The Atlanta airport’s Plane Train helps people navigate the world’s busiest airport. But a city audit says Hartsfield-Jackson International relies on just one company to maintain the underground people mover — the company that built it — under a no-bid, cost reimbursable contract, and that’s an “inherently risky” situation.
That means there isn’t a competitive contracting process for the work. Competition keeps a level playing field for vendors and helps ensure ethical practices, with the mission of getting quality services for the best value, according to the National Association of State Procurement Officials.
City code states that a contract may be awarded without competition after a review, in part to determine if there is only one source for the service. The contractor, Alstom, has a sole-source agreement to keep the Plane Train system running for about $22 million a year.
The airport says using the contractor that manufactured the cars to operate and maintain the system “leads to better safety outcomes,” and legislation for the contract indicated Alstom has specialized expertise.
Yet the airport also requested the audit of the Plane Train system “due to the inherent risk associated with a third-party contractor managing the project, the importance of the service to airport operations, and the sizable dollar amount of the contractual agreement,” according to the audit report released Monday.
Hartsfield-Jackson said it had requested the audit as part of its “ongoing efforts at systems improvement, financial oversight, and transparency.”
Train upkeep
Travelers can be affected by the work of maintaining the system, which was built more than 40 years ago. Last month, the airport shut down the Plane Train overnight one Saturday evening to upgrade track switches, affecting passengers flying in late at night and departing early in the morning.
Hartsfield-Jackson is also undergoing a massive, years-long project to extend the Plane Train track to increase capacity of the system. The work causes train operations to be limited during late night hours, forcing some passengers to walk farther to get to baggage claim.
Plane Train history
The central contract for operations and maintenance of the Plane Train was struck in 2005 for a 10-year term with two five-year renewal options.
The city said the Automated Guideway Transit System was a sole source/proprietary system designed, fabricated, installed, operated and maintained under a contract dating back to 1977.
The contract, originally struck with Westinghouse Electric Corp., which through acquisitions became Bombardier Transportation and now Alstom, has been renewed multiple times and now extends through June 2025.
Sole-source contracts
A sole source, cost reimbursable contract is “inherently risky,” according to the audit. Yet the airport has been managing the contract by relying on Alstom’s own standard operating procedures, “rather than closely reviewing reports provided by the vendor,” the audit report said.
The report by the city of Atlanta auditor’s office said the city “should establish stronger controls” for the Plane Train contract. And, it said a non-competitive sole source contract should have a limited term, after which a new determination should be made whether a sole source contract is still justified.
The audit said the airport does not have standard operating procedures to oversee the contract, and there wasn’t adequate documentation from the city’s procurement department to justify the sole source contract that isn’t competitively bid.
Overtime costs in the contract have gone over budget by $127,000 — to more than double the budgeted amount, in part due to understaffing, according to the audit. The city doesn’t have a procedure to monitor and track such overtime, according to the audit, and overtime was approved verbally or through email.
Contract reforms
Hartsfield-Jackson said it agreed with the auditor’s recommendations and has started implementing updated standard operating procedures to enhance its monitoring of Alstom.
The chief procurement officer agreed to document why a sole source contract is justified.
Alstom said in a written statement that the performance of its automated people mover system at Hartsfield-Jackson exceeds contractual requirements.
“Alstom has an on-going commitment to safety, quality, innovation, and excellence in customer service, our work with Atlanta International Airport is no exception,” the company said. “Alstom welcomes discussions with the City as to any enhancements to our procedures identified by the audit.”
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