Title
Beverage and Snack Vending Services for Transit Facilities - IFB PTD19-006 (Ordinance S-45958)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Premier Vending and Food Services, Inc. for the purpose of providing beverage and snack vending services at various federally-funded public transit facilities. This is a revenue-generating contract for beverage and snack vending services.
Report
Summary
The Public Transit Department has beverage and snack vending machines at various public transit operating facilities, including transit centers where passengers board and deboard, bus-maintenance facilities, and park-and-ride facilities. Vending machines are open to the public and any employees at these public transit facilities.
During the contract's term, the City may add vending machines for additional public transit properties. The contractor will be responsible for providing all equipment and required services, including installation, maintenance, cleaning, repairing, and stocking of the machines. The contractor must also keep all machines consistently stocked at a minimum inventory level of 75 percent.
Procurement Information
The Public Transit Department issued an Invitation for Bid (IFB PTD19-006) on May 21, 2019, to award a contract to provide public transit beverage and snack vending services. This IFB was conducted in accordance with Administrative Regulation 3.10.
The Public Transit Department received four offers on June 6, 2019, which were reviewed to determine what offers generated the highest revenue share to the City for the contract's first two years. In addition, preventive-maintenance service schedules were reviewed for compliance and quality-control purposes.
The top two beverage and snack offers proposing the highest revenue share to the City were determined as follows:
- Premier Vending and Food Services, Inc.: 31 percent (Year 1), 32 percent (Year 2).
- EliteVend, LLC dba Elitevend of Arizona: 27 percent (Year 1), 28 percent (Year 2).
The Public Transit Director recommends contract award to Premier Vending and Food Services, Inc. as the responsive and responsible offeror with the highest revenue percentage offered to the City.
Contract Term
The contract consists of a two-year base agreement with three one-year options to extend, which the City will exercise if that is in its best interest. The contract term will begin on or about Sept. 1, 2019 and end around Aug. 31, 2024 if all extensions are exercised.
Financial Impact
This is a revenue-generating contract for beverage and snack vending services at public transit operating facilities. All revenue generated under this contract will be deposited into the City's transit fund to support ongoing and future transit operations.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.