Md. Aviation Admin. receives two bids for Baltimore/Washington
The Maryland Aviation Administration received only two bids to run Baltimore/Washington International Airport's concessions, sources told The Daily Record.
MAA spokesman Jonathan Dean would neither confirm nor deny the number of bids the agency received on Oct. 31.
However, the agency structured its request for proposals for a company operating a developer model. Nationwide, there are three major companies that operate such a model, which usually makes most of its money on tenants' rents and does not operate any of the airport businesses itself.
The model used at most of North American's leading airports is called a prime model. It makes most of its money from sales and actually operates most of the airport businesses itself.
To lure a company operating a developer model, the MAA set up a favorable financial structure, which included decreasing guaranteed rent to the state by $27 million over the duration of the 10-year contract. Plus, the agency also reduced the guaranteed rent in the first year from $8.9 million to $6.25 million.
BWI's current concessionaire, Bethesda-based HMSHost Corp., paid the MAA $7.2 million in rent last year, according to Host, which operates a prime model and decided its operating model would not allow it to bid on the new contract.
The MAA also relieved potential bidders of a $2 million obligation related to the value of Host improvements at BWI.
House Speaker Michael E. Busch, D-Anne Arundel, wrote a letter dated Oct. 30 to Gov. Robert L. Ehrlich Jr., asking that the MAA allow Host and other similar prime companies to bid.
More recently, he said the bidding process for BWI's concessions should be spirited, competitive.
I don't know if you're going to be able to attain that with just two people involved, Busch said. I'm not sure how that worked out. - Right now, it's in the hands of the administration.
Host has contested the MAA's request for proposals since it was issued, saying it precluded the company from bidding. The MAA, however, has denied that, saying the RFP simply established which business model it wants - the developer model.
Host is currently appealing the agency's denial of its protest against the RFP with the Maryland State Board of Contract Appeals, which is expected to make a decision with the next few weeks.
Also upset about the RFP are nearly 500 unionized employees at the airport, who said they were insulted that the MAA did not include any consideration or protections for their jobs.
The workers, who unionized earlier this year, began seeking signatures last week for a petition addressed to Ehrlich concerning the expected change at BWI's concessions. They intend to give the governor the petition early next month.
<< Home