The flawed procurement process at Denver International Airport adds unnecessary costs, can lead to favoritism, impedes the delivery of quality service and encourages political meddling with airport contracting, according to a new consultant’s study.
Procurement is “open to improper interference from both internal and external DIA stakeholders,” the study by consultant Josh Brodbeck said, and “such interference occurs with frequency in the form of efforts to delay, halt, reverse or scuttle particular transactions.”
This “has created the perception that certain procurement transactions at DIA are subjective, disorganized and unfair,” it added.
DIA manager Kim Day commissioned the study after a flap last spring over a contract to hire a company to operate airport parking concessions.
Standard Parking won the contract, which could pay it up to $85 million over a multi-year period, after aggressive lobbying of Denver City Council members by representatives of some of the bidding companies.
Brodbeck’s report said “typical procurements of almost any type at DIA will predictably take twice as long to process than similar transactions at other airports.”
For the study, he interviewed officials at airports in Dallas-Fort Worth, Chicago, Minneapolis-St. Paul, Miami and Detroit.
DIA especially has had an “adversarial” relationship with vendors that generate revenue for the airport, including food, beverage and retail concessionaires, according to the report.
DIA’s recent decision to shorten the length of concession leases — to encourage competition and freshen retail concepts — may backfire on the airport, Brodbeck said, because retailers will have “maximum incentive to invest as little as possible . . . during the life of the lease.”
DIA spokesman Jeff Green said the airport plans to formulate new procurement rules based on the recommendations by the end of the year.
Jeffrey Leib: 303-954-1645 or jleib@denverpost.com
