Title
Extend Automated Vehicle Identification System Hardware Maintenance Contract (Ordinance S-45974)
Description
Request to authorize the City Manager, or his designee, to extend Contract 134972 with TransCore Holdings, Inc., and to authorize additional expenditures in an amount of $2,378,000 for Automated Vehicle Identification (AVI) system hardware maintenance. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
TransCore Holdings, Inc., provides maintenance and support of AVI hardware, which includes vehicle readers and driver display monitors, as part of the Ground Transportation Management System at Phoenix Sky Harbor International Airport (PHX). The AVI system manages companies, drivers, and the movement of vehicles permitted for commercial activity at PHX. TransCore is the only manufacturer of the Amtech technology Radio Frequency Identification (RFID) equipment used in PHX's AVI system. It is also the only company certified and qualified to maintain and support the AVI hardware to keep licensing and warranty provisions of the system. The AVI hardware needed for spare parts is also only available directly from TransCore because TransCore does not use distributors or resellers to sell their products.
In addition, there is complex integration between the TransCore hardware and Gatekeeper software that makes the overall AVI system work. TransCore's hardware is highly customized at PHX which allows for remote management and updates of RFID hardware components. The integration and customization allow granular controls of the RFID readers, including reader status, customized radio frequency for more efficient reading, control of radio frequency sensors (on/off), and other activities. These unique features facilitate the ability to monitor and provide rapid and consistent response to system problems and allow for remote resolution that would otherwise require dispatch of personnel and loss of revenue. Being able to continue with TransCore's hardware support would result in a supported system and minimal risk to the continuity of operations and revenue generation.
In 2016, the Aviation Department invested $1.3 million to implement the Ground Transportation Policy to allow PHX to assess vehicle trip fees on taxicabs, shuttle companies, and transportation network companies to generate additional revenue for the airport. This policy is fully dependent on the current contract to accurately track and report trip fees.
This item has been reviewed and approved by the Information Technology Services Department.
Contract Term
The request will extend the contract five years through Sept. 30, 2024.
Financial Impact
Additional funds in the amount of $2,378,000 will increase the total contract value to $6,336,822 (including applicable taxes) for the aggregate contract term. Funds are available in the Aviation Department's operating budget.
Concurrence/Previous Council Action
- This contract is the result of Professional Technology Services Agreement 134972, authorized by ordinance on Aug. 29, 2012, with an original aggregate value of $1,858,822 for five years.
- On June 22, 2016, an amendment authorized by an ordinance permitted a two-year contract extension and an increase of $2,100,000 which allowed the implementation of a new Ground Transportation Policy at PHX.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council Districts: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.