Title
Authorization to Enter into a Contract with Aramark Sports and Entertainment, LLC (dba Aventura Catering) (Ordinance S-44828)
Description
Request to authorize the City Manager, or his designee, to enter into a 10-year contract (with one option to extend for an additional five years) with Aramark Sports and Entertainment, LLC (dba Aventura Catering) for exclusive food and beverage services at the Phoenix Convention Center Department. Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item. This is a revenue-generating contract anticipated to generate approximately $90 million in revenue over the life of the contract. Aramark's proposal includes an initial capital investment of $6.5 million.
Report
Summary
On Feb. 21, 2018, Phoenix City Council authorized the issuance of a Revenue Contract Solicitation (RCS) for Exclusive Food and Beverage Services at the Phoenix Convention Center Department. The Phoenix Convention Center Department's (PCCD) 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.
The RCS requested proposals from qualified firms to provide F&B services at the Phoenix Convention Center, Symphony Hall and the Orpheum Theatre. The successful respondent to provide full-service catering to meetings, banquets, and special functions, sell alcoholic beverages under certain conditions, operate kitchens and pantries and other food production/storage areas, operate fixed and mobile concession stands, restaurants, cafes and bistros, and vend various refreshments and other items as approved by the PCCD. In addition, PCCD requires the successful respondent to make a capital investment in F&B facilities. The successful respondent will provide PCCD with commissions from all activity generating revenue conducted at PCCD or utilizing PCCD equipment or facilities in exchange for the rights of exclusivity for providing F&B services.
Procurement Information
The RCS was issued March 5, 2018, with responses due April 5, 2018. The procurement was conducted in accordance with Administrative Regulation 3.10. Five firms attended the mandatory pre-proposal conference. Two responses were received and were reviewed for minimum qualifications, and all responses were found to be responsive and responsible. The evaluation panel interviewed all respondents on May 7, 2018. Panel members evaluated the responses based on the following criteria established in the RCS:
- Investment and Financial Return to the City - Capital investments and commission structure offered (0 - 275 points)
- Qualifications of Proposer - Experience and performance history of proposing firm in the public assembly industry (0 - 225 points)
- Business Plan - Sales and marketing approach, retail outlets/concessions proposed, off premise catering, use of technology (0 - 200 points)
- Operations Plan - Quality and service standards, sustainability efforts, staffing plan, staff training, ADA compliance (0 - 200 points)
- Management Team - Qualifications and experience of proposed on-site managers (0 - 100 points)
Proposers were required in their business plans to identify and document potential business opportunities for local small businesses and describe planned outreach to encourage local small business participation in the proposers’ proposed operations.
The evaluation panel recommendations were reached by consensus in consideration of the above criteria and the panel is recommending award to Aramark Sports and Entertainment (dba Aventura Catering). The results of the evaluation panel scoring are as follows:
#1 Aramark Sports and Entertainment, LLC (dba Aventura Catering): 887.50 out of a possible 1,000 points
#2 Volume Services, Inc. (dba Centerplate): 765.95 out of a possible 1,000 points
The City Transparency policy is in effect until the resultant Agreement from this RCS is awarded.
Contract Term
The term of this contract will be for 10 years covering Dec. 24, 2018, through Dec. 23, 2028, with an option to extend the term for an additional five years.
Financial Impact
This is a revenue-generating contract and is anticipated to result in approximately $90 million in revenue over the life of the contract, and an initial capital investment of $6.5 million.
Concurrence/Previous Council Action
The Downtown, Aviation, Economy and Innovation Subcommittee recommended this item for approval on June 6, 2018, by a vote of 4-0.
Public Outreach
The RCS was advertised on the City of Phoenix website, the Arizona Business Gazette, Arizona Informant, Record Reporter, Facilities and Destinations, International Association of Venue Managers weekly electronic publication, VenueNet and Meetings and Conventions electronic publication.
Location
Phoenix Convention Center, Symphony Hall & Orpheum Theatre
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.