Terminal Food & Beverage Concession Agreement at the DRO Airport

The City of Durango and La Plata County are seeking a qualified concession operator to design, construct, operate, and manage food, beverage, and vending services at the Durango-La Plata County Airport (DRO). The procurement is for a five-year terminal food and beverage concession agreement, with potential for a five-year extension, beginning in August 2026. The contract covers three primary spaces: a landside non-sterile area, an airside sterile north concession, and an airside sterile south concession, totaling approximately 2,088 square feet, plus up to four vending machine locations. Key objectives include providing high-quality, full-service food and beverage options with street pricing within 15% of local establishments, including alcoholic beverage service. The successful proposer must operate 365 days a year, with hours extending from 45 minutes before the first scheduled commercial airline departure until after the last scheduled departure. Proposals are due by September 11, 2025, with a non-mandatory pre-bid meeting scheduled for July 30, 2025. Evaluation criteria will likely include operational expertise, financial capabilities, and ability to meet service standards.

The procurement includes an Airport Concession Disadvantaged Business Enterprise (ACDBE) program with a 1.00% participation goal, which provides opportunities for disadvantaged business enterprises to participate in the contract. The financial structure includes a Minimum Annual Guarantee (MAG) of $100,000, with concession fees of 10% for food and beverage sales (excluding alcohol), 14% for alcoholic beverages, and 10% for automated vending sales. The airport served approximately 500,000 passengers in 2024 and has experienced over 30% passenger traffic growth compared to pre-pandemic 2019 levels. While the airport will provide basic infrastructure like electrical connections and plumbing, the concessionaire will be responsible for providing equipment, finishes, and operational components. The contract emphasizes goals of customer satisfaction, local product placement, revenue enhancement, and environmental sustainability. Proposers must demonstrate compliance with airport and federal regulations, maintain high service standards, and have the capability to design and build out the concession spaces within the specified terminal expansion project parameters.