DFS alleges improper actions; Lotte refutes - KUAM.com-KUAM News: On Air. Online. On Demand.

DFS alleges improper actions; Lotte refutes

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by Mindy Aguon

Guam - DFS Guam alleges that Lotte Duty Free Guam was given the opportunity to revise their financial offer to the airport following their selection as the top ranked proposer. DFS believes it's an advantage that was not offered to other proposers.  The company's protest of the award of the specialty retail concessionaire contract to Lotte was recently denied. 

The airport said it believed DFS's protest was frivolous and an attempt to disrupt the procurement process.  DFS claims the airport's response provided more information about alleged improper behavior by Lotte. While DFS reviews the response to determine what action, if any, it will take, Lotte responded to the claims made by DFS. 

Lotte transition director Gerry Perez says "any contention that Lotte changed its rent proposal, post bid is false."  Perez also questioned how information could have been obtained since the bid documents were to be sealed.   Perez added, "Lotte's rent proposal came directly from the company's original bid tender submitted to the airport." He says Lotte's proposal was selected because it offered the best overall value to the people of Guam. The Guam International Airport Authority says the agreement with Lotte will immediately boost revenue for the airport.  

Under the terms of the new agreement, the airport's guaranteed rental revenues will increase from the current $4.5 million to $15.4 million. In addition, Lotte has agreed to $23 million in airport improvements.

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