Airport concessions contract extended

In the end, the contract was extended without an open bid process. But it appears that may never happen again.

Even as he pushed through a controversial contract extension for an airport concessionaire, Mayor Bill White told City Council on Wednesday that he would not do it again.

"One thing I've learned from this experience is to go with my instinct," said White, who said he initially wanted to rebid the contract rather than extend it by eight years. The contract, for the management of food courts at Bush Intercontinental Airport's Terminal C, expires next June.

At the request of council members, the White administration negotiated the extension with the current concession holder, Jason Yoo, a local businessman and political donor.

The deal requires Yoo's company, JDDA Concession Management, to spend $10.5 million to renovate the food courts and to partner with a more experienced food service company.

Here's a press release from CM Noriega (PDF) on the new deal. It notes that there are a variety of "accountability provisions" to which JDDA has agreed, the last one of which is "Right to terminate based on change in ownership, or if concessionaire in default, (Default shall occur if Concessionaire fails to observe or perform any of its duties under this contract or if become insolvent - 30 days to cure.)" At the very least, it sounds like the city will have a stick to wield if things don't improve as promised.

Councilwomen Anne Clutterbuck and Sue Lovell voted against the extension.

Clutterbuck had criticized the process, saying competitive bidding on a new contract is necessary as a matter of good governance.

"It's the only way we'll know if we got the best deal for taxpayers and the traveling public," Clutterbuck said.

The management contract at Terminal C has not been competitively bid since 1990, and city officials have acknowledged that the food service there needs improvement.

But White and other council members said the extension will allow renovations of the worn-out food facilities to begin sooner, when compared to a lengthy bid process.

"I want the construction to begin," Councilwoman Addie Wiseman said.

"I don't want our travelers to have to brown bag it any longer."

I think CM Clutterbuck made a very good argument for there being an open bid on this contract instead of a pro forma extension. It would seem, based on Mayor White's statement, that while she may have lost the battle, she won the war. I'd say CM Wiseman has the most compelling counterargument for getting this done now instead of going through the bid process. I don't think either side is unreasonable.

The mayor said council members would receive quarterly reports about the Terminal C food concessions, to make sure the contractor and subcontractors perform their contractual obligations.

Those duties include finishing all phases of construction by 2010, serving food at prices "equal" to prices at comparable off-airport locations, providing change to travelers even if they do not make a purchase, and ensuring "first class service and products in a clean, attractive and pleasant atmosphere."

We'll know by then if this was a wise decision or not. The evidence will be apparent to all one way or the other.

Posted by Charles Kuffner on September 20, 2007 to Local politics