Title
Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-53226) - District 8
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Contract No. 149845 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 $5,500,000.
Report
Summary
The Contract provides for 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 that all checked baggage are efficiently and securely processed and arrive at the airline's designated bag makeup location.
In Feb. 2024, the Aviation Department (Aviation) issued Request for Proposal (RFP) 24-0156 for Baggage Handling Systems - Operations, Maintenance, Repair, and Controls System Design, Programming and Integration Services. An award recommendation was issued in Aug. 2024. However, Aviation received a protest. Since then, the award recommendation has remained under legal review. To ensure continued, uninterrupted operations of these critical services essential to maintain reliable passenger processing, an extension of the term of the Contract is necessary.
Contract Term
Upon approval, the Contract will be extended for not more than 18 months starting on Nov. 1, 2026.
Financial Impact
Upon approval of $5,500,000 in additional expenditures, the revised total value of the Contract will not exceed $27,138,878. Funds are available in the Aviation’s budget.
Concurrence/Previous Council Action
The City Council previously reviewed this request:
• Baggage Handling System Operation, Maintenance and Repair Services - Requirements Contract - RFP 19-008 (Ordinance S-45631) on May 15, 2019.
• Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-50390) on Dec. 6, 2023.
• Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-50997) on June 12, 2024.
• Baggage Handling System Operation, Maintenance and Repair Services RFP 19-008 - Amendment (Ordinance S-51490) on Dec. 4, 2024.
• Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-52343) on Oct. 15, 2025.
• Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-52754) on April 8, 2026.
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.