Title
Distributed Antenna System at Phoenix Sky Harbor International Airport (Ordinance S-47713)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with AT&T Services, Inc. for the design, implementation, and operation of an airport Distributed Antenna System to improve cellular service for all passengers, business partners, and workers at Phoenix Sky Harbor International Airport. AT&T will pay the City a $750,000 first-year minimum annual guarantee with a three percent annual increase during the agreement term and any option periods exercised by the City.
Report
Summary
The cellular service at Phoenix Sky Harbor International Airport (PHX) is spotty and inconsistent because of the physical structures in and around the airport campus. Terminal buildings, parking garages, and other structures make it difficult to receive optimal cellular service inside the terminals and concourses.
On average, approximately 123,000 passengers pass though PHX facilities per day (pre-COVID-19). A strong and reliable cellular service is essential to provide passengers a world-class experience that enables them to stay connected with friends, family, and work while traveling. Historically, wireless-service providers have tried to address structural impediments by strategically locating outdoor cell towers. This method has made marginal improvements for voice calls. But most cellular traffic today consists of data, video, and streaming services. These services cannot be improved by modifying or adding legacy outdoor towers. And with the launch of 5G technology, passengers expect the next-generation wireless experience while in our facilities. The Federal Communications Commission's designated frequency spectrum allocation for 5G makes it almost impossible to provide ultra-high bandwidth 5G service inside airport terminals and other facilities by relying on common outdoor cell towers.
A Distributed Antenna System (DAS) will help provide the necessary infrastructure to deliver world-class 4G and 5G cellular service to PHX passengers. The DAS will ensure adequate coverage and the capacity needed to support a high-speed wireless experience (such as for streaming, media, video, and online gaming). This connection quality is becoming the expectation that passengers demand while at the airport. The system will also facilitate next-gen applications and services, such as the Internet of Things (IoT), Virtual/Augmented Reality, and others within the PHX environment.
This item has been reviewed and approved by the Information Technology Services Department.
Procurement Information
The Aviation Department issued a Revenue Contract Solicitation (RCS 21-008) for design, build, operation, management, and maintenance of a DAS on Dec.17, 2020. Five responses were received on March 2, 2021. Two respondents were deemed non-responsive.
Evaluation criteria for the responsive and responsible respondents included:
- Method of approach to design, build and operate a DAS (350 Points)
- Revenue to the City (300 Points)
- Qualifications and experience of respondent and key personnel (250 Points)
- Business plan (100 Points)
The evaluation panel recommends AT&T Services, Inc. (AT&T) for award as the best value to the City based on the following consensus scores:
- AT&T - 890 Points
- Crown Castle Fiber, LLC - 850 Points
- Boingo, LLC - 827 Points
Contract Term
The agreement term will be 10 years with two one-year options to extend the term. The options may be exercised at the Director of Aviation Services' sole discretion.
Financial Impact
AT&T will pay the City a $750,000 first-year minimum annual guarantee with a three percent annual increase during the agreement term and any option periods exercised by the City.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended approval of this item on May 20, 2021 by a vote of 8-0.
Location
Phoenix Sky Harbor International Airport - 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.