REPORT TO THE BUSINESS ADMINISTRATION COMMITTEE - Recommendation to Award a Sole Source Contract for Management and Operation of a Registered ...
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REPORT TO THE BUSINESS ADMINISTRATION
COMMITTEE
Recommendation to Award a Sole Source Contract for
Management and Operation of a Registered Traveler
Program at Ronald Reagan Washington National and
Washington Dulles International Airports
June 2021
Purpose
Staff requests that the Business Administration Committee approve and
recommend to the Board of Directors that the Metropolitan Washington Airports
Authority (Airports Authority) approve the award of a sole source contract to
Alclear, LLC (Clear) for management and operation of a Registered Traveler
(RT) program at Ronald Reagan Washington National (Reagan National) and
Washington Dulles International (Dulles International) Airports. The proposed
contract has a three-year base term with two, one-year option periods.
2
Background
The Transportation Security Administration (TSA) implemented the RT program
as a means of minimizing passenger wait times at security screening
checkpoints through voluntary enrollment in programs using enhanced
technology and biometric data. Enrollment in the RT program is separate from
enrollment in the U.S. Department of Homeland Security’s Trusted Traveler
programs such as Global Entry and TSA Pre✓®. The RT program is open to all
U.S. citizens and lawful permanent residents.
3Background (continued)
Operation of the RT program is governed by the Airport Security Program which
is approved by TSA. Clear members use dedicated lanes at each Airport’s
security checkpoint to scan their boarding pass and confirm their identity using
biometrics, such as a fingerprint or iris scan, rather than physical identification
documents. After verification is completed, Clear members are escorted
straight to a TSA Travel Document Checker for entry to the passenger
screening area.
4Background (continued)
Clear began operating at Reagan National and Dulles International in July 2016
and has grown its membership in the Washington, DC area over the past five
years from approximately 60,000 to nearly 400,000 current members. During
the 12 months prior to the onset of the COVID-19 pandemic, from March 2019
through February 2020, the average number of Clear members processed
through the security screening checkpoints per month was:
70,385 45,644
5Discussion
Clear offers airports that contract with it a revenue share of enrollment and
renewal fees based upon the number of members residing within an airport’s
geographically defined catchment area. Annual revenue from the existing
Clear contract has grown from $375,141 to $1,740,219. Under the proposed
contract, Clear will pay the Airports Authority on a contract year basis the
greater of:
(i) a Minimum Annual Guarantee (MAG);
(ii) 12.5 percent of enrollment and renewal fees paid by RT participants
who reside within the Metropolitan Washington catchment area; or
(iii) a flat fee for each Unique Member Verification.
6Discussion (continued)
The MAG for the first contract year will be $1,330,000. For the remaining years
of the contract, the MAG will be set as the greater of 85 percent of the previous
year’s concession fees received by the Airports Authority or 103 percent of the
MAG for the prior contract year. The Unique Member Verification fee ranges
from $1.00 to $1.75 based on Clear’s actual number of unique members that
pass through the RT lanes at the Reagan National and Dulles International
security checkpoints. Based on the MAG, the contract is expected to produce
revenue of at least $7,061,151 over the life of the contract.
7Discussion (continued)
Clear is the only RT service provider approved by TSA under the federal RT
program. The proposed sole source contract is permitted in accordance with
Contracting Manual Section 1.4.1(3) Sole Source: (a) Unique or Innovative
Concepts. As required by Section 2.9.3 of the Contracting Manual, notice of
this intended sole source award was published on the Airports Authority’s
website for the required period, and no statements of capabilities were
received.
8Recommendation
Staff requests that the Business Administration Committee approve and
recommend the Board of Directors approve the award of a sole source contract
to Alclear, LLC to manage and operate a Registered Traveler program at
Reagan National and Dulles International Airports.
9Proposed Resolution
Awarding a Sole Source Contract for the Management and Operation of a
Registered Traveler Program at
Ronald Reagan Washington National and
Washington Dulles International Airports
WHEREAS, The Transportation Security Administration (TSA) implemented
the Registered Traveler (RT) program, which is open to all U.S. citizens and lawful
permanent residents, as a means of minimizing passenger wait times at security
screening checkpoints through voluntary enrollment in programs using enhanced
technology and biometric data;
WHEREAS, The operation of the RT program is governed by the Airport
Security Program, which is approved by TSA;
WHEREAS, Alclear, LLC (Clear) is the only RT service provider approved
by TSA under the federal RT program;
WHEREAS, Passengers who participate in the RT program use dedicated
lanes at each Airport’s security checkpoint to scan their boarding pass and confirm
their identity using biometrics before being escorted straight to a TSA Travel Doc-
ument Checker for entry to the passenger screening area;
WHEREAS, Clear offers airports that contract with it a revenue share of en-
rollment and renewal fees based upon the number of members residing within an
airport’s geographically defined catchment area;
WHEREAS, The proposed sole source contract is permitted in accordance
with the Metropolitan Washington Airports Authority (Airports Authority) Contract-
ing Manual, Section 1.4.1(3) Sole Source: (a) Unique or Innovative Concepts;
WHEREAS, As required by Section 2.9.3 of the Contracting Manual, notice
of this intended sole source award was published on the Airports Authority’s web-
site for the required period, and no statements of capabilities were received;WHEREAS, Under the proposed contract, Clear will pay the Airports Author-
ity on a contract year basis the greater of: (i) a Minimum Annual Guarantee (MAG);
(ii) 12.5 percent of enrollment and renewal fees paid by RT participants who reside
within the Metropolitan Washington catchment area; or (iii) a flat fee for each
Unique Member Verification;
WHEREAS, The Unique Member Verification fee ranges from $1.00 to $1.75
based on Clear’s actual number of unique members who pass through the RT
lanes at the Reagan National and Dulles International security checkpoints;
WHEREAS, The proposed contract with Clear includes a three-year base
term with two one-year option periods for a total five-year contract with a MAG for
the first year of $1,330,000, after which during the remaining years of the contract
the MAG will be set at the greater of 85 percent of the previous year’s concession
fees received by the Airports Authority or 103 percent of the MAG for the prior
contract year;
WHEREAS, Based on the MAG, the proposed contract is expected to pro-
duce revenue of at least $7,061,151 over the life of the contract; now, therefore,
be it
RESOLVED, That the President and Chief Executive Officer is authorized to
enter into a sole source contract with Alclear, LLC to manage and operate a RT
program at Reagan National and Dulles International, consistent with the terms
presented to the Business Administration Committee at its June 16, 2021 meeting.
