Title
Authorization to Extend Professional Services Agreement with Molera Alvarez, LLC (Ordinance S-45069)
Description
Request to authorize the City Manager, or his designee, to exercise the final one-year option to extend for Professional Services Agreement 139598-2 with Molera Alvarez, LLC, and authorize the City Controller to disburse funds in an amount not to exceed $185,270 for the final contract year. There is no impact to the General Fund. Funds are available in the Community Reinvestment Fund.
Report
Summary
In 2014, following a competitive procurement process, City Council authorized a Professional Services Agreement with Molera Alvarez, LLC to represent and advance trade promotion, Foreign Direct Investment (FDI) and tourism interests of the City of Phoenix in Mexico. This agreement has proven successful as demonstrated by the achievements under the established Key Performance Indicators. As of mid-2018, efforts have been coordinated that have resulted in:
- 23 Inbound/outbound trade missions.
- Representation at 58 expositions and conferences.
- 87 Trade leads and prospects.
- Eight cooperation agreements.
- 15 "Doing Business in Phoenix" roadshow presentations in leading Mexico markets.
- FDI locates and prospects (Etiquetas Mexico; Lariv Desarollos).
- Inaugurations of the City of Phoenix trade offices in Mexico City and Hermosillo.
The City of Phoenix has established a recognized leadership position in Mexico as it relates to key relationships and economic opportunity. Maintaining this leadership position requires a sustained effort. Staff proposes extending the contract with Molera Alvarez, LLC for Trade Development Representative Services to further elevate the City's leadership position, leverage the success to date, and position Phoenix for increased economic opportunity with Mexico.
The contract extension will consist of the following elements of the scope of work, including:
- Identify, qualify and support trade and sales opportunities with Mexico of both products and services for Phoenix companies.
- Identify enhanced supply chain opportunities for Phoenix companies looking to expand their product purchasing from Mexico.
- Fully support the preparation and implementation of visitation programs for City of Phoenix inbound missions of elected officials, business leaders and private companies pursuing trade.
- Provide economic development staff in Mexico City and Hermosillo, as well as resources in Phoenix to administer the Mexico strategy.
- Continue physical presence in Mexico City and Hermosillo.
- Expand comprehensive "Doing Business in Phoenix" Roadshow programs in Tijuana, Chihuahua and State of Mexico, in addition to existing locations of Mexico City, Hermosillo, Queretaro, Guadalajara, Monterrey and Culiacan.
- Fully support two strategic outbound missions to targeted cities: Mexico City and Hermosillo.
- Work with the City of Phoenix and Phoenix companies to fully leverage opportunities resulting from the new United States Mexico Canada Agreement (USMCA).
- Work with the City of Phoenix and Phoenix companies to facilitate connections and integration with elected officials and their teams at the Mexican municipal, state and federal level.
- Develop opportunities in emerging sectors that have been identified as core growth areas for the City of Phoenix such as Cybersecurity, Autonomous Vehicles, Advanced Manufacturing and the Internet of Things (IoT).
- Advance FDI prospects targeting Phoenix for expansion and development opportunities.
- Expand participation in targeted trade shows and programs throughout Mexico, including Mexico's Aerospace Summit, ExpoIndustrial, ExpoManufactura, FAMEX and ExpoMed.
Mexico remains the top trading partner for both the City of Phoenix and State of Arizona. The City has experienced record exports to Mexico for the three most recent years for which data is available, 2013 ($2.7 billion), 2014 ($3.6 billion) and 2015 ($4.2 billion). Active engagement with Mexico is necessary to continue this positive export trajectory.
Contract Term
The original contract term was for two years, with three one-year options to extend through July 31, 2019. This request is to exercise the final one-year option for an amount not to exceed $185,270 for all services satisfactorily performed under this Agreement. All other terms and conditions of the Agreement will remain in full force and effect.
Financial Impact
There is no impact to the General Fund. Funds are available in the Community Reinvestment Fund.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Community and Economic Development Department.