Title
Extension of Airport Concession Consultants Agreement (Ordinance S-47707)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement No. 143140 (Agreement) with ACC Consulting, LLC (ACC) for up to one year on a month-to-month basis to provide consulting services in support of Phoenix Sky Harbor International Airport's Airport Concession Disadvantaged Business Enterprise (ACDBE) Program.
Report
Summary
ACC conducts ACDBE Program compliance reviews for the Equal Opportunity Department and the Aviation Department (Aviation) to ensure that Phoenix Sky Harbor International Airport's (PHX) concessionaires meet federal compliance requirements and abide by Aviation's employee retention requirements. As a large hub primary airport, PHX is required to have an ACDBE program. As a condition of eligibility for Federal Aviation Administration (FAA) financial assistance, the City is required to submit its ACDBE Program and overall goals to the FAA. In addition, the City must conduct regular ACDBE compliance reviews to ensure PHX concessionaires meet federal compliance requirements.
During the COVID-19 pandemic in 2020, monthly passenger traffic was as low as seven percent of 2019 passenger traffic and PHX concession hours and concessionaire staff levels were significantly reduced in response to low customer activity. ACDBE compliance reviews were paused to provide concessionaires the opportunity to focus on keeping their businesses operational and the process to re-solicit the Agreement was postponed. April 2021 data now indicates enplanements and passenger traffic are increasing at a faster rate than projected, which will require initiation of compliance reviews in the near future. The Agreement extension will allow Aviation to develop a new procurement and establish a new five-year consultant agreement.
Contract Term
The term of the Agreement is through June 30, 2021. The amendment would extend the term of the agreement for one year on a month-to-month basis beginning on or about July 1, 2021.
Financial Impact
No additional funds are requested.
Concurrence/Previous Council Action
The City Council approved Agreement 143140 (Ordinance S-42765) on July 1, 2016.
Location
Phoenix Sky Harbor International Airport - 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.