For Consideration by the Business Administration Committee Meeting
June 16, 2021
NOTE: A recorded vote is required.REPORT TO THE
BUSINESS ADMINISTRATION COMMITTEE
RECOMMENDATION TO AWARD A SOLE SOURCE CONTRACT
FOR MANAGEMENT AND OPERATION OF
A REGISTERED TRAVELER PROGRAM
AT
RONALD REAGAN WASHINGTON NATIONAL AND
WASHINGTON DULLES INTERNATIONAL AIRPORTS
JUNE 2021
PURPOSE
Staff requests that the Business Administration Committee approve and recommend to the Board
of Directors that the Metropolitan Washington Airports Authority (Airports Authority) approve
the award of a sole source contract to Alclear, LLC (Clear) for management and operation of a
Registered Traveler (RT) program at Ronald Reagan Washington National (Reagan National) and
Washington Dulles International (Dulles International) Airports. The proposed contract has a
three-year base term with two, one-year option periods.
BACKGROUND
The Transportation Security Administration (TSA) implemented the RT program as a means of
minimizing passenger wait times at security screening checkpoints through voluntary enrollment
in programs using enhanced technology and biometric data. Enrollment in the RT program is
separate from enrollment in the U.S. Department of Homeland Security’s Trusted Traveler
programs such as Global Entry and TSA Pre✓®. The RT program is open to all U.S. citizens and
lawful permanent residents.
Operation of the RT program is governed by the Airport Security Program which is approved by
TSA. Clear members use dedicated lanes at each Airport’s security checkpoint to scan their
boarding pass and confirm their identity using biometrics, such as a fingerprint or iris scan, rather
than physical identification documents. After verification is completed, Clear members are
escorted straight to a TSA Travel Document Checker for entry to the passenger screening area.
Clear began operating at Reagan National and Dulles International in July 2016 and has grown its
membership in the Washington, DC area over the past five years from approximately 60,000 to
nearly 400,000 current members. During the 12 months prior to the onset of the COVID-19
pandemic, from March 2019 through February 2020, the average number of Clear members
processed through the security screening checkpoints per month was 70,385 at Reagan National
and 45,644 at Dulles International.DISCUSSION
Clear offers airports that contract with it a revenue share of enrollment and renewal fees based
upon the number of members residing within an airport’s geographically defined catchment area.
Annual revenue from the existing Clear contract has grown from $375,141 to $1,740,219. Under
the proposed contract, Clear will pay the Airports Authority on a contract year basis the greater of:
(i) a Minimum Annual Guarantee (MAG); (ii) 12.5 percent of enrollment and renewal fees paid
by RT participants who reside within the Metropolitan Washington catchment area; or (iii) a flat
fee for each Unique Member Verification. The MAG for the first contract year will be $1,330,000.
For the remaining years of the contract, the MAG will be set as the greater of 85 percent of the
previous year’s concession fees received by the Airports Authority or 103 percent of the MAG for
the prior contract year. The Unique Member Verification fee ranges from $1.00 to $1.75 based on
Clear’s actual number of unique members that pass through the RT lanes at the Reagan National
and Dulles International security checkpoints. Based on the MAG, the contract is expected to
produce revenue of at least $7,061,151 over the life of the contract.
Clear is the only RT service provider approved by TSA under the federal RT program. The
proposed sole source contract is permitted in accordance with Contracting Manual Section
1.4.1(3) Sole Source: (a) Unique or Innovative Concepts. As required by Section 2.9.3 of the
Contracting Manual, notice of this intended sole source award was published on the Airports
Authority’s website for the required period, and no statements of capabilities were received.
RECOMMENDATION
Staff requests that the Business Administration Committee approve and recommend the Board of
Directors approve the award of a sole source contract to Alclear, LLC to manage and operate a
Registered Traveler program at Reagan National and Dulles International Airports.
Prepared by:
Airport Administration Department
Ronald Reagan Washington National Airport
Washington Dulles International Airport
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