkey, Inc.; and Mr. Bruce Lyall, Lead Cost Consultant at Kohnen-Starkey, Inc. The work was conducted under the general direction of Mr. Chang. The research team would like to express its gratitude to the members of the ACRP Project Panel for their input throughout the research project and Ms. Theresia H. Schatz, the ACRP Senior Program Officer and Mr. Joseph J. Brown-Snell, the ACRP Program Associate, for their guidance. The research team would also like to thank staff members of those airports that participated in this research: Asheville Regional Airport, Dallas Love Field, Dallas/Fort Worth International Airport, Gulfport-Biloxi International Airport, Indianapolis International Airport, John F. Kennedy International Airport, McClellan-Palomar Airport, Phoenix Sky-Harbor International Airport, and Wichita-Mid Continent Airport. v ABSTRACT This research, conducted under Airport Cooperative Research Program (ACRP) Project 07- 07, Evaluating Terminal Renewal versus Replacement Options, supports the development of a Guidebook to provide airport professionals, policymakers, and industry professionals with a step-by- step process for conducting a business-driven evaluation of competing options to renew or replace airport terminal facilities. The process is repeatable and scalable to airports of different sizes. Furthermore, the Guidebook is intended to assist the user in identifying the need for terminal redevelopment and selecting among competing options for renewing versus replacing existing terminal facilities. The Guidebook promotes a sequential four-step process wherein the need for terminal redevelopment is determined; options are developed; evaluations are performed; and recommendations are documented. vi EXECUTIVE SUMMARY PROJECT OBJECTIVES AND SCOPE Airport operators are challenged to develop alternatives to evaluating strictly cost-driven approaches for renewing