USA. DFASS has issued an upbeat response to the ruling from the Court of Appeals of Georgia, claiming it clears the way for the retailer to take up the duty free contract at Hartsfield-Jackson Atlanta International Airport.
As revealed by The Moodie Report, on 2 September the court overruled a petition by Duty Free Americas-led Atlanta Duty Free over the upholding of a City of Atlanta decision to select DFASS as the best proponent. This was the latest twist in a long-running saga (see chronology below) which had seen fortunes swing back and forth between rival bidders DFASS and Atlanta Duty Free.
DFASS Chairman Benny Klepach said today in a statement issued to The Moodie Report: “We were very pleased to hear of the Court’s decision. Our bid was substantially higher than our competitor’s in terms of the minimum revenue guarantee to the airport. Both the Airport General Manager and Atlanta’s Chief Procurement Officer found DFASS to be the best proponent for the duty free bid.”
Klepach claimed: “The Court of Appeals’ decision now reinstates the hearing officer’s ruling affirming the award to DFASS.
“DFASS is ready to move forward and begin operating the duty free concession with energy, experience and enthusiasm as soon as possible.”
Duty Free Americas Chairman Simon Falic told The Moodie Report earlier: “We have several options, and we are currently deciding which one(s) to pursue.”
Here’s how the saga has unfolded to date:
1. The City of Atlanta issues a Request for Proposals for its duty free operation in the international concourse of Hartsfeld-Jackson International Airport.
2. DFASS and DFA-led Atlanta Duty Free submit the only proposals.
3. An evaluation committee ranks Atlanta Duty Free’s proposal ahead of that of DFASS and submits its findings to General Manager Benjamin DeCosta
4. DeCosta instead recommends DFASS as the best proponent to Chief Procurement Officer Adam Smith.
5. Smith agrees with DeCosta and selects DFASS as the best proponent.
6. Atlanta Duty Free appeals Smith’s decision to an administrative hearing officer who affirms the decision.
7. Atlanta Duty Free files a petition for a writ of certiorari in the Superior Court.
8. DFASS and the City move to dismiss the petition on the grounds that it was not accompanied by the requisite bond.
9. Atlanta Duty Free subsequently lodges a bond by amendment.
10. Superior Court grants Atlanta Duty Free’s petition for a writ.
11. The Superior Court reverses the decision of the hearing officer.
12. DFASS applies to Court of Appeals for discretionary review of Superior Court’s ruling. Application is granted.
13. Court of Appeals finds that failure to post a valid bond renders the Atlanta Duty Free petition void
It is still unclear what will happen next. In late March a spokesman for Hartsfield-Jackson Atlanta International Airport’s Department of Aviation Contracts Services Division told The Moodie Report it would rebid its duty free concession. But the latest court ruling will almost certainly mean such a course of action would be challenged immediately by DFASS, which – as Klepach indicated today – expects to take up its award.
MORE STORIES ON THE ATLANTA SAGA
DFASS wins key Atlanta Airport duty free ruling – 05/09/05
Atlanta prepares for new duty free bid after tender controversy but further twists likely – 31/03/05
Duty Free Americas Chairman keeps his options open as Atlanta duty free contract takes another twist
Judge rules against Atlanta duty free award; contract re-bid seems likely – 24/10/04
