Title
Network Entertainment Broadcast System, Terminal Services Package, Award Recommendation (Ordinance S-46381)
Description
Request to authorize the City Manager, or his designee, to enter into a Network Entertainment Broadcast System (NEBS) Terminal Services, Concession Lease (Lease) with AC Holdings, Inc. (CNN) for five years, with one, two-year renewal option. This Lease is estimated to generate approximately $1,050,000 in revenue over the full term, including option years.
Report
Summary
On May 1, 2019, the Phoenix City Council authorized the Aviation Department (AVN) to issue an RCS (Revenue Contact Solicitation) for a NEBS, Terminal Services Lease. On Sept. 27, 2019, AVN issued the RCS for the installation, management, operation and maintenance of a NEBS.
The City received one response, which was evaluated by an evaluation panel on Nov. 22, 2019 and their award recommendation was posted to the City’s public award website on Dec. 10, 2019.
The panel members evaluated and deliberated on the submitted response based on the following criteria established in the RCS:
- Proposed Financial Return to the City (250 points)
- Management and Operations Plan (225 points)
- News, Travel, and Entertainment Programming (225 points)
- Design and Infrastructure (150 points)
- Experience and Qualifications (100 points)
- Local Content and Programming (50 points)
The panel recommendation was reached by a consensus in consideration of the listed criteria.
Procurement Information
The submittal was responsive. The consensus score and ranking for the respondent is shown below:
AC Holdings, Inc. dba CNN Airport Network: 785 points
The City Transparency Policy is in effect until the Lease resulting from this RCS is awarded.
Contract Term
The term will be five years, with one, two-year renewal option to be exercised at the sole discretion of the Aviation Director.
Financial Impact
The estimated annual revenue to the City is $150,000; the estimated aggregate revenue over the full term including all extension options is $1,050,000.
Concurrence/Previous Council Action
This item was recommended for approval by the Transportation, Infrastructure and Innovation Subcommittee on Feb. 5, 2020 by a vote of 4-0.
Public Outreach
This solicitation process included all standard and required outreach efforts, including advertising in Aviation industry publications.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.