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Committee questions RFP process as airport seeks new parking contract with New South Parking
Summary
Airport staff told the Budget and Finance Committee it selected New South Parking after two RFP rounds and a best-and-final offer; budget staff noted procurement irregularities and asked the item be considered as a policy matter before the full Board.
The San Francisco Airport presented a proposed three-year consolidated parking contract with New South Parking to the Board of Supervisors Budget and Finance Committee, drawing committee questions about the procurement process and scoring.
Kathy Weidner of the Airport explained the contract would consolidate public and employee parking management across the airport's eight parking facilities. She told the committee the procurement began with an RFP in March 2006 that produced two proposals; after staff changed the points awarded to oral presentations, the airport rejected those proposals and reissued an RFP in July 2006, which drew three proposals. The panel's scoring adjustments led to a statistical tie and the airport asked the top two proposers for best-and-final offers. Weidner said New South Parking's management fee was roughly $300,000 less than the nearest competitor and overall the best-and-final process produced savings of about $877,000 compared with the original proposals.
Budget Analyst staff flagged procurement irregularities and noted that only 40 of 200 points were allocated to cost, which they described as a low weighting for fee in a contract where many costs (labor/staffing) are fixed. For that reason, the budget analyst recommended treating the airport's selection as a policy matter. After discussion, Supervisor Tom Ammiano moved and Supervisor Ross Mercurini seconded forwarding the item to the full Board with recommendation; the committee did so without objection.
The committee asked airport staff to provide attachments and tables showing the savings estimates; staff cited an attachment that estimated about a $500,000 saving from consolidating public and employee parking.
