Airport Parking Shuttle System

An airport shuttle at Denver International Airport.

Objective

To assess:

1. Whether Denver International Airport’s Parking and Transportation Section has adequate controls to efficiently and effectively manage its parking shuttle services contract.

2. Whether the procurement process for the parking shuttle contract aligns with city rules and leading practices and whether the airport’s outsourcing of the service was efficient

Background

ABM Parking Services Inc. operates the parking shuttle system at Denver International Airport, which transports the public and airport employees for free between the terminal and concourses and several airport parking lots.

Before the COVID-19 pandemic, ABM’s shuttle buses served an average of about 6.9 million passengers a year.

Why this matters

Without adequate contract monitoring and procurement practices, the airport’s Parking and Transportation Section cannot ensure it is receiving parking shuttle services in compliance with the contract and risks overpaying for the service. Additionally, airport passengers and employees cannot be certain they will receive parking shuttle services in a timely manner.

Findings

Denver International Airport Inadequately Monitors Its Parking Shuttle Services Contract, and the Contract Lacks Some Key Provisions

  • The Parking and Transportation Section does not sufficiently monitor the contract in several areas.
  • The parking shuttle contract lacks detail on some elements of driver safety, and subcontracts were not updated to include federal disaster provisions for pandemic-related costs.
  • Parking and Transportation lacks policies and procedures and has inadequate management oversight of the contract monitoring process.

The Airport’s and ABM Parking Services’ Practices Do Not Sufficiently Ensure ABM Complies with the Parking Shuttle Services Contract

  • Parking and Transportation staff failed to ensure ABM shuttles entered each lot within the intervals required in the contract.
  • The airport and ABM lack effective processes to monitor customer complaints and ensure customers receive a timely response.
  • The airport’s invoice review process increases the likelihood that the airport overpays for shuttle services.

Denver International Airport Needs to Improve Procurement Practices for the Parking Shuttle Services Contract

  • The Parking and Transportation Section has not conducted a cost-benefit analysis to identify the best method of providing parking shuttle services.
  • Parking and Transportation provided insufficient time for the 2016 contract procurement process, which reduced competition for the bid.
  • The NextBus tracking system was not procured through a competitive bid, which is inconsistent with city standards.

Recommendations

1.1 Develop Contract Monitoring Policies and Procedures –Denver International Airport’s Parking and Transportation Section should develop and document contract monitoring policies and procedures for the parking shuttle contract — including procedures to monitor driver training, wages, background checks, drug tests, licensing, and shift limits, as well as vehicle inspections and liquidated damages.

Agency Response: Agree, Implementation Date – November 1, 2021

1.2 Develop Monitoring Procedures for Payment and Contract Fees – Denver International Airport’s Parking and Transportation Section should develop and document contract monitoring policies and procedures for payments made to ABM and for contract fees.

Agency Response: Agree, Implementation Date – November 1, 2021

1.3 Update Contract Provisions – Denver International Airport’s Parking and Transportation Section should update the parking shuttle service contract to include requirements for bus drivers related to background checks, shift limits, and drug and alcohol testing, as well as how the airport should monitor these requirements. 

Agency Response: Agree, Implementation Date – November 1, 2021

1.4 Ensure Update of Subcontracts – Denver International Airport’s Parking and Transportation Section should ensure that all subcontracts for the parking shuttle contract are updated to include the required provisions from the Federal Emergency Management Agency

Agency Response: Disagree

1.5 Establish Managerial Oversight – Denver International Airport’s Parking and Transportation Section should establish and document a managerial oversight process for contract monitoring.

Agency Response: Agree, Implementation Date – November 1, 2021

1.6 Incorporate Information from Other Resources – Denver International Airport’s Parking and Transportation Section should evaluate airport resources that can assist in monitoring the parking shuttle contract and incorporate information collected from these resources into its contract monitoring policies and procedures. 

Agency Response: Agree, Implementation Date – November 1, 2021

1.7 Receive, Review, and Approve Operations Manual – Denver International Airport’s Parking and Transportation Section should receive and review ABM Parking Services Inc.’s operations manual and approve it when it meets the airport’s needs and expectations.

