Title
Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-52754) - District 8
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Contract 149845 (Contract) with Daifuku Services America Corporation to extend the term of the Contract and to authorize additional expenditures under the Contract. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures will not exceed $700,000.
Report
Summary
The Contract provides operation, maintenance, and repair services for the baggage handling system at Phoenix Sky Harbor International Airport (PHX), which is critical to PHX operations to ensure all checked baggage are efficiently and securely processed and arrive at the airline's designated bag makeup location.
On February 26, 2024, the Aviation Department issued a Request for Proposal for Baggage Handling Systems - Operations, Maintenance, Repair, and Controls System Design, Programming and Integration Services (RFP 24-0156). An extension of the term of the Contract is necessary to ensure uninterrupted operation of the baggage handling system, while allowing staff to continue to address the litigation and appeals process related to the solicitation process and award a new contract.
Contract Term
The term of the Contract will expire on July 31, 2026. Upon approval, the Contract term will be extended through October 31, 2026, or until a new contract begins, whichever occurs first.
Financial Impact
Upon approval of $700,000 in additional funds, the revised total cost of the Contract will not exceed $21,638,878. Funds are available in the Aviation Department’s operating budget.
Concurrence/Previous Council Action
The City Council previously reviewed this request:
• Baggage Handling System Operation, Maintenance and Repair Services - Contract 149845 (Ordinance S-45631) on May 15, 2019.
• Baggage Handling System Operation, Maintenance and Repair Services - Contract 149845 - Amendment (Ordinance S-50390) on December 6, 2023.
• Baggage Handling System Operation, Maintenance and Repair Services - Contract 149845 - Amendment (Ordinance S-50997) on June 12, 2024.
• Baggage Handling System Operation, Maintenance and Repair Services - Contract 149845 - Amendment (Ordinance S-51490) on December 4, 2024.
• Baggage Handling System Operation, Maintenance and Repair Services - Contract 149845 - Amendment (Ordinance S-52343) on October 15, 2025.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Frank McCune and the Aviation Department.