A decade-long legal battle between airport concession giants may have ended, but Governor Lou Leon Guerrero wants to make sure history doesn’t repeat itself. She’s issued an executive order to keep the Guam International Airport Authority in check, after a new law gave it sweeping procurement powers without traditional oversight.

In an August 1 executive order, the Magahaga laid down strict procurement requirements for future airport concession deals, warning against unchecked authority and calling for fairness, competition, and transparency across the board. The move follows the conclusion of a 12-year legal battle between DFS and the airport over a $154 million contract awarded to Lotte Guam in 2013. The lawsuit was only settled earlier this year - costing both time and money.

At the center of the issue is Public Law 38-21, which lapsed into law without the governor’s signature. It allows GIAA’s board to create and implement its own procurement policies, bypassing the normal legislative and executive review process. Governor Leon Guerrero called the law “far from perfect,” and in her order, mandated clear steps to protect the integrity of the process, including:

- mandatory public notice and publication of RFPs
- no fees for downloading bid documents
- competitive selection processes;
- a ban on sole-source awards from unsolicited offers
- the ability for vendors to appeal to the public auditor or the Superior Court of Guam

The governor emphasized that “no other agency in government” holds such unchecked power and that GIAA’s actions will be under intense public scrutiny as it prepares to re-solicit airport concessions ahead of the July 2026 expiration of Lotte Guam’s current contract.

The goal: avoid another costly chapter in Guam’s procurement history and ensure that fairness, accountability, and the law are front and center.

 

The governor’s order requires that all new concession procurement policies from GIAA receive her approval before they take effect.