Agency Response: Agree, Implementation Date – November 1, 2021

2.1 Enforce Review of Service Levels – Denver International Airport’s Parking and Transportation Section should enforce its daily and monthly review of service levels as outlined by the contract’s standard operating procedures.

Agency Response: Agree, Implementation Date – November 1, 2021

2.2 Update Contract Language – Denver International Airport’s Parking and Transportation Section should update the parking shuttle contract and its standard operating procedures to ensure consistency between the contract’s performance standard for required service levels and the corresponding procedures used to monitor that standard.

Agency Response: Agree, Implementation Date – December 31, 2021

2.3 Develop and Implement Controls for Data Accuracy – Denver International Airport’s Parking and Transportation Section should develop and implement controls to ensure its preferred system to monitor the parking shuttle contract’s service-level requirements records shuttle location and service levels accurately and reliably.

Agency Response: Agree, Implementation Date – January 14, 2022

2.4 Establish Oversight Process for Customer Feedback  Denver International Airport’s Parking and Transportation Section should establish and document a process to review the airport contract administrator’s activities, including contract monitoring of customer service. This process should be included in the section’s customer correspondence policies and procedures, and it should include necessary details to monitor customer complaints, as well as steps to ensure recommendations made by external reviews are addressed and implemented when agreed to.

Agency Response: Agree, Implementation Date – November 1, 2021

2.5 Review and Update Policies and Procedures – Denver International Airport’s Parking and Transportation Section should establish a process to review and update the customer correspondence policies and procedures to ensure they are accurate, consistent, and reflective of actual practices in accordance with contract requirements. In addition, a change log should be added to all Parking and Transportation policies and procedures to record any revisions.

Agency Response: Agree, Implementation Date – November 1, 2021

2.6 Clarify Time Frame for Responding to Customers – Denver International Airport’s Parking and Transportation Section should determine the acceptable maximum amount of time a customer should wait before receiving a response to their feedback. Then the section should ensure a clear definition is included in both the contract language and the section’s customer correspondence policies and procedures.

Agency Response: Agree, Implementation Date – November 1, 2021

2.7 Ensure Contractor Policies and Procedures Align with the Contract – Denver International Airport’s Parking and Transportation Section should ensure ABM Parking Services Inc. develops policies and procedures for customer correspondence that align with current processes and the airport’s contract.

Agency Response: Agree, Implementation Date – November 1, 2021

2.8 Improve Tracker Accuracy – Denver International Airport’s Parking and Transportation Section should develop and implement controls to ensure the data in the section’s customer correspondence tracker is complete and accurate.

Agency Response: Agree, Implementation Date – November 1, 2021

Auditor's Letter

August 26, 2021

The objective of our audit of the airport parking shuttle system at Denver International Airport was to determine whether the airport is effectively managing the parking shuttle contract and whether the airport procured the contract in line with city standards and leading practices. I am pleased to present the results of this audit.

We found the airport's Parking and Transportation Section does not adequately monitor the parking shuttle contract and lacks internal guidance for monitoring the contract in several areas. Additionally, the procurement of the current contractor did not align with city requirements and leading practices to ensure the process was competitive and that the airport received the best value.

By implementing recommendations for stronger contract monitoring, documenting policies and procedures, performing a cost-benefit analysis, and reforming contract procurement practices, Denver International Airport's Parking and Transportation Section will be better equipped to ensure it receives services in compliance with the parking shuttle contract and at the best possible value. These recommendations will also ensure passengers and airport employees receive quality and timely shuttle service.

This performance audit is authorized pursuant to the City and County of Denver Charter, Article V, Part 2, Section 1, "General Powers and Duties of Auditor." We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives.

We extend our appreciation to the personnel in Denver International Airport's Parking and Transportation Section and to the personnel from ABM Parking Services Inc. who assisted and cooperated with us during the audit. For any questions, please feel free to contact me at 720-913-5000.

Denver Auditor,

Auditor's Signature
Timothy O'Brien, CPA

Follow-up report

A follow-up report is forthcoming. 


Timothy O'Brien Official Headshot

AUDITOR TIMOTHY O'BRIEN, CPA
Denver Auditor


Denver Auditor's Office

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