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Myths & Facts

MYTH: An “open bid” process would be fairer and make more money for the City.   

Not necessarily. Airports frequently renew contracts of successful concessionaires to save the City time and money. Concessionaires often must invest millions of dollars in infrastructure, décor, furniture, training, licensing fees and other costs in connection with receiving an extension. Extending and renewing a contract saves the City a significant amount of money, time, and inconvenience to airport travelers.  

 

MYTH: Dallas Love Field Joint Venture, LTD, (DLFJV) the company with the current contract for food and beverage concessions at Love Field, is asking to be given a new contract without opening it up to competition.    

Not true. DLFJV is asking for an extension and renewal of its existing contract (which was obtained through a competitive proposal process) to allow it to make multi-million dollar capital improvements and continue to improve services while Love Field goes through a major renovation and expansion program.

 

MYTH: Bringing in other contractors would improve the variety and quality of restaurants at Love Field. 

Not likely. Since 2007, DLFJV submitted proposals to open more restaurants at Love Field to accommodate the additional passenger traffic resulting from the phasing out of the Wright Amendment that began in March of that year.  DLFJV is unmatched in the variety and number of licensing options that it has with some of the most popular local, regional, and national restaurant brands in the country. 

 

MYTH: Awarding the concessions contract to a local, minority vendor is not important or a priority. 

DLFJV is a certified DBE that is locally owned and operated by Hispanics and African Americans.The citizens of Dallas benefit financially when the City does business with local contractors. DLFJV is one of the largest minority employers (90%) in Dallas, and the company is proud of its reputation and track record of providing career opportunities to women and ethnic minorities.

 

MYTH: Negotiations for the Love Field concessions contract have been held behind closed doors. 

Actually, they’ve been exceptionally open and transparent. Beginning in 2007, there have been numerous open committee meetings and briefings to determine the best way to handle airport concessions through and after the construction of the modernized Love Field. Mayor Tom Leppert was personally involved in developing the current concession plan. Once the plan was developed, the City staff and its consultants negotiated the terms of the contract renewals and extensions and recommended their approval by the Transportation and Environment Committee in February, 2010. That committee did so in a unanimous, 10-0 vote. 

 

MYTH: The Love Field concessions contract has become political and divisive. 

We hope not. Love Field has been recognized as the Number #1 mid-sized airport in the country.The phasing out of the Wright Amendment and the planned expansion of gates and access will significantly grow the airport. DLFJV is a successful, well-managed company and has made a multi-million dollar capital investment at Love Field. DLFJV is committed to continuing to invest and improve food and beverage services throughout the challenging period of expansion and renovation of the airport. DLFJV is an outstanding partner for the City. 

 

MYTH: Concessions and customer service have not improved and at Love Field. 

On the contrary, Love Field is officially the best mid-sized airport in the country with such popular restaurants as Chili’s, Pizza Hut, Cinnabon, McDonald’s, and others; whereas, before DLFJV became the food and beverage concessionaire the offerings at Love Field were meager, dismal, and over-priced. DLFJV has an outstanding track record for a stable workforce and has made a significant investment in training that has produced an excellent career path for women and minority employees. The results have been exceptional customer service. Also, DLFJV has proposed bringing additional popular restaurants to the airport even before expansion construction is complete to continue to improve choice and customer service for the growing passenger traffic at Love Field. 

 

MYTH: The Love Field concessions contract has been on a fast track for development and approval. 

The concessions contract has been anything but that. City staff and Dallas Transportation and Environment Committee have been in negotiations for three and a half years, which culminated in the city staff recommendation of an extension and renewal of DLFJV’s existing contract, and an affirmative vote by the Committee in February of this year. 

 

MYTH: Approval of the DLFJV contract means there will be no “open bid” process or RFPs for the concession contract in the new terminal space being built. 

On the contrary, the concessions contracts before the City Council are extensions and renewals of the existing contracts for the existing space through the construction phase of airport’s new space and replacement space of the same square footage in the new space, which is approximately twice the square footage of the current concession space. There will be an RFP (“open bid”) process for approximately one-half of the concession space now under construction and scheduled for completion in 2014. All qualified companies will have an opportunity to propose on that space.

 

MYTH:   Mayor Tom Leppert opposes “no bid” contracts.

Not true, Mayor Leppert voted for them at DFW Airport. And, the DLFJV contract was won in an open bidding process. The current negotiations are an extension of the existing contract. 

 

MYTH:  Investing in improvements for existing concessions and adding additional concessions are not important because the airport is under construction.

Not true. It’s important to continue to invest in concessions DURING the construction phase. Star Concessions’ contract expires in less than a year. No one puts in major improvements without reasonable expectations for a return on their investment.

 

MYTH:  Putting the Love Field concessions contract out for bid will increase minority participation.

On the contrary. Star Concessions is a model of diversity. More than 92% of Gilbert’s employees are female and minorities and they represent all levels of the organization.

 

MYTH: There are others firms waiting in the wings to bid on the Love Field concessions contract.

Not true. Of those competitor firms that have been mentioned, one is a lobbyist for an out-of-town organization and another has limited restaurant experience.

 

MYTH: it doesn’t matter if a local entity owns and runs the concessions.
Not true. It matters a lot