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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
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