DEI Goals and Cost Savings: San Diego Airport's Journey with PlanetBids

Overview

San Diego International Airport (SAN) is the busiest single-runway commercial airport in the United States, bringing in about 20 million passengers a year. Built in 1927, the airport covers 663 acres in central San Diego, thus making it landlocked in an urban area.

Aging terminals and traffic have necessitated an extensive and painstakingly detailed expansion. “The Green Build” in 2013 added 10 gates to Terminal 2, a two-level roadway, and a larger concession area for food, drink, and shopping. It also created 1,000 jobs at peak construction and earned Leadership in Energy and Environmental Design (LEED) Platinum certification.

Construction of a new Terminal 1 with an artistic glass façade began in 2021.

$2.7 billion has been budgeted for 19 new gates, a 5-story parking plaza with 10% of 5,200 spaces equipped with electric vehicle charging stations, and more concession spaces. An addi\onal 11 gates are part of the second phase, scheduled for comple\on in early 2028.

Challenge

When planning for the Green Build took off in 2006, the purchasing process was manual. “The airport was mailing out RFP postcards to vendors,” says Jana Vargas, who joined the San Diego Regional Airport Authority as Director of Procurement shortly thereafter. Having worked with PlanetBids in a previous procurement position and knowing that the airport’s ambitious makeover would be a gamechanger, Vargas advocated for automation. In 2007, the Airport Purchasing Group ditched postcards and a paper-intensive system for PlanetBids’ online procurement system, effectively eliminating mailing costs, paper filing, faxes, and delaying phone calls and manual efforts.

Plans for the new T1 include a new glass-walled ticketing hall named the “Luminous Wave,” designed by internationally acclaimed artist James Carpenter, and 19 restaurants and 7 retail stores along artfully designed pedestrian paths.

The new T1 project is estimated to create 15,000 to 20,000 jobs by the time it is completed, and a priority of San Diego International Airport is workforce diversity, equity, and inclusion (DEI). With a vast array of vendors, how to track DEI?

Results

Automation has been integral in the Airport’s expansions. Using PlanetBids’ Bid Management and Vendor Management modules has yielded higher response rates to featured RFPs, increased competition, and vendor participation. There are more than 16,000 registered vendors in PlanetBids’ vendor pool for San Diego.

The Design/Build prime contractors use the PlanetBids platform to manage the subcontracting opportunities. They use the PB database to increase their outreach and meet DEI participation goals for SBE, local businesses, and minority-, women- and veteran-owned businesses.

An important consideration in issuing RFPs and awarding contracts, all done through PB System™, has been Local Business Certification. “San Diego requires proof of local office to be certified,” notes Vargas, and PlanetBids’ Business Certification module manages that verification.

“Our focus has been on DEI, and we wanted the airport experience to offer a local feel,” says Vargas. “Customers can see that in the food offerings. We did a lot of outreach to local businesses to create a regional flavor.”

With federal funding, reporting is required, sometimes with little notice. The automation PlanetBids offers has provided easily generated and customizable reports. The Airport Purchasing Group relies on the PB System™ Vendor Management module to report on DEI on demand.

In 2023, 22% of contracts awarded were to local businesses, 16% to certified small businesses, 11% to minority-owned, 11% women-owned and 3% to veteran-owned businesses. San Diego has the largest USO in the United States, notes Vargas. “It is important that we help transition people who were in the service into the workforce.”

In 2022, $138 million in contracts were awarded through a formal competitive solicitation via the PlanetBids’ Contract Management module.

Vargas, on the finance team for T1, says it is a big plus that they can look at other agency solicitations awarded through the PB System™ for scope samples and increasing additional outreach.

“The #1 advantage in collaborating with PlanetBids is their ability to understand clients’ needs,” Vargas emphasizes. “If we need a modification, they’re there, and they’re quick. They listen, and they understand the needs of their customers.”

And that is why, after competitive bidding, PlanetBids won its 4th contract with the San Diego County Regional Airport Authority. This is a winner for all agencies because the contract includes a clause allowing any public agency to piggyback on this contract, saving time and resources!

Chosen PB System™ Solutions

• Vendor Management is the core of the PB System™ modular suite. It offers a configurable registration process to ensure vendor registrations are complete and unique. Instantly gain access to vendor records, run advanced searches on multiple sets of vendor data, perform realtime verification of provided information (ie. certifications and licenses) against third party databases, generate comprehensive reports with visual charts, and broadcast messages to selected vendors.
• Bid Management is the most complete web-based system on the market today. Procurement agents can quickly manage the process of issuing, monitoring, conducting evaluations, and awarding formal and informal bids. More importantly, the PB System™ can handle construction and public works projects, a feature unique to the eProcurement industry. Vendors can interactively search, view, and respond to bid opportunities securely over the Internet.
• Insurance Certificate Management enables risk, procurement, public works, and contract administrators to automate, maintain, and retrieve up-to-date relevant information regarding vendor or contractor insurance certificates. Paired with My Insurance, agencies and vendors can conduct all insurance related tasks virtually within the PB System™.
• Business Certification/Prequalification Management allows an organization to manage their certification programs such as Small Business Enterprise, Minority, or Diversity as well as Contractor Prequalification(s). Agencies can manage, maintain, and retrieve up-to-date information on vendor certifications and prequalifications. Registered vendors have access to viewing certified/prequalified vendors for potential subcontracting opportunities.