Title
Parking Access Revenue Control System Maintenance and Technical Support Contract - Extension (Ordinance S-47501)
Description
Request to authorize the City Manager, or his designee, to extend the existing Contract 142643 with Scheidt & Bachmann USA, Inc. for ongoing maintenance and technical support of the Parking Access Control System at Phoenix Sky Harbor International Airport. Further request authorization for the City Controller to disburse all funds related to this item. The agreement value will not exceed $7,812,000.
Report
Summary
Parking is the largest non-aeronautical revenue source at the airport, and the Parking Access Control System (PARCS) is the underlying technology which facilitates that operation. PARCS supports the operation of nine parking facilities with approximately 26,000 parking spaces. The system consists of airport-wide infrastructure that includes 43 entries, 39 exits, nine pay-on-foot kiosks, and 72 license-plate revenue control cameras. This hardware is actuated by parking management software that enables passengers and employees to park in various airport parking facilities and pay their parking fees. Prior to COVID-19, the system processed approximately 3.1 million parking transactions and generated revenue exceeding $90 million per year.
PARCS is a highly complex system and is tightly integrated with several other key airport systems, including SAP for revenue management, a third-party Online Reservations System, Aviation’s Security and Access Control System and Employee Parking System for access control, and the Chase Bank payment system. Under the current support contract, the vendor provides maintenance services, including 24/7 technical support, software updates, firmware updates, security patches, system enhancements and modifications, repair and replacement, and onsite/remote troubleshooting for operational issues. The system currently performs as expected and meets the Airport's needs. From a life-cycle perspective, the current system has useful life remaining and does not require major hardware or software upgrades or replacements. The current support contract expires May 31, 2021.
The estimated implementation cost for a brand-new system is approximately $10.5 million with an annual maintenance cost of $1.25 million, resulting in a total cost of ownership of $16.75 million over five years. The current maintenance contract, if extended, would result in annual maintenance cost of $1.56 million, or a total cost of ownership of $7.8 million over five years. Considering the scope and scale of the system, a replacement would also take approximately two or more years and require the current contract to be extended for a minimum of three years to allow for a new solicitation followed by the implementation. Extending the existing contract will ensure that maintenance and technical support will not be interrupted and foregoing a replacement effort at this time will result in a significant cost savings and mitigate any revenue loss for the Aviation Department.
This item has been reviewed and approved by the Information Technology Services Department.
Contract Term
The contract extension will begin on or about June 1, 2021 for an initial two-year term, with three one-year options to extend for a five-year aggregate contract term.
Financial Impact
The contract extension value will not exceed $7,812,000 for the five-year term aggregate term, with an estimated annual cost of $1,562,400. Funding is available in the Aviation Department's budget.
Concurrence/Previous Council Action
- The Phoenix Aviation Advisory Board recommended this item for approval on March 18, 2021, by a vote of 9-0.
- The Transportation, Infrastructure and Innovation Subcommittee recommended this item for approval on April 7, 2021, by a vote of 4-0.
Location
Parking facilities at Phoenix Sky Harbor International Airport
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.