Review of Los Angeles Airport Contracts Finds Irregularities
March 9, 2016
Los Angeles World Airports has come under fire for awarding $356 million in contracts without achieving the city-mandated minimum of three bidders. A city controller’s audit found that of the $593 million worth of contracts for goods and services awarded during fiscal year 2014-15, nearly two projects out of three had only one or two bidders. In some instances, the small number of bid participants was attributed to the limited number of Federal Aviation Administration-approved vendors for specific products or services. While contracts for the ongoing $5-billion modernization of Los Angeles International Airport were not included in the audit, the controller called for improvements to the agency’s procurement procedures to ensure a more competitive bidding environment. Recommendations include ensuring specifications are written to promote bidding by a sufficient number of qualified companies and that the bids received satisfactorily respond to the contract requirements. Contracting and bidding procedures in other Los Angeles municipal departments also are being reviewed.