Austin’s airport is embarking on its largest-ever expansion but a new city audit shows the Aviation Department is struggling with basic contract oversight, raising questions about how prepared the city is to manage the surge of vendors that will come with the massive buildout.
The report, released Thursday by the Austin City Auditor’s Office, examined two teams at the department that collectively manage more than 700 contracts with vendors ranging from retail stores and restaurants to baggage handling, custodial services and ground transportation. Of the 49 active non-construction contracts reviewed, auditors found that more than 90% had major documentation issues, including missing insurance records, misplaced amendments, incomplete scopes of work and inconsistent filing. Contract records were scattered across multiple systems, often entered manually, and in many cases had no secondary review.
“We found that Austin Aviation’s contract management process does not ensure that documentation is accurate, leading to a significant amount of incorrect information and making it difficult for Austin Aviation to ensure contract documentation requirements are met,” Auditor-in-Charge Kristina Kern told a City Council committee Wednesday.
The audit, initiated by a 2024 risk assessment, comes as Austin-Bergstrom International Airport is in the early stages of a multibillion-dollar expansion that includes a new concourse and a massive arrivals and departures hall, a project intended to more than double the airport’s passenger capacity in the coming years.
The review did not include construction contracts tied to the airport’s major expansion projects, which are managed separately. Even so, auditors noted that the types of non-construction contracts they examined — leases, concessions, maintenance and other operating agreements — are expected to increase in number and complexity as the airport adds gates, terminal space and new amenities.
Auditors pointed to a lack of standardized processes and limited technology tools as major contributors to the errors. Instead of storing contract information in a centralized database, staff rely on a mix of software systems and manual entry to track different components of each contract. That fragmentation, the report notes, increases the likelihood that “staff may forget to upload contract documentation or may make errors entering contract requirements,” resulting in inconsistent or incomplete records across internal systems and opening the city up to financial and legal liability.
Oversight gaps also contributed to the problems. Half of surveyed contract management staff said no one regularly reviews documentation after it is entered into internal systems, and half said they had not received contract-management training in more than a year.
The Aviation Department had already begun updating some procedures after the 2024 risk assessment flagged similar issues. Those efforts included adding staff, revising checklists and adjusting internal workflows.
Airport CEO Ghizlane Badawi told council members she is committed to carrying out the audit’s recommendations, which include creating more consistent review processes, increasing training and exploring new technology options to consolidate contract information.
Some improvements are expected by mid-2026, with broader system upgrades projected to be in place by September 2026.
Despite those commitments, the audit cautions that underlying “systemic deficiencies” persist, particularly around inconsistent processes and lack of centralized oversight.
“Contract management teams have taken steps to address risks and improve their processes,” the report said. “However, these steps have not fully addressed the issues.”