Title
Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-52343) - District 8
Description
Request to authorize the City Manager, or the City Manager's designee, to execute an amendment to Contract 149845 (Contract) with Daifuku Services America Corporation to extend the term of the Contract and add additional expenditures. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures will not exceed $3,600,000.
Report
Summary
The Contract provides operation, maintenance, and repair services for the baggage handling system at Phoenix Sky Harbor International Airport (PHX), which is critical to PHX operations to ensure all checked baggage are efficiently and securely processed and arrive at the airline's designated bag makeup location.
On February 26, 2024, the Aviation Department issued a Request for Proposal for Baggage Handling Systems - Operations, Maintenance, Repair, and Controls System Design, Programming and Integration Services (RFP 24-0156). An extension to the term is necessary to ensure uninterrupted operation of the Baggage Handling System, while allowing staff to continue to address protests, litigation, and appeals related to the solicitation process and award a new contract.
Contract Term
The Contract term will expire on October 31, 2025. Upon approval, the Contract term will be extended through January 31, 2026, with an option to extend the term to July 31, 2026, or until a new contract begins, whichever occurs first.
Financial Impact
Additional funds in the amount of $3,600,000 will increase the total cost of the Contract to $22,938,878. Funds are available in the Aviation Department’s operating budget.
Concurrence/Previous Council Action
The City Council previously reviewed this request:
• Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 (Ordinance S-45631) on May 15, 2019.
• Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-50390) on December 6, 2023.
• Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-50997) on June 12, 2024.
• Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-51490) on December 4, 2024.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Amber Williamson and the Aviation Department.