US state agencies complain about DHL service

Ohio State agencies have made dozens of complaints about service by DHL since Jan. 1, when Ohio awarded the company a $4.4 million contract to replace UPS as the state’s exclusive courier.

Agency officials accuse DHL of a wide array of delivery and billing problems.

The company said in a statement released through its public relations manager that some service issues are unavoidable when a change in vendor takes place.

Gov. Bob Taft gave DHL an opportunity to bid on the contract after it agreed to move its hub from northern Kentucky to Wilmington, and it submitted the low bid.

A spokesman for the governor said the office is aware some agencies are not happy with DHL’s service and expects the Department of Administrative Services to rigorously enforce the contract.

DHL was awarded the contract shortly after Ohio won a bidding war with Kentucky for the new DHL air cargo hub.

The company agreed to move its hub from Cincinnati/Northern Kentucky International Airport in Hebron, Ky., to Wilmington in exchange for $122 million in tax breaks and incentives.

DHL was not considered for the state’s delivery business until DHL officials complained to Taft’s office that they had not been treated well when they had asked about reopening the contract.

Records show that this was after the Department of Administrative Services had already asked UPS to renew the courier contract.

Taft spokesman Mark Rickel said the governor gave DHL a crack at the contract out of gratitude for DHL’s decision to relocate its hub to Wilmington and create 900 more full- and part-time jobs.

“We had aggressively fought for DHL to select an Ohio site for its consolidated air and ground hub,” Rickel said.

“It was our position that if it made good business sense, the contract should be rebid.”

DHL’s $4.4 million bid was $170,000 less than UPS’ bid.

FedEx’s bid was $4.7 million.