1. 24 July 2008 Midway Lease TSA Initial Responses to Prospective Bidders’ Questions

2. 24 July 2008 Q.Bidders’ QuestionTSA Response 1Please describe you general relationship with Midway. With the airlines and other tenants. With other federal entities operating at the airport. Very positive and productive working relationship with all. 2Are there regular meetings with the airport and its tenants? Are you involved and included in Midway meetings regarding operational changes and future plans? Yes, there are regular meetings as well as special meetings called as needed. Yes, the FSD and his staff are directly involved. 3Have you conducted any joint assessments with the airport? Any joint testing for compliance? No joint assessments/tests have been conducted this fiscal year (FY08).

3. 24 July 2008 Q.Bidders’ QuestionTSA Response 4Has the City been citied for noncompliance with security requirements and are there any current problem areas? Any noncompliance issues would be SSI; details can be provided only in an SSI- level briefing. (TSA plans to provide details in the forthcoming meetings.) 5Is the TSA receptive to proposed changes to the physical layout of the TSA-required security areas and what is the process for considering such changes? TSA is always receptive to airport input regarding the balance between space efficiency and security. TSA is ultimately responsible for determining space and configuration needs for screening checkpoints. Requests for changes to checkpoint layout are directed to the FSD, who works with the various stakeholders to try and accommodate such requests.

4. 24 July 2008 Q.Bidders’ QuestionTSA Response 6What is the maximum hourly capacity of the equipment currently in place at Midway and any equipment likely to be in place in the short-, mid and long-term? Passenger throughput equipment has a maximum capacity of 200 persons/hour. The baggage handling system has a maximum capacity of 400 pieces of luggage/hour.

5. 24 July 2008 Q. Bidders’ Question TSA Response 7What is the TSA’s view on the effectiveness of the throughput of the Midway checkpoints and security infrastructure, perimeter, access control? The effectiveness of screening, security, and access control is protected as SSI. See #6 for throughput information. The security infrastructure, including perimeter security and access control, is reviewed and tested on a regular basis. An upgrade of the access control system is being planned for the near future. Biometric access controls and enhanced identity management are also under discussion as national matters at TSA HQ. See, for instance, 73 FR 31909 (June 4, 2008), regarding Security Systems Standard for Airport Access Control (RTCA paper). Also, TSA posted a document describing potential standards for future biometric credentials, entitled “Aviation Credential Interoperability Solution (ACIS),” in April 2008 for comment by airport operators. TSA continues to consider what other security enhancements may be necessary and expects that enhancements will be required in the future. The exact nature of such enhancements cannot be predicted with certainty.

6. 24 July 2008 Q.Bidders’ QuestionTSA Response 8What is the TSA’s view on the newly installed inline baggage screening and what documents were provided to the TSA for the planning and engineering this system? The inline baggage handling system is viewed as an efficient and well designed system. It has resulted in a reduction in employee injuries and increases the amount of baggage that is throughput on a daily basis. All of the documents associated with the design, engineering and planning of the system were shared with TSA. 9Are there plans underway for a Registered Traveler program at Midway? None of which TSA is aware. An RT presence at any U.S. airport is at the invitation and sponsorship of the airport operator or airline(s) and is not initiated by TSA. More information about this program is available at: http://www.tsa.gov/approach/rt/index.shtm

7. 24 July 2008 Q.Bidders’ QuestionTSA Response 10Has there been any discussion of Midway opting out of Federal Screeners? No. Airport/Airlines and others have publicly expressed complete confidence in MDW-TSA Operations. 11Do you have any plans to modify, change or expand your current processes or to introduce new equipment such as that being tested in Baltimore? There is an expectation that Checkpoint Evolution technology will be forthcoming. There is also the possibility of MDW serving as a prototype airport for technology testing.

8. 24 July 2008 Q.Bidders’ QuestionTSA Response 12How many Security Officers do you currently have on board at Midway? What is the current turnover rate? What is the ratio of part-time to full-time? We currently have 412 TSOs, not including BDO and STI Officers. Including BDO and STI officers, we have 427 officers. Since January 1, 2008 we have averaged an attrition rate of 4 employees per pay period (covering 2 weeks). The ratio of part-time to full-time TSOs is SSI. 13How many K-9 teams are there are Midway? No canines’ teams are solely assigned to MDW. MDW shares canine assets with ORD. 14Does the airport have a reimbursable agreement with TSA for LEO support? Yes. These are now called ‘Cooperative Agreements’.

9. 24 July 2008 Q.Bidders’ QuestionTSA Response 15What is the TSA’s view of the liability of the private operator for actions of the City’s LEOs who continue to be responsible for various functions at Midway after the privatization? The airport operator must provide law enforcement personnel in a number and manner adequate to support its security program. See, 49 U.S.C. 44903(c) and 49 CFR 1542.215. In the case of Midway Airport, it appears from the draft lease agreement that the airport operator (Concessionaire) will do so by making sure that the City provides adequate law enforcement support, as specified in its TSA-approved security program and any Security Directives that TSA may issue. Under this arrangement TSA considers both the City and the airport operator to be responsible for law enforcement support in number and manner adequate to support the TSA-approved security program. This response relates only to law enforcement support for the security functions regulated by TSA.

10. 24 July 2008 Q.Bidders’ QuestionTSA Response 16How do you dispose of your HAZMAT from the checkpoint and baggage rooms? HAZMAT from the checkpoint is collected daily and brought to our offsite accumulation area, located in the business office. All transportation is performed by one of five individuals who have completed TSA's required HAZMAT transportation training course. At the business office, it is sorted according to the DOT classification system, placed in approved storage containers, and then picked up every two weeks by TSA's HAZMAT subcontractor, Clean Harbors. HAZMAT found in the course of inspecting checked luggage is placed in a temporary storage cabinet and then turned over to the airlines, per TSA directives.

11. 24 July 2008 Q.Bidders’ QuestionTSA Response 17Are there any special security conditions or considerations that exist at Midway compared to other airports? Any security comparisons between airports is protected as SSI. 18Will the same TSA customer service standards that apply to publicly operated airports apply to Midway as a privately operated airport? Yes.

12. 24 July 2008 Q.Bidders’ QuestionTSA Response 19What is envisioned in the private operator’s submission of a new Part 1542 Airport Security Plan? Are any substantial changes expected or can it be done on the basis of essentially a substitution of the private operator for the City and avoid the need for more substantial review by the TSA at this stage? The ASP is currently undergoing review and is being updated. We will also have to consider any changes made necessary by the final lease agreement, including such factors as what law enforcement and perimeter security services the City will provide. 20Would it be possible to arrange a call or meeting with an approved security representative of each bidder to review aspects of the Midway security arrangements that cannot be discussed at this more open meeting? Yes, but joint meetings only – no separate meetings with individual bidders or bidder reps.

13. 24 July 2008 Q.Bidders’ QuestionTSA Response 1Is the FAA considering the transfer of funding the cost of maintenance of FAA navigational aids, ATC equipage or other traditional FAA budget items to the airlines or airport operator? If so, what is the prognosis for such a change. N/A 2Do any of the DOT, FAA or TSA envision that you would employ any different standards or requirements when working with the private operator of Midway as compared to the manner in which you currently work with public airport operators in the United States? TSA: TSA applies consistent national standards to all airports it regulates. We do not envision deviating from this approach. Our standards are applied to the unique facts of each airport and often generate solutions specific to the airport. 3Would you welcome individual meetings with prospective operator prior to the selection of a private operator for Midway? No. We will not participate in individual meetings with bidders or bidder representatives.