Title
Luggage Cart Service Lease Agreement at Phoenix Sky Harbor International Airport (Ordinance S-47659)
Description
Request to authorize the City Manager, or his designee, to enter into a Luggage Cart Service Lease Agreement with APS USA LLC at Phoenix Sky Harbor International Airport for five years, with no options to extend the term. The Aviation Department will collect eight percent of gross sales from cart rentals, and the free luggage carts program provided for passengers utilizing the Rental Car Center and the federal inspection station will have an annual cost of $320,000.
Report
Summary
Phoenix Sky Harbor International Airport (PHX) is America's Friendliest Airport when it comes to customer service. As the largest economic engine in the State of Arizona, PHX strives to deliver a world-class experience to every customer, every day. The agreement for airport luggage cart rental services will provide passengers with an option to manage their luggage on demand through PHX to their destinations.
The service is provided at all terminals, parking locations, and Phoenix Sky Train stations. The service will also offer free luggage carts to our passengers using the Phoenix Rental Car Center and international passengers using the federal inspection station.
The current contract with Smarte Cart expires on June 30, 2021 and has an annual cost of $405,000. On Dec. 9, 2020, the City Council approved the issuance of a revenue contract solicitation (RCS 21-014) for luggage cart services.
Procurement Information
On Feb. 11, 2021, the Aviation Department issued an RCS to select a service provider to provide the required luggage cart rental services. On March 19, 2021, two proposals were received - - one from the current provider, Smarte Cart, was deemed non-responsive and one from APS USA LLC that was deemed responsive. Smarte Cart's response was deemed non-responsive because Smarte Cart refused to accept the terms of the RCS and submitted material exceptions, including mandatory payment terms.
On April 14, 2021, an evaluation panel met and evaluated the responsive respondent based on the published evaluation criteria:
- Respondent’s Experience and Qualifications (400 points)
- Management Plan (300 points)
- Operation Plan (150 points)
- Maintenance Plan (150 points)
After a local and national outreach effort and a competitive solicitation, APS USA LLC is recommended for award of the Luggage Cart Service Lease Agreement with 827 out of 1,000 points.
The City's Transparency Policy is in effect until the agreement resulting from this RCS is awarded by the City Council.
Contract Term
The term is five years with no options to extend the term.
Financial Impact
The Aviation Department will collect eight percent of gross sales from cart rentals, and the free luggage carts program provided for passengers utilizing the Rental Car Center and the federal inspection station will have an annual cost of $320,000. Funding for the agreement is available in the Aviation Department's Budget.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended this item for approval on May 20, 2021 by a vote of 8-0.
Public Outreach
Public outreach included local and national advertising, industry specific advertising, and a pre-proposal meeting was held on Feb. 19, 2021.
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 Mario Paniagua and the Aviation Department.