*LAX concession vote delayed

Yet again. Boy, talk about amateur hour. The city's Board of Referred Powers, which is made up of five members of the City Council, has postponed a hearing tomorrow that was to have considered, yet again, a concessionaire for the airport's retail, food and beverage operations. (Here's the LAT story.) The delay is supposed to allow the City Attorney's office to review conflict-of-interest allegations by incumbent HMS Host, one of the losing bidders. HMS has also questioned the financial condition of SSP. It should be noted that HMS filed its protest in April. It is now early August. The bidding process has taken years to reach this point.

HMS Host, which has hired lobbyist MWW Group to campaign against the winning bidder, had promised to provide specifics of the alleged SSP confllct at a dog-and-pony show today in which several of its restaurants were going to provide samples of the airport food they would have at LAX. They include Maria's Italian Kitchen, Starbucks, Johnny Rockets, The Counter, and L.A. Food Show. (Last week, SSP America had its own tasting session with Border Grill, Nick & Stef's Steakhouse, and Peet's Coffee.) Perhaps HMS figures that if it keeps complaining long enough and loudly enough, the board will reopen the bidding process. That is certain to lead some participants to jump out of windows.

*LA Weekly has some details on SSP's supposed conflict of interest:

Host's lawyers allege that SSP America should be disqualified from bidding because it has a business relationship with one of the consulting firms the airport hired to work on its request for bids. Host argues that should taint the entire process, because the consultant, SmartDesign, had a financial interest in skewing the bid process in SSP's favor. "As far as we have been able to determine, SSP is the only airport concessions operator for whom SmartDesign works," wrote Host's attorney, Jerold Neuman. Not so, according to SmartDesign. In fact, SmartDesign has worked for Host as recently as 2008, and is currently working on a proposal with Host in the Middle East.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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