Title
Marketing Services Contract - RFA PCC 24-0450 - Request for Award (Ordinance S-51896) - Citywide
Description
Request to authorize the City Manager, or his designee, to enter into a five-year contract with the Greater Phoenix Convention and Visitors Bureau dba Visit Phoenix to provide marketing services for the Phoenix Convention Center Department (PCCD). Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contract will not exceed $89,980,167.
Report
Summary
This contract will provide marketing services for the PCCD. Visit Phoenix delivers marketing outreach and sales programs to attract citywide conventions, trade shows, and tourism to the City of Phoenix. Additionally, Visit Phoenix works to attract and host major events such as the National Basketball Association (NBA) All-Star Game and the National Collegiate Athletic Association (NCAA) Women’s Basketball Final Four. PCCD's current five-year contract with Visit Phoenix expires on June 30, 2025.
Through this longstanding public-private partnership, Visit Phoenix has provided marketing services for the Phoenix Convention Center (and its predecessor, Phoenix Civic Plaza) since 1968, playing a vital role in attracting conventions and major events to the city. Given the nature of PCCD’s business, Visit Phoenix is uniquely positioned to market both the City of Phoenix and PCCD, driving tourism and economic impact. Through strategic marketing and collaboration, Visit Phoenix strengthens the city’s cultural and economic landscape. In Fiscal Year 1998-99, City Council approved the funding formula for the Visit Phoenix contract, which remains based on 60 percent of PCCD’s portion of Hotel/Motel Excise Tax collections, calculated using a three-year rolling average, with five percent allocated to a PCCD Marketing Fund.
With this contract Visit Phoenix will establish defined goals, strategies, and performance metrics in key areas such as convention sales, marketing, and visitor services. In partnership with the City, Visit Phoenix will promote Phoenix as a premier destination, with a focus on attracting conventions and trade shows, while also working to increase bookings at the Phoenix Convention Center during non-peak periods. A strategic sales approach will be implemented in alignment with the City’s priorities, aimed at generating qualified sales leads on an annual basis. Additionally, the recently established Phoenix Sports and Events Commission will operate as a division within Visit Phoenix to proactively attract a wide range of youth, amateur and collegiate tournaments plus arts, culture and music events that will deliver meaningful economic and social outcomes to Phoenix residents, businesses, and organizations. This agreement supports the City’s efforts to enhance economic impact through tourism, conventions, and major events.
PCCD has worked with Visit Phoenix to secure and bid on future convention business booked as far out as the year 2035, and is currently working with Visit Phoenix on the execution of the 2026 NCAA Women’s Final Four and the 2027 NBA All-Star Game.
Procurement Information
In accordance with Administrative Regulation 3.10, standard competition was waived as a result of an approved Determination Memo based on the following reason: Special Circumstances Without Competition. In May 1998, the City Council established and adopted terms and funding formula for future contracts with Visit Phoenix. Entering into a contract was contingent upon several factors, including a five percent allocation of the three-year rolling average for joint marketing efforts. Additionally, total payments made in any contract year could not exceed the established funding formula without Council approval. Visit Phoenix was also required to support efforts to attract large conventions. The city was granted three voting seats and two ex-officio seats on Visit Phoenix’s board of directors, and performance benchmarks were to be established.
Contract Term
The contract will begin on or about July 1, 2025, for a five-year term with no options to extend.
Financial Impact
The aggregate contract value will not exceed $89,980,167 over the five-year term of the contract.
Funding is available in the Phoenix Convention Center Department's operating budget.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Phoenix Convention Center Department.