Before privatisation, tendering at General Authority of Civil Aviation (GACA) followed traditional government processes. Evaluations lacked structured documentation, vendor bids were opened publicly, and decisions were made by committees without dedicated subject-matter expertise.  

As part of its management partnership with Jeddah Airports Company (Jedco), daa International redesigned and implemented a modern, structured tendering framework aligned with commercial best practice.  

The transformation introduced:  

  • Expert-led technical validation workshops  
  • A structured financial evaluation model to discourage overbidding  
  • A formal prequalification phase to improve bid quality  
  • Governance mechanisms aligned with strategic and financial objectives  

The new approach is now fully embedded within Jedco. It has enabled the successful awarding of multiple high-value concessions — including Duty Free, F&B, Car Parking, and Bag Wrapping — worth over SAR 3.5 billion in total.  

  

Jeddah Airports Company: A New Era of Commercial Governance  

Client Background  

Jedco operates and develops King Abdulaziz International Airport, one of Saudi Arabia’s primary international gateways.  

Previously managed under GACA, the organisation privatized in 2022. Since then, daa International has supported Jedco across commercial transformation, operations, and facilities management.  

A modernised tendering framework was critical to ensuring:  

  • Fair competition  
  • Transparency  
  • Value-for-money outcomes  
  • Long-term commercial sustainability  

  

Optimising Tender Operations for Maximum Impact  

The Challenge

The existing tender process required significant strengthening. Opportunities were identified to:  

  • Formalise management and evaluation protocols  
  • Create expert-led evaluation committees  
  • Establish structured frameworks for technical and financial scoring  
  • Align procurement decisions with strategic and financial objectives  

Without reform, there was a risk of inconsistent evaluation, unrealistic financial projections, and reduced commercial performance.  

Designing a Modern, Expert-Led Tendering Framework  

Our Approach

daa International led the full redesign and implementation of Jedco’s new tender process.  

1. Prequalification Phase  

A dedicated Prequalification Committee was introduced to vet bidders based on:  

  • Relevant experience  
  • Financial standing (including absence of outstanding debt)  
  • Formal CEO sign-off  

This ensured only credible, capable vendors progressed to the tender stage — significantly improving proposal quality.  

  

2. Structuring Committees Based on Expertise  

Evaluation roles were no longer assigned by department alone. Instead, targeted SME workshops were formed with 6–8 specialists from areas such as:  

  • Passenger Experience  
  • Facilities Management  
  • Projects & Engineering  
  • Operations  

This ensured proposals were assessed by individuals with direct technical knowledge.  

3. Technical Validation Workshops  

For each technical submission:  

  • SMEs conducted structured workshops  
  • Scope-specific expertise informed evaluation  
  • Final committees reviewed governance and compliance — not technical content  

This eliminated subjective decision-making and ensured technical realism.  

4. Financial Evaluation Overhaul  

daa International introduced a structured Excel-based financial scoring model incorporating weighted criteria.  

Key innovations included:  

  • Validation of sales assumptions against design concepts  
  • Penalty scoring for unrealistic or unsupported revenue projections  
  • Shift from “highest bidder wins” to “best value-for-money”  

This safeguarded long-term commercial viability and discouraged strategic overbidding.  

  

5. Introduction of Best & Final Offer (BAFO)  

A formal BAFO stage was introduced, allowing bidders to refine proposals and resolve ambiguities before final award.  

This reduced disputes and improved final commercial outcomes.  

  

Tangible Value from a Strategic Tendering Approach  

Results & Impact  

The modernised tender framework delivered substantial financial and strategic value:  

  • Duty Free: SAR 1.5 billion  
  • F&B: SAR 500 million  
  • Car Parking: Up to SAR 2 billion  
  • Pharmacy and Bag Wrapping concessions awarded  
  • Bag Wrapping revenues increased twentyfold, coinciding with the launch of a world-first baggage wrap facility  

In total, concessions awarded exceeded SAR 3.5 billion, transforming procurement into a strategic revenue driver.  

Beyond financial gains, the new process:  

  • Improved alignment between design, feasibility, and commercial assumptions  
  • Increased bidder confidence and transparency  
  • Strengthened governance credibility  
  • Shifted procurement from reactive administration to data-driven strategic decision-making  

Importantly, the framework is now fully embedded within Jedco’s governance structure.  

  

Insights for Sustainable Procurement Excellence  

Key Lessons & Best Practices   
  • Technical expert involvement significantly enhances evaluation quality  
  • Decoupling financial and technical assessments ensures unbiased scrutiny  
  • Penalising unrealistic projections discourages overbidding  
  • Governance committees should oversee process integrity — not redo SME work  
  • Internal champions are essential for sustainable change  

Embedded daa International experts within Jedco departments played a critical role in driving adoption and embedding the new framework.  

“Transforming procurement at Jeddah demonstrated that structured governance, expert evaluation, and financial discipline can unlock significant commercial value while strengthening transparency and trust.”  

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