Airport concessions: Joint venture disbanded, new partnership expands bid as city alters forms

By David Pendered

The second round of proposals for concessions contracts at Atlanta’s airport looks a lot like those submitted for the first round.

The only difference is that one company, a joint venture that had been disqualified from Round 1, dropped out of competition for Round 2. However, half of that company did resubmit even more proposals with a new partner, city records show.

Atlanta also changed some reporting requirements concerning whether a company’s employees may legally work in this country. The reporting issue was one reason the city announced on Sept. 2 that it was throwing out all proposals and starting the bid process anew.

One form was ruled obsolete – the contractor affidavit for the Security and Immigration Compliance forms. Now, proponents are required to attach the Illegal Immigration Reform and Enforcement Act forms.

Subcontractors are not required to submit e-Verify forms for their employees. Rather, the city is including the forms “simply to demonstrate to potential concessionaires what they will be required to obtain from their subs prior to contract execution,” city records show.

City officials realized the reporting requirements could be a challenge for proponents to complete properly.

At a pre-bid conference on April 5, city contracting officer Carla Cail specifically warned more than 500 potential vendors that they should pay close attention to two new forms the city is requiring for these concessions contracts. Failure to comply would result in disqualification, several city officials said at the time.

Five months later, the city determined that 34 of 95 proposals were non-responsive because they failed to comply with the Georgia Security and Immigration Compliance Act. Meantime, 28 proposals were deemed non-responsive for failing to properly complete other paperwork.

Other tidbits emerge from the collection of papers the city has released concerning the second round of proposals, which were opened last week.

A new timeline issued by the city shows that the 152 new concessions are to be open by May 15.

Vendors selected for contracts are to be notified by early December, and the Atlanta City Council is to approve all contracts in January, city records show.

The corporate entity that dropped out of Round 2 is Greater Atlanta Concessions, LLC. The joint venture was comprised of one of the biggest Hispanic franchisees, Sun Holdings, LLC, and Atlanta-based National Concessions Management, LLC.

National Concessions dropped completely out of the competition, records show.

Sun Holdings now is in a joint venture named Georgia Airport Concessions, LLC. The company was formed Oct. 12, according to incorporation papers filed with the Georgia Secretary of State.

Sun Holdings is a Texas-based firm founded by President and CEO Guillermo Perales. The company runs franchises in Texas, Georgia, Florida, Indiana, Tennessee, Oklahoma and Kansas, according to a 2008 report when Perales was a finalist in Ernst & Young’s Entrepreneur of the Year program.

The other partner in the JV is Roberson and Reynolds Food and Beverage Management Services, LLC. The company was formed Nov. 2, 2010 and its two organizers are Robin Altman, who listed a Cumming address, and Nancy Jafari, who listed an Alpharetta address. Jafari is listed as the registered agent, according to the Secretary of State.

National Concessions Management is controlled by Oliver Lee, who serves as president and CEO, according to his biography with a company named Diversapack. Lee serves on the Diversapack’s board with former Atlanta Mayor Andrew Young, according to the company’s website.

Here is the list of proponents for the large food and beverage packages. Any change from Round 1 is listed at the bottom of each of the five categories:

 

Package 1 – Seven proposals received:

Areas USA

SSP America

HMS Host

Concessions H&H JV

Hojeij Branded Foods Inc.

OTG Management

DNC THS Partners

Dropped Out: Great Atlanta Concessions, LLC.

 

Package 2 – Six proposals received:

Areas USA

SSP America

HMS Host

Concessions H&H JV

Hojeij Branded Foods Inc.

OTG Management

 

Package 3 – Seven proposals received :

Areas USA

SSP America

HMS Host

Concessions H&H JV

Hojeij Branded Foods Inc.

Georgia Airport Concessions

DNC THS Partners

Added: Georgia Airport Concessions

 

Package 4 – Seven proposals received:

Areas USA

SSP America

HMS Host

Hojeij Branded Foods Inc.

Concessions H&H JV

Georgia Airport Concessions

DNC THS Partners

Added: Georgia Airport Concessions

 

Package 5 – Five proposals received:

SSP America

HMS Host

Concessions H&H JV

Hojeij Branded Foods Inc.

Georgia Airport Concessions

Added: Georgia Airport Concessions

David Pendered, Managing Editor, is an Atlanta journalist with more than 30 years experience reporting on the region’s urban affairs, from Atlanta City Hall to the state Capitol. Since 2008, he has written for print and digital publications, and advised on media and governmental affairs. Previously, he spent more than 26 years with The Atlanta Journal-Constitution and won awards for his coverage of schools and urban development. David graduated from North Carolina State University and was a Western Knight Center Fellow. David was born in Pennsylvania, grew up in North Carolina and is married to a fifth-generation Atlantan.

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