Title
Phoenix Convention Center Department Exclusive Food and Beverage Services - Request to Issue Revenue Contract Solicitation
Description
Request to authorize the City Manager, or his designee, to issue a Revenue Contract Solicitation (RCS) for an exclusive Food and Beverage Service provider for the Phoenix Convention Center Department (PCCD).
Report
Summary
PCCD's food and beverage (F&B) catering and concessions program is a critical component of the department's overall operations. An important goal of the PCCD is to maintain its distinctive brand by offering premium level F&B services.
PCCD entered into a contract with ARAMARK Sports and Entertainment Services, LLC, (dba Aventura Catering) to provide exclusive F&B services on April 1, 2008, for a period of five years, with one, five-year contract extension. Subsequently, PCCD obtained approval to extend the existing contract until Dec. 23, 2018, to avoid impacting an international convention booked at the PCCD. In addition, PCCD retained a consultant with F&B expertise in the convention industry to provide an analysis of the marketplace, industry best practices, and assist with the development of the scope of work. The consultant will provide services throughout the evaluation process leading to contract award.
PCCD F&B services are being requested to support the three Convention Center facilities and two performing arts theaters located downtown. The successful offeror will provide F&B services, sell alcoholic beverages under certain conditions, operate pantry and other food production/storage areas, operate fixed and mobile concession stands, restaurants, cafes and bistros, cater food and beverages to meetings, banquets, and special functions, and vend various refreshments and other items as approved by the PCCD. The successful offeror will, generally, conduct all catered and retail F&B operations at the Phoenix Convention Center, Symphony Hall and Orpheum Theatre. In addition, PCCD will require the successful offeror to make a capital investment in F&B facilities. The successful offeror will provide PCCD with commissions from all activity generating revenue that is conducted at PCCD or utilizes PCCD equipment or facilities for the rights of exclusivity for providing F&B services.
Procurement Information
With approval, PCCD will conduct an RCS to select an exclusive food and beverage provider. Responsive and responsible respondents will be evaluated according to the following evaluation criteria:
- Investment and Financial Return to the City - Capital investments and commission structure offered (0-275 points available).
- Qualifications of Proposer - Experience and performance history of proposing firm in the public assembly industry (0-225 points available).
- Business Plan - Sales and marketing approach, retail outlets/concessions proposed, local business participation, off premise catering, use of technology (0-200 points available).
- Operations Plan - Quality and service standards, sustainability efforts, staffing plan, staff training, ADA compliance (0-200 points available).
- Management Team - Qualifications and experience of proposed on-site managers (0-100 points available).
Proposals will be evaluated by a diverse panel including City staff and community representatives consisting of two representatives from PCCD, two representatives from the tourism and hospitality community, and one representative from another City department. The highest-ranked respondent will be recommended for the exclusive Food and Beverage services award.
Contract Term
This agreement will have a primary term of 10 years, with one, five-year renewal option to be exercised at the sole discretion of the Phoenix Convention Center Director.
Financial Impact
Revenue will be realized in the form of a Minimum Annual Guarantee (MAG) or a percentage of sales, whichever is greater. This agreement also will provide for additional commission payments based upon achievement of certain gross receipts milestones. Additionally, the agreement will require an initial capital investment of a minimum of $5 million to be used for the renovation or new construction of food and beverage systems and equipment.
Concurrence/Previous Council Action
The Downtown, Aviation, Economy and Innovation Subcommittee recommended this item on Feb. 7, 2018, by a vote of 4-0.
Location
Phoenix Convention Center Department, 100 N. 3rd St.
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr. and the Phoenix Convention Center Department.