Title
Taxicab Services Contracts Award Request (Ordinance S-44155)
Description
Request to authorize the City Manager, or his designee, to enter into separate contracts with four companies to provide taxicab services at Phoenix Sky Harbor International Airport. The contracts may contain other terms and conditions deemed necessary or appropriate by the City Manager or his designee. The City estimates that it will receive annual revenue totaling approximately $1.9 million.
Report
Summary
The Aviation Department at Phoenix Sky Harbor International Airport contracts with taxicab service providers to ensure on-demand transportation is available for travelers at all times. Over the last four years, taxicab companies have provided nearly 3 million safe, reliable rides.
The Aviation Department requests authorization to enter into four revenue contracts for taxicab services after conducting a competitive revenue contract solicitation (RCS). Two contracts will be awarded to large companies that have a base fleet of 70 vehicles each. Two contracts will be awarded to small companies that have a base fleet of 30 vehicles each. The two large companies will be required to maintain a minimum of 15 percent of vehicles operated by franchises or owner-operators. One small company will be 100 percent owner-operator. All companies will pay a trip fee (currently $3.25) for each passenger pickup. The trip fee will not be passed on by the companies to the customer or the driver.
Procurement Information
This procurement was conducted using a competitive RCS process. The process began with significant industry outreach and did not allow respondents to submit bids, but instead used an evaluation of each respondent's qualifications for ranking and recommendation. Each eligible respondent was given the opportunity to interview with the evaluation panel.
A protest and appeal was filed with and reviewed by the Office of Administrative Hearings (OAH). The OAH administrative law judge recommended that the City Manager dismiss the appeal, and the recommendation was upheld by the City Manager.
The Aviation Department recommends awarding taxicab services contracts at Phoenix Sky Harbor International Airport to the following respondents in each category:
Large Company
AAA Cab Services, Inc., dba Yellow Cab of Arizona
Total Transit Enterprises, LLC
Small Company (100 percent owner-operator)
Mayflower Cab Company, LLC
Small Company (not 100 percent owner-operator)
VIP Taxi, LLC
Contract Term
The term of each contract will be four years and include one two-year option to extend the term, which may be exercised at the Aviation Director's sole discretion.
There was a delay in the RCS schedule because an unsuccessful proposer filed a protest and appeal. The current services contracts with AAA Cab Services, Inc., and Apache Taxi LLC will expire on Feb. 1, 2018 and will need to be extended on a month-to-month basis not to exceed six months. The current services contract with Mayflower Cab Company, LLC will expire on June 1, 2018 and will not need to be extended.
Financial Impact
The City estimates that it will receive annual revenue totaling approximately $1.9 million.
Concurrence/Previous Council Action
This item was recommended for approval by the Downtown, Aviation, Economy and Innovation Subcommittee on Dec. 6, 2017 by a vote of 4-0.
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 Deanna Jonovich and the Aviation Department.