Title
Parking Management Services Agreement at Phoenix Sky Harbor International Airport (Ordinance S-47576)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Ace Parking Management, Inc. to provide parking management services for the Aviation Department. Further request to authorize the City Controller to disburse all funds related to this item. The agreement value will not exceed $110 million.
Report
Summary
Parking is the largest non-aeronautical revenue source at Phoenix Sky Harbor International Airport; therefore, the successful Proposer must have extensive experience operating a large airport-owned parking portfolio with results in delivering innovative strategies to improve customer service, increase market penetration, and revenue growth. Parking at Phoenix Sky Harbor International Airport is comprised of over 26,000 spaces that operate 24 hours-per-day and 365 days-per-year. This Parking Management Services agreement requires the successful Proposer to manage, administer, staff, and operate parking facilities; operate the Airport's Parking Access and Revenue Control System (PARCS); maintain and operate circulatory vehicles; provide and operate an online booking system; coordinate the revenue management program; and direct the marketing campaign. The Aviation Department is currently contracted with the recommended Proposer to provide parking management services on a month-to-month basis, but that agreement will terminate on Dec. 31, 2021.
Procurement Information
Request for Proposal (RFP) 21-001 - Parking Management Services was conducted in accordance with Administrative Regulation 3.10. Four proposals were received and deemed responsive and responsible.
The proposals were evaluated by an evaluation panel and scored by consensus based on the following criteria, with a point range of 0-1,000 points:
- Financial Impact Including Revenue and Earnings: 0-250 points.
- Qualifications and Experience: 0-150 points.
- Operations - Customer Service and Staffing Plan: 0-150 points.
- Marketing Plan: 0-150 points.
- Revenue Management: 0-150 points.
- Customer Experience: 0-150 points.
The evaluation panel recommends Ace Parking Management, Inc. for agreement award as the best value to the City based on the following consensus scores:
- Ace Parking Management, Inc. - 894.
- SP Plus Corporation - 842.
- ABM Aviation, Inc. - 688.
- LAZ Parking - 664.
Contract Term
The agreement will begin on or about July 1, 2021 for an initial seven-year term with one three-year option to extend for a 10-year aggregate agreement term.
Financial Impact
The agreement value will not exceed $110 million for the 10-year aggregate agreement term. Funding is available in the Aviation Department’s budget.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended approval of this item on April 15, 2021, by a vote of 9-0.
Location
Phoenix Sky Harbor International Airport - 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.