Questions for Discussion

1. What were the top 3 factors that contributed

to the projects failure?
2. Who do you feel is most at fault? (Pena,
Webb, DiFonso, Others?)
3. What might Webb have done differently
when he became Mayor?
4. As Gene DiFonso, what would you have
done differently to avoid problems faced at
the end?
5. How should DiFonso respond to Mayor
Webbs decision to impose a $12,000 per
day penalty and a $50 million penalty?

Key Problems
1. Pre-project planning and selection
process

2. Leadership

3. Project Management and
Implementation
Two Projects
DIA Project
BAE Sub-Project
Macro Problems with the DIA
Project
1. Oversold by politicians and corporate
stakeholders
2. Too much involvement of local people
leading to coordination issues
1. Too many contractors
3. Financial pressures forced short project
time-frame
1. Bonds had to be repayed from Jan 1, 1994
4. Lack of stakeholder involvement early on
1. Too many changes by stakeholders later on

The BAE project
Why did BAE take it up?
Revenue of $175.6 Million from this project
is greater than annual revenue of $100
Million
United is a long-term customer and BAE is
anxious to help them
What did DiFonso do to mitigate risk?
Several contractual agreements
The BAE Project
Why did these agreements not hold-up?
Slingers death was an important event.
Relationships were changed
During the project what could DiFonso have
done?
Contacted Webb directly?
Maintained a detailed roster of events leading to
delays for claims analysis?
What kinds of control systems should he have
had?
Project Analysis
Risk Category DIA/BAE Status
1. Strategic
Validity and
Importance
Not economically valid for DIA
but perhaps politically
necessary
2. Project Size Large size but many expert
consultants were roped in and
BAE stood to make good
revenues
Project Analysis
Risk Category DIA/BAE Status
3. Project
Structure
Extremely complex and needed
strong leadership. Perhaps this
was missing after Slingers death.
Too many changes were made
BAE may not have had expertise
in such large projects
BAE should have been involved
early on
DiFonso did not have enough
influence outside BAE
Not enough time
What should DiFonso do now?
Sue the city?
Attempt to renegotiate?
Use BAEs political connections with
United to influence United to put
pressure on the city?
Accept the citys demands?