Atlanta officials reversed themselves Tuesday and put the brakes on awarding a currency exchange contract at Hartsfield-Jackson International Airport.
The decision comes after a company that lost out on the lucrative contract launched a legal fight and alleged that the city and airport had chosen the wrong company.
A company called Travelex Currency Services, which lost out on the contract, convinced the city that a sub-concessionaire used by the winning company was not qualified or experienced enough.
After its own investigation, the city confirmed the allegations and halted the award of the contract to the original winner, Lenlyn Limited, which does business as International Currency Exchange. A Lenlyn vice president said the company was disappointed in the city's decision and was considering its options.
Louis Miller, general manager of Hartsfield-Jackson, said the options now include rebidding the contract or awarding it directly to another competitor. Either way, the contract would need to be approved by the City Council.
After Travelex protested the award of the contract, a Fulton County Superior Court judge granted a temporary restraining order preventing Atlanta Mayor Kasim Reed from awarding the contract until early February. The delay allowed Travelex to review procurement documents.
"We are very happy that the city's protest process has worked," said Jon Dario, Travelex’s president said in a statement Wednesday. "There was a clear willingness to listen to our information and investigate our claims and we are thankful that the city took quick and decisive action."
The decision by the city's chief procurement officer to side with Travelex in its protest comes as the city and airport are trying to fend off separate protests surrounding the awarding of contracts to run restaurants, bars and shops at the airport, and raises the question of whether those contracts are more in jeopardy now. Atlanta is trying to wrap up one of the largest rounds of airport concessions contracts in North America.
Miller said he believed the restaurant, bar and shops contracts would not be affected by Tuesday's announcement because they carried different requirements. "We're pretty comfortable we'll be okay with the others," he said.
For now, top Atlanta officials say the controversy surrounding the currency exchange will not delay the opening of a new, $1.4 billion international terminal. That opening is scheduled for May.
Miller and Sonji Jacobs, spokeswoman for the mayor, said the currency exchange problems should not change the timeline for completing the terminal.
Jacobs added that Adam Smith, the city's chief procurement officer, is reviewing the city's options and will decision on the next steps soon.
A search by The Atlanta Journal-Constitution of campaign contributions databases does not show any contributions by either Travelex or International Currency Exchange to Reed or to members of Atlanta's City Council.
Last week, the city's lawyers squared off in Fulton County Superior Court against attorneys for several companies that lost out on contracts for restaurants and bars at the airport. The protesting companies -- including SSP, one of the largest airport concessionaires in the world -- asked a judge to force the city to release more documents so they could build their cases. A judge granted that request, and the city now has until Jan. 27 to disclose additional documents.
Note: An earlier version of this story incorrectly reported that the city had admitted to making a mistake in the contract awards, and that a company called HMSHost had protested the contracting decisions. The story has been corrected and updated.
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