BWI Concession Contract Request for Proposal Information, August 29, 2003

8/29/03 Page 1 of 1 BWI Concession Contract RFP Information Both Dulles and Reagan National Airports currently use the developer model for their retail stores under a single contract with Westfield Concessions Management Inc. (Their developer model may also be called a fee manager model as Westfield manages the operation for a fee but makes no capital investment. BWI’s RFP requires the selected developer to make capital investments.) Dulles and Reagan National have separate contracts for their food and beverage services with HMSHost under which HMSHost and/or its subsidiaries are permitted to operate some of their own stores. This is akin to the prime concessionaire model. However, on August 11, The Metropolitan Washington Airport Authority put out an RFP for a developer (fee manager) to market, lease and manage food services at Dulles Airport. It is also their intention to put out a similar RFP next year for Reagan National Airport. Philadelphia International Airport is currently using a developer (Marketplace Redwood Limited Partnership) for its food & beverage services and retail stores. This means that BWI’s major regional competitors will all have the developer model. Airport Executive Director Paul Wiedefeld received a call from the CEO (Robert Wildrick) of Jos. Bank's Clothiers, expressing how he was pleased to hear we were moving toward a developer approach at the airport, and that he wants very much to be part of the project. He also stated that although he does generally open stores in airports, he would want to do so at BWI given their presence in Maryland. Several lobbyists who represent developers have contacted BWI officials to let them know the strong interest their clients have in this procurement. To note two of them, Mr. William Pitcher is representing BAA USA, Inc., which currently operates Pittsburg’s concessions and Mike Canning who represents Westfield Concessions Management, Inc., which provides retail services at MWAA. Jerry Klasmeyer of the Comptroller’s Office contacted Terry Dorrington, MWAA’s Manager of Concessions and Property Development. Mr. Dorrington advised Mr. Klasmeyer that the Developer model is the trend in the industry and that it’s the right approach for BWI unless the State of Maryland wants to set BWI’s concession program back into the past.