Title
Request to Issue a Revenue Contract Solicitation for Terminal 3 Food and Beverage Small Business Opportunity
Description
Request the City Manager, or his designee, to authorize the Aviation Department to issue a Revenue Contract Solicitation (RCS) for the Terminal 3 food and beverage micro-restaurant and kiosk small business concession opportunity at Phoenix Sky Harbor International Airport.
Report
Summary
The goal of this RCS is to select a small business operator to gain experience operating at an airport, optimize sales and revenue over the term of the lease, and provide quality food and beverage offerings to passengers. This opportunity is developed specifically for small and diverse firms. The Aviation Department will be providing the micro-restaurant, kiosk, and associated equipment, resulting in reduced capital requirements and startup time required for the successful respondent.
The new micro-restaurant at Terminal 3 Level 4 pre-security will serve passengers and the general public waiting for arriving passengers, terminal employees, and future employees visiting the newly-relocated Airport Security Badging Office. The kiosk placement in the Baggage Claim area will offer additional convenience to the general public, employees, and passengers to purchase food and beverage items while waiting for their luggage.
Procurement Information
The Aviation Department will conduct an RCS to select a small business operator for this contract. Responsive and responsible respondents will be evaluated according to the following criteria:
- Proposed Concepts and Menu Plans
- Experience and Qualifications of Respondents and Partners (if any)
- Management, Marketing, and Operations Plans
- Proposed Business Plan
The highest ranked respondent will be recommended for the concession lease award. The Aviation Department intends to issue this solicitation on or about November 2024, with an estimated award in Spring 2025. The City's Transparency Policy will be in effect with the release of the RCS and throughout the process.
Public Outreach
This process will include all standard and required outreach efforts to attract small business interest.
Contract Term
The term will be three years with two, one-year renewal options, to be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent will be the percentage of annual gross sales. The percentage of rent will be determined during the solicitation development process.
Concurrence/Previous Council Action
The Business Development Subcommittee of the Phoenix Aviation Advisory Board recommended this item for approval on August 1, 2024, by a vote of 4-0.
The Phoenix Aviation Advisory Board recommended this item for approval on August 15, 2024, by a vote of 8-0.
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.